Based on the requirements of the partnership company, at least one shareholder has to bear unlimited liability of the company. In this structure, a limited liability company GP is established to play the role of the shareholder with unlimited liability. According to the nature of a limited company, the founder has 100% control over Company A and Company B and assumes limited liability for both companies.
Company C is incorporated to further restrict company A/B's power over the core company. The founders can control the portion of shares hold by company A/B easier in this structure then.
For example, if enterprise A/B owns 20% of the core company and enterprise C owns 60% of the core company, then enterprise A/B do not have decisive power over the core company at any time.
At the same time , this structure can also reduce the difficulty of registration for new investors and employees. When registering changes of shares hold by employees and investors, equity changes will only take place in the company A/B.
So the equity structure of the core company can remain stable. To conclude, this structure helps to realise the separation of "power" and "money".
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