Personal Liabilities of Senior Management under AML: A Comparative Approach

CPI Asia Column edited by Vanessa Yanhua Zhang (Global Economics Group) present:

Personal Liabilities of Senior Management under AML: A Comparative Approach – By Ken Dai & Jet Deng (Partners, Dentons China)

In the last few years, a number of cases including several world-renowned cases have been effectively investigated and punished by Chinese antitrust enforcement authorities, which has aroused concerns among the business world.[1] Although many companies and employees might be aware of the liability of an undertaking for participating in any anti-competitive conduct, they may not be aware that antitrust violations may create personal liability of senior management and other related employees who engages in such violation.

This article provides an overview of personal liabilities of senior management under antitrust law both at home and abroad, stresses the demand of a sounder regime under the PRC Anti-monopoly Law (the “AML”) as well as discusses the trend of the Chinese regime, in order to serve as a stark reminder about the personal risks of senior management in China.

I. Personal Liabilities of Senior Management under the AML: Limited Criminal Liabilities

Technically speaking, it is difficult to pursue culpable senior management for their anti-competitive conduct under the AML, since the AML has not set up any personal liability on the part of employees, either senior management or legal representatives, even though they may be alleged for having involved in