A faithless person may become a shareholder of the company, but may not be the legal representative, director, supervisor or senior manager of the company. The person subjected to execution for breach of trust refers to the person who fails to perform the obligations specified in the effective legal documents and is punished by the people's court according to law. Nevertheless, the faithless person still has the ability to invest and can hold shares in the company. However, if a shareholder's shares are pledged or frozen, it will be impossible to transfer assets by transferring shares. In addition, according to the provisions of the Company Law, an individual who owes a large amount of debt and fails to pay it off at maturity may not serve as a director, supervisor or senior manager of the company.
The legal consequences of a faithless person:
1. Restrict high consumption: including restrictions on flying, high-speed rail and other means of transportation; Restrict staying in hotels above star level;
2. Restrict holding senior company positions such as legal representative, directors and supervisors;
3. Restrict participation in government procurement, project bidding and other activities;
4. Affect credit and loan approval: banks and financial institutions may refuse to provide loans or credit card services;
5. Restrict children from attending private schools with high fees;
6. Exit restrictions: including restrictions on handling passports and visas for going abroad;
7. Affect the right to participate in litigation: limit the litigation as plaintiff, etc.
To sum up, the person who has broken his promise can become a shareholder of the company, but he can't be the legal representative, director, supervisor or senior manager of the company, and his shares can be pledged or frozen. In addition, people who owe a lot of personal debts are not allowed to hold senior positions in the company.
Legal basis:
Company Law of the People's Republic of China
Article 146
Under any of the following circumstances, he may not serve as a director, supervisor or senior manager of the company:
(1) Having no or limited capacity for civil conduct;
(2) Being sentenced to punishment for corruption, bribery, embezzlement of property, misappropriation of property or disrupting the order of the socialist market economy, and the execution period is less than five years, or being deprived of political rights for committing a crime, and the execution period is less than five years;
(3) If the directors, factory directors and managers of a bankrupt company or enterprise are personally responsible for the bankruptcy of the company or enterprise, it has not been more than three years since the date of completion of the bankruptcy liquidation of the company or enterprise;
(4) Being the legal representative of a company or enterprise whose business license has been revoked due to violation of law and ordered to close down, and having personal responsibility, it has not been more than three years since the date when the business license of the company or enterprise was revoked;
(five) a large amount of debt owed by an individual has not been paid off due.