The problem of companies borrowing money from legal persons,

What if the legal representative borrows money from the company? First of all, according to Article 115 of the Company Law, a company may not provide loans to directors, supervisors and senior managers directly or through subsidiaries. If the legal representative is not a director, supervisor or senior manager of the company, he may borrow money from the company; Secondly, if the legal representative is a shareholder of the company, it is necessary to judge whether the act of borrowing money from the company constitutes a withdrawal of capital contribution. In order to evade the provisions of laws and regulations, if the legal representative withdraws his capital contribution in full by borrowing money, he shall be deemed to have withdrawn his capital contribution and will bear corresponding civil liabilities. If there is a real loan relationship between the legal representative and the company, it should be protected by law. According to the Contract Law of People's Republic of China (PRC), the borrower shall repay the loan on schedule according to the loan contract. According to the Civil Procedure Law of People's Republic of China (PRC), if the legal representative refuses to repay the loan, the company may bring a lawsuit to the people's court, requiring the legal representative to repay the loan and pay interest. Finally, the lawyer reminds everyone that when the legal representative borrows money from the company, he should go through the relevant formalities, sign a written loan agreement and stipulate the purpose of the loan. The loan period cannot exceed one year, so as not to be considered as an act of withdrawing funds. The law stipulates that Article 196 of the People's Republic of China (PRC) Contract Law defines a loan contract as a contract in which the borrower borrows money from the lender, returns the loan at maturity and pays interest. Article 201 of the Contract Law of People's Republic of China (PRC) * * * If the lender fails to provide the loan according to the agreed date and amount, thus causing losses to the borrower, it shall compensate for the losses. If the borrower fails to collect the loan according to the agreed date and amount, it shall pay interest according to the agreed date and amount.