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

Nowadays multinational corporations become important economic subjects with the development of global economy.The form of parent-subsidiary company is preferred to choose as the basic and widely incorporated internal structure especially with the continuing internal expansion of multination corporations. Parent company and subsidiary company has their own individual legal personality in this form of internal structure foresaid. Actually, subsidiary companies are always controlled by the pared company in order to achieving its integrated economical strategy. When a multinational corporation carries its global integrated economical strategy, contradiction between legal form and practical control may make the multinational corporations evade the relative laws to infringe the benefits of some subsidiary companies,creditors and even the host country. From the above, it is the more important subject for scholar to research how to deny the legal personality of the subsidiary companies timely and make the parent company lable for debts of subsidiary companies in some particular situations.Our country makes a great amount of laws and regulations refer to foreign investment, but none of those laws and regulations with company law and General Procedures of the Civil Law and some else which avail to the multinational corporations have the exception to the limited principles of bearing the debts between the parent company and the subsidiary companies in the particular situations, which practically some multinational corporations hostilely take advantage of our legal loophole to free their labilites..This article tries to expatiate on the problems that the article mentioned above through several classical international cases. The first section of the article mainly introduces general theories about multinational corporations'parent and subsidiary companies, including the concepts, characteristics, organic form and legal status and so on; the second section briefly introduces relative theory principles about the multinational parent company liabes to the subsidiary companies'debts. The third section expatiates on laws and regulations about the multinational parent company liabes to the subsidiary companies'debts and international and our country's legislation and deficiency at the present;The forth section mainly submits some legislative proposals for improving international parent company's liabilities to the subsidiary companies considered our country's conditions mainly in order to solve the problems that this article mentions.The author hopes, it will give certain degree support for improvement of legislation through the theories analysis about the multinational parent companies'liabilities to the subsidiary companies and legal practices research. On the one hand,it can validly regular the acts between the multinational parent company and subsidiary company; on the other hand,it can protect the benefits of the multinational subsidiary companies and creditors in our country.