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How Does Company Law Define an Affiliate Relationship?

An affiliate relationship refers to the relationship between a company’s controlling shareholder, actual controller, directors, supervisors, or senior management personnel and an enterprise directly or indirectly controlled by any of them, as well as any other relationship that may result in a transfer of the company’s interests. However, enterprises controlled by the State are not deemed affiliated solely because they are both under State control.

Updated October 3, 2026
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