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Provisions of Shanghai Municipality on Promoting the Development of Trade Association

Provisions of Shanghai Municipality on Promoting the Development of Trade Association
 

(Adopted at the 44th Session of the Standing Committee of the 11th Shanghai Municipal People' s Congress on October 31, 2002)

Article 1
These Provisions are formulated, in the light of the actual circumstances of this Municipality, pursuant to relevant laws and administrative regulations, with a view to promoting the development of the trade associations of this Municipality, safeguarding the trade associations carrying out their activities in accordance with law, and normalizing the organizations and acts of the trade associations.
Article 2
The trade association mentioned in these Provisions refers to a non-profit mass organization voluntarily organized by enterprises and other economic organizations of a same trade to carry out trade services and self-disciplinary administrations.
Article 3 
The objective of a trade association is to provide services to its members, uphold the legitimate rights and interests of the members, and safeguard the fair competition of the trade, link its members with the government, as well as society, and promote the economic development of the trade.
The trade associations follow the principle of running independently the association, dealing with the association affairs independently, and raising funds by themselves.
The activities of a trade association shall conform to the laws and regulations and the overall interests and the requirements of the trade, and shall not harm the public interest of the society.
The normal activities of a trade association are protected by law, and shall not be interfered illegally by any organization or individual person.
Article 4 
The people' s government at all levels shall promote and foster the development of the trade associations, support the trade associations to run independently their associations, administer according to law, and ensure the independent operation of the trade associations.
The Municipal Office of Trade Associations Development, the municipal administrative departments of registration of mass organizations, and the relevant departments of the municipal government shall, according to their own duties, do a good job of the work of the development of the trade associations.
Article 5
The trade associations shall be established according to the current State standard of trades' classification. It may also be established according to the product, mode of business operation, links of business operation and the functions of service. The trade associations shall have representativeness of the trades of the whole Municipality.
The establishment of a trade association shall be accompanied by the formulation of the constitution of the trade association. The aim, scope of business, organizational structure, rule of activity and the rights and obligations of the members shall be stipulated in the constitutions of the trade association.
The basic procedure and conditions of examination and approval of the establishment of a trade association shall be executed according to the State provisions on the registration of mass organizations and the relevant provisions of this Municipality.
Article 6 
The trade association shall set for the enterprises of different areas, departments, ownership, scale of business operation, or other economic organizations, the same standard of entry, ensuring the equal right of joining the association.
The enterprises or other economic organizations of the same trade may become, upon approval of the trade association, members of the trade association, if they apply voluntarily to join the association.
A member of the trade association may withdraw from the association of their own will. The trade association may also deprive those members who have committed serious acts in violation of law and breach of contract of their membership according to the stipulations of the constitution of the trade association.
Article 7 
The trade association adopts the membership system. General member meeting or general meeting of representatives of membership is the organ of power of the trade association. The trade association sets up its board of directors to act as the executive organ of the general membership meeting or general meeting of representatives of membership. The trade association sets up its secretariat as its administrative body.
The president, vice presidents and the directors are elected according to the constitution of the trade association. The secretary general is the full-time administrator, who is employed by the board of directors, or by other means according to the constitution of the trade association. The staff members working in the secretariat of the trade association shall be professionalized step by step.
Article 8 
The agencies, personnel and finance of the relevant working departments of the government shall be separated from the trade associations, and their working agencies shall not share the same office with the working body of the trade association.
No working personnel of government organs shall hold leading positions of any trade association.
Article 9
The trade association may, according to the demand of its members, organize the expansion of the market, issue the information of the market, recommend and introduce the products of the trade or services, provide training of the trade or offer consultancy services.
Article 10 
The trade association may formulate its own rules and stipulations of the trade. It may make suggestions to the relevant working departments of the government on the formulation of the relevant technical standard, or participate in the formulation of the relevant standard.
Article 11
The trade association may mediate the disputes between members, members and non-members, or members and consumers arisen in their business activities. It may coordinate the matters of business operation between itself and other trade associations or organizations involved. It may participate in the collective negotiation of the trade on behalf of the trade, and put forward suggestions and proposal involving the interest of the trade.
Article 12 
The trade association may, according to the provisions of laws and administrative regulations and on behalf of the relevant enterprises of the trade or other economic organizations, put forward to the working departments of the government, the anti-dumping and anti-subsidy investigation or apply for taking protective measures, and assist the relevant departments of the government to complete the investigation.
The trade association may participate in the activities of answering the anti-dumping lawsuit.
Article 13
The trade association may, on behalf of its trade, report to the relevant state departments about the matters related to the interests of the trade, make suggestions and proposals on economic policy and legislation.
Article 14
The trade association may, according to the stipulations of the constitutions of the trade association, take self-disciplinary measures against the members who violate the rules and stipulations of the trade association, and damage the overall image of the trade, and report to the relevant departments about the self-disciplinary measures. The trade association may suggest or assist the relevant departments of the government to investigate and punish the enterprises or other economic organizations within the trade that are engaged in illegal businesses.
The trade association may, if necessary, formulate the rules and procedures on revolving disputes within the trade.
Article 15 
The relevant state organs, when formulating the local laws, rules and regulations, public policies, administrative measures, technical standard, or the development plan of the trade that involve the interest of the trade, shall solicit the opinions of the trade association. When formulating relevant technical standards, the relevant state organ may also entrust the trade association to do the drafting.
Article 16 
The relevant working departments of the government shall support the trade associations to carry out trade service, and transfer or entrust step by step the functions of, in the light of the actual situations, the evaluation and demonstration of the trade, the examination of the technical competency, the investigation and statistics of the trade, and the exhibition and marketing of the product to the trade associations.
Article 17
The relevant working departments of the government shall provide the trade associations with information and consultancy, and report to the competent departments of the State about the demands of the trade.
The relevant working departments of the government or mass organizations shall support the trade associations to participate in the relevant activities concerning anti-dumping, anti-subsidy, and anti unfair competition.
Articles 18
The trade associations may raise funds for their activities through charging membership dues, accepting contribution and donation, carrying out the provision of service, undertaking matters entrusted by the relevant working departments of the government. The standard of the membership dues shall be stipulated by the constitution of the trade association. The use of the funds shall be confined to the scope of business as stipulated in the constitution of the trade association, and shall be subject to the supervision of the members and the relevant working departments of the government.
The funds for the public administrative affairs undertaken by the trade association shall be paid by the public fund. When the relevant working departments of the government entrust the trade association to undertake the work, the form of paid service shall be adopted. The necessary public fund support shall be given, according to relevant provisions, to those trade associations that are really in difficulty in the initial stage of the establishment.
Article 19
The trade association shall not, by way of formulating rules of trade or other means, monopolize the market, impede fair competition, and jeopardize the legitimate rights and interests of consumers, non-member enterprises or other economic organizations and the public interest of society. It shall not abuse its power to restrict its members in carrying out proper business activities or participating in other social activities, nor shall it impose discriminating treatments among members. It shall not make use of its organizational advantage to engage itself in the business operational activities that are similar with the businesses operation of the trade.
No member of the trade association shall make use the advantage of its scale of business or market share to restrict the other members to play their roles in the trade association.
Article 20
When the members of the trade association have objections to the rules, self-disciplinary measures, or other decisions implemented by the trade association, they may apply to the trade association for review, or apply to, according to law, the relevant working departments of the government to handle it.
If consumers, non-member enterprises or other economic organizations believe that the relevant measures of the trade association jeopardize their interests, they may ask the trade association to adjust or change the measures concerned, or they may apply to, according to law, the relevant working departments of the government for handling or lodge a lawsuit to the people' s court.
Article 21
The municipal administrative departments of registration of mass organizations, the Municipal Office of Trade Associations Development and the relevant departments of the government shall supervise and administrate the activities of the trade associations according to the relevant laws, rules and regulations.
Articles 22
These Provisions are applicable to the trade association composed of intermediary agencies of market of authentication category or the trade association in which practitioners as required by law or regulations must join as reference.
Article 23
These Provisions shall become effective on February 1, 2003.


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