Frequently Asked Questions

24 2026-10

Is it really useful for criminal suspects to hire a lawyer?

A lawyer can guarantee the procedural rights such as meeting and communicating with clients, reviewing case files, etc. Before the approval of arrest, the lawyer can submit opinions against the approval of arrest and apply for bail pending trial. The intervention within the first 37 days after the case is filed is the most effective, but it cannot guarantee the outcome of the case.

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24 2026-10

Is legal advice free of charge?

The initial communication and preliminary assessment for legal advice are usually free of charge. However, in-depth scheme design and litigation representation are subject to legal fees, which shall be agreed upon by both parties and charged transparently, and the fees shall be written into a written contract.

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24 2026-10

Can family members hire a lawyer after the detainee is placed in custody?

During the detention period, lawyers are not allowed to meet with the person under investigation, but family members can hire lawyers in advance for the stage after the transfer of the case for review and prosecution. During the detention period, lawyers can provide peripheral assistance such as legal consultation and guidance on appeals and complaints.

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24 2026-10

Is leaking information about large-scale transactions considered insider trading?

Large-scale transactions themselves are compliant, but leaking and exploiting undisclosed major information in advance may constitute insider trading: the maximum administrative fine is ten times the amount of the transaction, and if the circumstances are serious, criminal responsibility may be pursued. Civil claims are subject to a three-year statute of limitations.

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24 2026-10

How can investors recover their money from delisted stocks?

Whether delisted stocks can be recovered depends on the reasons for the delisting: For delistings enforced due to major violations such as fraudulent issuance and false statements, investors can seek compensation according to law. They need to keep transaction records, calculate losses, and participate in representative litigation within the three-year statute of limitations.

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24 2026-10

Do directors, supervisors, and senior executives need to compensate investors for their losses?

If the directors, supervisors, and senior managers perform their duties with intentional or gross negligence, causing damage to investors, they shall also be liable for compensation in accordance with Article 191 of the Company Law; in the context of information disclosure, Article 85 of the Securities Law applies the presumption of fault, and the managers who fail to fulfill their duties shall be...

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24 2026-10

What should I do if the company's trade secrets have been leaked?

The disclosure of trade secrets can be subject to civil litigation, administrative complaints, and criminal reports: Article 10 of the Anti-Unfair Competition Law clearly defines the types of infringement, and Article 26 stipulates fines. In urgent situations, applications for injunctions can be made to stop the infringement from spreading further.

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24 2026-10

How to hold someone accountable for violating a confidentiality agreement?

If a person violates a confidentiality agreement, they may claim damages or compensation for losses. If the amount of the penalty exceeds the actual losses, they may request a reduction. In labor disputes, the worker's liability for compensation shall be investigated in accordance with Article 90 of the Labor Contract Law. It is important to note the three-year statute of limitations and the need ...

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24 2026-10

What are the consequences of not notifying creditors during liquidation?

The liquidation group shall notify the creditors within 10 days after its establishment and make a public announcement within 60 days; if the liquidation group fails to perform its duties according to law, resulting in the creditors failing to file their claims in time and not being compensated, the creditors may claim compensation from the members of the liquidation group and hold the shareholder...

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24 2026-10

After the company is deregistered, who will bear the debts?

After the company is deregistered, its debts are not automatically extinguished. If the company fails to conduct liquidation in accordance with the law, submits a false liquidation report, or makes untrue commitments in the simplified deregistration process, the shareholders, directors, and other responsible parties shall bear joint and several liability for the debts incurred before the deregistr...

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24 2026-10

How can a nominal legal representative get out of the situation?

The nominal legal representative may resign, urge the change of registration, initiate a lawsuit for company change registration, or remove the registration to get rid of the situation. He/she should take action as soon as possible to avoid being restricted from high-consumption activities.

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24 2026-10

Can a company's deadlock be sued to dissolve it?

A corporate deadlock meets the three requirements of serious difficulties in business management, significant losses to shareholders' interests, and the exhaustion of all other remedies. Shareholders with voting rights of more than 10% of the shares may sue for dissolution, but they must pay attention to the two-year time limit.

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24 2026-10

How to sue the company if they refuse to allow an audit request?

If a shareholder's request for an audit of the company's accounts is denied, they should first submit a written request and explain the purpose of the audit. If the company fails to respond or reject the request within 15 days, the shareholder may file a lawsuit. The lawsuit should specify the scope of the audit period, and the shareholder may appoint an accounting firm to assist them.

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