1. The legal representative is the highest person in charge of the company;
2. The chief financial officer is responsible for the financial activities of the company;
3. The legal representative and the person in charge of finance may be the same person, but it may increase the risk of internal control;
4. The legal person and chief financial officer of a small enterprise or start-up company can hold multiple positions;
5. After the company expands, these two positions are usually separated to strengthen internal control and risk management.
Responsibility and authority of legal person:
1. Sign important contracts and documents on behalf of the company;
2. Play an important role in the company's internal decision-making, such as participating in the board of directors or shareholders' meeting;
3. Represent the company externally and handle the relationship between the company and external institutions;
4. Be responsible for the daily operation and management of the company, and ensure that the company's operation complies with laws and regulations;
5. Take responsibility for decision-making and implementation when the company faces major problems;
6. Supervise the financial status of the company to ensure the authenticity and legality of the financial report.
To sum up, although the legal representative as the highest person in charge of the company and the financial personnel in charge of financial activities can be held by the same person, especially in small or start-up enterprises, this may increase the risk of internal control. Therefore, with the expansion of the company, it is usually suggested to separate these two positions to strengthen the risk management and internal control mechanism.
Legal basis:
Company Law of the People's Republic of China
essay
The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Basic accounting work standard
Article 16
State organs, state-owned enterprises and institutions shall implement the avoidance system when hiring accounting personnel. The immediate family members of a unit leader shall not be the person in charge of the accounting institution or the accounting supervisor of the unit. The person in charge of an accounting institution or the immediate family members of the accounting supervisor shall not serve as the cashier of the accounting institution of the unit.