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For those interested in more about the legal representative /'fa ren' (literally, legal person) there's a good overview here: http://www.china-briefing.com/new
by zhte415 10y ago
For those interested in more about the legal representative /'fa ren' (literally, legal person) there's a good overview here: http://www.china-briefing.com/news/2011/08/11/roles-and-responsibilities-of-the-china-legal-representative.html http://www.china-briefing.com/news/2011/08/11/roles-and-resp...
TXV: Not a law about the role of legal representative in general, right, but that industries that are defined as 'protected' are not open to foreign owned companies?
The role of the legal representative is to represent the company in civil law. The legal representative also has a supervisor or board of supervisors, so their actions can be kept in check. This in indeed one of the main roles of the supervisor/board of supervisors: to make sure the legal representative does not run away with the company's cash.
- TXV 10y agoCorrect, it's not about the role of the legal representative. I agree that the terminology is not very clear, as customary of Chinese laws. It states that the physical person or the legal entity investing in the company must be Chinese, where the term you cited /'fa ren' 法人 refers to the legal entity (e.g. a company) and the legal representative I cited is the physical person investing in the company (the president or the owner, which if I'm not mistaken is the same guy who represents the company before the law). Terminology aside, it goes even further. It even states that 工作人员仅限于中国公民 the workers of that company must be Chinese nationals!