On The Legal Representative System Of The Company

The legal representative system in China is a topic that worthy of researching no matterin theory or in practice, especially its problems exposed in practice attract lots of scholars’attention. Legal representative system in China is affected by planned economy system andthe idea of "man runs enterprises", the legal representative has a special position which differsfrom other organs of the company. He abuses of power and ignores the interests of thecompany and the shareholders for their own interests. In addition, the special position in thecompany cause the imbalance phenomenon of corporate governance structure evenworse,which go against the establishment of modern corporate governance mechanism,andweaken the enterprises competitiveness in our country. Therefore, this paper uses historicalanalysis, literature review method, comparison method and so on to summarize the basicconnotation of legal representative system, and based on the analysis of the developmenthistory of the system and its current disadvantages, further discusses its characteristic andnature. Through the analysis of the importance of the legal representative in the company andits different configuration mode design, clear the rights and liabilities position among legalrepresentative, chairman and general manager, compare the application of the differentconfiguration mode in company’s different development stage, and provide new ideas forcompany selecting legal representative person to reasonably allocating with chairman andgeneral manager. To state conveniently, this article unless otherwise specified, the legalrepresentative refers to the legal representative of the company.This article mainly divide into five parts:The first part states the basic problems of China’s legal representative system. Proceedfrom the basic theory of legal representative system, analyze the Anglo-American law systemrepraesentationstheorie, continental law system repraesentationstheorie and Chinese legalrepresentative repraesentationstheorie, and then clear the nature of legal representative isinstitution not a natural person, and on behalf of company’s interests. At the same time,analyze the components of legal representative representation and representative behavior, laythe foundation for legal representative configuration mode research through the reveals for thesystem’s connotation itself.The second part discusses the historical evolution and disadvantages of legal representative system in China. This part briefly elaborated on the special historicalbackground of China’s legal representative system formation and development, and combineswith the special background,analyzes the disadvantages of the system under present situationin our country.The third part is the focus of this articl, elaborated on the legal representative position inthe corporate governance and its configuration mode design. This part through defining thelegal representative status and responsibility, analyze its function in corporate governance,and find out a suitable mode for China through analyzing the advantages and disadvantages ofthe different configuration modes, allow full play to the legal representative function incorporate governance.The fourth part analyzes the legal representative application of the differentconfiguration mode in company’s different development stage. This section combines theconfiguration mode with the company’s development stage, analyzes how to adopt differentconfiguration mode during different development stages to promote the development of themodern company.The last part combines with the front discuss to summarize the legal representativeconfiguration mode.