TITLE:
On the Application of Measures to Restrict High Consumption of Legal Representatives in China
AUTHORS:
Zhiguo Zhang, Kejin Chen
KEYWORDS:
Measures to Restrict High Consumption, Legal Representative, Limited Application, Limited Liability
JOURNAL NAME:
Chinese Studies,
Vol.12 No.4,
September
28,
2023
ABSTRACT: Currently, in the compulsory enforcement procedures of China,
restricting high consumption of the legal representative of the enforced
company is a double-edged sword. On the one hand, it is effective in realizing
the applicant’s true interests. On the other hand, however, it is of theoretical
inconsistencies between the measures restricting high consumption of legal
representative and the theory of limited liability of company; specifically, in
the cases to end the enforcement procedure, the consumption restriction
measures imposing on the legal representative has already lost their deterrent
effect, and if continuing to restrict the right of the legal representative, it
will not only be harmful to the “recovery” and “regeneration” of the economic
ability of the legal person subject to enforcement, but also will cause certain
negative social effects. Therefore, based on relevant theoretical research and
cases study, this thesis points out that it is necessary to amend the framework
of the measure system of restricting high consumption of the legal
representatives and to construct a “limited application” mechanism in order to
restore the institutional purpose of the restricting measures and maximize the
institutional function of them.