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ASK

I have just established a joint-stock company, I am the Director, the legal representative, the capital contribution is entirely in cash. I have a house in my wife’s name that I am lending to the company as a headquarters, now I want to rent it to the company. So, can I authorize the deputy director of my company to sign a rental contract with my wife?

ANSWER

DHP LAW will answer your questions as follows:

Article 141 of the 2015 Civil Code provides for the scope of representation as follows:

The legal representative has the right to establish and perform all civil transactions for the benefit of the represented person, unless otherwise provided for by law.

– The scope of authorized representation is established by authorization.

The representative may only perform civil transactions within the scope of his/her representation.

– The representative must notify the third party in the civil transaction about the scope of his/her representation.

A representative may not enter into or perform civil transactions with himself or with a third person of whom he is also his representative, unless otherwise provided for by law.

According to the above provisions, you will not have the right to establish a transaction with yourself, so you can authorize the deputy director to sign the lease contract.

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