China issues judicial ruling banning executees' luxury consumption

08:12, July 15, 2010      

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The Supreme People's Court of China Wednesday publicized a judicial ruling to prohibit luxury consumption by people legally in debt.

Yu Lingyu, official with the Supreme People's Court, said due to the lack of a full-fledged credit system in China, some executees could get away from their legal obligations while spending freely. The judicial ruling was made to prevent such intentional debt evasion.

According to the new judicial interpretation, executees are prohibited from luxury consumptions such as traveling first-class on planes, trains and ships; spending on five-starred hotels, restaurants, night clubs etc; buying property and renting high-class office buildings; touring; buying cars for private use, or sending children to schools with expensive tuition.

The judicial interpretations further stipulate that all consumptions that are not necessary in either their daily lives or work may be considered to be luxury consumption.

Additionally, even consuming in others' names, if proven to be paid by the executees themselves, would be illegal.



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