Chapter VI Alteration and Termination

Article 42 Division or merger of a Chinese-foreign cooperatively-run school shall be reported to the examination and approval authorities for approval, after the liquidation, by the board of trustees, the board of directors or the joint managerial committee.

In the case of an application for division or merger of a Chinese-foreign cooperatively-run school offering education for non-academic qualifications, the examination and approval authorities shall reply in writing within three months from the date of receiving the application; in the case of an application for division or merger of a Chinese-foreign cooperatively-run school offering education for academic qualifications, the examination and approval authorities shall reply in writing within six months from the date of receiving the application.

Article 43 Alteration of cooperators in running a Chinese-foreign cooperatively-run school shall be proposed by the cooperators, and after liquidation, with the consent of the board of trustees, the board of directors or the joint managerial committee, shall be reported to the examination and approval authorities for approval, and the relevant alteration formalities shall be undertaken.

Any alteration in the domicile, legal representative or the president or the principal administrator of a Chinese-foreign cooperatively-run school shall be subject to examination and approval of the examination and approval authorities, and the relevant alteration formalities shall be undertaken.

Article 44 Any alteration in the name, level or type of a Chinese-foreign cooperatively-run school shall be reported for approval by the board of trustees, the board of directors or the joint managerial committee to the examination and approval authorities.

In the case of an application for altering a Chinese-foreign cooperatively-run school to offer education for non-academic qualifications, the examination and approval authorities shall reply in writing within three months from the date of receiving the application; in the case of an application for altering a Chinese-foreign cooperatively-run school to offer education for academic qualifications, the examination and approval authorities shall reply in writing within six months from the date of receiving the application.

Article 45 A Chinese-foreign cooperatively-run school shall be terminated in one of the following cases:

(1) where a request for termination is made in accordance with the articles of association and approved by the examination and approval authorities;

(2) where its permit for Chinese-foreign cooperation in running the school is revoked; or

(3) where it is unable to continue its operation due to insolvency and such termination is approved by the examination and approval authorities.

A Chinese-foreign cooperatively-run school shall make proper arrangements for its students at school upon its termination; a Chinese-foreign cooperatively-run school shall submit a plan for such arrangements while applying for termination thereof.

Article 46 A Chinese-foreign cooperatively-run school shall make liquidation in accordance with law upon termination.

Where a Chinese-foreign cooperatively-run school itself requests termination, the Chinese-foreign cooperatively-run school shall organize liquidation; where the termination is the result of dissolution by the examination and approval authorities in accordance with law, the examination and approval authorities shall organize liquidation; where the termination is the result of inability to continue the operations for education due to its insolvency, a people's court shall be requested according to law to organize liquidation.

Article 47 Upon liquidation, a Chinese-foreign cooperatively-run school shall settle its outstanding debts according to the following sequence:

(1) tuition and other fees that shall be refunded to the students;

(2) salaries due to the teaching and administrative staff and their social insurance premiums payable;

(3) payments for other outstanding debts.

The remaining assets of a Chinese-foreign cooperatively-run school after the settlement of the above debts shall be handled in accordance with the provisions of the relevant laws and administrative regulations.

Article 48 Where a Chinese-foreign cooperatively-run school is terminated after approval or its permit for Chinese-foreign cooperation in running the school is revoked, it shall return its permit for Chinese-foreign cooperation in running the school and its official seals to the examination and approval authorities and register its cancellation in accordance with law.