1. It is actually a partnership, but the investors mistakenly thought it was the establishment and operation of a company. This leads to a misunderstanding of rights among partners. Partners do not know that they have unlimited liability for the business, which means that they will recover their personal property.
2. It is a limited company thought to be established and operated, but in fact it is a sole proprietorship. After the implementation of the new company law, "husband and wife company", "father-in-law company" and "one-person company" are common organizational forms of small and medium-sized enterprises in practice. Investors mistakenly believe that "the company is mine, and the company's property is also mine" and mix the company's property with family or personal property during operations. In this way, when disputes arise with the outside world, it may lead to the loss of the company's personality and the loss of the protection of "limited liability". For example, if a shareholder of a one-person limited liability company cannot prove that the company's property is independent of his own property, he should be jointly and severally liable for the company's debts, and the shareholder's personal property will still be pursued.
The second is that the registered capital is defective, which not only affects the personal property in the debt commitment, but may also constitute a criminal offense.
When a company is established, in order to show their "strength", some entrepreneurs often want to expand the registered capital. However, due to insufficient funds or considering that the company's business cannot use so much money at the moment, they resort to falsely reporting the registered capital. Or a means to evacuate capital after registration. Legal risks may include: filling in capital, denying corporate personality, constituting a crime, etc.
Third, financing trap
Insufficient operating funds is a common situation for most enterprises. Common financing methods include bank borrowing, private lending, additional investment from shareholders, attracting new shareholders to increase capital and expand shares, introducing strategic investors, issuing corporate bonds, listing financing (IPO or additional issuance), etc.
Different financing methods also have different legal risks. A financing has different legal risks in different links. For example, bank lending may fall into the legal risk black hole of financial fraud such as "high-interest lending", "illegal lending", and "loan fraud"; private lending may encounter "illegal absorption of public deposits", "fund-raising fraud", "bill fraud" ” or other legal risks such as financial certificate fraud. All kinds of financing or capital operations are inevitable for enterprises to become bigger and stronger. Injecting the concept of legal risk management into financing project management plays a vital role in preventing legal risks.
4. Ignore the following legal risks in market transactions
The development of enterprises depends on continuous market transactions. Different market transactions require the establishment of different contractual relationships, and different contractual relationships may encounter different legal traps. In fact, the most common legal disputes businesses encounter are contract disputes. Small and medium-sized enterprises have a relatively strong awareness of contract risks. However, the management of corporate transactions is by no means limited to the management of the contract itself. A contractual relationship not only includes the contract as the standard for defining the rights and obligations of the subject, but also includes the continuous process from the beginning of contract negotiation to the completion of contract performance and even the aftermath. Therefore, the legal management of transaction behavior is actually a kind of process management.
Verb (abbreviation of verb) There is no intellectual property management system established.
In China, except for a few companies such as Haier and Peking University Founder, which have relatively systematic and standardized intellectual property management, the vast majority of companies have not yet realized the importance of intellectual property management, let alone carried out efforts in this regard. Strategic planning. Businesses are still concerned with the management of physical assets.
Due to the lack of strategic planning, many companies only apply for Chinese patents, resulting in the loss of technology, low utilization rates after patent application, and low levels of industrialization and commercialization. In addition, it is easy to fall into patent "traps" and "minefields" and infringe on other people's patent rights. Not only do they have to pay high compensation, but they may even cause the company to go bankrupt.
Intransitive verb Legal risks in enterprise integration
Legal risks are hidden in every link of enterprise integration. List two main aspects:
1. Equity structure adjustment The most important thing in enterprise integration is the adjustment of equity structure, which means the control rights of the enterprise and the effectiveness of decision-making, as well as the effectiveness of company executives. Entrepreneurial motivation.
If the legal plan is not designed, planned and demonstrated in advance, the legal risks are not managed and controlled during the process, and the risks are not assessed and resolved in a timely manner when "treeworms" appear, the risks will inevitably get out of control.
2. Asset integration Asset integration involves the definition of ownership, restrictions on disposal rights, pricing, transactions, transfers, taxes and other legal relationships, and also lurks various legal risks.
The above are the legal risk issues faced by start-up companies. I hope it will be useful to all entrepreneurial friends. I hope every entrepreneur can avoid these traps in the early stage and not touch legal red lines, so as not to hinder his or her entrepreneurial path. Our website also provides professional lawyer services. If you have any relevant legal questions, please feel free to consult online.