Chapter I

    Item I. The association is named “ 中国中小商业企业协会 ” , in English is “ China Association for Small & Medium Commercial Enterprises ”

    Item II. CASME is a non-rentable, national mass organization corporation , which is made up of small and medium enterprises who engage in retailing, wholesaling, manufacturing, life servicing and contemporary servicing, and the related service institutions who service small and medium enterprises.

    Item III. Tenet of CASME is to Abide by national constitution, laws and social moralities. Carry out the related guidelines and policies on small & medium enterprise made by Communist Party and State; Insist on sincerity principle; Holding small and medium commercial enterprises together we join in national economy construction and promote thriving for our socialism market economy; Base ourselves on commercial service, carry on related commercial activities and assisting small and medium enterprises to strengthen external economy cooperation and development; As a main bridge we bring our effects into play fully to set up bridge between government and enterprises, insist on service for enterprises and vindicate legal rights and interests for our members; Undertake all works assigned by government and self-disciplined supervision.

    Item IV. CASME is instructed and supervised by State Department, State Supervision and Administration Association of State-owned Assets and Civil Administration Department.

    Item V. CASME is in Beijing

Chapter II Business Scope

    Item VI According to the tenet, the Association is mainly responsible for communication, organization, coordination, self-discipline and service. The scope of business is :

    Bring the collective advantage of various enterprises and personal range from area of production and circulation of commodity together and make them take effect well.

    Instruct enterprises to carry out the related policy, guideline made by State, discipline themselves, advocate professional ethics and protect customers' legal interest.

    Submit the development conditions and problems to related authorities based on investigation, give useful suggestion and assist them to make business guideline, policy and complete anything assigned.

    To accelerate enterprises' deepening-reformation, strengthen their energy and improve their economic performance based on researching their theory, policy and development strategy.

    To accelerate economic combination between, make them become specialization and collectivization according to the collected advanced experience of excellent enterprises. To enlarge their scale of operation, improve their competitiveness and popularity by various economic activity. To popularize excellent enterprise by media, encourage enterprises to establish businesses.

    To supply SME with consultation about operation, law, policy and information. To organize various training to improve operating management, employee's ability and integrated quality.

    To keep in touch with foreign business communities, organize international economic and technical interchange and cooperation for enterprises, and assist them to enter international market.

    To undertake any other things assigned by the related authorities.

Chapter III Members

    Item VII. All enterprises and institutions, who is in accordance with law, our requirement and admit our regulations, can join us voluntarily.

.    Item VIII. Only the following enterprises can join us:

    (1)Who support Association's regulation
    (2)Who intend to join us
    (3)Who is influential among the small and medium enterprises.
    (4)Who can pay for members' subscription in time positively.
    (5)Item IX Procedure of entering
    (6)To submit application
    (7)To fill in registration form.
    (8)To be checked and approved by Chairman.
    (9)To be awarded with membership certification.

    Item X Members have the following rights:

    (1)right to vote, right to be elected and voting
    (2)right to attend the meetings and activity held by us
    (3)right to provided with service on information, training, consulting, investigation before enter international market and so on.
    (4)Right to supervise, critical and give suggestion to us.
    (5)right to ask association for help when problems and difficulties occurred and for protected when their legitimate interest is damaged.
    (6)Right to join us voluntarily and withdraw freely.

    Item XI Members need to fulfill the following obligations ：

    (1)To carry out policy, guideline, rules of law made by the Party and State, association's regulation and resolution
    (2)To vindicate association's legitimate interest.
    (3)To attend association's activities and complete any things assigned by association.
    (4)To submit all kinds of related data needed by association.
    (5)To pay for members subscription in time according to association's regulation.

    Item XII To return member certification when withdrawing from association. The members, who don't pay for member's subscription and attend association's activity, will be thought to withdraw of own accord.

    Item 13 After approved by council or executive council the members who obey association's regulations will be fired out.

Chapter IV Organization and Leaders

    Item 14 The highest powerful organization is member congress, whose rights is:

    (1)To make and amend regulation
    (2)To elect and dismiss council and executive council.
    (3)To discuss council's operational report and accounting report.
    (4)According to nomination by executive council to retain Honorary Chairman and Senior Counselor
    (5)To make determination for the to be ended things.
    (6)To make decision on other important things.

    Item 15. The Member Congress can be held only when 2/3 members attend, and the decision must be approved by over halves first and then work.

    Item 16. Member Congress is held quinquennially. The time schedule can be changed only approved by State Department, State Supervision and Administration Association of State-owned Assets and Civil Administration Department. But the postponed time is no longer than one year.

    Item 17. The executive institution of Member Congress is Council who is responsible to instruct Association's daily work and congress. The members of Council is representative and well-known, who has big scale of operation and can devote himself to association.

    Item 18 Authority of Council :

    (1)To execute decision made by Member Congress.
    (2)To elect and dismiss chairman, vice-chairman, deputy director-general and secretary-general.
    (3)To arrange member congress.
    (4)To report work and financial condition to Member Congress.
    (5)To be responsible for approval of application for members.
    (6)To make decision on whether to establish branch, agent and entity.
    (7)To be responsible for appointment of deputy secretary-general and chief executive officer.
    (8)To lead the association.
    (9)To make internal control system.
    (10)Other important things.

    Item 19 The council congress can be held only when 2/3 directors attend, and the decision must be approved by 2/3 directors first and then work.

    Item 20. Council congress is held annually usually, unless the time schedule is permitted to change because of special case.

    Item 21.The machine of association is Executive council elected by council, which is made up of Chairman, Vice-chairman, Deputy director-general, secretary-general and all Executive directive representative. As an critical institution, Executive council is entitled to use the powers mentioned in Item 18 from No.1 to 9. The tenure period is 5years, and one person can be nominated for one position consecutively after having been on the same duty for 5 years.

    Item 22.The Executive council congress can be held only when 2/3 executive directors attend, and the decision must be approved by 2/3 executive directors first and then work.

    Item 23. Executive council congress is held once every half one year in formal way, telecom or other way. The postponed congress must be approved by Council ahead of time.

    Item 24.Person, who is recommended to be chairman, vice-chairman, deputy director-general or secretary-general, must meet the following requirement:

    (1)Insist on Party line, guideline, and policy.
    (2)Be influential.
    (3)The maximum age of Chairman, Vice chairman, Deputy secretary-general and Secretary-general is no older than 65 years old, Secretary-general is full time.
    (4)be healthy and can work.
    (5)has not been punished in way of being deprived of political rights
    (6)Have full civil capacity.

    Item 25.Person, who is recommended to be chairman, vice-chairman, deputy director-general or secretary-general but older than maximum age, can hold the post only when approved by State Supervision and Administration Association of State-owned Assets and Civil Administration Department.

    Item 26. The tenure of Chairman, Vice chairman, Deputy secretary-general and Secretary-general is for 5years, just one period, and can't be more than ten years. Only when being approved by State Supervision and Administration Association of State-owned Assets and Civil Administration Department, they can be on duty unceasingly after ten years.

    Item 27. On principle Chairman also act as legal representative. Only when being permitted because of special case. Vice-chairman or Secretary-general can be legal representative. Being approved by State Supervision and Administration Association of State-owned Assets and Civil Administration Department, Jianagming is legal representative our association.

    Item 28. The Chairman or vice-chairman, deputy director-general are entitled to do the following things:

    (1)To call and host Council congress and Executive council congress.
    (2)To confirm the fulfillment of Member Congress, Council Congress and Executive Council Congress.
    (3)To sign some important files on behalf of association.
    (4)To make decision for the daily important things.

    Item 29. Secretary-general id entitled to do the following things:
    (1)In charge of daily work of administrative body and implement annual working program.
    (2)To instruct all branches, representative agency and entity to work.
    (3)To recommend deputy secretary-general and chiefs of all administrative body, branch, representative agency and entity.
    (4)Recruiting full-time employees for administrative body, representative agency and entity.
    (5)Other daily things.

    Item 30. The position of directors or above can be adjusted after being agreed by council.

    Item 31. Some senior counselors and honorary chairmen are retained for the business.

    Item 32. A professional committee is established for the business.

Chapter V Management and spending principle of Assets.

    Founds comes from:

    (1)Members' subscription
    (2)Donation
    (3)Pecuniary aid from government
    (4)The income earned by holding Activities or services in approved business scope
    (5)Interest
    (6)Other legal income.

    Item 34. The members' subscription for CASME is stipulated by government.

    Item 35. The founds of CASME must be used for the limited business by the regulation and further development

    Item 36. The strict financial management regulation has been established in order to assure the accounting data is true, exact and intact 。

    Item 37. CASME has professional accounting personnel. The accountant, who is not permitted to work also as a part-time treasurer at the same time, is responsible for accounting and supervised. When quitting or being redeployed, the handing-over procedure should be done.

    Item 38. Assets management of CASME must be executed according to financial management regulation made by government, be supervised by Members. The assets which root in appropriation from government, donation or pecuniary aid from crowd, should be supervised by auditing office and the related things should be released to public in proper way.

    Item 39. Before falling due and replacing artificial person, the finance of CASME should be audited by State Supervision and Administration Association of State-owned Assets and Civil Administration Department

    Item 40. CASME's assets can't be owned, divided and embezzled secretly by any unit or person.

    Item 41. The regulation of full-time staff's salary, insurance and welfare treatment is executed according to the related stipulation made by government.

Chapter VI Amending of Regulation

     Item 42. The application for amending the regulation should first be submitted for agreement of Council, and then be submitted for Members' discussion.

     Item 43. The amended regulation should first be submitted for approval by relevant leading department of business and Civil Administrative Department within 15 days after being agreed by Members, and then work.

Chapter VII Disposal of ending procedure and residual property

     Item 44. When CASME need to be cancelled after completing the tenet or because of voluntary dissolution, schism, and combination, the proposal should be submitted by Council or Executive Council first.

     Item 45. The ending application of CASME need to be agreed by Members and approved by relevant leading department of business.

     Item 46. Before ending, a liquidating group should be organized under instruction of relevant department of Business to liquidate creditor's right and debt, and deal with problems arising from ending. Only liquidation done during this time.

     Item 47. CASME will be ended after being cancelled by Civil Administrative Department.

     Item 48. The residual property after cancellation will be used to develop the related things, which is in accordance with CASME's tenet, under supervision of relevant leading departments of business and Civil Administrative Department.

Chapter VIII Enclose

     Item 49. The regulation was passed by Member Congress on 10 th . March.2003.

     Item 50. Authority for the interpretation of this regulation is owned by Council.

     Item 51. This regulation will work as soon as it is approved by Civil Administration Department.