(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 162 [Obstructing Liquidation, Concealing or Intentionally Destroying Accounting Vouchers, Accounting Books and Financial Reports, or False Bankruptcy] Where a company or enterprise, in the process of its liquidation, conceals its property, makes false records in its balance sheet or inventory, or distributes its property before paying off its debts, causing serious damage to the interests of obligees or others, the directly responsible chief and other directly responsible individuals of the entity shall be sentenced to imprisonment of not more than five years or custody and/or a fine of not less than RMB 20,000 but not more than RMB 200,000.
Article 162A A person who conceals or intentionally destroys accounting vouchers, accounting books, or financial reports that should be preserved according to law shall be sentenced to imprisonment of not more than five years or custody and/or a fine of not less than RMB 20,000 but not more than RMB 200,000 if the offense is committed under 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 of the entity shall be punished in accordance with the provisions of the preceding paragraph.
Article 162B Where a company or enterprise engages in false bankruptcy by concealing its assets, assuming fictitious debts, or transferring or disposing of its assets by other means, resulting in serious damage to the interests of obligees or others, the directly responsible chief and other directly responsible individuals of the entity shall be sentenced to imprisonment of not more than five years or custody and/or a fine of not less than RMB 20,000 but not more than RMB 200,000.
