Article 200 Any of the initiators or shareholders of a company, who makes any false capital contribution, or fails to deliver or fails to deliver in time the currency or non-currency properties used as capital contributions, shall be ordered by the company registration authority to make rectifications, and shall be fined not less than 5% but not more than 15% of the sum of false capital contributions.

 Article 201 Where any initiator or shareholder illegally take away its capital contribution after the company is established, he shall be ordered by the company registration authority to make rectifications, and shall be fined not less than 5% but not more than 15% of the capital contribution he has unlawfully taken away.

 Article 202 Any company which has established another account books apart from the legally prescribed account books and violates of this Law shall be ordered by the treasury department of the people's government at the county level or above to make rectifications, and shall be fined not less than 50,000 Yuan but not more than 500, 000 Yuan.

 Article 203 Where a company makes any false records or conceals any important fact in such materials as financial and accounting statements submitted to the relevant departments in charge, the relevant department in charge shall impose a fine of not more than 30, 000 Yuan but not more than 300, 000 Yuan upon the directly liable persons in charge and other directly liable persons.

 Article 204 Where a company fails to draw legal reserved funds according to this Law, it shall be ordered by the treasury department of the people's government at the county level or above to make up the amount it is due, and may be fined up to 200, 000 Yuan.

 Article 205 Where any company fails to inform its creditors by notice or by public announcement during the process of merger, split, reducing its registered capital or liquidation, it shall be ordered by the company registration authority to make rectifications, and may be fined not less than 10, 000 Yuan but not more than 100, 000 Yuan.

Where, during the process of liquidation, any company hides any of its properties or makes any false record in its balance sheet or property checklist, or distributes any of the company's properties before clearing off its debts, it shall be ordered by the company registration authority to make rectifications, and may be fined not less than 5% but not more than 10% of the value of the company properties it has hidden or distributed prior to the clearing of company debts, and the directly liable person-in-charge as well other directly liable persons may be fined not less than 10, 000 Yuan but not more than100, 000 Yuan.

 Article 206 Where, during the process of liquidation, any company undertakes any business activity which has nothing to do with the liquidation, it shall be admonished by the company registration authority, and its illegal proceeds shall be confiscated.

 Article 207 Where the liquidation group fails to submit a liquidation report to the company registration authority according to the provisions of this Law, or where any important fact is concealed or there is any important omission in the liquidation report it submits, it shall be ordered by the company registration authority to make rectifications.

Where any member of the liquidation group takes advantage of his power to seek illegal benefits for himself or any of his relatives, procures any illegal gains or misappropriates any of the properties of the company, he shall be ordered by the company registration authority to return the properties of the company with his illegal gains being confiscated, and shall be fined 1 up to 5 times of the illegal proceeds.

 Article 208 Where any institution that undertakes the evaluation or verification of assets or the verification of certificates provides any false materials, its illegal proceeds shall be confiscated by the company registration authority, and be fined 1 up to 5 times of the illegal proceeds, and may be ordered by the competent administrative department to suspend its business operation or to withdraw the qualification certificates of the directly liable persons, and revoke its business license.

Where any institution that undertakes the evaluation or verification of assets or the verification of certificates makes any important omission in the report it submits, it shall be ordered by the company registration authority to make rectifications; if the circumstances are serious, it shall be fined 1 up to 5 times of the proceeds it has obtained, and may be ordered by the competent administrative department to suspend its business operation and to withdraw the qualification certificates of the directly liable persons, and revoke its business license. Where the evaluation result or proof of asset verification or certificate verification, as provided by any institution that undertakes the evaluation or verification of assets or the verification of certificates, is proved to be untrue, which has caused any loss to the creditors of the company, it shall bear the compensation liabilities within the sum which is found to be untrue, unless it can prove that it has no fault in the incurrence of the loss.

 Article 209 Where any company registration authority registers any application that does not meet the conditions as provided for in this Law, or fails to register any application that meets the conditions as prescribed in this Law, the directly liable person-in-charge and other directly liable persons shall be imposed upon an administrative sanction.

 Article 210 Where the superior administration of any company registration authority forces the latter to register any application that does not satisfy the conditions as prescribed in this Law or to refuse any application that meets the conditions as provided for in this Law, or covers up for any illegal registration, the directly liable person-in-charge and other directly liable persons shall be imposed upon an administrative sanction according to law.

 Article 211 Where anyone fails to register as a limited liability company or joint stock limited company according to law but undertakes business operation in the name of a limited liability company or joint stock limited company, or fails to register as a branch of a limited liability company or joint stock limited company according to law but undertakes business operation in the name of a branch of the limited liability company or joint stock limited company, it shall be ordered by the company registration authority to make rectifications or be closed down, and may be fined not more than 100,000 Yuan.

 Article 212 Where any company fails to start its business operation six months after the incorporation of it without justifiable reasons, or suspends its business operation on its own initiative for consecutive six months after it has started the business operation, its business license may be revoked by the company registration authority.

Where any registered item of any company changes, and the company fails to go through the corresponding modification registration according to this Law, it shall be ordered by the company registration authority to make modification registration within a time limit; if it still fails to make the registration, it shall be fined not less than 10, 000 Yuan but not more than 100, 000 Yuan.

 Article 213 Where any foreign company violates this Law by illegally establishing any branch within China, it shall be ordered by the company registration authority to make rectification or to close it down, and may be fined not less than 50,000 Yuan but not more than 200, 000 Yuan.

 Article 214 Where anyone commits, in the name of a company, any serious violation of law so that the security of the state or the public interests of the society is injured, the business license of the company shall be revoked.

 Article 215 Where a company violates any provision of this Law, it shall bear the corresponding civil liabilities of compensation, and shall pay the corresponding fines and pecuniary penalties; if the property thereof is not enough to pay for all of these, it shall bear the civil liabilities first.

 Article 216 Where any company violates this Law and any crime is constituted, it shall be subject to criminal liabilities.

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