What are the problems with corporate legal risks?

Corporate legal risks and their prevention

Jack?, Chairman and CEO of General Electric Company? 6?1 Welch said that General Motors is a great organization, but if it cannot adapt to the changes of the times in the future, it will die. Microsoft President Bill? 6. Gates said: "Microsoft is only 18 months away from bankruptcy forever." When Zhang Ruimin, president of Haier, talked about Haier's development, he lamented that his overall feeling over the years was one of "fear."

All the above remarks indicate that world-class companies and entrepreneurs, without exception, take risks seriously. Although the causes of risks are different and the manifestations of risks are also different, all risks may manifest themselves as legal risks. Setting up specialized agencies to systematically prevent corporate legal risks is a management practice of successful companies in the world. However, for a long time, ignoring the legal risks of enterprises has almost become a "common problem" for Chinese enterprises. In the past 10 years, many companies have fallen on the "dark reef" of legal risks. The root cause of this phenomenon lies in the fact that Chinese entrepreneurs still lack the legal concept to adapt to the market economy. Chinese entrepreneurs are not accustomed to using legal thinking and engaging in business management activities within the legal framework.

Law is an effective management tool. The establishment of a systematic modern enterprise legal risk prevention mechanism is a world trend and an inevitable trend in the development of the legal service industry. Generally speaking, the legal risks faced by enterprises can be mainly divided into three categories, namely criminal legal risks, civil legal risks and legal risks in operation and management.

1. Criminal legal risks

Criminal legal risks refer to the risks that companies or entrepreneurs must face as criminal defendants subject to legal sanctions and victims of criminal cases who suffer injuries or losses. risk. Including "businesses or entrepreneurs violating criminal laws" and "crimes against businesses or entrepreneurs."

“Enterprises or entrepreneurs violate criminal laws” means entrepreneurs violate criminal laws and enterprises violate criminal laws. Individual entrepreneurs who violate criminal law mainly involve crimes such as job embezzlement, misappropriation of funds, corruption and bribery. Enterprises violate criminal laws, that is, unit crimes, which refer to the actions of companies, enterprises, etc. Violating criminal laws in the name of the unit upon collective decision of the unit or decision of the person in charge of the unit. There are more than 120 unit crimes stipulated in the criminal law. Most of these crimes are closely related to the production and operation of enterprises, covering all stages of the enterprise from establishment to termination.

In crimes against enterprises or entrepreneurs, although enterprises or entrepreneurs are victims, to a large extent, the reason why enterprises or entrepreneurs become victims is also related to their own production and business activities. closely related.

Two. Civil legal risks.

Civil legal risks refer to the risks that entrepreneurs face in contract transactions, marriage and family, and civil litigation, causing themselves or their businesses to suffer economic losses. This kind of legal risk exists not only in the production and operation of enterprises, but also in the marriage and family of entrepreneurs. The former mainly includes risks in contract signing and performance, intellectual property risks in production and operation, labor dispute risks, human resources management risks and corporate litigation risks. The latter mainly refers to the risks that entrepreneurs bring to the enterprise due to marriage, inheritance, and child support, because the above behaviors are not only the entrepreneur's personal feelings, child support, property division, etc., but also related to the organizational structure and future of the enterprise. major issues of development.

Legal risks in business management. This type of risk refers to the risk that entrepreneurs fail to implement relevant national laws and regulations or violate relevant national laws and regulations during business management activities, thereby subjecting themselves or the enterprise to corresponding penalties or damaging the interests of the enterprise. The legal risks of corporate management include not only administrative penalty risks, but also corresponding criminal legal risks. No matter what kind of legal risks, they are closely related to the economic interests of the enterprise and even the personal freedom of the entrepreneur.

Entrepreneurs can have no legal knowledge, but they must have sufficient legal awareness! What businesses really need is to avoid illegal problems, not solve them. Only by fundamentally ensuring that enterprises can operate safely under the legal system is the real hope for enterprises. Therefore, it is particularly important to prevent legal risks for enterprises and entrepreneurs. Generally speaking, there are two ways to prevent corporate legal risks.

First of all, we must improve the legal awareness of entrepreneurs.

Many domestic entrepreneurs tend to only focus on litigation and ignore the work of preventing legal risks in daily decision-making. This is obviously putting the cart before the horse. Litigation not only consumes a lot of time, energy and economic costs, but also involves litigation risks such as whether the evidence is sufficient, whether the judge can make a fair judgment, and whether the judgment can be effectively implemented. If entrepreneurs improve their legal awareness and learn to prevent legal risks in advance, they can get twice the result with half the effort. For entrepreneurs, there is no need to learn and master those specific legal concepts and regulations in great detail. They only need to know which issues and situations may involve legal issues. Therefore, entrepreneurs must at least understand some basic legal concepts, such as crime, punishment, unfairness, force majeure, subrogation, revocation, statute of limitations, evidence, etc.