The crime of false bankruptcy refers to the conduct of a company or enterprise to carry out false bankruptcy by concealing assets, assuming false debts, or otherwise transferring or disposing of assets, seriously harming the interests of creditors and other persons.
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Netizen consultation:
What are the standards for filing and prosecuting false bankruptcy crimes?
Lawyer answers:
Where a company or enterprise commits a false bankruptcy by concealing assets, assuming fictitious debts, or transferring or disposing of assets by other means, and is suspected of any of the following circumstances, it shall be filed for prosecution:
1) Concealed assets with a value of 500,000 RMB or more;
2) Undertaking fictitious debts involving an amount of 500,000 yuan or more;
3) Transferring or disposing of assets with a value of 500,000 RMB or more by other means;
4) Causing direct economic losses to creditors or other persons with a cumulative amount of 100,000 RMB or more;
5) Although the above-mentioned amount standards are not met, the wages, social insurance premiums and statutory compensation of employees who should be paid off are not paid in a timely manner, causing a vile social impact;
6) Other circumstances that seriously harm the interests of creditors or other persons.
The lawyer adds:
The crime of false bankruptcy is a kind of fraudulent act carried out by specific means under specific circumstances and conditions, in which the perpetrator subjectively knows that his or her actions will cause damage to the interests of creditors or other people, but still adopts various means such as concealing property and assuming fictitious debts, actively transferring and disposing of property, creating the false appearance of insolvency, and thus committing bankruptcy. Where a company or enterprise carries out false bankruptcy by concealing assets, assuming fictitious debts, or otherwise transferring or disposing of assets, seriously harming the interests of creditors or other persons, the directly responsible managers and other directly responsible personnel are to be sentenced to up to five years imprisonment or short-term detention and/or a fine of between 20,000 and 200,000 RMB.
Legal basis] Criminal Law of the People's Republic of China
Article 162-2: [Crime of False Bankruptcy] Where a company or enterprise commits false bankruptcy by concealing assets, assuming fictitious debts, or otherwise transferring or disposing of property, seriously harming the interests of creditors or other persons, the directly responsible managers and other directly responsible personnel shall be sentenced to fixed-term imprisonment of not more than five years or short-term detention and/or a fine of between 20,000 and 200,000 RMB.