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Why are more and more bosses unwilling to be the legal representative of the company?

The company is owned by the boss, and the property is also owned by the boss, but why is the boss increasingly unwilling to be the legal representative?

At present, when registering a company, many business owners will not personally act as the legal representative, but their relatives, friends or employees will act on their behalf.

it's not that the boss is not the boss, but that the boss has learned to be smart and is reasonably avoiding the responsibilities and risks he may face!

Now, many young people are placed in the position of legal representatives by their bosses just after graduation, and they feel complacent. They think that the boss values themselves and will be more motivated if they focus on training. In fact, there may be secrets that the boss doesn't want to tell.

Although the current company is basically a limited liability company, the company is liable to the company with its own assets and the shareholders are limited to their own contributions, as if it doesn't matter much who is the legal representative.

In fact, this idea is wrong. Since the legal representative represents the company legally, there are a series of rights and obligations to bear. If the company is not well managed or the company commits crimes, the legal representative will be restricted and need to bear joint and several liabilities.

Normally, a company founded by a boss himself will take the initiative to be the legal representative, regardless of the development of feelings and career. If they are unwilling to do so, they may have the following considerations:

First, avoid their own risks.

if the company can't be dissolved and cancelled normally after the enterprise has problems, the potential risks for the boss are still relatively large, and there are many potential risks.

according to the regulations, if the legal representative and other staff members of an enterprise as a legal person engage in business activities in the name of a legal person and cause economic losses to others, the enterprise as a legal person shall bear civil liability, and the legal person may recover the compensation liability of the legal representative or other staff members who are at fault after assuming the liability of a third party.

in the current business habits, banks often ask the legal representative to bear joint and several liability for loans, which is the personal guarantee for the company's debts. If the loan is not made in the future, the bank will ask the legal representative to bear joint and several liability. If it breaks its promise eventually, it may become a deadbeat and be restricted from high consumption.

Similarly, if a company engages in illegal business operations, practices fraud, withdraws funds, hides property to avoid debts, it will be subject to administrative punishment, and even be required to bear criminal responsibility if the circumstances are serious.

In corporate crimes, the legal representative is often the first person to be investigated for criminal responsibility. The crimes most easily involved in the company are money laundering, fund-raising fraud, bill fraud, counterfeiting registered trademarks, selling counterfeit registered trademarks, contract fraud, refusing to pay labor remuneration and so on.

It can be said that there are great risks in the operation of the company, and the legal representative is also baked on the fire. A little carelessness may lead to many unexpected responsibilities, so many bosses transfer this risk to others.

With more and more restrictions on the person who has broken his promise, the blow is getting bigger and bigger. If there is something wrong with the company's operation, then the boss will become the person who has broken his promise, and he will inevitably not be able to live and travel as easily as before.

the legal representative may be included in the list of high consumption restrictions by the court, or even be included in the list of people who have broken their promises. At that time, they can't fly, take the high-speed train, buy a house or a car, or go out of high-consumption places.

So, they might as well pass the risk on to others. In the end, the company will make money for him, and if something goes wrong, it will not matter much to him in personal influence, and they can still live a relaxed and happy life as before.

Especially those who are used to being bosses pay more attention to fame and face. If others don't know that he is a real boss all the time, they can't be held accountable by law, and their credit face will be maintained.

Of course, there are bosses who have been punished before, or who have broken their promises to the person being executed, so they can't be the legal representative, so they register the company through others and operate in secret to win new opportunities for turning over.

Some bosses even think of a way out in advance. They know that the company is risky, so they might as well leave a way out for themselves and let the unsuspecting people take the risk for him.

Therefore, for people who are not informed, don't be the legal representative of his company casually, unless the remuneration he gives makes you worthy of this status, and at the same time, the illegal risk should be ruled out.