Risk of Legal Representative: Legal Liability of Legal Representative of an Enterprise Article 49 of the General Principles of Civil Law stipulates that an enterprise as a legal person may be given administrative sanctions and fines in addition to its legal liability, and if the case constitutes a crime, it shall be investigated for criminal responsibility according to law: (1) engaging in illegal business beyond the business scope approved and registered by the registration authority; (2) Concealing the real situation from the registration authority or 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; (5) Failing to apply for registration and announcement in time at the time of alteration or termination, thus causing great losses to the interested parties; (six) to engage in other activities that harm the national interests or social public interests prohibited by law. In other words, most of the legal business activities of the legal representative (that is, the executive organ such as the chairman of the company) will be regarded as civil acts of enterprise legal persons, and the enterprise legal persons will bear civil liabilities. If an enterprise as a legal person engages in the relevant business approved at the time of registration and operates legally, the legal representative shall not be liable for timely registration and announcement at the time of bankruptcy, dissolution or cancellation of the enterprise. The characteristics of a fund legal person are as follows: [1] First, planning certain property to become a legal subject. From the semantic point of view of Chinese, "fund" should refer to a certain collection of property, but through the drafting of the law, it can also become the legal subject and bear independent civil liability in the name of the fund. For example, funds can open accounts in banks, open-end funds can also open accounts in exchanges, and funds can also pay taxes independently. When civil liability occurs, it can bear civil liability independently with the fund property. The fund is independent of investors and fund managers. The second is the legal person who collects investors' funds. It redeems its independent share in the name of the fund. The fund can operate in an open or closed mode. Open-end funds can be redeemed and transferred out, while closed-end funds cannot be transferred out or redeemed within the agreed time limit. There are certain restrictions on the number of investors absorbed by closed-end funds, but there are no strict restrictions on open-end funds. Third, it is usually necessary to manage and operate funds in the form of trust. "The consortium system is a system adopted by civil law countries. In common law countries, the trust system is adopted. This system does not regard a certain property as an independent subject of rights and obligations, but makes it belong to a specific manager (trustee). But there are special methods to maintain management, so that the property does not lose its independence and management sustainability. It is said that the trust property will be completely separated from the inherent property of the trustee, and there are restrictions on the qualifications of the trustee. ∞ The fund needs to be managed and operated by trust, that is, investors need to entrust it to the fund manager by trust, and the fund manager manages it according to the trust contract. The rights and obligations of both parties are determined according to the provisions of the Trust Law and the special provisions of the contract. It is precisely because the fund operates through trust that once the investor entrusts the property to the trustee, it will form trust property. Legally, the trust property must be separated from the investor's personal property and the manager's property to maintain the independence and stability of the fund property. The fund manager and fund custodian manage and use the fund property or the property and income obtained due to other circumstances are classified as the fund property. The fund property and the trustee's own property shall be managed separately, and the debts incurred by the fund shall be borne by the fund. It is reflected that the court can only enforce the debts arising from the operation of funds, but not the property of investors and managers. It is precisely because the fund legal person wants to pay off debts with the fund, and when the fund is not enough to pay off debts, it cannot be paid off with the property of investors and fund managers, so the I fund belongs to an independent legal person. If a fund manager or fund custodian is liquidated due to dissolution, cancellation or bankruptcy according to law, the fund property does not belong to its liquidation property. Fourth, the fund is neither a consortium nor a corporate body. Because investors invest in a certain wealth, the investment funds are separated from it, and investors do not participate in the management of the property, which is completely managed by the fund management company. The investor can only enjoy the corresponding rights and obligations according to the contract, but does not enjoy the membership rights enjoyed by shareholders in the company. The difference between it and a consortium legal person is that the fund is for profit, and the purpose of the fund is profit. Different from the public welfare purpose of consortium legal person in traditional civil law. Legal persons will be punished for illegal business operations, tax evasion, withdrawal of funds, unauthorized use of funds, unauthorized disposal of property after bankruptcy, and illegal activities that harm national interests. At this time, the company as a legal person will be responsible, so the company as a legal person will take risks while bearing the benefits, so everyone must operate with caution.