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165119931229611637012312211921519952281061165234567()12541923126423909419935970161232151995891012216520014181151%313151955333393119884171216513()()11652314()()225()70()22516()219()()()168()1651580001000120013()119997072199841319992744199820951997441619975017199738981999707919976491019982171999276111997501219991640-42131999276141998220151999238-2391.19982.19983.19994.19975.19976.19987.19998.19979.199910.199811.2000212.199413.2000514199815200116200010172001182001616313AbstractThecrimeofillegallyoperatingsimilarbusiness(referredasthecrimehereafter)isacrimenewlydefinedintheamendmentstotheCriminalLaws.Itsconstitutionalcharacters,cognizanceanddifferentiationfromtheothercrimesarouseextensivedebatesduetothenonstandardmulti-formsofthecorporationsandenterprisesduringtheeconomictransformation,thelackofcomprehensiveandin-depthstudiesbythetheoristsaswellasthedelayedjuridicalexplanations.Thecomprehensiveandsystemicanalysesandstudyofthecrimeisnotonlyrecognizedbythetheoristsbutalsoconsideredanimportanttaskconfrontingthejuridicalpersonnel.Theauthor,exploringinrelationtothejuridicalpractice,expresseshispointofviewsoverthesignificanceoflegislation,theconstitutionsandcognizanceofthecrime.Thethesiscanbedividedintothreesections:Inthefirstsection,thelegislationofthecrimeanditssignificanceisdiscussed.TheadditionofthecrimetotheamendedCriminalLawsisbasedonthedirectors/managers'obligations,asdefinedintheCorporationLaws,tobeinhibitedfromcompetitivebusinesswiththecorporation.Thecompetitioninhibitionisexplicitlydefinedintheclauseno.61oftheCorporationLaws:Directorsandmanagersareinhibitedfromoperating,onbehalfofthemselvesoranyothers,thesimilarbusinessasthatofthecorporationtheyareworkingfororthebusinesswhichwouldimpairtheinterestofthecorporation.Anyprofitgeneratedfromtheabovementionedbusinessoroperationshallbeturnedovertothecorporation.Alsoinclauseno.63issays:thedirectors,inspectorsandthemanagers,whoduringtheirministration,hascausedlossesofthecorporationbylawbreakingorderegulation,shallbeaccountablefortheindemnification.Theseregulationshavebeenmadetopreservethebenefitsofcorporations.However,aftertheenactingoftheCorporationLaw,therestillexistpracticalproblems,especiallytheimmoderateauthoritycentralizationinthedirectors/managersofthestateownedcorporationsandenterprises,thelackofsegregationbetweenrightsandobligations,andthelackoftheinvestigationsinaswellaseconomic,administrativeandcriminalpenaltiesoverthedirectors/managerwhohavecausedlossesorevenbankruptcyofthecorporations.Thatisthereasonwhythedirectors/managers'misusingtheirauthoritiesfortheirownsakehasseverelyimpairedthestate'sinterestandwhyitisnecessarytoapplypenalsanctionsagainsttheseinfractions.Thestatedownedcorporationsandenterprises,thepillarsofthenationaleconomy,themainbodiesofthepublicsystem,shouldbelegallyprotected.Supervisionshallbestrengthenedtogetherwiththepenetrationoftheeconomicsystemreformsandthecompetition.Themanagersofthestateownedcorporationwhoabusepowerforpersonalgains,imputerisks,breachthefairplayrulesandcausetremendouslossesofthecorporations,shallbeevenmoreseverelypunished.Therefore,theimportantaccusationwasaddedintheamendmentstotheCriminalLaw.Inthesecondsection,theconstitutionsofthecrimewereanalyzedanddiscussed.Theexplanationsbydifferentauthorsfortheobjectinfringed,thoughdifferent,arehelpfultotheexplicitdefinitionofthecrimeobject.Aspertheauthor,thecomplicatedcrimeobjectismainlycomposedofthreeportions:1.theviolationofthemanagementregulationsofthestateownedcorporations/enterprises;2.theeconomicbenefitofthestate;3.thebreachofthenaturalcompetitionsysteminsocialisticmarketeconomy.Threeissueshavebeensettledthroughtheanalysesofthesubjectivecharacters:Thefirstis,howtounderstandtoabuseone'sministrationadvantages,which,theauthorthinks,shallbegeneralizedasthecontrolovertheinventories,materials,marketplan,technology/businesssecretsandpurchase/salesdecisionmakingrightsarisingfromtheoccupationofdirectors/managersinthestateownedcorporation.Thesecondis,howtounderstandtooperateonbehalfofthemselvesoranyothers,which,aspertheauthor,shallbeidentifiedbytheformalindustrialorcommercialregistrationofacorporationor,ifwithoutsuchalegalregistration,bytheproductivecharacterssuchaslong-termedlarge-scaledoperationsoflongstanding.Thephraseonbehalfofthemselvesshallbedefinedastheprofitgeneratedgoingdirectlyormainlytothemselves,byregisteringandoperatingcorporationsinpersonalnames,orinthenameoftheirfamilies/relativeswiththeprofitturnedtothemselves,orintheformsofpartnershipwiththeother,orbyshareinvestmentsinotherenterprises.Thephraseonbehalfoftheothers'meanstobeemployedordelegatedbytheothercorporations,enterprisesorothereconomicentitiestooperateandadministratewithbonusorapercentageasthereward,whilewithoutsharingtheequityandthedirectappropriationoftheearnings.Intheanalysesofthesubjectcharacters,thestateownedcorporations/enterpriseshavebeendefinedastheoneswhoseassetsarewhollyownedbythestate,includingthestateownedsolecorporation,andtheincorporatedcompanyinvestedbymorethantwostateownedenterprises.Corporations/