Division of responsibilities between actual controller and legal person

The responsibilities of the actual controller and the legal person are divided as follows:

1. The responsibility of the actual controller of the company is to take responsibility for its own illegal and breach of contract;

2, because the legal person has independent legal person property, and enjoy legal person property rights. Therefore, the legal person is liable for the debts of the company with all its property. A legal person is an organization that has the capacity for civil rights and civil conduct, enjoys civil rights and undertakes civil obligations independently according to law.

The difference between the actual controller and the legal person lies in:

1. An enterprise as a legal person refers to the person in charge who engages in civil activities on behalf of the legal person in accordance with the provisions of the law or the articles of association of the legal person.

2. The actual controller refers to the actual manager of the company. More than 50% of the controlling shareholders or shareholders who actually control more than 30% of the voting rights of listed companies are the actual controllers of the company.

The legal representative of the company is responsible for:

1. If the legal representative violates the law and causes losses to the company, he shall be liable for compensation;

2. Where a shareholder withdraws his capital contribution and the legal representative assists in withdrawing his capital contribution, he shall bear joint liability;

3. If the legal representative fails to fulfill his duty of loyalty and diligence, and the shareholder's capital contribution is not fully paid, he shall bear corresponding responsibilities.

To sum up, the responsibility of the actual controller of the company is to take responsibility for his own illegal breach of contract. Because a legal person has independent legal person property and enjoys legal person property rights. Therefore, the legal person is liable for the debts of the company with all its property. A legal person is an organization that has the capacity for civil rights and civil conduct, enjoys civil rights and undertakes civil obligations independently according to law.

Legal basis:

Article 5 of the Company Law of People's Republic of China (PRC)

Companies engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities. The legitimate rights and interests of the company are protected by law and shall not be infringed.

Article 13

The legal representative of the company shall be the chairman, executive director or manager in accordance with the articles of association, and shall be registered according to law. Where the legal representative of the company changes, it shall go through the registration of change.