Foreign-Invested Companies: Role of Legal Representatives

According to PRC law, the legal representative of a company generally refers to a person who is authorized to exercise power on behalf of the company. Foreign-invested enterprises in China also need to appoint legal representatives. The legal representative has a dual identity and status: internally he/she is responsible for company affairs, with decision-making power and management power; externally, he/she engages in business activities on behalf of the company, with the right of representation. Therefore, it is very important to understand the rights and obligations of legal representatives and appoint suitable legal representatives to foreign-invested enterprises.