Legal basis: Civil Code of People's Republic of China (PRC).
Article 62 If a legal representative causes damage to others when performing his duties, the legal person shall bear civil liability. After a legal person bears civil liability, it may claim compensation from the legal representative at fault in accordance with the law or the articles of association of the legal person.
Article 74 A legal person may establish branches according to law. Where laws and administrative regulations stipulate that branches should be registered, such provisions shall prevail. Branches engage in civil activities in their own names, and the resulting civil liabilities shall be borne by legal persons; It can also be borne by the property managed by the branch company first. If it is insufficient, it shall be borne by the legal person.