There are many labor contract disputes, which have an impact on listed companies and will affect their image in the public. The public may think that listed companies exploit workers, which may seriously affect the stock price.
The possible civil liability of the legal representative
(1) The duties of the legal representative shall be undertaken by the company.
Article 43 of the General Principles of Civil Law stipulates: "An enterprise as a legal person shall bear civil liability for the business activities of its legal representative and other staff members."
It is generally understood that the business activities of the legal representative of the company in the name of the company belong to the performance of duties, and the relevant civil liabilities arising therefrom shall be borne by the company, and the legal representative will not bear civil liabilities externally because of his duties.
Moreover, if the legal representative acts beyond his authority, it constitutes an agency by estoppel, that is, the third party has every reason to believe that the other party dealing with him is acting on behalf of the legal person, and the legal person should also be liable to the third party for the legal representative's behavior.
(2) If the legal representative intentionally or negligently causes losses to the company, the legal representative may need to compensate for the losses.
According to Article 150 of the Company Law: "Directors, supervisors and senior managers who violate laws, administrative regulations or the provisions of the Articles of Association when performing their duties shall be liable for compensation."
Therefore, if the legal representative violates laws, administrative regulations or the Articles of Association, even if the legal representative is performing the duties of the company, the company has the right to demand the legal representative to compensate for the losses after assuming the relevant responsibilities.
(3) Legal representatives such as directors, supervisors and senior managers may be liable to the company for acts that harm the interests of the company.
Article 148 of the Company Law stipulates: "Directors, supervisors and senior management personnel shall abide by laws, administrative regulations and the articles of association of the company, and have the duty of loyalty and diligence to the company. Directors, supervisors and senior management personnel shall not use their powers to accept bribes or other illegal income, and shall not encroach on the company's property. "
According to the provisions of the first paragraph of Article 21 and the second paragraph of Article 149 of the Company Law, the actual controllers, directors, supervisors and senior managers of the company shall be liable for damages if they violate the duty of loyalty and diligence and damage the interests of the company.
If the legal representative commits the above acts and causes losses to the company, he will of course be liable for compensation to the company.