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Joint Administration on the Companies Put on the Black List

Friday, 13 November 2015 13:01

For the purpose of restriction the business activities for those companies on the black list, the several authorities jointly executed and issued a MEMO named as FaGaiCaiJin `2015` No. 2045 on how to cooperate each other on this issued. 

 

The subject for restriction: The companies which has been cancelled the business license, put on the abnormal operation list OR on the blacklist due to its seriously breaching the laws (main cause as infringement of the legal rights of the consumers, making or selling the fake products, or not taking the announcement obligations), and its legal representative and person-in-charge, individual shareholders or other related persons.

 

The possible restrictions: For example, for travel companies, the involving party (e.g. the tour guide or team leader and the person-in-charge cannot take the position as the legal representative or person-in-charge during the punishment period (from 3-5 years). If he/she already took such position in the other company, such company should change the person. For food and drug operation industries, the involving party (e.g. the direct person-in-charge or responsible party, the food safety management personnel, food inspection personnel cannot take the position as the legal representative or person-in-charge for the food and drug production or operation companies, or food inspection institutions during the punishment period (from 5 years to the whole career life). If he/she already took such position in the other company, such company should change the person. He/she can neither take as the director, supervisor and senior management of such food and drug related companies.

 

There are similar restrictions on the other industry (for example, safe manufacturing/feed and drug operation/internet services/digital certifying services/ entertainment industry/ securities and futures services/ architecture and construction industry, and etc.)

 

The competent authority will firstly cancel the special licenses of the company which seriously breaches the law and lost the reputation, and then report this information to the Administrative bureau of Industry and Commerce. The AIC will ask or force the company to quit the market. On the other hand, AIC will also share the information with the competent authorities for their making the correct decision on approving the special license.

 

Further, all governmental authorities will cooperate for achieving the goal as “any breaching the law will cause the company’s restriction in all over aspects during the operation”.

  • Force the company to close the website;
  • Hard to get the financing loan;
  • The senior management is restricted to take the airplane or train;
  • Restrict to issue the corporate bond;
  • Restrict to get the producing license;
  • Restrict to get any benefit or support from the government;
  • Restrict on import and export matter;
  • Announce the bad record to the public;

 

We found the government will transfer his effort to supervise the operation of the company. The company should have a good legal control on its operation.

 

If you have any questions, please send the email to me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com

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