Don't be a figurehead legal representative (挂名法人), and don't lend your ID card to someone to register a company
- Top value
- Evidence B
- Keeps you free
- Free
- Takes minutes
- No willpower
In plain words
The law presumes that the legal representative (法定代表人) is the person who runs the company, and "I was only a name on paper and knew nothing" is not a reason to be excused. When a legal representative causes harm to others in carrying out duties, the company pays first, and after paying it can come back to recover from you if you were at fault. If you are already listed, the Company Law (公司法) allows you to resign, and the company must name a new legal representative within 30 days.
Mentioned in
- Refuse when an acquaintance asks you to "scan your face and be a witness" to take out a loan, or asks you to read out a verification code: this is called an AB loan (AB贷), and the borrower is you, not a guarantor
- Don't lend your ID card, don't use someone else's, and don't use another person's documents to register, open a card or buy a ticket
- Don't be a nominal shareholder, and don't hold equity on someone else's behalf
Translated from the Chinese original. Original book, section 8, tip 28. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer