In the past two days, the topic of Pudong's support for foreign talents as legal representatives of public institutions and state-owned enterprises has been on the hot topic. This news came from a press conference recently held by the Shanghai City government. Pudong New District announced that it would implement the Global Talent Recruitment Partnership Program (GTP), which includes the above-mentioned initiative.

What is the legal explanation for foreigners serving as legal representatives of public institutions and state-owned enterprises? Will there be any "security risks" that netizens are worried about? What signal does this talent policy send?

Foreigners serve as legal representatives of the company and have no restrictions on legal qualifications

"There are management and technical requirements for foreigners to serve as legal representatives of state-owned enterprises or institutions, and there is no obstacle to the issue of legal 'qualifications'." Luo Peixin, vice president and law professor of East China University of Political Science and Law, said.

First of all, the Civil Code grants natural persons equal capacity to act. This "natural person" includes both Chinese and foreigners. Therefore, the policy of supporting foreign talents to serve as legal representatives of state-owned enterprises or public institutions is in line with the provisions of the Civil Code.

Secondly, the current Company Law has no nationality restrictions on the founders and promoters of companies. According to the current "Company Law", the legal representative of the company shall be the chairman, executive director or manager in accordance with the provisions of the company's articles of association. The new "Company Law", which will come into effect on July 1 this year, clarifies that the legal representative of the company shall be a director or manager who performs company affairs on behalf of the company in accordance with the provisions of the company's articles of association. In other words, the new law expands the scope of election of legal representatives and further relaxes restrictions. Neither the current Company Law nor the new Company Law to be implemented has any nationality restrictions on the legal representative of a company. **"Allowing foreigners to serve as legal representatives or senior executives of state-owned enterprises and institutions follows the principle of equal personality and equal capacity in law."** Luo Peixin said.

What is the value of the position of "legal representative" of the company, and what are the rights and obligations? According to the law, the legal representative is the person in charge of exercising the company's powers on behalf of the company. He enjoys the company's representative power externally and also enjoys the power to execute business internally, which is manifested in implementing the resolutions of the shareholders 'meeting and the board of directors, and being responsible for the handling of the company's daily affairs. In other words, foreign talents serving as legal representatives of state-owned enterprises or institutions are not necessarily vacant positions, but have some real power, can actually participate in enterprise operations, and can even reflect the will of the government or official in key positions.

"Chinese state-owned enterprises participate in market competition together with companies around the world, follow market rules, and treat domestic and foreign people equally in positions such as legal representatives and senior executives. This is a reflection of progress and openness." 罗培新说，这一政策亦体现了上海开放包容的格局，也是打造良好营商环境生态的需要。引进外籍人士担任法定代表人，也给国企的经营管理引入了全球性战略思考视角和资源，“这与我们所经历的改革开放是一样的，在引进外资的同时，也引入了先进管理经验，引进了全球优秀人才，这正是浦东高水平开放的意义所在。”

There are also concerns about whether there will be security risks for foreigners to serve as legal representatives of state-owned enterprises or institutions. Luo Peixin said that if it is related to national security or in industries that restrict or prohibit foreign investment, these state-owned enterprises generally will not hire foreigners as legal representatives. According to the law, although the legal representative has the right to exercise his powers, it must be within the scope stipulated by national laws, regulations and the company's articles of association, and must be subject to the supervision of all company members and relevant agencies. In other words, when a foreigner serves as a state-owned enterprise or a public institution, the legal representative of a unit must also be bound by Chinese law and cannot act arbitrarily. If there is any illegal act, he or she must also be held accountable for legal responsibility.

Hainan Free Trade Port has long made such attempts

Supporting foreign talents to serve as legal representatives of state-owned enterprises or public institutions without any restrictions on legal qualifications. This is also a favorable policy for talents granted by the central government to Shanghai.

A month ago, the General Office of the CPC Central Committee and the General Office of the State Council issued the "Implementation Plan for the Comprehensive Reform Pilot of Pudong New District (2023-2027)"(referred to as the "Plan"). The "Plan" proposes 23 reform measures from 7 parts, giving Pudong New District greater autonomy in key areas and key links, and clarifying the institutional mechanisms for innovating to attract and gather outstanding talents from the world. These include supporting qualified foreign talents to serve as legal representatives of public institutions in the Shanghai Free Trade Zone, Lingang New Area, Zhangjiang Science City, and state-owned enterprises.

Shanghai is at the forefront of reform and opening up, and Pudong New District is at the forefront. These 23 items are the central government's requirement that Shanghai test the system and break new paths for the country, further increase opening up, and create a demonstration window for institutional opening up. In addition to supporting foreign talents to serve as legal representatives of state-owned enterprises in public institutions, the policies implemented in Shanghai also include a series of specific measures such as encouraging foreign scientists to undertake national science and technology plans and serve as legal persons of new R & D institutions.

In this hot search message, many netizens also lamented that ** This is the consistent background of Shanghai's city's "embracing all rivers". It also expresses Pudong's sincerity in "recruiting talents from all over the world without any restrictions" and demonstrates The openness and mind of a great country. **

Luo Peixin and other experts and scholars said that in the new stage of development, our opening up to the outside world will be more proactive. Pudong's talent policy is conducive to actively connecting with international high-standard rules and creating a comprehensive, autonomous and balanced institutional opening up. This kind of "eclectic approach to recruiting talents from all over the world" is also a clear signal that China has released to the world.

In fact, as early as three years ago, Hainan Free Trade Port had explored the introduction of such talents, and also made use of the favorable policies granted by the central government for talents. In 2021, Hainan will introduce foreigner Lin Yuewen as the legal representative of state-owned enterprises in Hainan Free Trade Port through market-oriented recruitment. Lin Yuewen is from Singapore and has nearly 30 years of experience in the duty-free retail industry. She has worked in many countries and has a good reputation. Hainan Holdings, a state-owned enterprise in Hainan Province, hired him to serve as the legal representative of its subsidiaries and was responsible for comprehensively coordinating Hainan Holdings 'duty-free omni-channel business on outlying islands.

Lin Yuewen's arrival has brought new changes to Hainan's duty-free industry. Using years of accumulated industry experience and resources, Lin Yuewen led the team to introduce a number of leading international brands. In just one and a half months, he completed the preparation and opening of nearly 30,000 square meters of sea control global boutique duty-free city project. More than 200 international first-line brands have settled in, adding 117 international brands in 4 categories to the first phase. Many brands are unique to the Haikou duty-free market. In an interview with reporters, Lin Yuewen also admitted that she was attracted by the Hainan Free Trade Port policy and chose to join the Hainan duty-free industry.

The talent introduction support policy launched by Pudong this time also sends a signal to talents around the world that they are "thirsty for talent". In recent years, in order to widely attract talents at home and abroad, Pudong New District has provided a number of high-quality positions, including party and government agencies, public institutions, state-owned enterprises, private enterprises and other unit types, and has continuously formulated and improved supporting policies for talent development. In the assessment of high-level talents, it is also not subject to restrictions on nationality and household registration. It helps enjoy a number of preferential policies and relieves all types of talents. This has provided Pudong with a bold venture and bold trial planting fertile ground for talents.

Many people said that with the continuous implementation of the "Plan", Shanghai will surely become an important gathering place of capital, technology, talents, etc. in the world. It will no longer be news that foreign talents will serve as legal representatives of state-owned enterprises. I believe that Pudong will attract talents. Inspired by the sincerity of talent, a large number of outstanding overseas talents will surely emerge to show their talents and achieve careers on Pudong, the forefront of reform and opening up.

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