REGULATIONS ON LEGAL REPRESENTATIVES OF ENTERPRISES

I. Legal basis

– Enterprise Law 2020.

II. Regulations on legal representatives of enterprises

In the Vietnamese legal system, the legal representative of an enterprise plays an important role in ensuring the legal rights and obligations of the enterprise. The legal representative has the rights and obligations to carry out transactions and sign contracts with third parties on behalf of the enterprise. Clearly defining the legal representative is very important to avoid disputes or ambiguities in business activities.

1. Concept of legal representative of a business

The legal representative of an enterprise is an individual who represents the enterprise to exercise the rights and obligations arising from the enterprise’s transactions, and represents the enterprise as a requester to resolve civil matters. plaintiffs, defendants, people with related rights and obligations before the Arbitrator, Court and other rights and obligations according to the provisions of law.

2. Number and title of legal representatives of an enterprise

A business must have at least one legal representative. Limited liability companies and joint stock companies can have one or more legal representatives. The company charter specifies the number, management titles and rights and obligations of the legal representative of the enterprise. 

Titles of legal representatives of the enterprise:

• For private enterprises: the legal representative is the owner of the private enterprise
• For limited liability companies with two or more members: the legal representative can be the Chairman of the Board of Members, Director or General Director. In cases where the company charter does not stipulate, the Chairman of the Board of Members is the legal representative.
• For a single-member limited liability company: the legal representative can be the Chairman of the Board of Members, the Company President or the Director or General Director. In cases where the company charter does not stipulate, the Chairman of the Board of Members or the President of the company is the legal representative of the company.
• For joint stock companies: the legal representative can be the Chairman of the Board of Directors or the Director or General Director. In case there is no regulation in the Charter, the Chairman of the Board of Directors is the legal representative of the company. In case the company has more than one legal representative, the Chairman of the Board of Directors and the Director or General Director are of course the legal representatives of the company.
• For a partnership company, the legal representative of the company will be a partner.

3. Responsibilities of the legal representative of the enterprise

The legal representative of the enterprise has the following responsibilities:

• Carry out assigned rights and obligations honestly, carefully, and in the best way to ensure the legitimate interests of the business;
• Loyal to the interests of the business; Do not abuse your position or position and use information, know-how, business opportunities, or other assets of the enterprise for personal gain or to serve the interests of other organizations or individuals;
• Timely, fully and accurately notify the enterprise about the enterprise in which you, your related person owns or has shares or capital contributions.
• The legal representative of the enterprise is personally responsible for damage to the enterprise due to violation of the above responsibility.

4. Are the powers of the legal representative limited?

The powers of the legal representative may be limited by:

• Company charter: The company charter will clearly stipulate the powers and responsibilities of the legal representative.
• Decisions of the Board of Members or the General Meeting of Shareholders: In some cases, important decisions of the company must be approved by the Board of Members or the General Meeting of Shareholders.

5. Why is it necessary to have a legal representative?

• Ensuring consistency in business operations: Having a single representative helps business transactions be carried out quickly and effectively.
• Protecting the interests of the business: The legal representative will protect the legitimate rights and interests of the business before the law.

In short, the legal representative of a business plays a very important role in managing, operating and protecting the legal rights of the business. The rights and obligations of the representative need to be clearly stipulated in the enterprise’s charter to avoid disputes and ensure transparency in transactions. The appointment and change of legal representatives need to be carried out in accordance with legal procedures to ensure the rights of the business and related parties.

III. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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