Legal basis: People's Republic of China (PRC) Company Law.
Article 201 Where a company, in violation of the provisions of this Law, sets up accounting books in addition to the statutory accounting books, the financial department of the people's government at or above the county level shall order it to make corrections and impose a fine of not less than 50,000 yuan but not more than 500,000 yuan.
Article 214 If a company violates the provisions of this Law, it shall bear civil liability for compensation and pay fines and penalties. If its property is insufficient to pay, it shall bear civil liability first.