Overview

Appointing a legal representative is a decision that all new companies in China must face. In order to make an informed decision, companies should keep in mind that a legal representative has certain duties and responsibilities that are stipulated in China's Company Law (among other laws and regulations).

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 from King & Wood provides an overview of the potential risks that a legal representative may face under civil, criminal and administrative laws and how such risks are often prevented or minimised based on China's legal practices.

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