If an enterprise suffers serious losses due to poor management and cannot pay off its debts, it shall be declared bankrupt according to law. If the person in charge of the above-mentioned enterprise causes great losses to the state, he shall bear administrative or civil or criminal responsibilities.
The Enterprise Bankruptcy Law of the People's Republic of China (Trial) stipulates that after an enterprise is declared bankrupt, the government supervision department and the audit department are responsible for finding out the responsibility of the enterprise bankruptcy. If the legal representative of a bankrupt enterprise is mainly responsible for the bankruptcy of the enterprise, he shall be given administrative sanctions. If the superior competent department of a bankrupt enterprise bears the main responsibility for the bankruptcy of the enterprise, administrative sanctions shall be imposed on the leaders of the superior competent department.
If the legal representative of a bankrupt enterprise or the leader of the superior department in charge of the bankrupt enterprise neglects his duty, which leads to the bankruptcy of the enterprise and causes heavy losses to state property, he shall be investigated for criminal responsibility in accordance with the provisions of Article 187 of the Criminal Law of People's Republic of China (PRC).
The legal representative of the bankrupt enterprise and the leader of the superior competent department shall be given administrative or criminal sanctions under any of the following circumstances:
1. Concealing, disposing or transferring property without compensation;
2. Selling products at abnormally low prices;
Third, provide property guarantee for the original debt without property guarantee;
4. Pay off the outstanding debts in advance;
5. Give up your creditor's rights.
When accepting a bankruptcy case of an enterprise, the people's court finds that the whereabouts of the huge property of the enterprise are unknown, and shall transfer the information and materials about the suspected crime to the relevant state organs for handling.
The principal responsible person of a bankrupt enterprise has not been subjected to the above-mentioned circumstances and has not been subjected to administrative or criminal punishment, but the people's court may still suggest restricting his following acts:
First, the time limit for it to start a business again;
2. Restrict him from serving as a director, supervisor or manager of the company within the prescribed time limit.