Measures on Membership Management in China Forestry Exchange
(For Trial Implementation)
Article One
The Measures are formulated in accordance with the Measures for the Administration of Brokers issued by State Administration for Industry & Commerce of the People’s Republic of China and other laws, regulations and rules, with the purpose to standardize the actions of members of China Forestry Exchange (hereinafter referred to as CFEX), protect members’ rights & interests and secure a healthy trading order.
Article Two
Members in the Measures refer to legal persons and other organizations that are legally established, having been approved by CFEX and conducting service business for transactions in CFEX.
Article Three
The members of CFEX could be categorized as Broker Members, Service Members and International Members.
Broker members refer to legal persons/institutes conducting broking business for Chinese forestry equity transactions in CFEX.
Service members refer to legal persons and other organizations that provide intermediary services including auction, bidding (appraisal), internet-based online bidding, evaluation, auditing and advisory services in legal, financial and management fields to transactions in CFEX.
International members refer to legal persons and other organizations that conduct broking business for overseas forest resources and provide agency service for foreign investors to take forestry equity transactions in CFEX.
Article Four
The following conditions are requested in applying for CFEX members:
1) A legal person or other organizations legally established;
2) With relevant business qualifications;
3) With good reputations and no violation to laws or regulations within three years;
4) With fixed premises for operation and necessary facilities;
5) With sound internal management systems;
6) Other conditions prescribed by CFEX.
Institutions set up by forestry administrations above county level could apply for broker membership from CFEX, providing agency services in forestry systems or in local regions.
Article Five
Members could enjoy the rights as follows:
1) Conduct business according to relevant trading rules in CFEX;
2) Acquire transaction information and other services provided by CFEX;
3) Charge commission and other service fees;
4) Enjoy priority for service innovation in CFEX;
5) Participate in business training provided by CFEX;
6) Bring forward comments and suggestions on CFEX’s services;
7) Transfer the membership in accordance with relevant regulations;
8) Broker members could take the seats for transactions provided by CFEX.
Article Six
CFEX members shall fulfill the obligations as follows:
1) Obey transaction-related laws, regulations and rules;
2) Comply with the Constitution, trading regulations and other relevant rules of CFEX;
3) Provide professional services with credibility and diligence;
4) Protect the legal interests & benefits of the entrusting parties;
5) Establish and systemize business archives, the record of which shall be kept no less than 20 years;
6) Pay relevant fees on time;
7) Be subject to the supervision and administration of CFEX.
Article Seven
Broker members could dispatch dealers to CFEX. The dealers shall acquire corresponding qualifications.
Dealers shall register in CFEX with letter of authorization issued by their companies that have memberships; dealers cannot start business until being recognized by the trainings of CFEX.
Companies with memberships shall perform relevant procedures three working days in advance where there has to be an alteration on dealers dispatched; otherwise, CFEX is entitled to reject dealers newly dispatched.
Article Eight
Members shall apply for filing in CFEX within ten working days after the emergence of the following circumstances:
1) Alteration in legal persons location, register capital, business scope and investors;
2) Alteration in responsible persons of the principal business;
3) Involving lawsuit in business;
4) Other circumstances that needed to be filed in CFEX.
Article Nine
CFEX performs annual inspection over members from April 20 to May 20 every year.
Article Ten
Membership could be transferred according to the rules and procedures after being approved by CFEX.
Article Eleven
CFEX will impose penalty to members that violate laws or regulations in business.
Article Twelve
The Measures shall be submitted to relevant authorities for filing.
Article Thirteen
The right of interpretation and revision of the Measures shall go to CFEX.
Article Fourteen
The Measures takes effect as of November 23, 2009.