On The Debt Responsibility Of Parent Company To Subsidiary

With the evolution of the global economic integration, increasingly numbers of foreign investors come to China to seek business opportunities, which has brought not only development and opportunities but also challenges to the Chinese local markets.Multinational corporations, as the main form of advancing the global economic integration, mainly take the form of the parent and subsidiaries as their basic internal organizational structure during the process of global expansion, because such structure largely reduces oversea investment risk due to the independency-nature of the subsidiaries.In general, multinational corporations establish various firm strategies in consideration of the business on a global level. As its subsidiary, which is under fully control of the parent, has little flexibility if the global policy or strategy carried out in conflict to its local interest. This has made it possible that the interests of the stakeholder of the subsidiary are damaged under such organizational structure. Hence, how to define the parent’s responsibility and obligations on its subsidiary’s liability is an urgent issue in the field of global economic law which requires an immediate solution.I collected and summarized the former academic opinions from the experts and scholars in this field, analyzed the definition and legal relationship, summarized the domestic law system and international law system in legal issues of multinational parent and subsidiary corporations, introduced some principles and theories in solving the problem that multinational parent corporations’ liability to its subsidiary corporations’ debt, and commented on some typical cases, finally, discussed the possibility of legislation in this issue.Chapter1mainly briefly introduced the problem that multinational parent corporations’ liability to its subsidiary corporations’ debt, present the topic.Chapter2mainly summarized the domestic law system and international law system in legal issues of multinational parent and subsidiary corporations.Chapter3mainly analyzed some principles and theories in solving the problem.Chapter4mainly studied some typical cases.Chapter5mainly discussed the possibility of legislation in this issue.