risk of loss of freedom for serving as legal representative of a company in China

I have written a quite comprehensive post explaining the concept of legal representative of a Chinese company (click here for details).

Just recently, a new instance of foreigners being banned from leaving China prompted me to remind expat employees in China of the risk of loss of freedom for serving as legal representative of a company in China.

It is a simple…

Sorry, Sir, you are banned from leaving China

That will be the least thing you want to hear when you are about to exit China at airports. But it may likely happen when you or the company you serve is involved in a lawsuit in China in which you may be subject to certain obligations.

Recently, one of my corporate clients consulted me regarding whether its legal representative (an American) would be restricted …