The first type: large enterprises with complex organizational relationships.
The legal representative of an enterprise is the person in charge who exercises power on behalf of the enterprise. In reality, many enterprises have internal rules and regulations, external agreements, financing guarantees, salary distribution, long-term vacations, etc. Need the signature of the legal representative for review. After an enterprise grows in scale, it may involve hundreds of affiliated enterprises, such as subsidiaries, sun companies and joint venture holding companies. If the bosses of enterprises are legal representatives themselves, they will be exhausted. Therefore, in large enterprises, the general boss will only serve as the legal representatives of the parent company and some extremely important affiliated enterprises, and the legal representatives of other affiliated enterprises will be served by other senior managers. This is just to reduce the workload, share the pressure of the boss and ensure the stable and continuous normal operation of the enterprise. Therefore, in this case, it is generally not a pit.
The second type: special purpose enterprises.
1. Avoid unified credit granting and expand financing scale. When financing in any bank, the bank will require the applicant and its affiliated enterprises to give unified credit and give the total control limit to the applicant's group to reduce risks. Due to universal control, the overall financing scale of enterprises is limited. Therefore, in order to expand the financing scale, some enterprises in reality will set up external enterprises (that is, on the surface, shareholders, legal representatives and senior executives are inconsistent with the applicants, and the boss holds shares through private implicit agreements) to increase the financing scale through external enterprise financing.
2. Evasion of legal responsibility: According to Article 49 of the General Principles of the Civil Law of China: "In any of the following circumstances, in addition to pursuing corporate responsibility, the legal representative may be given administrative sanctions and fines. If the case constitutes a crime, criminal responsibility shall be investigated according to law: (1) engaging in illegal business beyond the business scope approved and registered by the registration authority; (2) Concealing the real situation from the registration authority or the tax authority or practicing fraud; (3) Evading funds or hiding property to avoid debts; (4) Disposing of property without authorization after dissolution, cancellation or bankruptcy; (5) Failing to apply for registration and announcement in time at the time of alteration or termination, thus causing great losses to the interested parties; (6) engaging in other activities prohibited by law that harm the national interests or social public interests. " Enterprises set up privately by individual bosses are for tax evasion or debt evasion. As long as the enterprise has the above behaviors, as the legal representative, it should also bear corresponding responsibilities.
As a legal representative, every move of his own enterprise is within his own responsibility. There is something wrong with the enterprise, whether you are in name or not, it is your responsibility, and it is you who will be punished. Therefore, I suggest you choose carefully.