If the fund-raising procedure is legal, the purpose is legitimate, and it conforms to the provisions of laws, administrative regulations and the company's articles of association, then employee fund-raising is legal.
The harm of enterprise staff raising funds;
1, which may lead to capital risk: if there is no reasonable management and supervision of fund-raising, it may lead to misappropriation or abuse of funds and increase the financial risk of enterprises and employees;
2. Possible legal disputes: if there are frauds and irregularities in the fund-raising process, it may lead to legal proceedings and harm the interests of enterprises and employees;
3. May affect the reputation of the enterprise: opaque or illegal fund-raising activities may damage the public image of the enterprise and affect its long-term development;
4. May cause tension among employees: If fund-raising activities are not properly managed, it may cause distrust among employees and affect the harmony and stability of the team.
To sum up, the legitimacy of fund-raising for employees of enterprises depends on whether the fund-raising procedure is legal, whether the purpose is legitimate, and whether it complies with laws, administrative regulations and the articles of association. The legal fund-raising situation includes that the fund-raising target is limited to the employees of the unit, the funds are used for the internal business activities of the unit, and loan contracts are signed for the production and operation of the company according to law. However, employee fund-raising also has certain hazards, which may lead to financial risks, legal disputes, corporate reputation, employee tension and so on. Therefore, enterprises should strengthen management and supervision when raising funds for employees to ensure legal compliance and avoid potential risks and problems.
Legal basis:
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases
Article 12
Legal persons or other organizations raise funds from employees in the form of loans within their own units for the production and operation of their own units, and there are no circumstances stipulated in Article 52 of the contract and Article 14 of these Provisions. If the parties claim that the private lending contract is valid, the people's court shall support it.