Organization Of Rural Credit Cooperatives Legislation To Improve

Rural Credit Cooperative (hereafter referred to as the rural Credit) is the mainstay of the rural finance. In order to impel the regulated management of rural Credit and take precautions against the risk effectively, current legislation has standardized the rural Credit organization structure.The member (representative) conference of the rural Credit is the highest authority, the council is the executive body, the council appoint the director of Credit, and the board of supervisors has been set up on purpose of supervising the management and administration and all managerial behavior of Credit. Such requirements have already been implemented in the rural Credit at all levels at present. But the reality is that the current state of the rural Credit organization is not satisfying, the questions still exist, which is especially represented. Member (representative) conference becomes a mere formality, the decisions of the council are made by "insiders", board of supervisors perform practically no function, and the managerial authority is appointed by" outsiders". The reasons that cause this kind of state should be varied, and the legislation on the rural Credit organization is a respect that is worth reviewing.The principles that should be insisted while legislating for the rural Credit organization mainly include three respects, firstly, according with the principles of cooperatives; secondly, building good corporate governance structure; thirdly, having controllability. The principles of Credit that can be regarded directly as the foundation of rural Credit organization legislation are principles of member democracy controls, autonomy and independence. Member democracy control principle emphasizes that the Cooperative is a democratic organization controlled by members, the policies and great items of the Cooperative are decided with the active participation of members. Autonomy and independence principles think that Cooperative is an enterprise of united ownership and democratic control, which aims at achieving the goals of common economy, common society, and common culture goal. In order to build good corporate governance structure, we should form theregime of high-efficient fraction and balance in the rural Credit organization. Fraction, i.e. particular organization of legal person organization exercises particular power , any organization can't arrogate all power and can't substitute arbitrarily other organization to exercise power as well. Balance guarantees each organization exercise power correctly, i.e. certain organizational arrangement must be made to restrain their power to form an organization system of interdependence, interaction and restriction among all organizations, equilibrating the interests among different interests subjects.Checking the principles that we should insist while legislating for the rural Credit organization, we can find that the rural Credit organization legislation has a great deal of defects: Some regulations have violated the basic demands of the principles of Cooperative and enterprise administration structure; On one hand, the contents of legislation have serious gaps and omissions, on the other hand, the legislative clauses and rules haven't been distinguished effectively, as a result, some matters that should have been regulated in legislating rules are specifically provided in clauses; The statements of some clauses are too brief and abstract, lack feasibility; The harmony between the regulations is bad.Therefore, we should improve the related regulations according to the principle requirements of rural Credit organization legislation. The improvement may mainly launch from the following five respects: rural Credit member (representative) conference system, council system, system of board of supervisors, system of Credit Cooperative director, obligation and responsibility of administrative staff. The concrete countermeasures is to revise some clauses legislated for the rural credit organization and supplement some contents in view of the existing problems in legislation.