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The Legal Research on Multinational Parent Corporation’s Liability Obligation to Its Subsidiary

Author: LingHuan
Tutor: SunChunWei
School: Harbin Engineering University
Course: Economic Law
Keywords: Multinational Parent company Subsidiary Debt obligations
CLC: D923
Type: Master's thesis
Year: 2008
Downloads: 120
Quote: 0
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Abstract


Multinational corporations are important economic entities in the current global economic development . In the continuous expansion of the internal process of the internal organizational structure , the most basic and the most widely used form of parent companies and subsidiaries . In this structure , multinational parent company and its subsidiaries is a separate legal entity in law , in practice , a subsidiary are often in a foreign parent company is controlled based on the integration of the global goal . The contradiction between the legal form and the actual control multinational companies most likely to evade legal responsibility in the implementation of the global strategy , against the interests of one of its subsidiaries and its creditors , even the host country . Therefore , how timely denied independent legal personality of the subsidiary , became an important topic of international economic law scholars assume the debt obligations of its subsidiaries, in certain circumstances allow multinational parent company . In nearly three decades of reform and opening up in China , have developed more than two hundred laws and regulations concerning foreign investment , these multinationals applicable laws and regulations , together with the \intercompany debt liability the issues limited principles exceptions in certain circumstances , so that in practice some multinationals malicious use of the legal system in China blank evade responsibility . Therefore , I believe that , through the of responsibility principles depth and comparative study on the practice of States , China should develop a legal system in line with China 's national conditions and the current world economic situation , which on the one hand to effectively regulate multinational companies of the parent company and its subsidiaries behavior ; other hand better protect the legitimate rights and interests of domestic and multinational companies subsidiaries in China and its creditors .

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CLC: > Political, legal > Legal > Chinese law > China and France
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