I. Risks of the legal representative
As the legal representative of the limited company, the first thing is to face the economic risk. In the course of the company's operation, once there is a shortage of funds, poor management or investment failure, the legal representative may need to bear the loss of personal property. In addition, if the company is involved in illegal operation or fraudulent behavior, the legal representative may also face legal prosecution and criminal liability.
In addition to economic risk, the legal representative also bears the decision-making risk. As the company's decision maker, the legal representative needs to make decisions on the company's business strategy, development direction and major matters. Once the decision-making mistakes, may bring great losses to the company, and then affect the personal reputation and career development of the legal representative.
Second, the benefits of the legal representative
Despite the risks, but as a limited company's legal representative has many benefits. First of all, the legal representative enjoys the company's decision-making and management rights, can participate in the company's daily operation and major decisions, to realize personal value and career pursuit.
Secondly, the legal representative has a higher status and influence in the company. As the legal representative of the company, the legal representative has a greater say in foreign cooperation, business negotiations and handling of legal affairs, etc., which helps to enhance the image and reputation of the company.
In addition, as a representative of the legal person can also bring certain economic benefits for individuals. As the manager and decision-maker of the company, the legal representative usually enjoys higher salaries and benefits, and can also share the company's operating results by holding the company's shares.
Summary:
The risks of the legal representative of a limited company are mainly reflected in the economic risk and decision-making risk, while the benefits include enjoying the decision-making power and management power, higher status and influence as well as certain economic benefits. In the process of acting as a legal representative, these risks and benefits should be fully recognized and assessed to ensure a balance between the interests of the company and the individual.
Legal basis:
The Company Law of the People's Republic of China
Article 13 stipulates:
The legal representative of a company shall be the chairman of the board of directors, an executive director or a manager in accordance with the articles of association of the company and shall be registered in accordance with the law. Changes in the legal representative of the company shall be registered.
The Company Law of the People's Republic of China
Article 149 stipulates:
Directors, supervisors, and senior management shall be liable for damages caused to the company in the event that they violate the provisions of laws, administrative regulations, or the articles of association of the company in the performance of their duties.