In recent years, with the acceleration of urbanization of rural areas, the amount of disestablished villages and teams are ever increasing which have caused the appearance of many new situations and new problems on the administration of rural collectively-owned assets. For the purpose of protecting the legitimate rights and interests of collective economic organizations in villages and peasants, we hereby put forward the following suggestions on further strengthening the administration work on rural collectively-owned assets in this Municipality:
I. Clarifying the targets
The rural collectively-owned assets refer to the assets collectively owned by all members of the town, village or team (group), including collectively owned land and collectively owned natural resources provided by laws, and various kinds of collectively-owned floating assets, long-term investment, fixed assets, incorporeal chattels and other assets. The rural collectively-owned assets are the accumulated products of broad peasants’industrious work, are the important material base for the development of rural economy and the realization of prosperity for all peasants. The right of ownership of rural collectively-owned assets is protected by national laws and all units or individual persons shall not infringe. The governments of all levels shall, strictly in accordance with the requirements provided in the“Notice of the State Council on Strengthening the Administration Work on Rural Collectively-owned Assets”(SC G  No.35) and the“Notice of the Shanghai Municipal People’s Government about Approving and Transmitting the‘Suggestions on Strengthening the Administration Work on Rural Collectively-owned Assets in This Municipality’made by the Municipal Agriculture Commission”(SMPG G  No. 27), fully enforce the administration on rural collectively-owned assets, safeguarding the interests of broad peasants.
II. Perfecting the mechanism
The reform on rural collectively-owned assets shall be further deepened in accordance with the principles of“In conformity with legal provisions, in accordance with standards, and justice”, and the reform of joint-stock system of rural collectively-owned assets shall be explored. Through the definition of stock rights, the peasants can enjoy the distribution of dividend, and a new type administration system of legal entities of rural collectively-owned assets shall be set up, and the democratic administration system and effective supervision mechanism on rural collectively-owned assets shall be perfected. Through the reform, the strength of rural collective economy shall be continuously consolidated and expanded so as to promote the continuous increase of the peasants’income. All districts and counties administrative department of rural collectively-owned assets shall strengthen the guidance on the deepening of the reform of rural collectively-owned assets.
III. Disposing the assets in strict procedures
The rural collectively-owned assets of the disestablished villages and teams shall be appropriately handled strictly in accordance with relevant policies. The disestablishment of villages and teams that meet the required conditions shall, in accordance with relevant provisions, only be carried out upon the approval in accordance with law. The disposing of collectively-owned assets of legally disestablished villages and teams shall be approved by all levels of government strictly in accordance with the provisions of the“Interim Procedures of Shanghai Municipality on Handling of Collectively-owned Assets of the Disestablished Villages or Teams”(SMPG G  No.34) announced by the Municipal People’s Government and the“Supplementary Suggestions on the‘Interim Procedures of Shanghai Municipality on Handling of Collectively-owned Assets of the Disestablished Villages or Teams’”(SMPG G  No.55) made by the Municipal Agriculture Commission and approved and transmitted by the Municipal People’s Government, and shall not act at will. In the disestablishment of the villages or teams, the ownership of the land collectively-owned by peasants in accordance with law and that has not been requisitioned by the State shall not be randomly changed by any unit or individual person. On disposing the said collectively-owned assets during the term of disestablishment, a long-term mechanism shall be set up for the increase of revenue of peasants, and prevent the acts of dividing all the collectively-owned assets in the form of currency at the time of disestablishing the villages and teams. The acts of“Once disestablished there comes the division, Once divided it becomes none.”on the collectively-owned assets of the disestablished villages and teams shall be resolutely restrained. The administrative department of rural collectively-owned assets at all levels shall strengthen the supervision and examination, and take measures on the acts of violating relevant policies and provisions on the handling of collectively-owned assets of the villages and teams at the time of disestablishment, and prosecute relevant liabilities.
IV. Normalizing the usage of the fund
The land compensation turned over to the town/township collective economic organizations by the disestablished villages and teams in accordance with the provisions of policies shall, in accordance with the requirements of the“Implementation Suggestions on the Carrying out of‘Suggestions on Policies on Promoting the Increase of Peasants’Income made by the Central Committee of the Communist Party of China and the State Council’”(SMPC  No.10) made by the municipal Party committee and the municipal people’s government, be mainly used for cooperative medical treatment, overall planning of heavy diseases and serious diseases and the life security of the requisitioned peasants, and the act of using for other purposes or distributing to individual persons in the form of cash by town/township government shall be strictly forbidden. Relevant district/county people’s government may, in accordance with the spirits of the document marked SMPC  No.10, formulate the implementation regulations.
Shanghai Municipal Agriculture Commission
January 10, 2006