(Adopted at the 68th Executive Meeting of the State Council on February 19, 2003, promulgated by Decree No. 372 of the State Council of the People s Republic of China on March 1, 2003, and effective as of September 1, 2003) Chapter I General Provisions Article 1 These Regulations are formulated in accordance with the Education Law of the People s Republic of China, the Vocational Education Article 2 These Regulations apply to the activities of the cooperation between foreign educational institutions and Chinese educational institutions Article 3 Chinese-foreign cooperation in running schools is an undertaking beneficial to public interests and forms a component of China s For Chinese-foreign cooperation in running schools, the State adopts the policies of opening wider to the outside world, standardization The State encourages Chinese-foreign cooperation in running schools to which high-quality foreign educational resources are introduced. The State encourages Chinese-foreign cooperation in running schools in the field of higher education and vocational education, Article 4 The legal rights and interests of Chinese and foreign cooperators in running schools and of Chinese-foreign cooperatively-run schools Chinese-foreign cooperatively-run schools shall enjoy preferential policies made by the State and enjoy autonomy when conducting Article 5 Chinese-foreign cooperation in running schools shall abide by the laws of China, implement China s educational policies, comply Chinese-foreign cooperation in running schools shall meet the needs of the development of China s educational cause, ensure teaching Article 6 Chinese and foreign cooperators in running schools may cooperate to establish educational institutions of various types at various Article 7 No foreign religious organization, religious institution, religious college and university or religious worker may engage in cooperative Chinese-foreign cooperatively-run schools shall not offer religious education, nor conduct religious activities. Article 8 The education administrative department of the State Council shall be responsible for overall planning, comprehensive coordination The education administrative departments of the people s governments of the provinces, autonomous regions and municipalities
Chapter II Establishment Article 9 An educational institution which applies for establishing a Chinese-foreign cooperatively-run school shall have the legal person Article 10 A Chinese or foreign cooperator in running a school may contribute with funds, in kind or in forms of land-use right, intellectual Contribution of intellectual property rights by a Chinese or foreign cooperator in running a school shall not exceed one-third Article 11 A Chinese-foreign cooperatively-run school shall meet the basic requirements prescribed by the Education Law of the People s Republic The establishment of a Chinese-foreign cooperatively-run school shall follow the standards for the establishment of State-run educational Article 12 An application for establishing a Chinese-foreign cooperatively-run school offering higher education for academic qualifications An application for establishing a Chinese-foreign cooperatively-run school offering secondary education for academic qualifications, An application for establishing a Chinese-foreign cooperatively-run school offering vocational technical training shall be subject Article 13 The establishment of a Chinese-foreign cooperatively-run school shall include two steps of preparation for establishment and formal Article 14 An applicant who applies for preparation for establishment of a Chinese-foreign cooperatively-run school shall submit the following (1) a project report which shall mainly contain the names of the Chinese and foreign cooperators in running the school, the name (2) a cooperative agreement which shall contain the duration of cooperation and ways of dispute settlement, etc.; (3) valid documents verifying sources of assets and amount of capital, with clear statement of ownership; (4) a donation agreement for any assets provided as a donation to the proposed school, which carries the name of the donor, value (5) a certificate verifying that not less than 15 percent of initial funds provided by the Chinese and foreign cooperators is Article 15 In the case of an application for preparation for establishment of a Chinese-foreign cooperatively-run school, the examination and Article 16 An applicant whose application for preparation for establishment of a Chinese-foreign cooperatively-run school is approved shall During the period of preparation for establishment, no students shall be enrolled. Article 17 An applicant who has completed its preparation for establishment and applies for formal establishment shall submit the following (1) an application for formal establishment; (2) the letter of approval for preparation for establishment; (3) a report on the progress of preparation for establishment; (4) the articles of association for the Chinese-foreign cooperatively-run school, and a list of members on its first board of (5) valid documents verifying assets of the Chinese-foreign cooperatively-run school; and (6) documents verifying the qualifications of the president or principal administrator, the teachers and financial staff. An applicant who directly applies for formal establishment of a Chinese-foreign cooperatively-run school shall submit all documents Article 18 In the case of an application for formal establishment of a Chinese-foreign cooperatively-run school offering education for non-academic The format of the permit for Chinese-foreign cooperation in running a school shall be determined by the education administrative Article 19 In the case of an application for formal establishment of a Chinese-foreign cooperatively-run school offering education for academic Article 20 A Chinese-foreign cooperatively-run school which has obtained the permit for Chinese-foreign cooperation in running the school shall
Chapter III Organization and Administration Article 21 A Chinese-foreign cooperatively-run school with the legal person status shall set up a board of trustees or a board of directors, The board of trustees, the board of directors or the joint managerial committee shall be composed of at least five members with The legal representative of a Chinese-foreign cooperatively-run school with the legal person status shall be appointed through Article 22 The board of trustees, the board of directors or the joint managerial committee of a Chinese-foreign cooperatively-run school shall The list of members on the board of trustees, the board of directors or of the joint managerial committee of a Chinese-foreign Article 23 The board of trustees, the board of directors or the joint managerial committee of a Chinese-foreign cooperatively-run school shall (1) electing or by-electing the members on the board of trustees, the board of directors or of the joint managerial committee; (2) appointing or dismissing the president or the principal administrator; (3) modifying the articles of association and formulating school rules and bylaw; (4) formulating development plans and approving annual work plans; (5) raising operational funds, examining and approving the budget and the final accounts; (6) determining the staff arrangement and quotas and the wage scales; (7) making decisions on the division, merger or termination of the Chinese-foreign cooperatively-run school; and (8) exercising other powers specified by the articles of association. Article 24 The board of trustees, the board of directors or the joint managerial committee of a Chinese-foreign cooperatively-run school shall The board of trustees, the board of directors or the joint managerial committee of a Chinese-foreign cooperatively-run school (1) appointing or dismissing the president or the principal administrator; (2) modifying the articles of association; (3) formulating the development plan; (4) making decisions on the division, merger or termination of the Chinese-foreign cooperatively-run school; and (5) other major issues specified by the articles of association. Article 25 The president or the principal administrator of a Chinese-foreign cooperatively-run school shall be a person with the nationality The president or the principal administrator appointed by a Chinese-foreign cooperatively-run school shall be subject to approval Article 26 The president or the principal administrator of a Chinese-foreign cooperatively-run school shall exercise the following powers: (1) executing the decisions of the board of trustees, the board of directors or the joint managerial committee; (2) implementing the development plan and drafting annual work plans, financial budget, rules and bylaw; (3) employing and dismissing the staff and executing rewards and punishments; (4) organizing teaching and scientific research activities and ensuring teaching quality; (5) taking charge of daily administrative work; and (6) exercising other powers specified by the articles of association. Article 27 A Chinese-foreign cooperatively-run school shall administer its teachers and students in accordance with law. Foreign teachers and administrators employed by a Chinese-foreign cooperatively-run school shall possess a bachelor s degree The foreign cooperator shall send a certain number of teachers from its own educational institution to teach in the Chinese-foreign Article 28 A Chinese-foreign cooperatively-run school shall safeguard the lawful rights and interests of its teachers and students in accordance The teaching and administrative staff of a Chinese-foreign cooperatively-run school shall establish their trade union and other Article 29 Foreign employees of a Chinese-foreign cooperatively-run school shall abide by the relevant provisions on employment of foreigners
Chapter IV Education and Teaching Article 30 A Chinese-foreign cooperatively-run school shall offer courses on the constitution, laws, ethics of citizens and basic facts about The State encourages Chinese-foreign cooperatively-run schools to introduce internationally advanced courses and teaching materials A Chinese-foreign cooperatively-run school shall report the courses that it offers and the teaching materials that it has introduced Article 31 A Chinese-foreign cooperatively-run school may, if necessary, use foreign languages in teaching, but shall use the standard Chinese Article 32 The enrollment by Chinese-foreign cooperatively-run schools offering higher education for academic qualifications shall be incorporated The enrollment of overseas students by Chinese-foreign cooperatively-run schools shall be conducted in accordance with the relevant Article 33 The enrollment brochures and advertisements of Chinese-foreign cooperatively-run schools shall be submitted to the examination and A Chinese-foreign cooperatively-run school shall publicize regularly relevant information on the type and level of its education, Article 34 Chinese-foreign cooperatively-run schools offering education for academic qualifications shall grant academic qualifications certificates Chinese-foreign cooperatively-run schools offering higher education for academic qualifications may grant relevant Chinese certificates Certificates of academic qualifications or certificates of academic degrees of a foreign educational institution granted by a The recognition of certificates of academic qualifications or certificates of academic degrees of a foreign educational institution Article 35 The education administrative department of the State Council or the education administrative departments, the labour administrative
Chapter V Assets and Financial Matters Article 36 Chinese-foreign cooperatively-run schools shall establish and improve their financial and accounting systems as well as their assets Article 37 During the period of their existence, Chinese-foreign cooperatively-run schools shall enjoy the property of legal persons on all Article 38 The items and standards of charges by Chinese-foreign cooperatively-run schools shall be determined and publicized in accordance Chinese-foreign cooperatively-run schools shall use Renminbi instead of any foreign currencies in calculating and collecting tuition Article 39 All fees collected by Chinese-foreign cooperatively-run schools shall be mainly used for educational and teaching activities and Article 40 Chinese-foreign cooperatively-run schools shall abide by the provisions of the State on foreign exchange control in conducting their Article 41 Chinese-foreign cooperatively-run schools, at the end of each fiscal year, shall prepare financial and accounting reports, commission
Chapter VI Alteration and Termination Article 42 Division or merger of a Chinese-foreign cooperatively-run school shall be reported to the examination and approval authorities for In the case of an application for division or merger of a Chinese-foreign cooperatively-run school offering education for non-academic Article 43 Alteration of cooperators in running a Chinese-foreign cooperatively-run school shall be proposed by the cooperators, and after liquidation, Any alteration in the domicile, legal representative or the president or the principal administrator of a Chinese-foreign cooperatively-run Article 44 Any alteration in the name, level or type of a Chinese-foreign cooperatively-run school shall be reported for approval by the board In the case of an application for altering a Chinese-foreign cooperatively-run school to offer education for non-academic qualifications, Article 45 A Chinese-foreign cooperatively-run school shall be terminated in one of the following cases: (1) where a request for termination is made in accordance with the articles of association and approved by the examination and (2) where its permit for Chinese-foreign cooperation in running the school is revoked; or (3) where it is unable to continue its operation due to insolvency and such termination is approved by the examination and approval A Chinese-foreign cooperatively-run school shall make proper arrangements for its students at school upon its termination; a Chinese-foreign Article 46 A Chinese-foreign cooperatively-run school shall make liquidation in accordance with law upon termination. Where a Chinese-foreign cooperatively-run school itself requests termination, the Chinese-foreign cooperatively-run school shall Article 47 Upon liquidation, a Chinese-foreign cooperatively-run school shall settle its outstanding debts according to the following sequence: (1) tuition and other fees that shall be refunded to the students; (2) salaries due to the teaching and administrative staff and their social insurance premiums payable; (3) payments for other outstanding debts. The remaining assets of a Chinese-foreign cooperatively-run school after the settlement of the above debts shall be handled in Article 48 Where a Chinese-foreign cooperatively-run school is terminated after approval or its permit for Chinese-foreign cooperation in running
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