1. The legal liability of the legal representative is different from that of the shareholders: the shareholders are only liable according to the amount of capital contribution. If the company's operation involves a crime, the legal representative may bear part of the criminal responsibility first. Shareholders will depend on the situation.
2. Difference of authority: Shareholders have the decision-making power and voting right on the major issues and business direction of the company, and can decide the development direction of the company by voting at the shareholders' meeting, while the legal representative is only the "spokesperson" of the company and does not enjoy the actual decision-making power.
3. Different rights distribution: shareholders have the rights to distribute dividends, consult and copy company information, vote at the shareholders' meeting, dissolve the company, etc., while the rights enjoyed by legal persons are generally stipulated in the company's articles of association, which does not match the rights of shareholders.
4. Different external effects. The legal representative is a legitimate foreign representative, whose behavior can be regarded as a company's behavior and has the effect of signing a contract and entrusting an agent ad litem. However, unless specially authorized by the company, the contract signed by the shareholders is invalid.
Legal basis: People's Republic of China (PRC) Company Law.
Article 13 The legal representative of a 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.
Article 33 Shareholders have the right to consult and copy the Articles of Association, minutes of shareholders' meeting, resolutions of the board of directors, resolutions of the board of directors and financial and accounting reports. Shareholders may request to consult the company's accounting books. Where a shareholder requests to consult the company's accounting books, he shall submit a written request to the company, explaining the purpose. If the company has reasonable reasons to believe that the shareholders' access to the accounting books has improper purposes, which may harm the legitimate interests of the company, it may refuse to provide access, and shall give a written reply to the shareholders within 15 days from the date of the shareholders' written request, explaining the reasons. If the company refuses to provide inspection, the shareholders may request the people's court to require the company to provide inspection.