In August 2021, Guangdong Shengdian Law Firm (hereinafter referred to as "Shengdian Law Firm") accepted the entrustment and successively appointed Lawyer Yuan Menglong and Lawyer Zhou Xu as the defenders of the suspects involved in the crime of collusion in bidding. After reviewing the files and understanding the situation from the parties, and combining relevant criminal law theories, criminal policies and judicial practices, the defender first issued a legal opinion to the Guangming District People's Procuratorate (hereinafter referred to as the "procuratorial organ"), and then combined with the specific case and relevant regulations Apply for a commercial investment company involved in the case (hereinafter referred to as "commercial company" or "company") to carry out corporate compliance supervision and inspection.

After listening to the legal opinions of the defender, the procuratorial organ issued the "Enterprise Compliance Supervision and Inspection Decision" to the commercial company on September 2, 2021. Shengdian accepted the entrustment and assigned lawyer Zhang Liang, lawyer Yang Fei and lawyer Yuan Menglong (hereinafter referred to as the "compliance team") to provide special legal services for corporate compliance for commercial companies.

(The picture shows lawyer Yuan Menglong and company representatives participating in the kick-off meeting of the enterprise compliance supervision and inspection procedure)

After accepting the entrustment, the compliance team immediately investigated the compliance risks in various fields such as the company's equity structure, governance structure, assets and liabilities, finance and taxation, contract management, labor and personnel, operation and management responsibilities, and conducted in-depth analysis of the root causes of the suspected misappropriation of funds and collusion in bidding in this case, and carried out compliance rectification work on the company under the supervision of the third-party supervisor designated by the procuratorial organ.

In view of the compliance risks existing in the company and the root causes of the crimes involved in the case, the compliance team carried out a series of compliance rectification work on the company, improved the company's equity governance structure, clarified the rights and responsibilities of the shareholders' meeting, executive directors, supervisors and management, established a compliance management organization system, improved the compliance system, established a compliance risk reporting mechanism, and conducted three compliance trainings for the company's employees during the compliance inspection period. During this period, the compliance team also issued three compliance plans and compliance rectification reports in accordance with the requirements of the procuratorial organs and third-party supervisors, and carried out rectification work in strict accordance with the compliance commitments and compliance plans.

On the expiration of the inspection period, the procuratorial organ organized the "Enterprise Compliance Rectification Acceptance Hearing" on October 27, 2021, and invited representatives of the National People's Congress, CPPCC members and procuratorate supervisors to conduct hearings on the company's compliance rectification acceptance. At the hearing, after listening to the reports of company representatives, third-party monitors, and contractors, the hearing staff conducted key inquiries on related issues. After discussion and deliberation, they finally reached a consensus on "commercial company compliance rectification and compliance. After the hearing, the procuratorial organ held that "the commercial company has effectively implemented the enterprise compliance plan during the supervision and inspection period", and made an assessment opinion on the rectification of the commercial company on October 28, 2021, and then made a non prosecution decision on October 29, 2021.

(The picture shows the evaluation opinion of the enterprise's compliance rectification)

So far, the work of the defense team and the compliance team in this case has been a complete success. Lawyers Zhou Xu, Zhang Liang, Yang Fei and Yuan Menglong of Shengdian Institute have won unanimous praise from their clients for their professional, responsible and efficient legal services.

(The picture shows the decision not to prosecute)

With the continuous advancement of the pilot reform of corporate compliance in the procuratorial organs involved in the case, while continuously strengthening its professional advantages in the field of criminal defense, Shengdian actively participates in the pilot work of corporate compliance in the procuratorial organs, in order to optimize the business environment of the rule of law and urge enterprises to operate in compliance with the law, Promote the modernization of the social governance system and governance capabilities, and provide a full range of professional legal services. In the future, Shengdian will continue to work hard to achieve the unity of political, legal and social effects of judicial case handling based on the principles of high efficiency, high quality, prudence and pragmatism.

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