Provisions of Shanghai Municipality on Promoting the Development of Trade Associations

· Document Number：Announcement No. 22 of the Standing Committee of the People's Congress of Shanghai Municipality

· Area of Law： Legislative Affairs

· Level of Authority： Provincial Local Regulations

· Date issued：07-30-2010

· Status： Effective

· Issuing Authority： Shanghai Municipality

Provisions of Shanghai Municipality on Promoting the Development of Trade Associations
(Adopted at the 44th Session of the Standing Committee of the 11th Shanghai Municipal People's Congress on October 31, 2002; amended according to the Decision on Amending the Provisions of Shanghai Municipality on Promoting the Development of Trade Associations adopted at the 20th Session of the 13th Shanghai Municipal People's Congress on July 30, 2010)
Article 1 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 the law, and normalizing the organizations and acts of the trade associations, these Provisions are formulated in accordance with relevant laws and administrative regulations, and in the light of the actual circumstances of this Municipality.
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.
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 with illegally by any organization or individual person.
Article 4 The people's government at all levels shall promote and foster the development of trade associations, support trade associations to run independently their associations, conduct administration according to law, and ensure the independent operation of the trade associations.
The municipal administrative department of the registration of mass organizations, and the relevant working departments of the Municipal People's Government shall, according to their respective duties, do a good job of the specific work of the development of trade associations.
Article 5 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 its articles of association. The aim, scope of business, organizational structure, rule of activity and the rights and obligations of the members of a trade association shall be provided in its articles of association.
Anyone to establish a trade association shall file an application to the administrative department of the registration of mass organizations, and submit the preparation application, draft of the articles of association and such other documents. The administrative department of the registration of mass organizations shall solicit the opinions of the relevant parties in the process of handling the registration formalities.
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, according to its provisions, deprive those members who have committed serious acts in violation of law or breach of contract of their membership.
Article 7 The trade association adopts the membership system. The general meeting of members or the 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 meeting of members or the general meeting of representatives of membership. The trade association sets up its secretariat as its administrative body.
The president, vice president(s) and directors of the trade association shall be elected according to its articles of association. The secretary general is the full-time administrator of the trade association, who is employed by the board of directors, or by other means according to its articles of association.
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 state departments of this Municipality shall hold any positions in any trade association.
Article 9 The full-time working personnel of the administrative body of a trade association shall be professionalized step by step. The administrative department of the registration of mass organizations shall, jointly with the relevant working departments of the government, guide and help trade associations to do well in the education and training, vocational qualification appraisal, social security and such other work for the full-time working personnel.
Article 10 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 11 The trade association may formulate its own rules and provisions 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 12 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 proposals involving the interest of the trade.
Article 13 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 working departments of the government to complete the relevant investigation.
The trade association may participate in the activities of answering the anti-dumping lawsuit.
Article 14 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, and make suggestions and proposals on economic policy and legislation.
Article 15 The trade association may, according to the provisions of its articles of association, take self-disciplinary measures against the members who violate its articles of association or the rules and provisions of the trade, and damage the overall image of the trade, and report to the relevant working departments of the government about the self-disciplinary measures. The trade association may suggest and assist the relevant working 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 of resolving disputes within the trade.
Article 16 The relevant state departments, when formulating the local laws, rules and regulations, public policies, administrative measures, technical standards, 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 department may also entrust the trade association to do the drafting.
Article 17 The relevant working departments of the government shall support the trade associations to carry out trade service, and transfer or entrust, according to the actual circumstances, the affairs of the evaluation and demonstration of the trade, the examination of the technical competency, and the investigation and statistics of the trade to the trade associations.
In case the relevant working departments of the government entrust the relevant working affairs to trade associations, a mechanism of government service purchasing shall be established by signing a contract or such other means.
Article 18 The relevant working departments of the government shall provide 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 trade associations to participate in the relevant activities concerning anti-dumping, anti-subsidy, and anti unfair competition.
Articles 19 Trade associations may raise funds for their activities through charging membership dues, accepting contributions and donations, and carrying out services. The standard of their membership dues shall be determined by the votes of the general meeting of members or the general meeting of representatives of membership of the trade association. The use of the funds shall be confined to the scope as provided in their articles of association, and shall be subject to the supervision of the members and of the relevant working departments of the government.
Article 20 The trade association shall not, by way of formulating rules of trade or other means, monopolize the market, impede fair competition, or jeopardize the legitimate rights and interests of consumers, non-member enterprises or other economic organizations or 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 identical with the businesses operation of the trade.
No member of the trade association shall make use of the advantage of its scale of business or market share to restrict other members to play their roles in the trade association.
Article 21 When the members of the trade association have objections to the trade association's implementation of rules or self-disciplinary measures of trade, or to other decisions made 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 22 The municipal administrative department of the registration of mass organizations shall establish and perfect an evaluation mechanism of trade associations, and an information system to serve trade associations.
The administrative department of the registration of mass organizations and the relevant working departments of the government shall strengthen the information communication with trade associations.
Article 23 The administrative department of the registration of mass organizations and the relevant working departments of the government shall strengthen the guidance and service for trade associations, create an equal and fair development environment, ensure trade associations to carry out activities according to laws, rules, regulations, and their articles of association, and give play to the role of the trade association league.
Article 24 The municipal administrative department of the registration of mass organizations and the relevant working departments of the government shall supervise and administrate the activities of trade associations according to law, perfect and optimize the supervision system, and normalize and improve the supervision mode.
Articles 25 Trade associations shall accept the annual inspection of the administrative department of the registration of mass organizations as provided. The trade association that fails to accept the annual inspection as provided shall be given a warning and ordered to accept the annual inspection within the prescribed time limit by the administrative department of the registration of mass organizations; if it fails to accept the annual inspection within the prescribed time limit, the administrative department of the registration of mass organizations may make announcement to the public, and may cancel the registration of the trade association that still fails to accept the annual inspection within six months after the date of announcement.
Articles 26 These Provisions apply as reference to the association or the chamber of commerce with enterprises as members, the trade association composed of market intermediary agencies of the authentication category, or the trade association in which units or practitioners must join as required by laws or regulations.
Article 27 These Provisions shall be effective as of February 1, 2003.