On April 25, Lawyer Chen Gonghui, a senior partner at Longan Guangzhou, was invited to attend a special lecture on “Criminal Risks of Enterprises and Corporate Executives under the New Two Laws” at the Zhongxin Prudential Zhongshan branch. This event was organized by Zhongxin Prudential with the aim of enhancing the prevention of criminal risks for enterprises and their executives. During the lecture, Lawyer Chen Gonghui shared insights into the practical issues related to the criminal risks of private enterprise managers under the context of the new Company Law and the 12th Amendment to the Criminal Law.

Lawyer Chen Gonghui first pointed out the impact of the new two laws on enterprises and corporate managers: the new Company Law emphasizes the obligations and responsibilities of directors, supervisors, and senior management personnel, while the 12th Amendment to the Criminal Law strengthens the punishment for corruption and bribery among internal employees of enterprises. The introduction of the new two laws is related to frequent cases of corporate failures. Lawyer Chen Gonghui used data to show the common crimes that corporate executives frequently commit in recent years, helping people understand the crimes that occur within enterprises.

Lawyer Chen Gonghui Senior Partner at Longan Guangzhou

To help people better understand the new regulations, Lawyer Chen Gonghui adapted cases that he has handled or is currently handling, and explained the two new crimes stipulated in the 12th Amendment to the Criminal Law: illegal business operations and illegal profit-making for relatives and friends. The cases were explained in a progressive manner. Lawyer Chen Gonghui introduced the changes in the new Company Law and the conditions under which such actions constitute crimes, and provided legal advice accordingly. Finally, using data on the reasons for crimes committed by corporate executives, Lawyer Chen Gonghui explained the impact of the new two laws: under the influence of the accelerated capital contribution and reporting of related transactions in the new Company Law, there may be a wave of enterprise closures; and when disputes over shareholder rights cannot be resolved through civil means, there may be another wave of small shareholders suing major shareholders.

At the end of the presentation, Lawyer Chen Gonghui also showed legal service products developed by his team, such as a guide for lawyers to represent criminal complaints/ reports, methods and procedures for enterprises to respond to criminal investigations, and practical advice for lawyers to represent enterprises in criminal risks. Many executives showed interest in these products. The presentation was very interesting and received enthusiastic responses from many attendees. Some corporate executives and leaders expressed their trust in Lawyer Chen Gonghui’s professional abilities and had private consultations with him.

Lawyer Chen Gonghui’s presentation focused on the connection between criminal responsibilities under the new two laws. Two sets of data were cited, two cases were presented, two crimes were explained, and the progression from civil to criminal legal responsibilities was discussed. His words were concise and effective, hitting the points that the attendees were concerned about. In the future, Longan Guangzhou will combine the strength of professional criminal lawyers, integrate the experience of resolving criminal risks for various enterprises, and utilize the resources of its criminal compliance department to ensure the long-term healthy development of enterprises.

About the Client Zhongxin Prudential Life Insurance Co., Ltd. offers insurance products and services covering various areas such as traditional insurance, diseases, medical care, accidents, and wealth management, meeting the multi-level needs of customers throughout their lives. In the “Internet+” era, Zhongxin Prudential Life has keenly recognized customer needs. Through official WeChat, official websites, and service terminal systems for business personnel, it provides electronic services at all business stages, allowing customers to enjoy convenient insurance services 24/7 without leaving home. With professional business operations, mature management mechanisms, and a customer-oriented service philosophy, Zhongxin Prudential Life provides rich, comprehensive, fast, and high-quality insurance services to over 1.64 million individual customers and 14,400 enterprises across the country.

About the Lawyer Lawyer Chen Gonghui Lawyer Chen Gonghui holds a master’s degree in law from South China University of Technology. He is currently a senior partner at Longan (Guangzhou) Law Firm in Beijing. With 23 years of experience in investigating economic crimes by the public security department, he has handled hundreds of criminal cases since forming his law team. These cases involve commercial crimes, duty-related crimes, crimes by entrepreneurs (executives), financial, securities, and insurance crimes, contract fraud crimes, environmental protection crimes, and cross-criminal and civil cases. He has developed a series of non-litigation criminal products, including special criminal compliance analysis, criminal complaints, emergency criminal solutions, intellectual property criminal protection, anti-corruption and anti-fraud solutions for enterprises, prevention of crimes by shareholders and executives, and design of criminal risk compliance systems for enterprises.