Core Viewpoint - The article discusses the alleged misconduct of former executives at Shanghai Jiao Tong University Angli Co., Ltd. (交大昂立), who are accused of misappropriating company funds through improper insurance transactions, resulting in significant financial losses for the company [2][10]. Group 1: Allegations of Misconduct - Five former executives, including the former chairman and president, are accused of using company funds to purchase insurance policies for themselves and subsequently cashing out the premiums into personal accounts, totaling approximately 16.94 million yuan (about 2.4 million USD) [2][5][9]. - The company has filed a criminal complaint against these executives for "damaging company interests" and has reported the case to the local police, although initial investigations did not lead to formal charges [2][4]. Group 2: Discovery of Irregularities - The irregularities were discovered during a self-audit initiated after a tax authority inquiry in November 2022, which revealed that the company had made significant insurance payments without proper documentation [4][5]. - The company found that in 2018 alone, it had made insurance payments totaling 12.84 million yuan (about 1.8 million USD) without corresponding insurance contracts, raising red flags about the legitimacy of these transactions [4][8]. Group 3: Lack of Compliance and Documentation - The company highlighted the absence of necessary approvals and documentation for the insurance transactions, including a lack of records from the compensation and assessment committee, board resolutions, and public disclosures [2][9]. - The former executives claimed that the insurance purchases and subsequent refunds were part of their compensation, but this assertion lacks legal backing as such remuneration requires board and shareholder approval [5][9]. Group 4: Legal and Regulatory Implications - Legal experts suggest that the actions of the former executives could constitute a breach of fiduciary duty, potentially leading to personal liability for the losses incurred by the company [11][12]. - The article also discusses the regulatory framework surrounding group insurance policies, indicating that refunds should typically be returned to the company rather than individual accounts unless specific legal procedures are followed [14][15].

Core Viewpoint - The case involves allegations against former executives of Shanghai Jiao Tong University Anli Co., Ltd. for misappropriating company funds through unauthorized insurance transactions, leading to a reported profit of 16.937214 million yuan for the executives [1][4][6]. Group 1: Allegations and Findings - The company reported that between 2016 and 2019, five former executives used company funds to purchase insurance policies and subsequently withdrew the premiums to their personal accounts without proper approvals [1][4]. - The company initiated a criminal report against the former executives for damaging company interests, but the local police declined to file a case, prompting the company to seek administrative review [1][2][3]. - The irregularities were first discovered in November 2022 when the finance department was notified by the tax bureau to self-examine insurance payments from 2018, revealing a total of 12.84 million yuan in insurance payments without corresponding policy contracts [2][3][4]. Group 2: Insurance Transactions - The company identified two significant insurance transactions: a 3.8 million yuan policy in 2016 and a total of 12.84 million yuan in 2018, both of which were later canceled, with the refunds directed to the personal accounts of the executives [5][6]. - The first transaction involved a group annuity insurance policy, where the executives were named beneficiaries, and the second involved a universal group pension insurance policy [5][6]. - The company emphasized that these transactions lacked necessary approvals from the compensation and assessment committee, the board of directors, and the shareholders' meeting, indicating a lack of transparency and compliance [7][8]. Group 3: Legal and Compliance Issues - Legal experts noted that the actions of the former executives could be seen as misappropriation of company assets, and if the company had knowingly allowed these actions to increase executive compensation, it could lead to regulatory violations [8][9]. - The insurance premiums should have been returned to the company's account, and transferring them to personal accounts without proper authorization raises compliance concerns [9][10]. - The incident highlights systemic flaws in the company's financial controls, contract management, and internal audit processes, which are not unique to this company but prevalent in the industry [8][10].