Company Holds Special Legal Training on the “Company Law” and Criminal Compliance

On December 29, 2023, the 7th meeting of the Standing Committee of the 14th National People's Congress passed the “Company Law of the People’s Republic of China (Second Amendment)” and the “Criminal Law Amendment (XII)”. The implementation of these two laws will have a profound impact on the Company’s operational management.

To further strengthen the Company’s criminal compliance efforts and ensure that its management practices comply with the newly implemented Company Law, on April 2, 2024, the Company organized over 80 senior managers, department heads, deputy heads, and key personnel from subsidiaries, sub-subsidiaries, and controlled companies to attend special legal training sessions titled “Criminal Risk Alert and Corporate Compliance for Listed Companies” and “Key Points of the Revised Company Law”, conducted both onsite and online.

The training invited Ms. Yang Jiao and Ms. Pu Wenqian from Qinghai Shuren Law Firm, who delivered lectures on “Criminal Risk Alert and Corporate Compliance for Listed Companies” and “Key Points of the Revised Company Law”, respectively.

Ms. Yang Jiao provided a detailed explanation using data analysis, legal interpretation, and case study, covering four main areas: the impact of national policies and legislation on listed companies, criminal data analysis of listed companies, common charges with case studies, and corporate compliance.

The lecture not only introduced macro-level statistics such as the industry distribution of listed companies involved in criminal cases, the types of crimes, and distribution of criminal charges, but also interpreted the criminal elements and case studies of common offenses, with a particular focus on how companies can implement criminal compliance and apply the principle of non-prosecution for compliant behavior.

Ms. Pu Wenqian, based on the actual situations of listed companies, analyzed comparisons between old and new laws and typical case studies, interpreting the purpose and characteristics of the Company Law revision, changes in capital system, shareholders’ rights and obligations, corporate governance, responsibilities of directors, supervisors, and senior management, and facilitation of company registration.

The newly revised Company Law involves numerous amendments and broad coverage. Next, the Company will integrate the revised law with its actual operations, review shareholders’ capital contributions in subsidiaries and sub-subsidiaries, and adjust the Articles of Association and relevant internal control systems.

This special legal training helped employees understand and master the latest provisions of the two laws, providing support for the Company’s future operational and management decisions. The training was rich in content and closely aligned with the Company’s actual operations, helping to enhance risk awareness, promote compliance, and lay a solid foundation for sustainable and healthy development.