(Selected from the translated work titled The Criminal Law of the People's Republic of China, authored by Robert Zhang and Steve Li, criminal defense lawyers registered in Shanghai, China.)
Article 159 [Making False Capital Contributions or Withdrawing Capital Contributions] Where a promoter or shareholders of a company, in violation of the provisions of the Company Law, fails to pay cash, deliver goods, or transfer property rights, makes false contributions, or withdraws their contributions after the establishment of the company, shall be sentenced to imprisonment of not more than five years or custody and/or a fine of not less than two percent but not more than ten percent of the amount of false capital contributions or withdrawn capital contributions if the amount is significant, serious consequences are caused thereby, or the offense is committed under other serious circumstances.
Where an entity commits any of the offenses stipulated in the preceding paragraph, the entity shall be sentenced to a fine, and the directly responsible chief and other directly responsible individuals shall be sentenced to imprisonment of not more than five years or custody.
