My friend started an information consulting company and asked me to be the legal representative. He gave me a 5% stake, and I didn't participate in the operation. What problems should we pay attention

My friend started an information consulting company and asked me to be the legal representative. He gave me a 5% stake, and I didn't participate in the operation. What problems should we pay attention to and what risks should we take? It's better to be cautious.

As the legal representative of any enterprise, while participating in the company's decision-making management, the most important thing is to be responsible for all legal and illegal business operations of the enterprise and all creditor's rights and debts of the enterprise.

It can be seen that the responsibility as the legal representative of an enterprise is very important, and it is not a good aura.

In this regard, I will give you a kind suggestion, which is also the most taboo in business: if this enterprise is not your own enterprise, or you are not a company with real shares, I suggest you not to get involved in this muddy water. Especially for companies that don't know themselves.

Just being a legal representative is meaningless. Not only do you have to bear all the responsibilities, but you also have no real power in actual operation. Without real power, it is difficult to control and stop any behavior of others in daily operation. Once something illegal happens, the legal representative will bear the responsibility.