Minimizing the Risks that Legal Representatives Face

Under PRC laws, the legal representative of a company is the person who acts in the name of the company and represents the company in the exercise of its rights and obligations. The legal representative is a fundamental part of a company's corporate governance structure. To an extent, the person who is appointed to the position of the legal representative is authorized to conduct many of the company's affairs. However, the legal representative must fulfill certain duties while exercising his/her rights. This article will briefly introduce the potential legal risks that a legal representative may face under civil, criminal and administrative laws and how such risks are often prevented or minimized based on China's legal practices.