Chapter VII Legal Liability

Article 49 Where the examination and approval authorities for Chinese-foreign cooperation in running schools or their personnel, by taking advantage of their office, accept money or property from others or obtain other interests, or, by abusing their power or neglecting their duty, issue a permit for Chinese-foreign cooperation in running a school to those that do not meet the requirements prescribed by these Regulations, or fail to conduct investigation when an illegal act is discovered, if the consequences are serious and the case violates the criminal law, the persons in charge who are responsible and other persons directly responsible shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of acceptance of bribes, the crime of abuse of power, the crime of neglect of duty or other crimes; if the case is not serious for criminal punishments, they shall be given administrative sanctions in accordance with law.

Article 50 Where any authority, in violation of the provisions of these Regulations, examines and approves a Chinese-foreign cooperatively-run school beyond the scope of power, the document of approval shall be null and void and the higher level authorities shall order it to make corrections; the persons in charge who are responsible and other persons directly responsible shall be given administrative sanctions in accordance with law; if public property or interests of the State and the people sustains heavy losses, they shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of abuse of power or other crimes.

Article 51 Where anyone, in violation of the provisions of these Regulations, establishes a Chinese-foreign cooperatively-run school without approval, or defrauds a permit for Chinese-foreign cooperation in running the school by illegitimate means, the education administrative department or the labour administrative department shall ban it according to their respective functions and duties, or, jointly with the public security organ, order it to return the fees collected from the students, and concurrently impose a fine of not more than 100,000 yuan; in case the criminal law is violated, criminal liability shall be investigated in accordance with the provisions of the criminal law on the crime of swindle or other crimes.

Article 52 Where anyone, in violation of the provisions of these Regulations, enrolls students within the period of preparation for establishment of a Chinese-foreign cooperatively-run school, the education administrative department or the labour administrative department shall, according to their respective functions and duties, order it to stop the enrollment of students and to return the fees collected from the students, and concurrently impose a fine of not more than 100,000 yuan; if the circumstances are serious and it refuses to stop the enrollment, the examination and approval authorities shall revoke the letter of approval for preparation for establishment.

Article 53 Where either Chinese or foreign cooperator in running a school makes false capital contribution or withdraws the capital contribution after establishment of the Chinese-foreign cooperatively-run school, the education administrative department or the labour administrative department shall, according to their respective functions and duties, order it to make corrections within a prescribed time limit; if it refuses to make such corrections within the prescribed time limit, the education administrative department or the labour administrative department shall, according to their respective functions and duties, impose a fine of not more than twofold of its false capital contribution or of its capital contribution withdrawn.

Article 54 Anyone who forges, alters, buys or sells a permit for Chinese-foreign cooperation in running a school shall be investigated for criminal liability in accordance with the provisions of the criminal law on the crime of forging, altering, buying or selling certificates of a State organ or other crimes.

Article 55 Where a Chinese-foreign cooperatively-run school adds items of fees charged or raises the level of fees charged without approval, the education administrative department or the labour administrative department shall, according to their respective functions and duties, order it to return the fees over collected, and the pricing department shall punish it in accordance with the provisions of the relevant laws and administrative regulations.

Article 56 Where a Chinese-foreign cooperatively-run school causes gross adverse impacts due to its poor management or inferior educational and teaching quality, the education administrative department or the labour administrative department shall, according to their respective functions and duties, order it to make rectification within a prescribed time limit and make an announcement; if the circumstances are serious, or no rectification is made within the time limit, or the requirements are not met after its rectification, the education administrative department or the labour administrative department shall, according to their respective functions and duties, order it to stop its enrollment of students and revoke its permit for Chinese-foreign cooperation in running the school.

Article 57 Where anyone, in violation of the provisions of these Regulations, issues false enrollment brochures and swindles money or property, the education administrative department or the labour administrative department shall, according to their respective functions and duties, order it to make corrections within a prescribed time limit and give a warning, confiscate its illegal gains, if any, and may concurrently impose a fine of not more than 100,000 yuan after fees collected have been refunded, and, if the circumstances are serious, order it to stop enrollment of students and revoke its permit for Chinese-foreign cooperation in running the school; if a crime is constituted, criminal liability shall be investigated in accordance with the provisions of the criminal law on the crime of swindle or other crimes.

Where a Chinese-foreign cooperatively-run school issues false enrollment advertisements, it shall be investigated for legal liability in accordance with the relevant provisions of the Advertisement Law of the People’s Republic of China.

Article 58 Where a Chinese-foreign cooperatively-run school has its permit for Chinese-foreign cooperation in running the school revoked as an administrative punishment, the chairperson of its board of trustees or its board of directors, or its president or principal administrator shall be prohibited from taking positions of the chairperson of the board of trustees or of the board of directors, the president or principal administrator of any Chinese-foreign cooperatively-run school within ten years starting from the date of revocation of its permit for Chinese-foreign cooperation in running the school.

Those who violate the provisions of these Regulations and the criminal law and are punished for criminal liability in accordance with law shall be prohibited from engaging in activities of Chinese-foreign cooperation in running schools within ten years starting from the date of completion of service of criminal punishments.