On January 31, the Supreme People's Court and the Supreme People's Procuratorate jointly issued the "Supplementary Provisions on the Enforcement of the Criminal Law of the People's Republic of China to Determine Crimes (8)" (hereinafter referred to as the "Supplementary Provisions (8)") The reporter learned from the Supreme People's Procuratorate that the "Supplementary Provisions (8)" revised and adjusted one crime according to the Criminal Law Amendment (12), that is, "the crime of favoritism and fraud at a low price, and the crime of state-owned assets" was adjusted to "the crime of favoritism and fraud at a low price, and the crime of discounting shares at a low price, and the crime of **company and enterprise assets".
According to the Supreme People's Procuratorate, the seventh meeting of the Standing Committee of the 14th National People's Congress voted to pass the Criminal Law Amendment (12) on December 29, 2023, which will come into force on March 1, 2024. Article 3 of the Criminal Law Amendment (12) stipulates that a paragraph is added to Article 169 of the Criminal Law as the second paragraph, and this article is amended to read: "Where a state-owned company or enterprise or a person in charge directly responsible for the competent department at a higher level engages in favoritism and twists the law by converting state-owned assets into shares or at a low price, causing major losses to national interests, he shall be sentenced to fixed-term imprisonment of not more than three years or short-term detention; and where the interests of the state are particularly seriously harmed, a sentence of between three and seven years imprisonment is to be given. "Where the directly responsible managers of other companies or enterprises engage in favoritism and malpractice by converting the company's or enterprise's assets into shares at a low price or at a low price, causing major losses to the company's or enterprise's interests, they shall be punished in accordance with the provisions of the preceding paragraph. ”
Amendment (12) to the Criminal Law expands the scope of the crime of favoritism, fraud, depreciation of shares at low prices, and the assets of ** companies and enterprises from 'state-owned assets' to include assets of other companies and enterprises. In view of this, it is necessary to adjust the original crime of 'favoritism, fraud, depreciation of shares at low prices, and the crime of ** state-owned assets'. The person in charge of the Law and Policy Research Office of the Supreme People's Procuratorate said that after soliciting the opinions of relevant units, some experts and scholars, the "two supremes" finally decided to adjust the crime from "favoritism and fraud at a low price, and the crime of state-owned assets" to "the crime of favoritism and fraud at a low price, and the crime of company and enterprise assets". Based on the practical need to strengthen the protection of private enterprises, this amendment expands the scope of application of this crime from state-owned companies and enterprises to include other companies and enterprises, which can better reflect the requirement of equal protection of property rights.
According to the Supreme People's Procuratorate, the Supplementary Provisions (VIII) will come into force on March 1, 2024.
Editor-in-charge: Tao Jiyan |Review: Li Zhen |Supervisor: Wan Junwei.
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