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China Legal Representative — Powers & Risks for FIEs

Every Chinese company has a legal representative — an individual with statutory authority to represent the company. For FIEs, choosing and controlling this role is a core governance decision.

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Risks

  • Authority to bind the company in many contexts
  • Personal exposure in certain regulatory scenarios
  • Difficulty replacing if relationships break down

Controls

  • Align articles of association and internal approvals
  • Control chops and bank authorities
  • Plan succession and emergency replacement

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