New Circular Sets Management Restrictions for Corporate Legal Representatives
Apr. 26 – The State Administration for Industry and Commerce (SAIC) recently issued a notice on improving management restrictions for corporate legal representatives to strengthen information management and enhance enterprises’ credibility awareness.
Circular (2010) No. 82 clarifies the limitation and restriction of representatives in accordance with the “Company Law,” “Management Approach of Company Registration,” and “ Registration Regulations for Corporate Legal Representative.” It states that in circumstances where the corporate legal representative can’t assume its responsibility within the legal limited period, the representative will not be able to continue its status in the company as a legal representative, or any other company for that matter.
Furthermore, the circular stipulates that representative status shall not be extended to company shareholders. When the tenure has ended, the representative shall follow discharge procedures and will not renew the term or extend the term.
SAIC will further strengthen the information classification and management of restricted legal representatives, including coordinating an information system with other government departments and updating the database in a timely manner.
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