Due to insufficient attention from leaders, some units have neglected the management of fixed assets. Neglect and omission of financial personnel in recording fixed assets accounts occur from time to time. Unit leaders or asset users fail to go through the formalities of asset transfer due to matters such as transfer, adjustment and scrapping, which easily leads to the loss of state-owned assets.

Legal basis:

Article 13 of People's Republic of China (PRC) Company Law The legal representative of the company shall be the chairman, executive director or manager in accordance with the articles of association, and shall be registered according to law. Where the legal representative of the company changes, it shall go through the registration of change.