Post a comment
Print articleChina: Amendments to Criminal Law
January, 2007 -
Amendment (6) to the Criminal Law of the People's Republic of China was adopted at the 22nd Session of the Standing Committee of the 10th National People's Congress of the People's Republic of China on 19 June 2006 and promulgated by President Hu Jintao on 29 June 2006. The Amendment, which entered into effect on the date it was promulgated, introduces penalties for a range of economic crimes.
Work safety
The Amendment introduces stiff prison sentences if production or operations in violation of safety regulations have led to serious injury or death. The sentence can be up to seven years of detention if the circumstances are particularly serious. If serious injury, death or other severe consequences are caused by the non-compliance with national work safety standards, the person directly responsible shall also be liable to a prison sentence of up to seven years if the circumstances are particularly serious.
Those who order others to carry out dangerous operations in violation of rules and regulations may be sentenced to a maximum of five years if it results in serious injury or death.
The Amendment provides a maximum sentence of seven years of detention for those responsible for reporting safety accidents if they fail to report, falsely report or delay assistance in an accident.
Corporate acts
The Amendment expands penalties related to information disclosure for companies that have legal disclosure obligations. If such a company discloses to its shareholders and the general public financial accounting reports which are false or conceal important facts or fail to disclose other important information according to law, thus harming its shareholders or others, the persons or managers directly responsible shall be liable to a monetary penalty of a maximum of RMB 200,000 or such penalty in combination with a custodial sentence of up to three years.
The Amendment introduces a new crime of “false bankruptcy”. “False bankruptcy” is a bankruptcy created by companies or enterprises by the assignment or disposal of their assets through the concealment of assets, fictitious debt, etc. The persons or managers directly responsible may be subject to a monetary penalty of a maximum of RMB 200,000 or such penalty in combination with a custodial sentence of up to five years if such false bankruptcy harms the interests of creditors or others.
Bribery and corruption
The Amendment extends the application of its bribery and corruption related provisions from the staff and workers of companies and enterprises to the staff and workers of any other types of unit. The provisions are applicable to active and passive bribery and corruption.
Breach of fiduciary duties
The Amendment criminalises certain acts committed by the directors, supervisors and senior management personnel of listed companies in breach of their fiduciary duties to their companies. The acts include the provision of money, goods or services for free or on unfair conditions or to parties who are clearly not able to pay; the provision of security to parties who are clearly not able to pay or for no good reason; etc.
Other provisions
The Amendment further deals with financial crimes and dealing with illegal proceeds.
Work safety
The Amendment introduces stiff prison sentences if production or operations in violation of safety regulations have led to serious injury or death. The sentence can be up to seven years of detention if the circumstances are particularly serious. If serious injury, death or other severe consequences are caused by the non-compliance with national work safety standards, the person directly responsible shall also be liable to a prison sentence of up to seven years if the circumstances are particularly serious.
Those who order others to carry out dangerous operations in violation of rules and regulations may be sentenced to a maximum of five years if it results in serious injury or death.
The Amendment provides a maximum sentence of seven years of detention for those responsible for reporting safety accidents if they fail to report, falsely report or delay assistance in an accident.
Corporate acts
The Amendment expands penalties related to information disclosure for companies that have legal disclosure obligations. If such a company discloses to its shareholders and the general public financial accounting reports which are false or conceal important facts or fail to disclose other important information according to law, thus harming its shareholders or others, the persons or managers directly responsible shall be liable to a monetary penalty of a maximum of RMB 200,000 or such penalty in combination with a custodial sentence of up to three years.
The Amendment introduces a new crime of “false bankruptcy”. “False bankruptcy” is a bankruptcy created by companies or enterprises by the assignment or disposal of their assets through the concealment of assets, fictitious debt, etc. The persons or managers directly responsible may be subject to a monetary penalty of a maximum of RMB 200,000 or such penalty in combination with a custodial sentence of up to five years if such false bankruptcy harms the interests of creditors or others.
Bribery and corruption
The Amendment extends the application of its bribery and corruption related provisions from the staff and workers of companies and enterprises to the staff and workers of any other types of unit. The provisions are applicable to active and passive bribery and corruption.
Breach of fiduciary duties
The Amendment criminalises certain acts committed by the directors, supervisors and senior management personnel of listed companies in breach of their fiduciary duties to their companies. The acts include the provision of money, goods or services for free or on unfair conditions or to parties who are clearly not able to pay; the provision of security to parties who are clearly not able to pay or for no good reason; etc.
Other provisions
The Amendment further deals with financial crimes and dealing with illegal proceeds.
