(Yicai Global) June 5 -- Jia Yueting has ceased to act as the legal representative of LeEco (Beijing) Co.

This withdrawal may signal advance preparation for Jia Yueting to hedge his bets.

Jia is withdrawing from complex procedural matters to fulfill his commitment to "focus on the business of Letv's listing and the automotive field," LeEco said.

Reports that Wu Meng had replaced Jia as LeEco's legal representative began to surface on July 3. Many external company matters need the legal representative's signature and thus leaving that position means Jia will no longer have to sign off on many legal documents, jiemian.com quoted Zhongwen Law Firm partner Wu Fei as saying.

The change in the corporate legal entity also seems not just intended to improve efficiency, however, jiemian.com also reported. "When a company is in litigation or at trial and a court is executing its judgment, the company's legal representative is barred from leaving the country," Wu Fei said. From this angle, withdrawing as legal agent is Jia's preemptive dodge to avert risk to himself. Letv now faces several creditor lawsuits and, as the source of funds allocation, LeEco will probably be haled into court. Once that happens, its legal representative will likely be barred from leaving the country.

Jia will focus on the listed companies and the automotive business. A core business concern of LeEco's automotive section is the American Faraday Future concept car. Jia is set on making cars and clearly wishes to travel without restraint.

"Mr. Jia is being freed from specific affairs and focusing on the core business," said a LeEco director. Just as with the outgoing General Manager of Leshi Internet Information & Technology Corp. Beijing [SHE:300104] (Letv), this change of LeEco's legal representative means Jia is leaving complex procedural affairs to fulfill his commitment to "focus on the business and automotive business," the director explained.

Jia previously left the position of Letv's CEO to concentrate on corporate governance, strategic planning and core product innovation. One major reason for the change in LeEco's legal agent this round is that if Jia promotes the car strategy full-heartedly and continues to act as the legal representative, this will render the handling of many procedures problematic.

LeEco will not owe creditors any money, including financial institutions and the supply chain, and will certainly be able to repay all outstanding debts if granted the time, said relevant company personnel.

A court froze USD182 million (CNY1.237 billion) in assets Jia and his wife own from three Letv companies last week, media reported yesterday.

LeEco's shareholding has not changed and Jia is still the chairman, largest shareholder and actual controller. Even after Jia ceases being LeEco's legal representative he will remain its executive director. He still holds 92 percent of LeEco stock, data from a third-party business information platform shows.