Beijing Unirule ConsultingCo., Ltd.
October 22nd, this Company received an “Administrative Penalty Notice” (See Appendix I) stipulating that the License of this Company is revoked. This Decision was made after a hearing, however, it does not explain why the Statement (see Appendix II) from this Company was not accepted at the hearing. For instance, this Company pointed out(see Appendix II) that the penalty was according to Article 68 Item 1 of Regulations of the People's Republic of China on Administration of Registration of Companies and Article 12 of Non-State Education Promotion Law of the People's Republic of China, whereas this Company is apparently not a “non-state school”.
The intention of a hearing is to avoid making mistakes by the administration, and its nature is the interaction between both parties with expression and refutation of opinions. If the opinions listed in our previous Statement were not countered by reason and a decision to revoke the license of this Company was made without practical and legal consideration, then a hearing was not executed properly. It is not for other purposes than upholding justice to observe the due process of law, but for this purpose only.
We believe that the Decision was made for the wrong purpose, based on the wrong evidence, and executed at the wrong time and place.
The wrong purpose refers to the fact that this is an extreme penalty, revoking of the license, without anterior procedures such as “a warning”, which is not in line with the good will of maintaining market order and protecting the economic freedom of enterprise by the Constitution or related laws.
The wrong evidence refers to the evidence from the Haidian Education Committee, which was either a fabrication (that is Beijing Unirule Consulting Co., Ltd. is a “non-stateschool”) or an act of self-claimed expansion of power, because it covered the thoughts and academic activities beyond “non-state schools” of “diploma education, …”and “vocational and certification trainings, …” into its own authority, without the authorization of the Legislation Law.
The wrong time refers to the background that President Xi Jinping and Vice Premier Liu He recently emphasized on multiple occasions the importance of protecting private enterprises.
The wrong place refers to the fact that it was in Beijing, the capital city with national and international influence, and Haidian District of Beijing where there is a market tradition, that such a wrong, anti-market, anti-private enterprise administrative decision was made.
October 27th, this Company called a shareholder meeting. The meeting decided 1) this Company did not accept the administrative penalty and would seek to apply for reconsideration and initiate legal proceedings to request the lifting of the penalty; 2) this Company will form a working team to commence liquidation according to the Company Law.
This Company will continue to fulfill its obligations under the previous contract. Although this Company does not agree that certain items of this Company referred to in the“Administrative Penalty” are suspected of violating the above-mentioned laws and regulations, this Company is cautious and will suspend the related project activities after consulting with relevant parties.
This Company would continue claiming and performing the contractual rights previously signed.
Beijing Unirule Consulting Co., Ltd. was founded in 1993, and changed to the current name in 1999. Unirule Institute of Economics is an enterprise legal representative under the supervising entity of a Beijing scientific committee, registered in 1995; October, 2004, this committee ceased to be the supervising organ, and the enterprise legal representative status of Unirule Institute of Economics was revoked. September, 2004, the Board of Directors decided, since the enterprise legal representative status was revoked, Unirule Institute of Economics would continue as a secondary research organization, but it would not be a subsidiary or affiliation of Beijing Unirule Consulting Co., Ltd.
Even though the Decision that revoked the license of Beijing Unirule Consulting Co., Ltd. does not influence the status of Unirule Institute of Economics as a secondary research organization, in the current institutional environment in China, unless normal protection by the Constitution and laws is confirmed, Unirule Institute of Economics will cease public activities under its name temporarily.
November, 9th, 2018
See Appendices in the original Chinese Announcement