Chop Agreement

A company may also require that all chops be accompanied by the chop company if it wishes to add another layer of protection. The chops are usually accompanied by the authorized signatory, which allows an additional level of security compared to that used in the West, which tends to sit on the signature alone. In order to know what information about the mug should be next to the company names and should it be in Chinese or can it be in English? It is possible to impose an agreement that is neither hacked nor signed by the legal representative if the company executes a number of agreements in this way. However, you should not rely on you to enforce such a treaty. The first step to protect the company`s chops is to be careful who can give a chop, because sometimes only the possession of the chop provides proof of the authority to use it. For example, a government agency may require a document that has been hacked with the seal of the foreign investor`s parent company. This can result in complexities, as the use of seals by many small businesses is not mandatory and is not part of the typical management process. A final point: the company generally has to bear the legal consequences of an abuse of the company chop, because the company has the primary responsibility and responsibility to properly manage its corporate poop and to prevent it from being abused or stolen. In the absence of corporate faeces, the relevant counterparties must be informed in a timely manner. In China, corporate chops are mandatory for the activity and replace signatures used in Western countries. China Briefing explains the different types of corporate chops in China and the need for strong internal controls to ensure they are not abused. Many multinational companies with branches in China also have access and use rules to minimize risk.

We found that some multinationals operating in China do not have such rules and/or that these rules are not respected. Sometimes the relaxation with the chop is for practical reasons – the legal representative travels regularly, so that a chop is put in an office drawer unlocking or is given to an administrative colleague, so that the chop can be easily used in the absence of the legal representative. The official chop company has the largest scope of application under all the seals and is a symbol of the rights of legal persons. However, Chop is generally mandatory for government bids. The authorities also require that documents be hacked when the company changes its legal representative. Therefore, the legal representative, even if an employee of the company can take advantage of this opportunity.