In China, the role of the company’s legal representative is crucial. If the company chooses the right person, it will be conducive to the development of the company in the Chinese market. Specifically, the legal representative is an employee who has the legal authority to communicate with Chinese officials. The employee will exercise the company’s rights and assume corresponding duty. Generally speaking, the legal representative is the key person who participates in the daily operation of the company and holds part of the decision-making power of the company.
In some cases, legal representatives will leave their mark on anything that reflects the company’s objectives. Therefore, the responsibilities of the legal representative include many things——He or she will protect the company’s assets and have a power of attorney representing the company. The legal representative also performs the duties of signing contracts or agreements, and he or she needs to submit reports to Chinese regulators.
What ’ s more，the legal representative not only enjoy civil rights, but also bear civil liabilities independently. They have independent personality in law and have the same complete rights and behaviors as natural persons.
Then, here’s a question——what is the significance of the independent qualification of legal representative? Let me explan. The legal representative is independent of its own competent department. The competent department and the company are not superior subordinate relations, they‘re entirely equal subjects. The two sides need to form a civil legal relationship in accordance with the principles of reciprocity, voluntariness, compensation and mutual benefit.Also,the legal representative is independent of its members. In other words, the legal representative and the members constituting the legal representative are separated from each other, and each of them independently participates in civil activities in its own name, enjoying rights and assuming obligations. In addition, legal representative can independently enjoy civil rights and assume civil because of the independent property rights
In terms of liability, if the company commits misconduct，facing civil, administrative and criminal liability,then the legal representative will be responsible for such punishment. However, in fact, the company is usually responsible for the acts of the legal representative. For example, his or her unauthorized behavior or the behavior beyond the authority will be included.
On the contrary, if the legal representative has committed misconduct resulting in fines or other civil liabilities, the company can also claim compensation from the other party. However, the company needs to prove the responsibility and power of the legal representative by means of records, so as to successfully obtain the compensation.
In general, the legal representative is one of the most important positions in Chinese companies. If you want to know more about Chinese companies, you can check the China Company Verification Report. You only need to provide the company name, then the report will give you the latest and true official data.
