61. What are the possible legal risks of serving as the legal representative?
Case] Company B is a shareholder of Company A, and Company A is the new legal representative of Company B appointed to Company A with the position of manager. Soon after Company A took up his duties, Company A was sued by other creditors, and the court finally ordered Company A to bear a huge amount of debt. Since Company A had no property to enforce, the court included Company A in the list of dishonesty, and A was therefore restricted from spending highly. Later, A submitted his resignation to Company A, and the board of directors of Company A agreed to A's resignation request, but since no one else was willing to serve as the legal representative of Company A, Company A's legal representative has been served by Company A
Legal Analysis] 1. When the legal representative conducts external activities in the name of the company, his signature is equivalent to the company's seal, so the legal representative has great power. However, there are still certain legal risks associated with serving as the legal representative, such as the company being unable to bear debts and being included in the list of dishonesty, the legal representative may be restricted from high consumption, unable to take loans, take airplanes and high-speed trains with the prefix G, etc. If the company is suspected of committing a crime, the legal representative may be held criminally liable as the main person in charge.
2. In this case, the restriction on high consumption is extremely unfavorable to A, because the debts of Company A did not occur during the period when A was the legal representative, and A was not a shareholder of Company A, so it did not play an actual control role in the performance of Company A's debts. Therefore, when Company A refuses to change its legal representative, A may file a lawsuit with the court to confirm that it is not the legal representative of Company A, and then raise an enforcement objection to the court, so that the court may lift the restriction on its high consumption.
Corporate Law