Law on Farmers Professional Cooperatives of the Peoples Republic of China
Article 1 (Purpose)
This Law is formulated in order to promote the establishment and development of professional cooperatives for farmers in China and to protect the legitimate rights and interests of the members of such cooperatives in accordance with the Constitution and relevant laws and regulations of the Peoples Republic of China.
Article 2 (Definition)
Farmers professional cooperatives, hereinafter referred to as cooperatives, refer to economic organizations which are voluntarily established by farmers with certain economic means to jointly pursue the common interests of their members.
Article 3 (Supervision and Control)
The establishment and activities of the cooperatives shall be subject to the supervision and control of the peoples governments at various levels in accordance with the provisions of this Law and other relevant laws and regulations.
Article 4 (Conditions for Formation)
A cooperative may be established if it meets the following conditions:
(1) having a reasonable organizational structure and complying with the regulations of the State on the organizational structure of farmworkers cooperatives;
(2) having the necessary funds to provide various services to its members;
(3) having sound management systems;
(4) devoting its economic activities to the economic interests of its members;
(5) having adequate facilities for operational use.
Article 5 (Management of Cooperatives)
The cooperatives shall be managed mainly by the members. The chairman of the cooperatives shall serve as the legal representative of the cooperatives and shall be responsible for the management and operation of the cooperatives and the implementation of the decisions of the general meeting of members.
Article 6 (Attribution of Cooperatives)
The cooperatives shall, in accordance with the principle of mutual benefit and solidarity, engage in any of the following activities:
(1) providing members with services in the fields of production and operation;
(2) engaging in trading activities, including the purchase and sale, processing and storage of agricultural products, raw materials, equipment and other items;
(3) providing credit services and insurance services in accordance with the law;
(4) engaging in the cultivation of land, the propagation of aquatic products and the keeping of livestock and poultry;
(5) engaging in economic activities in other areas that are not prohibited by laws and administrative regulations;
(6) performing other economic activities in accordance with the purpose of the cooperatives.
Article 7 (Sonstitutional Documents of Cooperatives)
The cooperatives shall draw up the following documents:
(1) decision on establishment of cooperatives;
(2) constitution of cooperatives;
(3) articles of association;
(4) registration certificate;
(5) registration form.
Article 8 (Organizational Structure of Cooperatives)
The cooperatives shall have the following organizational structure:
(1) General Meeting of Members;
(2) Management Board;
(3) Supervisory Board;
(4) Expert Advisory Group;
(5) Labor Union;
(6) Working Organizations.
Article 9 (Assets of Cooperatives)
The assets of the cooperatives shall include the following:
(1) membership fees and reserves;
(2) funds for organizational activities;
(3) funds for value-added services;
(4) funds for new businesses;
(5) capital for investment activities;
(6) income from the operations of the cooperatives;
(7) other socially raised funds.
Article 10 (Membership of Cooperatives)
The cooperatives shall admit qualified farmers as members according to the principles of voluntariness, mutual benefit and solidarity.
Article 11 (Rights of Members)
The members of the cooperatives shall enjoy the following rights:
(1)Participation in the decision-making and supervision of the cooperatives.
(2)Paying membership fees to the cooperatives and enjoying the benefits derived therefrom.
(3)Receiving services provided by the cooperatives.
(4)Making demands on the cooperatives to protect their legitimate rights and interests.
(5)Share the benefits of the cooperatives when the cooperatives liquidate.
Article 12 (Obligations of Members)
The members of the cooperatives shall bear the following obligations:
(1)Abide by the constitution of the cooperatives and fulfill their commitments to the cooperatives.
(2)Pay membership fees as prescribed by the cooperatives.
(3)Obey the decisions taken by the general meeting of members and implementation of the decisions.
(4)Comply with the regulations of the cooperatives and not harm the interests of the cooperatives.
Article 13 (Dissociation of Members)
The members of the cooperatives may voluntarily retire from the cooperatives in accordance with the procedure prescribed by the cooperatives.
Article 14 (Dissolution of Cooperatives)
The cooperatives may be dissolved in accordance with this Law and other relevant laws and regulations.
Article 15 (Competent Authority)
The peoples governments at various levels shall be responsible for the supervision and control of the establishment and activities of the cooperatives in accordance with the division of labour with the other relevant departments.
Article 16 (Implementation)
This Law shall come into force as of the date of promulgation.
