The Legal Research On Multinational Parent Corporation's Liability Obligation To Its Subsidiary

Currently, multinational corporations have become the important bodies of the global economy. During the process of their expanding, most multinational corporations take the form of the parent and subsidiary corporations as their basic internal organization structure. With this kind of structure, the parent and subsidiary corporations are independent legal persons each other, but in fact, as an integrated enterprise, the foreign parent corporation often controls its subsidiaries tightly in order to fulfil its global goal. By the reason of the global strategy, this contradiction makes it very possible for some multinational corporations to avoid their legal obligations and to cause the damage of the subsidiaries' creditors and even, the host county. So, it is a very important task to know how to disregard the corporation's legal personality properly to force the parent corporation to take the liability of its subsidiary under some certain conditions.In the past twenty years of the reform and openness of China, more than 200 laws about foreign investment have been made, but in these laws, Corporation Law and Civil Law, there are no rules about the exception of the limited principle to force the parent of the multinational corporation to take the liability of the subsidiary under some certain conditions, because of which, some multinational corporations always try to avoid their legal obligations maliciously.Therefore, I think, through the deep research of the obligation principle and the other countries' practice, we should make the relevant laws as soon as possible to regulate the activities of the multinational corporations and also protect the intersts of the subsidiaries and their creditors.