The advantage of using an elderly person as a legal person is that the company has risks. After bankruptcy, if the elderly person is unable to repay, there is nothing he can do even if the compensation is large. In this way, even if the company goes bankrupt, you won't have to bear some debts yourself.

The disadvantage of using an old person as the legal person of the company is that the change of the legal person of the company will bring about a series of serious consequences, making it difficult to gain the trust of the cooperative company. Establish cooperative relationships, etc.

Causes:

First, it is to circumvent the restrictions of Lao Lai and avoid debts. In recent years, national credit reporting agencies, courts and other institutions have intensified their crackdowns on Lao Lai, imposing restrictions on Lao Lai's ability to take flights, high-speed trains, go abroad, and high consumption in order to urge Lao Lai to fulfill their legal responsibilities.

Some companies have used "crooked brains" to circumvent the restrictions on senior citizens and actively replaced the legal representative of the company with an elderly person. The actual controller of the company has achieved the purpose of evading debts and refusing to perform effective judgments.

Second, the approval department’s inspection is not in place. my country's company registration laws and regulations clearly stipulate that "persons without capacity for civil conduct or persons with limited capacity for civil conduct shall not serve as legal representatives."

Some elderly people suffering from cognitive impairment such as Alzheimer's disease should be prohibited from serving as legal representatives. However, most registration departments only conduct a formal review when changing legal persons and do not require the elderly to provide their legal representatives. Proof of being a person with full capacity for civil conduct enables the elderly to successfully become the legal representative of the enterprise.

Third, registration facilitation measures have been abused. At present, the state advocates vigorously promoting administrative review and approval facilitation measures, such as full electronic registration, face-to-face review and approval, etc., which greatly improves administrative efficiency and facilitates the masses. However, these convenience measures are also easily abused by criminals, and the elderly become legal representatives. On the contrary, people are more convenient, and phenomena such as false registration are also increasing.