The debts of a rural-land contractual management household shall be paid from the assets of the household
that is engaged in the opera on on the contracted rural land, or from the por on of the assets of the family
members who actually engage in such opera on.
Chapter III Legal Persons
Sec on 1 General Rules
Ar cle 57 A legal person is an organiza on that has the capacity for enjoying civil-law rights and the capacity
for performing civil juris c acts, and that independently enjoys civil-law rights and assumes civil-law
obliga ons in accordance with law.
Ar cle 58 A legal person shall be established in accordance with law.
A legal person shall have its own name, governance structure, domicile, and assets or funds. The speci c
condi ons and procedures for the establishment of a legal person shall be in accordance with laws and
administra ve regula ons.
Where there are laws or administra ve regula ons providing that the establishment of a legal person shall
be subject to the approval of a relevant authority, such provisions shall be followed.
Ar cle 59 A legal person’s capacity for enjoying civil-law rights and capacity for performing civil juris c acts
are acquired when the legal person is established, and cease when the legal person is terminated.
Ar cle 60 A legal person independently assumes civil liability to the extent of all of its assets.
Ar cle 61 The person with the responsibility of represen ng a legal person in conduc ng civil ac vi es in
accordance with law or the legal person’s ar cles of associa on is the legal representa ve of the legal
person.
The legal consequences of the civil ac vi es conducted by the legal representa ve in the legal person’s name
shall be assumed by the legal person.
Any restric ons on the legal representa ve’s power to represent the legal person which is s pulated in the
ar cles of associa on or imposed by the governing body of the legal person shall not be asserted against a
bona de third person.
Ar cle 62 Where a legal representa ve of a legal person causes damage to others while performing his
responsibili es, the civil liability thus incurred shall be assumed by the legal person.
A er assuming the aforemen oned civil liability, the legal person has the right to indemni ca on, in
accordance with law or its ar cles of associa on, against its legal representa ve who is at fault.
Ar cle 63 The domicile of a legal person is the place where its principal administra ve o ce is located.
Where a legal person is required by law to be registered, the place of its principal administra ve o ce shall
be registered as its domicile.
Ar cle 64 Where there is any change in any ma er that has been registered during the term of existence of a
legal person, the legal person shall apply to the registra on authority for modi ca on of its registra on in
accordance with law.
Ar cle 65 The actual situa on of a legal person, which is inconsistent with what is recorded upon
registra on, shall not be asserted against a bona de third person.
Ar cle 66 The registra on authority shall, in accordance with law, post in a mely manner a public no ce of
the informa on recorded by a legal person upon registra on.
Ar cle 67 In case of a merger between or among legal persons, the rights and obliga ons of such legal
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