Article 50 Where a law firm commits one of the following acts, the judicial administration department of the people’s government of a city divided into districts or of a district of a municipality directly under the Central Government shall, depending on the seriousness of the circumstances, give it a disciplinary warning or have it suspend legal practice for consolidation for not less than one month but not more than six months by way of punishment, and may impose on it a fine of not more than 100,000 yuan; its illegal gains, if any, shall be confiscated; and if the circumstances are especially serious, the judicial administration department of the people’s government of a province, autonomous region or municipality directly under the Central Government shall revoke its law firm’s practice certificate:

(1) accepting authorization and collecting fees in violation of regulations;

(2) in contravention of the statutory procedure, changing its name, replacing its leading person, altering its articles of association or partnership agreement, changing its domicile, replacing its partners, or making changes in other important items;

(3) engaging in other business activities than provision of legal services;

(4) soliciting business by slandering other law firms or lawyers, or paying middleman’s fees or by other illegitimate means;

(5) in violation of regulations, accepting cases where there is a conflict of interests involving it;

(6) refusing to perform the obligation of providing legal aid;

(7) providing false materials to judicial administration departments or committing other frauds; or

(8) neglecting management of its lawyers, thus causing serious consequences.

Where a law firm is punished because of its illegal acts specified in the preceding paragraph, its leading person shall, depending on the seriousness of the circumstances, be given a disciplinary warning or be fined not more than 20,000 yuan.

Article 51 Where a lawyer, in violation of the provisions of this Law, and before the elapse of one year after he was given a disciplinary warning, conducts another act for which he should be given such a warning by way of punishment, the judicial administration department of the people’s government of a city divided into districts or of a district of a municipality directly under the Central Government shall, by way of punishment, have him suspend his legal practice for not less than three months but not more than one year; and if, before the elapse of two years after the expiration of the period for suspension of his legal practice, which was imposed on him by way of punishment, he conducts another act for which he should be suspended form legal practice, the judicial administration department of the people’s government of a province, autonomous region, or municipality directly under the Central Government shall revoke his lawyer’s practice certificate.

Where a law firm, because of its violation of the provisions of this Law, and before the elapse of two years after the expiration of the period for suspension of its legal practice for consolidation, which was imposed on it by way of punishment, commits another act for which it should be suspended from legal practice for consolidation by way of punishment, the judicial administration department of the people’s government of a province, autonomous region, or municipality directly under the Central Government shall revoke its law firm’s practice certificate.

Article 52 The judicial administration departments of the people’s governments at the county level shall exercise routine supervision over and administration of the legal practice of lawyers and law firms, and order them to solve the problems discovered in the course of inspection; and they shall, in a timely manner, conduct investigation of the complaints lodged by parties. Where a judicial administration department of the people’s government at the county level considers that a lawyer or law firm should be given administrative penalty for an illegal act committed, it shall submit a proposal to such an effect to the judicial administration department at a higher level.

Article 53 A lawyer who was suspended form legal practice for not less than six months by way of punishment shall not be a partner of a law firm within three years after the expiration of the period of punishment.

Article 54 Where a lawyer engages in legal practice in violation of law or causes losses to a party due to his fault, the law firm where he works shall bear the liability for compensation. After paying compensation, the law firm may claim recovery from the lawyer who acted intentionally or out of gross negligence.

Article 55 Where a person who has not obtained a lawyer’s practice certificate provides legal services in the name of lawyer, the judicial administration department of the local people’s government at or above the county level at the place where he is located shall order him to cease the illegal practice of law, confiscate his illegal gains and impose on him a fine of not less than the amount of the illegal gains but not more than five times that amount.

Article 56 Where a staff member of the judicial administration department, in violation of the provisions of this Law, abuses his power or neglects his duty, which constitutes a crime, he shall be investigated for criminal responsibility in accordance with law; if the violation is not serious enough to constitute a crime, he shall be given a sanction in accordance with law.

Chapter VII

Supplementary Provisions

Article 57 The provisions of this Law shall be applicable to lawyers of the military who provide legal services to the military, with respect to their obtaining of the qualification as a lawyer, and their rights, obligations and code of conduct. The specific measures for administration of lawyers of the military shall be formulated by the State Council and the Central Military Commission.

Article 58 The measures for administration of the offices established by law firms of other countries to provide legal services within the territory of the People’s Republic of China shall be formulated by the State Council.

Article 59 The measures for collection of fees by lawyers shall be formulated by the department in charge of pricing under the State Council in conjunction with the judicial administration department under the State Council.

Article 60 This Law shall go into effect as of June I, 2008.

The English translation is for reference only and if there is any discrepancy, the Chinese version shall prevail.