Chapter III OPERATION

Article 19 A cooperative educational institution with the status of a legal person shall assume the responsibility of running education independently. A cooperative educational institution without the status of a legal person shall have the responsibility of running education borne by both parties to the cooperation.

Article 20 A cooperative educational institution with the status of a legal person shall establish a council of trustees;a cooperative educational institution without the status of a legal person shall set up a joint administrative organ. The leading member of the council or joint administrative organ shall be elected by the council or joint administrative organ. Chinese members in the council or joint administrative organ shall not be less than half of the total number thereof.

Article 21 A council or joint administrative organ shall exercise the following functions:

Electing, appointing and dismissing the members of the council or joint administrative organ;
Appointing and dismissing the president (dean) or leading member of the school;
Formulating the development plan for the cooperative educational institution;
Deciding plans for raising the educational fund;
Examining and approving the budget and final account of the cooperative educational institution ;
Administering the fund and property of the cooperative educational institution ;
Deciding on other major issues.

Article 22 The president (dean) or leading member of the cooperative educational institution shall be a Chinese citizen of permanent residence within China and be approved by the authorities.

The president (dean) or leading member of a cooperative educational institution which has the status of a legal person shall be the legal representative of the institution. The president (dean) or leading member shall implement the resolutions of the council and take charge of the all-round work of the cooperative educational institution.

Article 23 A cooperative educational institution may employ full-time and part-time teachers whose qualifications shall refer to those for Chinese public schools of the same categories at the same levels.

Employment of foreign teachers and administrative personnel shall refer to relevant Chinese state provisions regarding employment of foreign cultural and educational experts and foreign teachers.

The employment, firing, remuneration, welfare and working conditions in a cooperative educational institution shall be defined in contracts signed between the institution authority and the employee in accordance with law.

Article 24 The activities of the basic organizations of the Chinese Communist Party, labor union and other social organizations in a cooperative educational institution shall refer to the relevant Chinese law and the articles of association of the relevant organizations.

Article 25 The enrollment of a cooperative educational institution offering formal education shall be conducted in pursuance of relevant Chinese regulations and under the unified control of the state enrollment plan.

A cooperative educational institution enrolling students outside China shall refer to the stipulations by the educational administrative department of the State Council regarding enrollment of foreign students.

Article 26 A cooperative educational institution conducts its teaching with full autonomy provided it adheres to the state educational guideline and the goals and basic specifications for training useful personnel for society determined by the state. The basic language used in a cooperative educational institution is Chinese, but certain courses may be taught in foreign languages.

Article 27 A cooperative educational institution offering formal education shall grant diplomas in accordance with relevant Chinese regulations. A cooperative educational institution offering informal education shall issue to its graduates certificates of practical learning or appropriate certificates of qualifications authorized by the state.

With the approval by the academic degree authorities under the State Council, a cooperative educational institution may grant certificates of Chinese academic degrees.

A cooperative educational institution granting foreign diplomas or certificates of academic degrees shall need the approval by the Chinese state organs in charge of diplomas and academic degrees. The recognition of such diplomas and academic degrees should be conducted in accordance with relevant state regulations.

A cooperative educational institution offering vocational training may issue certificates of qualifications of the country of the foreign cooperative partner or of international recognition.

Article 28 The starting fund of a cooperative educational institution~, tuition fees collected from students and the fund (including facilities) raised in the name of the cooperative educational institution shall be used solely for the expenditure and development of the institution, and shall not be used for other purposes.

Article 29 A cooperative educational institution shall have a sound financial and accounting system complete with professional accountants and accounting books and subject to the audition by the department in charge and the auditing authorities.

Article 30 The property of a cooperative educational institution shall be managed and used by the institution under the protection of Chinese law when the institution exists. The assets and facilities directly used in education and teaching shall not be sold, transferred or mortgaged.

Article 31 A cooperative educational institution in importing goods for scientific research and education shall refer to the state "Procedures for Exemption of Customs Duties on Imports of Goods for Scientific Research and Education" and other relevant regulations.