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Can Legal Representative Be Inherited?

蔡玮律EdgarChoi 秒懂法律LawInAMinute 2022-12-12

Story 29 - Company Law

A friend’s dad had recently passed away, and he was on cloud nine. He could finally inherit the 5 billion Yuan Group. He ordered the chairman to give him the legal representative status immediately and was rejected. This request is incorrect. Legal representative is a position, but not a property on legal terms, and therefore cannot be inherited. What really happens after the death of the old representative, will be the inauguration of a new legal representative according to company procedures, say by voting. 

Legal Basis

Company Law Article 13

The legal representative of a company shall, be assumed by the chairman of the board of directors, acting director or manager according to the company's bylaw and shall be registered according to law. If the legal representative of the company is changed, the company shall go through the formalities for modifying the registration.

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Author

Edgar Choi is a law graduate of the Fudan University. Edgar is the author of 4 Chinese books: Financial Law, Economic Law, Commercial Law and Intellectual Property Law In A Minute, to be published by Tsinghua University Press and one textbook: Business Ethics. 

Edgar has been interviewed by Bloomberg and Timeout on China labour law.

Edgar is the legal advisor of International Financial Techonology Academy, World Blockchain and Fintech Foundation and Esports International Group.

Edgar can be contacted by scanning the QR code below, searching WeChat ‘edgarwlchoi’, and by email ‘edgarchoilaw@gmail.com’.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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