Home > News content

ZTE will dismiss and replace all senior vice presidents

via:新浪科技     time:2018/6/12 22:31:23     readed:355

The following is the announcement of ZTE:

According to the agreement, ZTE will pay a total of US$1.4 billion in civil penalties, including a one-time payment of US$1 billion within 60 days after the BIS issued the order of June 8, 2018, and payment within 90 days after the BIS issued the order of June 8, 2018. To the additional 400 million U.S. dollars of fines that were selected by ZTE and approved by the BIS in the U.S. bank custody account and suspended during the monitoring period (if any during the monitoring period if ZTE complies with the monitoring conditions stipulated in the agreement and orders of June 8, 2018, A $400 million fine will be exempted from payment upon expiration.

The BIS will terminate its April 15th, 2018 (U.S. time) after ZTE’s timely and full payment of US$1 billion under the agreement and order of June 8, 2018, and the payment of an additional US$400 million to a US bank escrow account. The refusal order for the activation (hereinafter referred to as the "Decision of April 15, 2018") and removed ZTE from the List of Forbidden Exporters. If the above conditions are satisfied and ZTE has removed from the List of Forbidden Exporters, BIS will announce it to the public.

The agreement also includes the following main terms:

1. The BIS will make a new Decree Order (hereinafter referred to as the "New Decree Order") for a period of ten years since its order of June 8, 2018 (hereinafter referred to as the "monitoring period"), including restrictions and prohibition of application by ZTE Corporation. Acquire, or use any licenses, license exceptions, or export control documents, and in any way engage in any transaction involving any article, software, or technology subject to the U.S. Export Administration Regulations (hereinafter referred to as the “Regulations”), but Subject to ZTE's compliance with the agreement and the order of June 8, 2018, the new refusal order will be suspended during the inspection period and will be exempted after the monitoring period expires.

2. ZTE will replace all board members of ZTE and ZTE Communications within 30 days after the BIS issues the order of June 8, 2018. Within 30 days after the change of board members, ZTE should establish a special audit/compliance committee composed of three or more new independent directors on the board of directors. The chairman may serve as a member of the committee but may not serve as chairman of the committee.

3. ZTE shall, within 30 days after the BIS issues the order of June 8, 2018, together with the current senior vice presidents of ZTE and ZTE Kangxun and all senior leaders above, and any participation in and supervision of BIS issued in March 2017. Proposal letter of allegation or the refusal of the management or senior staff responsible for the acts or other acts that were responsible for the termination of the contract on April 15, 2018, and prohibiting ZTE, its subsidiaries or affiliates from reappointing such personnel . ZTE shall promptly notify BIS of the implementation of this clause. BIS may discretionarily waive the relevant personnel.

4. ZTE will hire an independent special compliance coordinator (hereinafter referred to as “coordinator”) at its own expense within 30 days after the BIS issues the order of June 8, 2018. The coordinator will be responsible for coordinating, monitoring, evaluating and reporting on ZTE. And its global subsidiaries or affiliates observe the 1979 US Export Administration Act, regulations, agreements, and orders of June 8, 2018 during the monitoring period and report to ZTE's president and the board of directors and BIS on an equal basis.

5. ZTE will complete and submit nine audit reports on compliance with U.S. export control laws in accordance with an agreement reached between ZTE and the U.S. Department of Justice (see the announcement issued by ZTE on March 7, 2017) and any related courts. Upon the expiry of the mandate of the independent Compliance Ombudsman, the remaining six audit reports will be completed by the Coordinator.

6. ZTE will provide a wide range of applicable export control training for leaders, management and employees, global subsidiaries, affiliates, and other entities controlled by ZTE and controlled and other entities.

In addition, ZTE will resume business activities affected by the refusal orders of April 15, 2018 as soon as possible after BIS terminates its refusal order on April 15, 2018. ZTE will comprehensively assess the impact of the April 15, 2018 refusal orders and agreements on the 3rd quarterly report of 2018, and re-prepare and disclose the first quarterly report for 2018. After ZTE Corporation applies to Shenzhen Stock Exchange and relevant stock exchanges, ZTE A shares and Hong Kong stocks will resume trading on the morning of June 13, 2018.

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments