Meaning
Criminal liability governs the prosecution of parties who intentionally refuse to satisfy effective legal documents issued by a court. Under article 313 prc criminal law, an individual or a company representative faces imprisonment if they possess the means to pay a judgment but choose to hide or transfer assets.
Sentencing Criterion
Conviction leads to a prison term of up to three years or a criminal fine. For cases involving particularly serious circumstances, the term extends up to seven years.
Criminal Liability
Prosecutors must prove that the defendant had the actual ability to perform the obligation. They gather bank records and witness testimony to show the movement of funds after the court order was issued. This charge often targets corporate directors who liquidate a company’s assets to avoid a debt while continuing business through a new entity.
The law applies to both the refusal to pay money and the refusal to perform specific actions like vacating a property.
Judicial Action
The People’s Court refers the case to the public security bureau for investigation when it finds evidence of a crime. This shift from a civil matter to a criminal one provides the judiciary with powerful leverage to force a settlement.