The legal representative of a company should normally be at the level of executive director or manager. However, in practice, many bosses will pick an employee who is "honest and easy to talk".
In the previous company law, if the boss did something behind his back that harmed the company's interests, the legal person was often required to take the blame.
However, in the first paragraph of Article 11 of the New Company Law, the liability of legal persons has been clearly adjusted:
The legal consequences of civil activities engaged in by the legal representative in the name of the company shall be borne by the company. Paragraph 3 of Article 11 also stipulates that if the legal representative causes damage to others due to the performance of his duties, the company shall bear civil liability.
This means that in the future, if something happens to the company, the company will take the risk itself, and the legal person will no longer be the first responsible person. Because the legal person also acts for the company according to the company's wishes, even if it is responsible, it should not bear the main responsibility.
So who will take the risk for the company itself? It must be the boss who actually controls the company.
In the old version of the company law, many cases were cases in which the boss engaged in business activities in the company, engaged in the sale of counterfeit and shoddy products, wage arrears, loan fraud, fraud, smuggling, money laundering and other violations of laws and regulations, and the benefits obtained were all in his own pocket, but the risk and civil liability were pushed to the legal person, which is obviously very unreasonable.
After the new company law, this situation can be greatly improved, and if there is a problem, you can directly find the actual controller of the company, and the legal person no longer has to take the blame for others, which is gratifying!
Finally, I silently want to ask, when will we accountants be able to legislate to get rid of the fate of the blame?