Handling a Case, Saving a Enterprise, Driving an Industry - Record of Enterprise Compliance Reform during the Trial Stage of Shangyu District Court in Shaoxing

2023-04-17

Compliance is an important cornerstone for ensuring the long-term development of a company's foundation. In recent years, the Shaoxing Court in Zhejiang Province has adhered to the principle of parallel handling of cases and services, placing equal emphasis on punishment and protection, striking and preventing simultaneously, actively exploring and promoting enterprise compliance reform, taking typical cases as the starting point, promoting "individual case compliance" to "industry compliance", and timely issuing guidance and implementation measures, continuously promoting the construction of compliance mechanisms and institutionalization, establishing a third-party evaluation mechanism, and promoting front-end governance of enterprise compliance, Establish a comprehensive exploration and practice covering theory, mechanism, and case handling, as well as a full chain compliance promotion mechanism covering pre, during, and post events, to help create a legal business environment that benefits businesses and ensures safety. Among them, the People's Court of Shangyu District, Shaoxing City, Zhejiang Province took the lead in exploring the use of courts as the leading force in promoting compliance reform of enterprises involved in the trial stage, and successfully completed the first case of enterprise compliance reform during the trial stage. Strengthen front-end governance and improve working mechanisms. "Thank you to the court for giving us an opportunity to reform and continue to contribute to society by embarking on the path of sustainable compliant business development." On April 6 of this year, during a compliance follow-up visit to a company, the Shangyu District Court expressed gratitude to the legal representative of the company, Shen. The company is an enterprise engaged in the processing of metal packaging for food products, which requires the use of coatings in production. The iron waste packaging barrels containing coating residues have been recognized by the environmental protection department as hazardous waste and should be disposed of by qualified enterprises in accordance with relevant national regulations. From the second half of 2016 to September 2020, the company illegally sold over 500 tons of waste packaging barrels with paint residue to Wang and others for illegal disposal, knowing that Wang and others did not have a hazardous waste operation license. After several rounds of turnover, the waste packaging barrels ultimately flowed to downstream steel mills for smelting, seriously polluting the atmospheric ecological environment. They were later sued by the Shangyu District Court. Considering the social issues such as the employment and survival of a large number of employees involved in criminal enterprises. After the case entered the trial stage, the Shangyu District Court carefully studied and actively guided the company. Through compliance rectification, the production of hazardous waste was effectively reduced, thereby reducing the carbon emissions generated from the treatment of hazardous waste. The paid treatment of hazardous waste was converted to resource recycling, which increased the company's profits and drove the industry's green transformation. The compliance rectification actions of enterprises can be treated as lenient circumstances of repentance, and if they fail to break through existing legal provisions, they should be positively encouraged and affirmed. By investigating the business scale and rectification situation of the enterprise's local party committee and government, contacting the ecological environment department for on-site spot checks, and from the perspective of optimizing the legal business environment and ensuring the development of the enterprise, the Shangyu District Court has explored the initiation of a criminal compliance rectification mechanism in this case. In January 2022, the Shangyu District Court established a criminal compliance work team with "top leaders" as the team leader and key members of the business court as members. At the same time, it formulated and issued the "Implementation Measures for lenient treatment of criminal compliance within a specified period of time for enterprises involved in the case", "Implementation Measures for Pre judgment Social Effect Assessment of Major Cases", and carefully prepared the "Enterprise Compliance Operation Suggestion Manual" and "Enterprise Operation Risk Prevention Manual", focusing on business management compliance, risk disposal compliance, and so on Enrich the connotation of corporate compliance from perspectives such as relief and compliance, and move the compliance port from post cracking sanctions to pre risk prevention, thus improving

Edit:Ying Ying    Responsible editor:Shen Chen

Source:rmfyb.chinacourt.org

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