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Is it illegal for a legal person to borrow money for personal use in the name of the company without the knowledge of shareholders?
1. Is it illegal for a legal person to borrow money for personal use in the name of the company without the knowledge of shareholders?

The company is responsible for repayment. The legal representative of the company borrows money from individuals in the name of the company without the knowledge of all shareholders. As the legal representative of the company acts on behalf of the company, the company should bear the repayment responsibility in this case.

If the behavior of the legal representative is not approved by the shareholders' meeting, the company may claim compensation from the shareholders and the legal representative after repaying the loan. According to Article 3 of the Company Law, a company is an enterprise legal person with independent legal person property and legal person property rights. The company is liable for its debts with all its property.

Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them. According to Article 20 of the Company Law, shareholders of a company shall abide by laws, administrative regulations and articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders; The company's independent legal person status and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors.

Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law. Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.

2. Is it illegal for a legal person to borrow money for personal use in the name of the company without the knowledge of shareholders?

According to the law, the legal representative of the company can handle all business including borrowing in the name of the company. Since the loan receipt is stamped with the company's seal, the company should bear the repayment responsibility. As for whether other shareholders of the company know it or not, it is an internal matter of the company and has nothing to do with the establishment of the loan contract. The loan should be repaid in full. When the loan is greater than the company's investment, no matter which shareholder contributes, all the company's funds can be used to repay the loan.

However, the shareholders of the company may require the legal representative to take responsibility for their unauthorized decision-making, including compensation for losses. It depends on how the articles of association stipulate and whether there is evidence to support the claim. This problem can be solved through internal consultation or litigation.

3. Is it illegal for a legal person to borrow money for personal use in the name of the company without the knowledge of shareholders?

It's not illegal. The legal representative of the company may handle all business including loan in the name of the company. Since the loan receipt is stamped with the company's seal, the company should bear the repayment responsibility.

As for whether other shareholders of the company know it or not, it is an internal matter of the company, and the loan contract money should be returned in full. When the loan is greater than the company's capital, it can be used to repay the loan, no matter which shareholder contributes.

However, the shareholders of the company may require the company to bear responsibilities, including compensation for losses. Yes, there is no evidence to support the claim. This can also be solved through litigation.

Extended data:

Responsibilities and obligations of the legal representative

1. The legal representative of an enterprise should bear different legal responsibilities on different occasions.

For example, in the case of representing an enterprise, its personal signature will lead to the bankruptcy of the enterprise, and it will be subject to many restrictions when it is run again in the future.

If an enterprise violates the relevant laws and regulations, the legal representative may be detained by the legal representative himself; Corporate crime, legal representation, etc. , the above list is only incomplete.

2. If there are no defects (such as defects in capital contribution) when the legal person is established, the liability for losses shall be borne by the legal person itself, and it is neither a shareholder nor a legal representative. Of course, if it is a state-owned enterprise, if the legal representative has dereliction of duty, the severity will reach the level of criminal law investigation or administrative sanctions.

3. A sole proprietorship legal person does not need laws as long as it can distinguish between legal person property and personal property. When a legal person is in the form of a limited company, the company shall bear all its property, and the individual shareholders shall not be responsible, except for the defects in capital contribution when it is established.

When there is a contradiction.

The legal representative of a company is the legal representative of an enterprise as a legal person and engages in civil activities on behalf of the legal person. After becoming a legal representative, his natural personality is borne by the civil acts he carries out in his legal capacity.

However, if a civil representative who has nothing to do with the legal representative's status violates the law and exercises the right of representation, he shall bear corresponding responsibilities.

Article 15 provides for six situations:

(1) engages in business beyond the business scope approved by the registration authority.

(2) Concealing from the registration authority and tax authorities.

(3) Evading funds or hiding property to avoid debts;

(4) dissolution and cancellation;

(five) the change or termination is not registered and announced in time, which has caused great losses to the interested parties;

(six) to engage in other activities prohibited by law, which harms the interests of the state.

These illegal acts are still borne by the legal person, and the legal representative is not exempted from other responsibilities caused by them, that is, he can be given administrative sanctions, fines and other penalties. If a crime is constituted, criminal responsibility shall be investigated according to law.

Of course, the legal representative also has the following rights:

(1) The legal representative of an enterprise shall exercise his/her functions and powers and perform his/her obligations within the scope of functions and powers stipulated by national laws, regulations and the articles of association of the enterprise, participate in civil activities on behalf of the enterprise as a legal person, be fully responsible for the production, operation and management of the enterprise, and accept the supervision of all members of the enterprise and relevant authorities.

(2) The legal representative of the enterprise may entrust others to perform their duties.

(3) The legal representative of the enterprise entrusts others to perform their duties. The duties that must be performed by the legal representative according to laws and regulations shall not be entrusted to others.

(4) The legal representative of an enterprise shall not concurrently serve as the legal representative of other enterprise legal persons. Due to special needs, they can only work concurrently in enterprises with affiliation or joint venture or investment, and they will be strictly examined by the competent department of the enterprise or the registration authority.

(5) The legal representative of an enterprise as a legal person is the signatory who exercises authority on behalf of the enterprise.

(6) The signature of the legal representative shall be filed with the registration authority. The document signed by the legal representative is a legal document representing an enterprise as a legal person.