Chapter IV Supervision

Article 32 A cooperative educational institution should accept the guidance, control, supervision, appraisal and checks by the educational administrative department.

Article 33 In one of the following cases, a cooperative educational institution may apply to the approving authorities for dissolution:

When a situation defined as fit for dissolution by the articles of association of the school arises;
When it has failed to reach the set objectives;
When there is a serious shortage of the resources (such as fund, student supply or teaching staff) for normal operation .

Article 34 After the dissolution of a cooperative educational institution, the educational administrative department or a professional department in charge under the State Council shall organize the relevant financial and auditing departments to conduct liquidation of the school property; part of the property of the cooperative educational institution after liquidation shall be returned to or converted into money and repaid to the original contributors according to the original agreement, and after the aforesaid payment, the part of the school property including donations from various quarters of the society shall become state property and to be used to develop education.

Upon dissolution of a cooperative educational institution, the founders in charge shall make proper arrangements for the resettlement of the students at school.

Article 35 When the council of a cooperative educational institution is unable to convene because of major disputes or because of breaches of the law, the educational administrative department shall order it to make consolidation within a specified time, and if it has not been consolidated in time or to 10 avail, the educational administrative department in charge shall order it to be reorganized or to take necessary measures to make due consolidation in accordance with the articles of association of the council.

Article 36 If a cooperative educational institution violates these provisions in one of the following ways, the educational administration of the provincial level shall mete out an administrative penalty of a warning, a fine, confiscation of the illegal gains, ordering it to make consolidation within a specified time, or to suspend enrollment or suspend operation in the light of the gravity of the case:

Starting preparations for establishment or starting enrollment without official approval;
Winning approval for preparing for establishment or officially establishing a school and starting enrollment by means of lies, fraud and false certification;
Taking tuition or granting diplomas or certificates in violation of relevant provisions;
Poor management and inferior teaching quality;
Other law breaking activities.

Article 37 The party concerned who does not agree to the administrative penalty may plead for a review of the case or bring up an administrative procedure. If the party does not request for review or bring up an administrative procedure within the legitimate time limit and refuses to accept the penalty, the educational administration may request the people's court to coerce the party to accept the penalty.

Article 38 Disputes between the Chinese and foreign parties to cooperative education over a contract or articles of association may be settled through consultation or mediation. If the parties do not agree to settle the dispute through consultation or mediation, or if consultation or mediation fails, they may bring the case for a Chinese arbitral body for arbitration in accordance with the written clauses or agreement already reached. If there are no written clauses or agreement on arbitration, either party may bring the case to a Chinese court.