Administrative
Regulations of
|
Shenzhen
Special Economic Zone on Brokers
|
|
(Adopted
at the ninth meeting of the Standing Committee of the Second
Session of the Shenzhen People'
s Congress on July 10, 1996
|
Revised
in accordance with the Resolution on Revision of the
Administrative Regulations of Shenzhen
Special Economic Zone on
Brokers at the fifteenth meeting of the Standing Committee of the
Third Session
of the Shenzhen People' s Congress on April 26,
2002.)
|
Chapter I
General Provisions
|
Article 1
These regulations are formulated in accordance with basic
principles of laws and administrative regulations, and the
concrete circumstances of Shenzhen Special Economic Zone
(hereinafter referred to as "Special Zone"
) to normalize the
brokers' activities, safeguard the lawful rights and interests
of parties in brokers'
activities, and maintain the order of
market economy.
|
Article 2 In these regulations,
|
"broker"
means self-employed household, legal person or other economic
entity who provides information
or acts as intermediary to promote
trade of other persons and charge for brokerage in return pursuant
to these regulations;
|
"employee
of a broker" means natural person who is engaged by a broker to
undertake broker' s activities
pursuant to these regulations;
|
"principal"
means entity or individual who entrusts broker to provide service
pursuant to these regulations.
|
Article 3
Unless laws and regulations otherwise require for
broker' s activities in spesific trade, broker' s activities
within the Special Zone shall be governed by these regulations. |
Article 4
The Administration Department of Shenzhen
Municipal People' s Government (hereinafter referred to as
"municipal government" ) for Industry
and Commerce is the
administrative department in charge of the registration and
administration of brokers
(hereinafter referred as
"administrative department in charge" ); all relevant
administrative departments
of the municipal government shall
supervise brokers' activities of their respective trade
according
to laws and regulations.
|
Article
5 The Association of Brokers shall
exercise its duties in accordance with these regulations and its
Articles
of Association under the direction and supervision of the
administrative department in charge. |
Chapter II
Requirements of the Engagement in
|
Brokering
and the Establishment of a Broker.
|
Article 6
Employee of a broker shall be qualified with necessary
knowledge and skill for broker' s activities, and shall attain
lawfully certificate of qualification for undertaking broker' s
activities in specific field as laws
and regulations require.
|
Article 7
Persons who work outside brokering are allowed to be
engaged in broker' s activities for part-time with the permission
of units they work in. |
Article 8
No one who is found in one of the following cases shall be
engaged to undertake broker' s activities: |
(1)
Having no capacity for civil conduct, or having limited
capacity for civil
conduct;
|
(2)
Less than three years beginning from the date when one' s
punishment due to economic crime has been executed, |
(3)
Prohibited by laws and regulations to be engaged to undertake
|
broker' s activities.
|
Article 9
The establishment of a broker shall be subject to the conditions
stipulated in these regulations, and
shall be registered by
administrative department in charge, and a broker shall acquire
business licence,
unless laws and regulations otherwise require
for the establishment of a broker.
|
Article 10
The establishment of a Broker as a legal person shall meet the following
requirements:
|
(1)
Certain quantity of employees which adapts to the scope of
its business;
|
(2)
Other conditions requested by laws and regulations.
|
A
broker as a legal person shall bear its external civil obligations
with all its own assets.
|
Article 11
The establishment of a Broker as a partnership shall meet the following
requirements:
|
(1)
Partner shall have more than two years experience in
brokering ;
|
(2)
Other conditions requested by laws and regulations.
|
Partner
shall bear unlimited joint and several liabilities for the debt of
the Broker as a Partnership.
|
Article 12
The establishment of an Individual Broker shall meet the following
|
Requirements:
|
(1)
Applicant has more tan two years experience in brokering;
|
(2)
Applicant is jobless, unemployed, or has resigned or
retired;
|
(3)
Other conditions requested by laws and regulations.
|
Individual
broker shall bear its external civil obligations with all his
personal assets.
|
Article 13
Besides broker as a legal person,
broker as a partnership and Individual Broker, other economic
institutions that run broker'
s business with their main business
concurrently shall comply with relevant stipulations of these
regulations,
and their broker' s business shall be approved and
registered by administrative department in charge.
|
Article 14
A broker shall lawfully go through its modification or
nullification registration formalities to modify
or terminate.
|
Chapter III Broker' s
Activities
|
Article 15 Brokers
shall undertake their broker' s activities within their business scope
approved by administrative department in charge.
|
Article 16
Brokers shall neither provide services for transactions involving Commodities
prohibited by state to enter circulation, nor provide services for
projects prohibited by
state. Brokers shall not provide services
for illegal transactions.
|
Article 17
The principal shall provide true materials regarding the entrusted
matter for the broker' s activities.
Brokers may resist
authorization or terminate agreement in the case that the
principal does not provide
relevant materials or provides false
materials.
|
Article 18
Brokers may collect brokerage according to agreement with the
principal. Unless laws and regulations
otherwise require, the
standard of brokerage can be covenanted by the broker and the
principal.
|
Article
19 Brokers
shall not divert any fees or transaction sums paid in advance by
the principal for broker' s
activities to any other purpose.
|
Article
20 Brokers shall not provide false
informations regarding the signing of an agreement or false
materials
involving the transaction. Brokers shall not conceal any
material facts involving the transaction. |
Article
21 Brokers shall exercise reasonable
care to maintain samples and materials provided by the principal,
and shall keep the business secret of the principal. Brokers shall
not use the business secret of the principal acquired
during the
course of the provision of broker' s service to undertake any
economic activities competing
with the principal. |
Article
22 Brokers shall not disclose the
name or title of the principal to others as required by the
principal. |
Article
23 Brokers shall not take part in or
help to undermine one party' s interest for the other party
during
its broker' s activities. |
Article
24 Brokers shall not conduct
transaction with the principal by cheating in the name of
providing broker'
s service. |
Brokers
shall not deceit through providing broker' s service. |
Article
25 Brokers shall not charge or
accept any additional amount except the brokerage. |
Article
26 Part-time participant engaged in
a broker shall not provide broker' s service for client who has
competition
relationship with the institution that the participant
works for. |
Article
27 Brokers shall keep business
records of broker' s activities. The records shall contain a
general description
of the broker' s activities, main contents of
the agreement with the principal and the performance. |
Article
28 Brokers shall establish account
book. The account book shall list all the items requested by
accounting
rules. |
Article
29Brokers shall pay tax and
administration fees to for broker' s activities. |
Chapter IV
Supervision and Administration
|
Article
30 Administrative department in
charge shall exercise according to laws duties and powers as
follow: |
(1)
To carry out and implement laws and regulations, and to |
stipulate
measures on broker administration; |
(2)
To train employees of brokers necessarily; |
(3)
To examine and issue certificate of qualification of broker by
self or together with other relevant
departments according to laws
and regulations; |
(4)
To examine and approve registration of brokers, and issue business
license, and handle modification,
nullification registration and
annual examination of brokers; |
(5)
To protect the lawful rights and interests of brokers, and to
investigate and deal with illegal
broker' s activities according
to laws; |
(6)To
direct and supervise the work of the Broker' s Association; |
(7)To
supervise the use of the broker risk fund; |
(8)To
exercise other duties and powers empowered by laws and
regulations. |
Other
administrative departments shall exercise duties and powers on
broker supervision and administration
according to laws and
regulations.
|
Article
31 Administrative department in
charge is entitled to investigate and deal with activities as
follow: |
(1)
Activities conducted in name of a broker without having been duly
registered by administrative department
in charge and without
having obtained business licence; |
(2)
Broker undertakes activities beyond business scope; |
(3)
Broker did not conduct modification and nullification registration
according to laws; |
(4)
Person who does not meet the requirements prescribed in these
regulations undertakes broker' s activities
as employee of a
broker; employee of a broker undertakes broker' s activities
without having obtained
certificate of qualification required by
laws and regulations; |
(5)
Broker provides service for commodities prohibited by state to
enter circulation, and project prohibited
by state or illegal
transaction; |
(6)
Broker undertakes deceitful activities by taking advantage of the
provision of broker' s service; |
(7)
Broker forges, changes, sells or purchases business
transaction documents, broker' s business records or vouchers; |
(8)
Broker has not paid administration fees according to laws; |
(9)
Other illegal activities to be investigated and dealt with
by administrative department in charge as laws and regulations
require. |
Article
32 Law enforcement officials of
administrative department in charge and
other administrative departments are empowered during their law
enforcement to request relevant
units or persons to provide
relevant materials. |
Chapter V
Broker' s Association
|
Article
33 Brokers shall set up broker' s
Association, which is a self-disciplined union for brokers to be
self-constrained
and self-managed. |
Article
34 Broker' s Association shall
mainly exercise following duties and powers: |
(1)
To carry out national laws, regulations and administrative
measures; |
(2)
To draw up rules on the engagement of brokering; |
(3)
To convey opinions and requirements of members, and to secure
lawful rights and interests of members; |
(4)
To mediate disputes among members, and to help administrative
department in charge and other relevant
administrative departments
to investigate and deal with illegal broker' s activities; |
(5)
To collect and manage broker risk fund; |
(6)
To handle matters under authorization of the administrative
department in charge. |
Article
35 Broker lawfully established shall
join broker' s association, employee of a broker may join
broker'
s Association. |
Article
36 Member of broker' s association
shall enjoy rights and fulfill duties according to articles of
broker'
s association. |
Article
37 The general meeting of a
broker' s association is the highest organ of power in a
broker' s association,
and the administrative council is the
executive organ of the general meeting. Both duties and powers
shall be prescribed in the articles of the broker' s association.
The administrative council shall be made up with
members appointed
by the administrative department in charge and members elected by
the broker' s association. |
Article
38 The broker' s
association shall set up broker risk fund. Brokers having joined
the broker' s association
shall pay broker risk fund to the
broker' s association. In the case that the principal suffers
damage
due to the negligence of a broker, and the broker' s
property is insufficient to compensate, the Broker Risk Fund
shall
compensate with limited amount. |
Article
39 The broker' s association shall
establish broker risk fund account, shall earmark the fund for its
specified purpose only, and shall not use the fund for other
purpose. |
Article
40 Detailed measures on the payment,
use and management of the broker risk fund shall be prescribed by
articles of broker' s association and shall be carried out under
the supervision of the administrative department
in charge. |
Chapter VI
Penalty Provisions
|
Article
41 Broker, in violation of laws,
regulations and these regulations, conducts broker' s activities shall bear the cost of the
broker' s activities and the risk of the transaction by itself,
and reimburse the brokerage. Broker shall compensate damages
brought by it to the principal pursuant
to laws, regulations and
these regulations. |
Principal,
in violation of laws, regulations and these regulations, shall
compensate pursuant to laws,
regulations and these regulations the
damages brought by the principal to a broker. |
Article
42Anyone,who
violates Article 6 or Article 8 of these regulations, shall be
ordered by the administrative
department in charge to stop
broker' s activities. The illegal gains shall be confiscated, and
a penalty
of not less than 1,000 yuan and
not more than 5,000 yuan may be concurrently imposed; |
Article
43 Anyone, who violates Article 9,
Article 13, Article 14 or Article 15 of these regulations shall be
punished by the administrative department in charge according to
laws and regulations regarding enterprise registration. |
Article
44 Violations of Article 16, or
Article 24 of these regulations shall be dealt with according to
relevant
laws and regulations. If there are no stipulations of laws and regulations, the administrative
department in charge shall confiscate the illegal gains, and
impose a fine of not more than 50,000 yuan; and anyone, who
conducts a crime shall be prosecuted by
judicial organs pursuant
to laws. |
Article
45 Anyone, who violates Article
27,or Article 28 of these regulations, shall be warned and ordered
to
correct within specific period by the administrative department
in charge, a penalty of not more than 20,000 yuan
may be imposed
concurrently. |
Article
46 Anyone, in violation of Article
39 of these regulations, shall be investigated for criminal
responsibility
according to laws. |
Article
47 Law enforcement officials of the
administrative department in charge
and other relevant administrative departments, who
abuse their power, neglect their duties or engage in malpractice
for personal gain in the course of carrying out these regulations,
shall be given administrative sanctions
by their respective
administrative department in charge, and shall be investigated for
criminal responsibility
according to laws. |
Article
48 If a party is not satisfied with
the decision on administrative punishment, he may, within 15 days
from
receipt of the notice of punishment, apply for
reconsideration to the organ for administrative appeal of
municipal government. If the party concerned is not satisfied with
the reconsideration decision, he may, within
15 days from receipt
of the reconsideration decision, bring a suit in a People' s
Court. The party
concerned may also directly bring a suit in a
People' s Court within 15 days from receipt of the notice of
administrative punishment. |
Chapter VII
Supplementary Provisions
|
Article
49 The municipal government may
formulate detailed rules for the implementation of these
regulations in
accordance with these regulations. |
Article
50 These regulations shall enter
into force as of January 1, 1997. |
Article
51 Brokers having been registered
before the implementation of these
regulations shall apply for examination and
verification to the administrative department in charge before
June 30, 1997, otherwise the former certificate and license shall
be rendered invalidated. |
|