Analysis to Transnational Corporation's Parent Company's Liability to It's Subsidiary Company's Debt

Along with the adding of transnational corporation's subsidiary companies abroad,the problem of the parent company's liability to it's subsidiary company's debt is becoming increasingly outstanding.The article analyses the relationship between transnational corporation's parent company and its subsidiary company and analyses the basis for transnational corporation's parent company's liability to it's subsidiary company's debt existing in international society.It presents the view that the principle of limited liability should be the prerequi-site and then let the parent company bear corresponding liability according to how much independence of its sub-sidiary company's has been deprived.At the same time,it suggests that in dealing with the problem,China should adhere to the principle of limited liability and adopt measure of lifting the veil of incorporation as excep-tion.