On the Application of Measures to Restrict High Consumption of Legal Representatives in China

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.