The All China Federation of Supply and Marketing Cooperatives ("ACFSMC") has recently drafted the Regulations on Supply and Marketing Cooperatives (Draft for Comment) (the "Draft for Comment") for public comment by November 6, 2019.
Major contents of the Draft for Comment deal with the following five aspects. The first is clarifying the nature, position, aim and objectives of supply and marketing cooperatives, and setting out requirements for operation of such cooperatives. The second is standardizing the organizational structure of supply and marketing cooperatives. Supply and marketing cooperatives include grassroots supply and marketing cooperatives and the unions of supply and marketing cooperatives, and business service organizations may be established according to the needs of agricultural services and cause development. The third is clearly specifying and standardizing the governance structure of supply and marketing cooperatives. The cooperative member (representative) meeting is the power body, while the council runs as the executive body and the board of supervisors as the supervisory body. The fourth is defining the duties and tasks of supply and marketing cooperatives. Supply and marketing cooperatives and their business service organizations shall beef up their circulation services, production services, and community-based integrated services. The fifth is providing the safeguard and regulatory measures. In case of encroachment of the legitimate property possessed by supply and marketing cooperatives, and the failure of staff members of supply and marketing cooperatives to properly perform their duties, the legal liability should be pursued.