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Can family members of state-owned enterprise leaders start a company?
Legal analysis: Yes. However, enterprise leaders may not entrust, lease or contract state-owned assets to specific related parties such as spouses and children, and may not use their powers to provide convenience for specific related parties such as spouses and children to engage in profit-making business activities. According to relevant laws and regulations, directors and managers of state-owned companies and enterprises take advantage of their positions to run their own businesses or businesses similar to those of companies and enterprises where others work, and obtain illegal benefits. If the amount is huge, criminal responsibility shall be investigated according to law.

Legal basis: Article 165 of the Criminal Law of People's Republic of China (PRC) states that directors and managers of state-owned companies and enterprises take advantage of their positions to run businesses similar to those of their companies and enterprises for themselves or others and obtain illegal benefits. If the amount is huge, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also or only be fined; If the amount is especially huge, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined.