Laws of the Guangdong Province

Regulations of Shenzhen Special Economical Zone on Trade Association

(Adopted at the thirty-sixth meeting of the Standing Committee of the second Shenzhen Municipal People' s Congress on November 22, 1999)

chapter¢ñGeneral Provisions

Article 1 In order to standardize the organizations and activities of trade association, safeguard the lawful rights and interests of it and exert its functions in socialist market economy, these regulations are formulated in accordance with the basic principles of laws and regulations of State and the actual circumstances of Shenzhen Special Economic Zone (hereinafter referred to as "Special Zone" ).

Article 2 "Trade association" in these regulations refers to the nonprofit and self-disciplinary public organization of the economic type with industrial character, which is composed of the economical organizations and individual businesses of the same trade in this city.

Article 3 The aim of the trade association is to safeguard its members' lawful rights and interests, coordinate the relations between members, offer services to them, link up the connection between members and the government as well as promote the economic development of the same trade in this city.

Article 4 The trade association must observe the laws, regulations and rules, and may not impair social public interests and its members' interests.

Article 5 The trade association receives the direction and supervision from the correspondent competent authorities for the business of Shenzhen Municipal People' s Government (hereinafter referred to as "municipal government" ) and carries out activities independently according to these regulations.

The competent authorities for registration of social organization of the municipal government are responsible for the management of the registration of trade association.

Article 6 The trade association established according to these regulations shall crown the word of "Shenzhen" before its title. The domicile of the trade association is the place of its main working body.

Chapter ¢ò Establishment of Trade Association

Article 7 The trade associations are established in pursuance of trades and are classified according to relative standard of State. It is not allowed to repeatedly establish the same or similar trade associations in the same trade in this city.

Article 8 The economical organization and individual business with more than 30 persons, which have acquired business license by registration according to law and have been in business uninterrupted for 6 months may sponsor and found trade association as an promoter.

Article 9 The application of establishing trade association is classified into two stages, i.e., application of preparation and application of registration of establishment.

When the promoter applies for preparing and establishing the trade association, he shall submit documents and materials prescribed in relevant laws, regulations and rules to the competent authorities for the business of the municipal government. The competent authorities for the business of the municipal government shall issue the examining and approving documents within 30 days from the date on receiving the applying materials.

The promoter shall apply for the registration of preparation and establishment to the competent authorities for registration of social organization in the time prescribed, with the examining and approving documents consented by the competent authorities for the business of the municipal government and other relative documents and materials for the registration of social organization.

Article 10 The trade association shall formulate the constitution when it is established. The constitution of trade association shall record the following matters: title, address, aim and functions of trade association, members' qualification, procedures for enrollment and withdrawal, members' rights and obligations, institutions and their functions, the way of establishment of the leading official of trade association and the time limit of his incumbency as well as the scope of his powers, the ways of paying membership dues, system governing the management of funds, the procedures of constitution' modification and termination as well as other matters that need prescribing.

The constitution of the trade association goes into effect after having been passed by more than half of all the members.

Chapter ¢ó Members

Article 11 The organizations and individual businesses of the same trade, which have acquired the business license according to law and admit the constitution of the trade association, may be members of the trade association after applying and being approved. If the organizations and individual businesses operate currently in more than 2 trades, they may join in every trade association separately.

Article 12 Members of a trade association enjoy the following rights:

(1) to attend the general meeting of members and participate in all kinds of activities held by trade association;

(2) to enjoy preferentially all kinds of services provided by trade association;

(3) to participate the management of trade association;

(4) to enjoy the right of voting and the right to be elected;

(5) to enjoy the voting power;

(6) to enjoy the right of supervision;

(7) to enjoy the freedom of withdrawing from trade association;

(8) other rights prescribed in the constitution of trade association.

Every member has one ballot of voting power except that the constitution of trade association has separate provisions. When a member exercises the right mentioned above through the member' s deputy, the deputy shall submit written document testifying he is the representative.

Article 13 The members of a trade association must perform the following obligations:

(1) to observe the laws, regulations, rules, constitution of trade association as well as trade regulations and stipulation;

(2) to implement the resolution of trade association;

(3) to fulfill the work arranged by trade association and submit statistical materials;

(4) to pay membership dues in due course;

(5) other obligations prescribed in the constitution of trade association.

Chapter ¢ô Organs

Article 14 Trade association exercises system of members. General meeting of members or members' deputies consists of members. General meeting of members or members' deputies is the highest agency of powers.

Article 15 A trade association having more than 100 members may establish general meeting of members. The general meeting of members' deputies is set up according to the constitution of trade association, which exercises the functions and powers of general meeting of members. The members' deputies are decided through election by members.

Article 16 The general meeting of members is held according to the constitution. If the board of directors deems it necessary or it is required by more than one fifth of the members, the board of director may hold temporary general meeting of members.

Article 17 The general meeting of members or members' deputies may only be held with the presentation of more than half of the whole members or members' deputies.

The resolution of general meeting of members or members' deputies goes into effect only with the approval of half of the members or members' deputies presenting the general meeting of members or members' deputies.

Resolution about the following matters must be passed by two thirds of the members presenting the general meeting of members or members' deputies:

(1) modification of the constitution of trade association;

(2) expulsion of member;

(3) election and dismissal of the president, deputy president, director and supervisor;

(4) dissolution and liquidation of trade association.

Article 18 The trade association set up board of director. The board of director is the standing organ of general meeting of members or members' deputies. The board of director performs duties according to the resolution of general meeting of members or members' deputies and the constitution of trade association.

Article 19 A trade association, whose number of directors is above 50, may select standing directors from the directors to constitute board of standing director.

The board of standing director exercises the duties prescribed in the constitution of trade association.

Article 20 The resolution of board of directors or standing directors shall be passed by more than half of the directors or standing directors.

Article 21 The meeting of board of directors shall be held at least once a year, and the meeting of board of standing directors shall be held at least twice a year. Temporary meeting of board of directors or standing directors may be held in accordance with the provisions in constitution of trade association.

The board of directors is composed of president, deputy president, secretary-general and directors. The board of standing directors is composed of president, deputy president, secretary-general and standing directors.

The incumbency of president, deputy president and secretary-general is prescribed by constitution of trade association, but the incumbency of every session shall not exceed 3 years, when the incumbency expired, they may be elected to hold the position again, but may not exceed 2 sessions.

The meeting of board of directors or standing directors is presided by the president. If the president can' t attend the meeting for some reason, it is presided by the deputy president authorized by the president or elected by the meeting of board of directors or standing directors.

Article 22 The trade association has one president. The number of deputy presidents is prescribed by constitution of trade association.

The president and deputy president are nominated from director by the board of directors and decided through the election by general meeting of members or members' deputies.

Article 23 The president is the legal representative of trade association.

The president shall have permanent residence of Shenzhen Municipal and have domicile in this city.

Article 24 The trade association may have a supervisor. The number of supervisors is prescribed by the constitution of trade association. The supervisor is decided by general meeting of members. The supervisors supervise the business activities and financial management of trade association and report work to general meeting of members. The supervisor may not hold concurrent posts of president, deputy president, director or standing director.

Article 25 The trade association set up secretariat, which is the standing wording body.

The trade association has a secretary-general, who is responsible fro dealing with the daily work of secretariat of trade association.

Article 26 The trade association may set up professional committee according to its need, which is established and carries out activities according to the procedures of relative national provisions.

Chapter ¢õ Functions of Trade Association

Article 27 A trade association shall implement relevant laws, regulations and rules, formulate and organize implementation of the trade regulations and stipulations of this trade, establish trade' s self-disciplinary mechanism, enhance the trade' s general quality, coordinate relationship between members and safeguard the whole interests of the trade.

Article 28 Trade associations shall carry out trade investigation, study the development of its trade, reflect the requirement of members to the competent authorities for the business of municipal government, make suggestions on the aspect of policy and legislation, safeguard the lawful interests of members and conduct propaganda to members about the policies of the government.

Article 29 Trade associations shall carry out advisory services, offering the internal and external information about the technique, economic and market.

Article 30 Having been approved and authorized by the competent authorities for business of municipal government, trade association may conduct trade statistic, collect, analyze and issue trade information, and carry out market forecast as well as trade planning.

Article 31 Trade association may organize its trade to explore internal and external market, hold exhibition and display, recommend brand-name and quality products of its trade, and carry out technique intercourse and cooperation.;

Article 32 Having been approved by the competent authorities for business of municipal government, trade association may organize talent exchange and vocational technique training, and participate in the labor management of trade as well as the reform of recruitment system.

Article 33 Having been approved by the competent authorities for business of municipal government, trade association may participate in the work of formulating trade standard and quality management and supervision, and join in the examination of qualification and quality.

Article 34 Under the direction of the competent authorities for price of municipal government, trade association may strengthen self-discipline of price, supervise and direct the price of product in trade, coordinate the price dispute between fraternities, and safeguard fair competition of trade.

Article 35 Trade associations may be authorized by the competent authorities for business of municipal government to cooperate and assist it to conduct activities of trade management.

Chapter ¢ö Funds and Financial Management

Article 36 The funds of trade association may be raised by the following ways:

(1) membership dues paid by members;

(2) contributions acquired for conducting matters delegated by competent authorities for business of municipal government;

(3) earnings from the services of information consultation, talent training, technical lectures, compiling and printing materials, holding exhibitions and service projects, etc;

(4) other legal incomes.

Article 37 The standard of membership dues is enforced according to relevant provisions of State.

When a member withdraws from the trade association or is expunged, he may mot require the trade association to refund the membership dues already paid and the assets contributed or donated.

Article 38 The funds expenditure of trade association may include the following items:

(1) costs of carrying out business activities and holding meetings as well as daily administrative expenses.

(2) wages and welfare allowance of the full time personnel of trade association.

(3) other normal expenditure needed for the members' interests and the aim of trade association.

The lawful incomes of trade association shall be used to the aim prescribed in the constitution of trade association and the activities within the business scope, and may not be diverted for other use.

Article 39 A trade association shall have its own independent finance and bank account, and observe relative provisions of State, as well as establish sane and strict financial management and control system.

Article 40 The board of directors and standing directors of trade association shall proclaim the incomes and expenditure of funds to the general meeting of members and members' deputies periodically, and report to the competent authorities for business and the registration management authorities for the social organization of municipal government, as well as receive supervision and examination.

When a trade association is elected again, its legal representative, secretary-general and persons directly liable shall be conducted financial audit. The fee of financial audit shall be born by the trade association being audited.

Chapter ¢÷ Alteration, Dissolution and Liquidation

Article 41 The alteration incorporation and dissolution of trade association shall be conducted according to relevant laws, regulations and rules. The liquidation of the assets shall also be handled in accordance with law.

Article 42 The trade association is dissolved for the following reasons:

(1) the general meeting of members makes decision of dissolution.

(2) trade association is revoked in accordance with law.

Article 43 If the general meeting of members makes a decision of dissolution, it shall report it within 30 days to the competent authorities for business of municipal government for examination

Article 44 When the trade association is dissolved, members of liquidating group are selected by the board of directors; If the board of directors can' t select, they will be appointed by the competent authorities for business of municipal government.

Article 45 The liquidation group formulates program, which shall be reported to the authorities authorized by municipal government for approval after being discussed and passed by the general meeting of members.

Article 46 The trade association may not carry out new business activities during the liquidating period.

Article 47 The liquidating fees are paid from the assets of trade association preferentially.

Article 48 When the liquidation finishes, the residual property is under the control of competent authorities for business of municipal government.

Article 49 When the trade association finishes the liquidation, it shall go to the competent authorities for the registration of social organization.

Chapter ¢ø Penalty Provisions

Article 50 If any subject carries out activities in the name of trade association without authorization, it shall be banned by the competent authorities for the registration of social organization, which shall confiscate the illegal incomes; If the circumstances are serious, it may be fined less than 5 times of the illegal incomes; If a crime is constituted, criminal responsibility shall be pursued in accordance with law.

Article 51 If the trade association provides false document or takes fraudulent mean and withhold important facts to acquire approval and registration of the municipal government when it is established, the competent authorities for bushiness and the competent authorities for the registration of social organization will dismiss the approval and registration.

Article 52 If the trade association provides the financial budget and final accounts statements which is false or withholds important facts, the competent authorities for business of municipal government shall refer to the competent authorities for the registration of social association to impose a fine not less than 1000 RMB but not more than 5000 RMB to the trade association and the directly responsible personnel; If the circumstances are serious enough to constitute a crime, criminal responsibility shall be pursued in accordance with law.

Article 53 If the trade association violates these regulations and other relevant rules to collect fees or apportion arbitrarily to the members, it will be ordered to rectify by the competent authorities for business and the competent authorities for the registration of social organization of municipal government, which shall also confiscate the illegal gains.

Article 54 If the competent authorities for business or the competent authorities for the registration of social organization of municipal government grant approval after examination or registration to the application of establishing trade association, which doesn' t accord with these regulations, the directly responsible personnel will be given administrative punishment according to law.

Article 55 As to the application of establishing trade association, which accords with legal conditions, if the competent authorities for business of municipal government doesn' t grant approval or the competent authorities doesn' t grant registration, the parties may apply for review or institute an administrative proceeding.

Chapter ¢ù Supplementary Provisions

Article 56 The trade associations established before the implement of these regulations shall carry out normalization according to these regulations and relevant regulations and rules about the management of the registration of social association within one year from the date when these regulations coming into force and register again.

Article 57 "Above" referred to in these regulations includes the number per se.

Article 58 These regulations shall go into effect as of January 1, 2000.