People's governments of relevant districts, cities and counties involved in the agricultural areas, pilot district administrative committees involved in the agricultural areas, relevant departments of the municipal government and relevant units:

On May 8, 2019, Dalian was designated by the Office of the Central Leading Group for Rural Work and the Ministry of Agriculture and Rural Affairs as the pilot unit for the reform of the national rural collective property rights system. For the implementation of the spirits of ' Opinions of the CPC Central Committee and the State Council on Steadily Promoting the Reform of the Rural Collective Property Rights System (Zhongfa (2016) No. 37), Notice of the Ministry of Agriculture and Rural Areas on Further Improving the Development of Weak Collective Economy Villages in Poverty-stricken Areas (Nongzheng Gaifa (2019) No. 3), Implementation Opinions of Dalian Municipal Committee of the Communist Party of China Dalian Municipal People's Government on Steadily Promoting the Reform of Rural Collective Property Rights System (Daweifa (2018) No. 3), Notice of Liaoning Provincial Department of Agriculture and Rural Affairs on Approving the Pilot Scheme of Reform of Rural Collective Property Rights System (Liao Nong Zong (2019) No. 146) and Notice of Dalian Municipal People's Government Office on Printing and Distributing the Three-year Action Plan for Reform of Rural Collective Property Rights System (2018-2020) (Dazheng Ban Fa (2019) No. 43) With the approval of the municipal government, hereby put forward the following opinions on carrying out the pilot reform of the joint-stock cooperative system of rural collective operating assets.

I. General Requirements

Fully implement the spirit of the Nineteenth National Congress of the CPC and the Second and Third Plenary Sessions of the Nineteenth Central.  Adhere to the guidance of Xi Jinping's thought of socialism with Chinese characteristics in the new era. Centering on the strategy of revitalizing the rural areas. In accordance with the spirit of the opinions of the Central Committee and the provincial and municipal governments on steadily advancing the reform of the rural collective property rights system, with the goal of establishing a Chinese characteristics socialist rural collective property rights system with clear attribution, complete power and functions, smooth circulation and strict protection. Focusing on the quantitative reform of collective assets and the shares of capital assets not contracted to the household, adhere to the correct direction of reform, adhere to the bottom line of laws and policies, respect the wishes of the farmers, and strive to promote the reform of ascertaining the right of operating assets to the households and the joint-stock cooperative system, so as to realize the transformation of resources into assets, funds into stock funds, and farmers into shareholders.

II. Contents of the reform

(I)  Quantification of assets. The rural collective operating assets are quantified in the form of stock shares or shares to the members of the collective as the basic basis for their participation in the distribution of collective income.

1. Scope of quantification of collective assets. First, the collective operating assets will be quantified to the collective members in the form of shares. The assets formed by government appropriations, tax deductions and exemptions shall be owned by collective economic organizations. In particular, the financial reward and supplement funds for supporting the expansion of village-level collective economy shall be included in the scope of quantification of collective assets. Second, explore the possibility of quantifying the collective land and other resource assets that have not been contracted out to the households into their own collective members in the form of shares. Assets quantification cannot disrupt the boundaries of the original collective ownership.

2. Accounting of collective operating assets. According to the Statement of Assets Liquidation and Capital Verification of Collective Assets, collective operating assets = short-term investment + economic forest assets + long-term investment + operating fixed assets + operating construction-in-progress + intangible assets + other current assets and agricultural assets for operation, In particular, current assets such as monetary funds and collectively-owned land compensation fees in monetary funds, distinguishing between those for operation and those for non-operation, and quantifying the portion for operation as shares held by the members of the collective. Collective land and other resource assets not contracted to households, including cultivated land, garden plots, woodland, grassland, aquaculture water surface and other agricultural lands not contracted to households, distinguishing between those for operation and those for non-operation, and quantifying the portion for operation as operational resource assets and quantified as the shares held by the members of the collective.

3. Ways to quantify collective assets. The quantification of rural collective assets can only be carried out within the rural collective economic organizations, and quantify the share conversion of collectively-owned assets to individuals and ensure the right to the household, and encourage the sharing within the household and the circulation within the community, which will remain unchanged for a long time to come. Collective economic organizations with only operating assets shall be quantified in the form of stock shares. Collective economic organization that only has uncontracted operational resource assets should be quantified in the form of shares. Collective economic organizations with both operating assets and operating resource assets quantify operating assets in the form of stock shares and operating resource assets in the form of shares. Collective economic organizations that have neither operational assets nor operational resource assets may adopt the method of virtual shares and distribute shares according to the number of collective members as the basis for future asset quantification.

The rural collective economic organizations shall formulate measures for the quantification of collective assets, which shall be discussed and decided by the general meeting of the members (representatives) of the collective economic organizations and submitted to the township government (sub district offices) for approval.

(II) Equity establishment. The establishment of equity shall be dominated by member shares, and whether or not to establish collective shares shall be decided through democratic discussions among the members of the collective economic organization.

The first is the implementation of one-person-one-share system. Applicable to the village with equal shares of collective members, the collective operating assets and operating resource assets shall be converted into shares according to the number of members, the amount of each share and the number of acres per share shall be determined, and then the number of stock shares (shares) and the amount (acres) held by each person and each household shall be calculated.

The second is the implementation of the one-person multi-share system. Applicable to the village where the shares of collective members are different, quantify the collective operating assets and operating resource assets according to the total number of stock shares (shares), determine the amount of each share and the number of acres per share, and then calculate the number of stock shares (shares) and the amount (acres) held by each person and each household.

The third is the implementation of the 'basic shares + labor-age shares' and other methods. Applicable to villages with collective operating assets with the nature of labor accumulation. Based on collective members and their labour contributions, the collective operating assets shall be allocated into basic shares, labor-age shares, etc. The proportion of basic shares and labor-age shares in the total share capital shall be democratically discussed and decided by the general meeting of members (representatives) of collective economic organizations, the amount of each basic share and each labor-age share shall be determined, and then the number and amount of basic shares held by each person and each household and the number and amount of labor-age shares shall be calculated.

The objects of equity distribution and the proportion of equity allocation shall be fully negotiated, submitted for the democratic discussion and decision of the general meeting of the members (representatives) of the village collective economic organizations, publicized, and reported to the township government (sub-district offices) for the record.

(III) Equity management. In accordance with the central policy requirements, equity management advocates the practice of non-adjustment with population increase and decrease. The joint-stock cooperative system reform of rural collective operating assets is different from the joint-stock system reform of industrial and commercial enterprises. In order to embody the collective ownership and unique community nature of the members, it can only be carried out within the rural collective economic organizations. Adopt the management method of 'quantifying to the person, confirming the right to the household'.  Encourage new members of rural collective economic organizations to obtain their share of collective assets and membership in accordance with the articles of association by sharing their collective assets and interests in the family. 

The choice of management model is democratically discussed and decided by the General Assembly of members (representatives) of collective economic organizations.

(IV) Shares' powers and functions. To grant the collective members the rights to own ,gain a return , inherit, and get the paid withdrawal and so on to the collective asset share.

1. Equity ownership. Establish the registration system of collective assets and equity, and the collective economic organizations shall draw up the List of Stock Shares (Shares) of Collective Members, which shall record the information on the stock shares (shares) of collective assets held by members of rural collective economic organizations and collective member households. Explore the management mode of shareholding by the household as a unit, implement the village of information management, explore the management mode of equity information platform.

2. Equity return. Improve the collective income distribution system, implement stock-based distribution, and implement the right to distribute the income of farmers' collective assets and shares. The Articles of Association of Collective Economic Organizations shall specify the method of income distribution, the withdrawal proportion of provident fund and public welfare fund and the upper limit of cumulative withdrawal. Adhere to the principle of efficiency in determining distribution and non-efficiency in not distributing, and strictly prohibit the allocation of debt. The annual income distribution plan shall be based on the current year's operating income, determine the reasonable distribution proportion, and establish the mechanism of 'Reserve surplus for use in need'. The collective economic organization shall formulate an annual income distribution plan, which shall be submitted to the township government (sub-district office) for examination and approval by the rural operation and management organization, and shall be implemented only after democratically agreed upon by the general meeting of the members (representatives) of the collective economic organization.

3. Inheritance of equity. Collective economic organizations shall, in accordance with the laws and regulations, formulate the Measures for Inheritance of Equity in Collective Economic Organizations. In principle, if the successor is a member of the collective economic organization, he or she shall inherit the equity in accordance with the legal procedures. If the successor is not a member of the collective economic organization, the successor shall enjoy the rights and interests to own ,gain a return , inherit,and get the paid withdrawal of the equity, and shall not have the right to vote, stand for election, and may also be redeemed or transferred by the collective economic organization to the other members of collective economic organizations. Where there is no successor, the shares held by the decedent shall be taken over by the collective economic organization. In principle, the collective economic organization may go through the formalities of equity right succession and carry out the registration of equity right alteration when the successor presents the notarization document of equity right succession issued by the notary institution or the equity right succession certificate issued by the collective economic organization or the judicial judgment document of equity right succession (including the conciliation statement).

4. Paid withdrawal. Explore the conditions and procedures of farmers' paid withdrawal from collective assets shares. At this stage, farmers' paid withdrawal from collective assets shares may not break through the scope of the collective economic organizations, and may be transferred within the collective or redeemed by the collective. Equity transfer is the transfer of ownership of rural collective assets to other members of the collective economic organizations. Equity withdrawal is the behavior that members of rural collective economic organizations voluntarily return their membership and collective assets to their own collective economic organizations and obtain reasonable compensation from rural collective economic organizations.

Equity is generally not subject to withdrawal or transfer. Where a member of the collective applies for a paid withdrawal due to special circumstances such as family difficulties, major diseases or unforeseen disasters, its equity may be temporarily redeemed by the collective economic organization at the value by the end of the previous year and the audited net book. If it intends to redeem its original equity after the life is improved, it may redeem its original equity from the collective economic organization at the value by the end of the previous year and the audited net book value at the time of redemption. The implementation of the procedures for the change of ownership pursuant to personal application, the meeting of the members (representatives) of the collective economic organizations discussion, the examination and approval of the township government (sub-district offices), the signing of the agreement.

At the present stage, the total stock shares (shares) of the collective assets held by the members of the collective through equity transfer, withdrawal and inheritance shall not exceed 3% of the total stock shares (shares) of the collective economic organizations in principle.

(V) Establishment of rural collective economic organizations. Collective economic organizations shall, in accordance with the relevant laws, regulations and policies, establish organizational structures as General Assembly of Members (Representatives) of Collective Economic Organizations, Councils and Board of Supervisors.

1. General Assembly of Members (Representatives) of Collective Economic Organizations. The General Assembly of Members of Collective Economic Organizations is composed of all the members of the Collective Economic Organizations and is the authority of the Collective Economic Organizations. Collective economic organizations shall formulate the Measures for the Election of Members of the General Assembly of Members of Collective Economic Organizations. Any major matter concerning the vital interests of the members shall be submitted to the General Assembly or the General Representatives Assembly for discussion and decision, and the General Assembly may authorize the General Representatives Assembly to discuss and decide on major matters.

At present, in the election of the General Assembly of Members of Collective Economic Organizations, the representatives of the members of the collective economic organizations shall be elected on a household-by-household basis (usually one representative per household), and a representative of a collective economic organization shall be elected by a representative of the household from every five to fifteen households to form the general assembly of the members of the collective economic organization

The term of office, authority and rules of procedure of the representatives of the members of a collective economic organization are stipulated in the Articles of Association of Collective Economic Organizations. A one-person-one-vote voting system shall be adopted in the general assembly or a general representatives assembly of members.

2. Council. The Council is elected by the General Assembly of Members (Representatives) of Collective Economic Organizations and is the executive and daily working institutions of the General Assembly of Members (Representatives) of Collective Economic Organizations. The Council is composed of 5-7 members. The secretary of a village party organization shall act as the person in charge (chairman) of the collective economic organization through legal procedures. When the secretary of a village party organization is a member of a non-collective economic organization, the deputy secretary of the village party organization shall, in principle, act as the person in charge (chairman) of the collective economic organization through legal procedures. The term of office, functions and powers and rules of procedure of the Council are stipulated in the  Articles of Association of Collective Economic Organizations, which stipulates that the Council may be re-elected at the end of its term of office. The chairman of the board of directors shall be the legal representative.

3. Board of Supervisors. The Board of Supervisors is elected by the General Assembly of Members (Representatives) of Collective Economic Organizations . It is the supervisory body of the collective economic organizations and is responsible to the general assembly of the members and reports on its work. The board of supervisors shall be composed of 3-5 supervisors. The chief supervisor is usually a member of the Party, and may be a member of a class of village Party organizations. The term of office, authority and rules of procedure of the Board of Supervisors are stipulated in the Articles of Association of Collective Economic Organizations, and may be re-elected upon expiration of the term of office.

Candidates for membership of the Council (Board of Supervisors) can only be confirmed as candidates for membership of the Council (Board of Supervisors) if they are members of collective economic organizations and have reached the age of 18, are in good health, abide by the law, and are not incapacitated (except for those who have been sentenced to criminal punishment or have committed serious violations of law and discipline, including crimes involving gangs and evils). In principle, no two or more of the immediate family members may be elected as members of the Council (Board of Supervisors) . The chairman of the Council and the chief supervisor of the board of supervisors shall not hold concurrent office, nor shall the director and the supervisor hold concurrent office at the same time.

(VI) Articles of Association of Rural Collective Economic Organizations. Collective economic organizations shall formulate the Articles of Association of Collective Economic Organizations with reference to the Model Articles of Association of Rural Collective Economic Organizations of Dalian Municipality (for Trial Implementation), which shall be democratically discussed and adopted by the General Assembly of Members (Representatives) of Collective Economic Organizations, and shall be accompanied by a List of Stock Shares (Shares) of Collective Members.

(VII) General Assembly for the Establishment of Collective Economic Organizations. After the reform of the joint-stock cooperative system, the first General Assembly of Members of Collective Economic Organizations shall be convened in time, the Articles of Association of the collective economic organizations shall be voted upon and adopted, and the Council, board of supervisors, chairman of the Council and director of the board of supervisors shall be elected, and resolutions or minutes of the meeting shall be formed. Carry out the registration and coding of collective economic organizations and the engraving of official seals, the opening of bank accounts and tax registration in accordance with the procedures, so as to carry out business management activities.

III. Organization and Implementation

(I) Strengthen organizational leadership. Governments at all levels should attach great importance to the quantification and quality control of shares of collective operating assets, and guide collective economic organizations to quantify as much as possible those that should be included in operating assets, so as to prevent the loss of the rights of shares of collective members. Improve the monthly routine dispatching and notification system, compact the main responsibilities of townships (sub-districts), and ensure that the reform of the joint-stock cooperative system falls to the village level of 'the last kilometer.'

(II) Strengthen training guidance. Implement a rotation training program for village-level cadres in the reform of the joint-stock cooperative system. Leaders of governments at all levels and agricultural and rural departments should go deep into the grass-roots level, guide collective economic organizations to formulate an implementation plan for the reform of the joint-stock cooperative system of collectively-operated assets in the light of the actual conditions in their villages, and strictly follow such operational steps as asset quantification, equity setting, and equity management, so as to ensure that collectively-operated assets are quantified to persons and that rights are ascertained to households.