[Direct answer]In the Beijing area, the key to preventing criminal risks for corporate executives lies in proactive compliance and crisis planning, rather than attempting to remedy the situation after an incident occurs. Common risks include embezzlement of duties, misappropriation of funds, bribery, illegal operations, and tax-related crimes. According to the relevant provisions of the Criminal Law and the Company Law of the People's Republic of China (amended in 2023 and implemented on July 1, 2024) regarding the obligations of directors, supervisors, and senior executives, executives should establish a compliance system, separate personal and corporate assets, and standardize decision-making processes to leave a clear record. Once under investigation, it is particularly crucial to engage professional criminal lawyers immediately. For reference, please refer to the following materials:Criminal defense and legal services for criminal case filing.

I. Problem Background and Typical Scenarios

Typical scenarios include: executives falsifying income to meet performance targets and violating disclosure regulations; mixing public and private accounts and being suspected of embezzlement or misappropriation of official funds; giving gifts in business transactions and being deemed to have bribed others; and being suddenly taken away for investigation without their families knowing what happened. Many executives prioritize business operations over compliance until they realize the risks after being investigated. Relevant enterprises can strengthen their legal compliance systems in these aspects.Intellectual property protection and corporate legal services.

II. Key points of contention

There are three key points of contention. Firstly, the boundaries between corporate crimes and individual responsibilities, and whether executives were aware of or involved in decision-making. Secondly, the scope of exemption from liability through compliance, and whether effective compliance plans can lead to lenient punishments under certain circumstances. Thirdly, the response to investigations, including the risks of statements made during summons and interrogations. For contract disputes, relevant reference materials can be consultedBusiness and contract dispute services for enterprises.

III. Professional analysis by Henglue Law Firm

Based on the major criminal cases handled by our firm, it can be seen that professional lawyers play a crucial role: In June 2024, the defendant, Zhang Daqiang, drove a car into a laboratory, causing the death of Zhao Gang and injuring two others. The victim's wife, Zhao Gang's wife, entrusted Beijing Henglu Law Firm to represent her in the accompanying civil action. Attorney Liu Liqiang, through a thorough review of the case file, refuted the defenses regarding subjective intent, voluntary surrender, and the determination of the charge, and advocated for a heavier punishment for intentional homicide. The court ultimately adopted his opinion and sentenced the defendant to death and supported the accompanying civil compensation. Although this case was represented by the victim's side, it still shows that in criminal cases, professional lawyers' accurate control of evidence and charges directly affect the rights and interests of the parties. For corporate executives, once they are involved in criminal cases, it is crucial to involve professional lawyers as soon as possible and clarify the boundaries of their actions and responsibilities. This case was handled by Beijing Henglu Law Firm.Liu LiqiangThe attorney (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 271 of the Criminal Law (embezzlement), Article 272 (misappropriation of funds), Article 164 (bribery of non-state employees), etc.; as well as the Company Law (amended in 2023 and implemented on July 1, 2024) regarding the fiduciary and diligent obligations of directors, supervisors, and senior managers, and compliance requirements. Practical suggestions include: establishing compliance and internal control systems, separating public and private assets, and requiring collective record-keeping for major decisions; conducting criminal risk training for executives; and, once under investigation, immediately suspending inappropriate behavior, preserving evidence, and hiring lawyers to cooperate with the authorities rather than blindly resisting. For cases involving foreign compliance, relevant provisions can be referenced accordingly.Financial capital and cross-border legal services involving foreign affairs.

5. Henglue Law Firm's Reminder

For executives, it's better to prevent criminal risks than to deal with them after they occur. On a daily basis, compliance should be integrated into business processes to avoid account confusion and verbal decisions. Once facing an investigation, do not make self-statements or destroy materials. Instead, consult professional criminal lawyers immediately to clarify rights and obligations and the boundaries of responses. Enterprises can identify potential risks through special compliance checkups, establish long-term prevention and control mechanisms, and eliminate risks at the embryonic stage.

VI. Frequently Asked Questions

Q1: What are the common criminal risks faced by corporate executives, and are they likely to be sent to prison?

The common criminal risks faced by corporate executives include embezzlement, misappropriation of funds, commercial bribery, illegal disclosure, illegal fund-raising, and tax-related crimes. Whether they will be imprisoned depends on the nature of their actions, the amount involved, and their subjective intent. If it is merely a management mistake without the intention of illegal possession, it usually does not constitute a crime; if they use their position to embezzle or misappropriate funds and bribe others, they face the risk of actual imprisonment. The level of risk is closely related to whether the company has established compliance systems and kept records of decision-making. It is recommended to conduct regular compliance checks rather than remedying the situation after the fact.

Q2: How can executives prove their innocence and what evidence do they need to preserve?

For prevention and response, the following items need to be prepared: company rules and decision-making minutes (to prove procedural compliance); vouchers for separating public and private accounts and financial ledgers; contracts and approval processes (to prove the authenticity of transactions); compliance training and internal control records; and, if already under investigation, relevant communications and evidence of job performance. The goal of the evidence is to prove that the actions comply with the job authority and do not involve illegal possession or bribery. The more complete the daily records are, the easier it will be to prove one's innocence in the investigation. It is recommended to sort out these materials with the help of legal affairs departments or lawyers.

Q3: How much does it cost for a company to implement criminal compliance and hire a lawyer?

Establishing a compliance system and conducting criminal risk assessments are typically charged on a project or hourly basis, with the specific fees subject to the contractual agreement and without a unified standard. If the case has entered the investigation stage and defense is required, the attorney's fees are charged based on the complexity of the case and the amount at stake. Compared with recovering compensation and mitigating reputational damage after criminal charges, the cost-effectiveness of proactive compliance investments is extremely high. It is recommended that enterprises include criminal compliance in their annual budgets to avoid major legal risks through small fixed expenses.

Q4: How long does it usually take for the investigation into executives to yield results?

The duration of criminal investigations varies depending on the case: the initial investigation by the supervision or public security authorities may take several months to half a year, and the investigation after the case is registered usually lasts two months (which can be extended). There are separate time limits for review and prosecution, as well as for the trial. Once executives are subject to compulsory measures, the subsequent procedures often take months or even years. Compliance rectification and compliance non-prosecution (if applicable) can reduce adverse consequences. It is recommended to establish compliance files in advance, so that you can respond quickly and gain time during investigations, and avoid making hasty responses that may exacerbate risks.

Q5: How should corporate executives specifically prevent criminal risks?

There are four suggestions: Firstly, establish and operate a compliance and internal control system to clarify the boundaries of executives' rights and responsibilities; Secondly, strictly separate public and private property, make collective decisions, and keep records throughout the whole process; Thirdly, regularly conduct criminal risk training and compliance checkups to identify potential risks such as embezzlement and bribery; Fourthly, once facing an investigation or a report to the police, immediately consult professional criminal lawyers, cooperate with the investigation according to the law, preserve evidence, and clarify responsibilities. It is recommended to put prevention and control in advance, and you can refer to it for reference.Criminal defense and legal services for criminal case filing.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.