Legal analysis: Penalties for violating the company's rules and regulations include warning, demerit recording, demotion, dismissal, probation, and termination of labor contract. The staff who have been warned shall not participate in appraising and commending, shall not be listed as candidates for reserve cadres, and shall not be promoted or hired to positions higher than the current post level. Those who have been given demerits shall not participate in appraising and commending, be listed as candidates for reserve cadres, be promoted in terms of salary and treatment, and shall not be promoted or hired to positions higher than their current positions.
Legal basis: Article 21 of the Company Law of People's Republic of China (PRC), the controlling shareholder, actual controller, directors, supervisors and senior management personnel of the company shall not use their relationship to harm the interests of the company.
Anyone who violates the provisions of the preceding paragraph and causes losses to the company shall be liable for compensation.