It depends on whether your friend's company is a limited liability company or something else. If it is not limited liability, once there is a debt problem, your assets will be confiscated for compensation or auction compensation. If you can't pay off your debts, you will bear criminal responsibility.
Legal representative and legal representative are two different legal concepts. The legal representative generally refers to a person who holds a certain position according to the internal articles of association of a legal person or is appointed by the legal representative to exercise civil rights and obligations on behalf of a legal person. It is not an independent legal concept.
The legal representative is produced according to the authorization of the legal representative. Without the authorization of the legal representative, the legal representative cannot be produced. As the subject of civil rights, a legal person may have multiple legal agents.
The legal representative's external exercise of power is restricted by the authorization of the legal representative. He can only carry out activities on behalf of the legal person within the scope of duties authorized by the legal representative. His behavior is not the behavior of the legal person itself, but has direct legal effect on the legal person. ?
1. The legal representative of an enterprise should bear different legal responsibilities on different occasions.
For example, in the case of representing an enterprise, its personal signature will lead to the consequences of the enterprise taking responsibility; If the enterprise goes bankrupt and assumes personal responsibility, the legal representative will be subject to many restrictions in running the enterprise in the future;
If an enterprise violates the relevant laws and regulations, it may restrict the person of the legal representative. If it refuses to execute the court judgment, the legal representative will be detained; If a legal person commits a crime, the legal representative will be subject to criminal punishment, and so on. The above is just a list, not complete.
2. If there are no defects (such as defects in capital contribution) when the legal person is established, the liability for losses shall be borne by the legal person itself, and it is neither a shareholder nor a legal representative. Of course, if it is a state-owned enterprise, unless the legal representative has dereliction of duty, the severity reaches the level of criminal law investigation or administrative sanctions should be given;
3. As long as a sole proprietorship legal person can distinguish between legal person's property and personal property, it doesn't need the legal representative to bear civil liability. When a legal person is in the form of a limited company, the company shall bear all its property, and the individual shareholders shall not be responsible, except for the defects in capital contribution when it is established.
Extended data:
If there are contradictions and disputes,
The legal representative of a company is the legal representative of an enterprise as a legal person and engages in civil activities on behalf of the legal person. After becoming a legal agent, his natural personality is absorbed by the legal person, and all the responsibilities assumed as a legal agent in civil acts are borne by the legal person.
However, the responsibility for exercising civil acts unrelated to the identity of the legal representative shall be borne by me. If the legal representative is at fault in exercising his right of representation in violation of laws and regulations, he shall bear corresponding responsibilities.
China's "General Principles of Civil Law" stipulates six situations in Article 45:
(1) engages in illegal business activities beyond the business scope approved and registered by the registration authority;
(2) concealing the real situation from the registration authority and the tax authority or practicing fraud;
(3) Evading funds or hiding property to avoid debts;
(4) Disposing of property without authorization after dissolution, cancellation or bankruptcy;
(five) the change or termination is not registered and announced in time, which has caused great losses to the interested parties;
(six) to engage in other activities that harm the national interests or social public interests prohibited by law.
These illegal acts are still borne by the legal person, which does not exempt the legal representative from other responsibilities caused by it, that is, administrative sanctions, fines and other penalties can be given. If a crime is constituted, criminal responsibility shall be investigated according to law.
Of course, the legal representative also has the following rights:
(1) The legal representative of an enterprise shall exercise his/her functions and powers and perform his/her obligations within the scope of functions and powers stipulated by national laws, regulations and the articles of association of the enterprise, participate in civil activities on behalf of the enterprise as a legal person, be fully responsible for the production, operation and management of the enterprise, and accept the supervision of all members of the enterprise and relevant authorities.
(2) The legal representative of the enterprise may entrust others to perform their duties.
(3) The legal representative of the enterprise entrusts others to perform their duties. The duties that must be performed by the legal representative according to laws and regulations shall not be entrusted to others.
(4) The legal representative of an enterprise shall not concurrently serve as the legal representative of other enterprise legal persons. Due to special needs, they can only work concurrently in enterprises with affiliation or joint venture or investment, and they will be strictly examined by the competent department of the enterprise or the registration authority.
(5) The legal representative of an enterprise as a legal person is the signatory who exercises authority on behalf of the enterprise.
(6) The signature of the legal representative shall be filed with the registration authority. The document signed by the legal representative is a legal document representing an enterprise as a legal person.
Baidu Encyclopedia-Legal Representative