The Constitution of China Association of Microfinance
TABLE OF CONTENTS
Chapter 1 General Provisions
Chapter 2 Scope of Business
Chapter 3 Membership
Chapter 4 General Assembly of Members
Chapter 5 Board of Directors, Executive Committee and Advisory Committee
Chapter 6 Secretariat
Chapter 7 Funding
Chapter 8 Supplementary Provisions
Chapter 1 General Provisions
Article 1
The name of the association is China Association of Microfinance or CAM in abbreviation.
Article 2
In order to promote the development of microfinance business, improve the capacity of microfinance institutions (MFIs), and provide effective financial services to poor and low-income people, according to the provisions of the Constitution of the People's Republic of China and the Management Ordinance of Associations of the People's Republic of China, CAM makes this constitution.
Article 3
CAM is a collaborative and self regulated association. It consists of domestic MFIs, and national and international organizations and individuals supporting microfinance development. It promotes the development of microfinance business under the relevant national laws, policies and regulations.
Article 4
The mission of CAM is: Through providing services and support to member institutions, to enhance the outreach and sustainability of MFIs as well as the overall capacity and level of the microfinance sector, so as to offer inclusive financial services to under-banked groups (especially poor and low income populations) and contribute to the establishment of a harmonious society.
Article 5
CAM will be subject to the supervision and guidance of registration and administration departments such as the Ministry of Civil Affairs (MOCA) and other relevant government agencies. CAM will also be subject to the business guidance and supervisory management of its line unit that is the Ministry of Commerce (MOFCOM).
Chapter 2 Scope of Business
Article 6
CAM’s business scope is as follows：
1. Conduct microfinance policy research;
2. Strengthen dialogue and negotiation with the relevant government departments, and promote the government to support the development of microfinance in terms of policies and regulations and provide a conducive policy environment;
3. In accordance with international and domestic experience in microfinance business, formulate operational guidelines and performance benchmarks and standards for microfinance;
4. Summarize and disclose member MFIs’ financial performance and status to the relevant state departments and the public;
5. Coordinate the credit policies and services of MFIs;
6. Provide technical support and training services to MFIs;
7. Conduct seminars;
8. Publish Annual Report and various propaganda materials for advocacy activities;
9. Raise development funds from aid agencies, enterprises and individuals at home and abroad;
10. Help MFIs raise funds;
11. Provide for the full range of domestic and international institutions microfinance advisory services.
Chapter 3 Membership
Article 7
The member of CAM should be a group member which should be a single institution engaging in microfinance or a network institution or a coordinating agency of microfinance.
Article 8
Qualifications of Members
1. Be willing to disclose its financial information and other business information to the public (and be responsible for the truth of the information);
2. Be willing to improve its operation and management according to the industry standards formulated by CAM;
3. Be willing to pay registration fee, membership due, service fee, and other fees to CAM.
Article 9
Categories of Members
- Banks
-Non-bank Financial Institutions (Microloan companies and Rural Mutual Credit Cooperatives)
-NGOs
-Intermediary Institutions (Research, Training, and Rating Institutions)
- Regional Network Institutions
- Quasi-governmental Institutions
Article 10
Rights of Members:
1. Vote and stand for election within CAM;
2. Participate in the learning and training organized by CAM;
3. Participate in the professional research and the exchange of experience activities organized by CAM;
4. Access to the relevant information that CAM provides;
5. Access to free or paid technical services CAM provides;
6. Apply for and use paid microfinance development funds provided by CAM;
7. Raise suggestions and requirements through CAM to other relevant departments;
8. Supervise the daily work of CAM, criticize and make suggestions when necessary;
9. Supervise the inflow and outflow of CAM membership dues;
10. Withdraw from CAM.
Article 11
Obligations of Members:
1. Comply with the constitution of CAM;
2. Accept CAM’s audit and supervision;
3. Be willing to improve their operation and management in line with the performance standards made by CAM;
4. Bear the tasks commissioned by CAM.
5. Pay the registration fee, fund access fee, and service fee to CAM;
6. Based on the agreement, to manage and repay the compensated use of microcredit on time;
7. Be responsible for the adjourning entrust.
Article 12
Those who refuse to fulfill the member obligations, the BOD of the CAM may persuade them to withdraw or remove them from the rolls.
Article 13
Member management rules are made by the secretariat of CAM and approved to be executed by the Board of Directors (BOD).
Chapter 4 General Assembly of Members
Article 14
The General Assembly (GA) is the organization with the highest power and consists of representatives from member institutions and relevant domestic and international institutions
The GA conference is held once every two years. When necessary, the BOD will decide whether to advance or postpone the conference or not. The GA conference must have attendance from more than two thirds of representatives.
Article 15
The roles of the General Assembly of Members are:
1. Make and adjust the constitution and important regulations of CAM;
2. Discuss and decide the guidelines and tasks of CAM;
3. Listen to and examine the work reports and work plans of the BOD of CAM;
4. Elect or recall the members of the BOD;
5. Examine the audited report about the inflow and outflow of membership dues.
Chapter 5 Board of Directors, Executive Committee and Advisory Committee
Article 16
The Board of Directors is elected and produced by the GA for a term of two years. The BOD is a standing organ of the GA and is responsible for it.
In principle, the number of the BOD should be no more than 13.
The members of BOD should be the representatives of member institutions who are representative in the microfinance sector, have good morals and ethics, higher business and policy levels, have conducted poverty alleviation or financial business for a long time, have the sprit of dedication, and be enthusiastic in poverty alleviation and microfinance business.
The institutions of BOD should have more than three years’ experiences in operating microfinance and have the capabilities for sustainable development.
1. The structure of BOD members should be based on the structure of member categories so that the quota can be proportionally allocated to commercial and non-profit institutions.
BOD members should perform with integrity and diligence, uphold the interests of CAM, and accept reasonable supervision and recommendations in order to complete their obligations and commitments.
BOD members’ qualifications will be automatically cancelled if BOD members don’t participate in BOD meetings for two consecutive times without any reason.
Article 17
The functions of the BOD are as follows:
1. Convene the GA;
2. Elect the Chair, Vice Chair, and managing directors of the BOD;
3. Discuss and make decision on important matters during the close period of the GA;
4. Supplement or change directors of BOD;
5. Review the establishment of functional departments of the operational organ of the BOD;
6. Review and approve the annual income statement of membership dues made by the operational organ of the BOD;
7. Other functions that ought to be executed by the BOD.
Article 18
The plenary meeting of BOD elects the Chair and Vice Chair of BOD. The renewal of the directors should not be less than one third of the BOD members every term.
The Chair can serve another term after being elected again, but cannot take the position for more than two terms.
When necessary, the BOD can call for reelection or recall of directors.
To meet the work’s requirement, the BOD may employ an honorary chair or several advisers.
The Chair of BOD executes the following functions:
1. Preside over the General Assembly of Members;
2. Convene and preside over the BOD;
3. Supervise and examine the implementation of the resolutions of BOD;
4. Sign important documents of CAM;
5. Execute other rights authorized by the BOD.
The Vice Chair assists the Chair’s work. When necessary, he/she may convene and preside over the BOD meeting on behalf of the Chair.
Article 19
The BOD meeting is held at least once every year. The BOD is convened and presided by the Chair. For special reasons that the Chair cannot perform his duty, he/she can authorize the Vice Chair to convene and preside over the meeting.
Article 20 Special Committee
The BOD may set up special committees according to the job requirement
Article 21
The Executive Committee (EC) is the standing organ of the BOD which is elected and generated by the BOD, consisting of 3 to 5 board members. Its role is to review and approve management systems of the CAM and important issues of daily operations, and supervise the daily work of Secretariat. The EC meeting should be held at least once every quarter.
Article 22
The Advisory Committee is elected as a standing organ of the CAM by the GA. Advisory Board members are from relevant domestic departments, international agencies, academics and experts and those who can play a role as an adviser and supporter to the development of the CAM.
Chapter 6 Secretariat
Article 23
The Secretariat is set up within the CAM, responsible for the implementation of the specific decisions and resolutions made by the GA and the BOD. It is also responsible for the CAM’s daily operation.
Article 24
The Secretariat has one person as Secretary General (SG) who is also the legal representative of the CAM, and two Deputy Secretary Generals (DSG) and several staff members. The SG is appointed and employed by the BOD, and other staff members are nominated by the SG and decided by the BOD.
The Secretary General directs the Secretariat’s work within the scope of the authorization of the BOD. The SG and DSGs should be present at BOD meetings.
The Secretary General carries out the following responsibilities:
1. Direct the daily work of the Secretariat;
2. Organize and implement the resolutions of the BOD;
3. Draft a scheme for organizational structure;
4. Formulate and implement the rules of the secretariat;
5. Submit appointment or dismissal applications of the DSG to the BOD; employ or dismiss chief staff of divisions other than those who should be employed or dismissed by the BOD;
6. Complete other work entrusted by the BOD;
7. Coordinate relationships with other parties.
Article 25
Three departments are set up under the Secretariat:
1. Research and Training Department: responsible for policy research and business training, and provide operational guidance to MFIs
2. General Department: responsible for the publicity, international liaison, fundraising, and administration and HR management;
3. Financial Department: responsible for financial management, financial technical support to member institutions and consolidating statistics for financial statements.
Chapter 7 Funding
Article 26
The funding sources of the CAM are：
1. Registration fees and membership dues;
2. Financial allocation;
3. Domestic and international donations;
4. Consultancy services fee;
5. Other incomes.
Article 27
The funding will be used for the following expenditures:
1. CAM’s office expenditures (office rent, utilities, etc.);
2. Staff salary;
3. Meetings/conferences;
4. Workshops;
5. Technical support and training activities;
6. Microfinance management;
7. Dissemination activity;
8. Access fees and interest of the compensated funds
9. Field visits and travel cost;
10. Other necessary expenditures approved by the BOD.
Chapter 8 Supplementary Provisions
Article 28
This constitution is approved by the GA. It ought to be amended in the following cases,:
1. The regulations of the Constitution conflict with relevant laws and regulations of the country;
2. The GA decides to amend the constitution.
When amendment is required, over two thirds of all members must participate in the amending process, and the new constitution will be valid only when it is passed by more than two thirds of all members.
The BOD is responsible for the interpretation and clarification of this constitution.
Article 29
This constitution was amended on October 16, 2008 and came into force at the same date.
Article 30
This constitution is submitted to relevant line units for record.
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