Legal basis: Article 62 of the Regulations for the Implementation of the Law on the Promotion of Private Education in People's Republic of China (PRC), if the sponsors of private schools and their actual controllers, decision-making bodies or members of supervisory bodies are under any of the following circumstances, the administrative departments of education, human resources and social security of the people's governments at or above the county level or other relevant departments shall order them to make corrections within a time limit according to the division of responsibilities. If there is illegal income, the illegal income shall be confiscated after the fee is refunded; If the circumstances are serious, they shall not become the organizer or actual controller, member of the decision-making body or supervisory body of the private school within 1 to 5 years; If the circumstances are particularly serious and the social impact is bad, they shall not become the organizer or actual controller, decision-making body or member of supervision body of private schools; If it constitutes a violation of public security administration, it shall be punished by the public security organ according to law; If the case constitutes a crime, criminal responsibility shall be investigated according to law:
(a) illegal fund-raising through running a school or collecting fees related to admission;
(2) Failing to fulfill the obligation of capital contribution in full and on time, or withdrawing capital contribution or misappropriating school funds;
(3) encroaching on the property of the school as a legal person or illegally obtaining benefits from the school;
(four) related transactions with private schools that implement compulsory education, or related transactions with other private schools that harm the interests of the state, the interests of schools and the rights and interests of teachers and students;
(5) Forging, altering, buying, selling, renting or lending a school license;
(six) interfere with the order of running a school or illegally interfere with the decision-making and management of the school;
(seven) to change the name, level, type and sponsor of the school without authorization;
(eight) there are other acts that endanger the stability and safety of the school, infringe on the rights of the school as a legal person or damage the rights and interests of the teaching staff and the educated.