Constitution of the Association

Chapter One General

Article 1 The Changsha Construction Machinery Industry Association is a non-profit, city-wide, industrial social organization consisting of Changsha enterprises, colleges and universities and financial institutions in the construction machinery industry on a voluntary basis. Members of the association are based in and carry out business in Changsha City, Hunan Province.

Article 2 The purpose of the association is: to assist the government in industry management and provide services for the government, industry, members and users; to play a role of bridge and tie; to safeguard the legitimate rights and interests of members, and report on the wishes and demands of members; to regulate industry behaviors; and to promote the continuous development of the construction machinery industry in Changsha.

The association abides by the constitution, laws, regulations and national policies, practices the core socialist values, adheres to social ethics and customs, and consciously strengthens integrity and self-discipline construction.

Article 3 The associations registration administrative authority is the Changsha Civil Affairs Bureau, and its Party construction leading authority is Changsha Comprehensive Party Committee of Social Organizations.

The association is subject to business guidance, supervision and management of the registration administrative authority, Party construction leading authority and related industrial administration departments.

Article 4 The officers of the association include the Chairman, Vice Chairman and Secretary General.

Article 5 The registered office of the association is in Changsha City, Hunan Province.

Chapter Two Business Scope

Article 6 Business Scope of the Association

(1) Study and explore the development direction, technical policies, and laws and regulations of the construction machinery industry, and provide proposals and suggestions for the government in formulating policies;

(2) Study and formulate the development action plan and technological development roadmap for the construction machinery industry in Changsha, and organize member units to jointly implement major projects.

(3) Summarize and exchange the experience of enterprise management; explore new approaches to deepening enterprise reform; commercialize innovative achievements of enterprise management; facilitate the establishment of modern enterprise system; continuously improve the market competitiveness of enterprises.

(4) Entrusted to carry out preliminary research and demonstration for major investment, transformation and development projects of the construction machinery industry and provide corresponding suggestions, and offer advice for users on procurement and project bidding.

(5) Conduct survey on use satisfaction and enterprise product quality, collect information and give feedback on product quality, assist the government in quality management, and promote the continuous improvement of product variety, performance and quality.

(6) Analyze and study the domestic and international economic situation, and the market demand and development trend of the construction machinery industry, conduct market survey, produce market forecast, and establish the industry injury early-warning system.

(7) Establish the industry self-regulating mechanism, regulate self-management behavior in the industry, enhance the corporate image and market reputation.

(8) Engage in price coordination and self-discipline within the industry, safeguard the overall interests of the industry and the legitimate rights and interests of consumers, and promote fair competition among enterprises.

(9) Organize domestic and international exhibitions, technical seminars, product promotion fairs at the request of the government or according to market and industry development requirements, and organize members to participate in these events; conduct foreign exchange and cooperation on behalf of the industry through joint participation in exhibitions, foreign survey and other forms, in order to help enterprises to expand domestic and foreign market.

(10) Carry out the industry statistics and network information work by authorization, provide ground for the government to formulate industrial policies, and render services for enterprises in market study.

(11) Provide industrial consultation, investment and financing, business management, market development, talent training and other services.

(12) Organize technical evaluation for industry products, enterprise qualification appraisal, technological achievements appraisal and other business activities as entrusted by government departments.

(13) Report to the government on the wishes and demands within the industry and of member units, implement the governments policies and regulations within the industry, and safeguard the legitimate rights and interests of member units.

(14) Undertake other tasks assigned by the government and member units.

Chapter Three Party Construction

Article 7 The association firmly supports the leadership of the Communist Party of China.

Article 8 The association establishes a primary organization of the Party in accordance with the Constitution of the Communist Party of China. The associations Party construction work is undertaken by the Council. The association encourages cultivating non-Party member officers into Party members, and cultivating Party members into officers. If there are no more than three full Party members among the officers, the association shall establish the trade union, Communist Youth League committee and other mass organizations as required.

Article 9 The Party organization plays the role of fighting bastion of the Party in the association. Its responsibilities include publicizing and implementing the party's lines, principles and policies, leading the trade union, Communist Youth League committee and other mass organizations, educating and managing Party members, guiding and serving the masses, and promoting career development.

Article 10 The Party organization provides suggestions on major decision-making matters, important business activities, important personnel arrangement, large amount of expenditure, receipt of large amount of donations, implementation of foreign activities, development strategy and planning, and formulation and revision of important rules and regulations of the association.

Article 11 The association provides necessary guarantee such as personnel, funds and venues for the activities carried out by the Party organization.

Chapter Four Members

Article 12 Members of the association include individual members and unit members.

Article 13 Individuals and units may apply for membership of the association voluntarily if they:

(1) endorse the constitution of the association; and

(2) are intended to join the association.

3 It has certain influence in the business (industry, discipline) field of the group.

Article 14 the procedures for membership are as follows:

1 Submit the application for membership;

2 Adopted by the Council through discussion;

3 The representative of the member unit is the legal representative of the unit or its client. When the legal representative of the member unit changes, the representative of the member unit of the association changes accordingly;

4 A membership card shall be issued and announced by the Secretariat.

Article 15 The members have the following rights:

(I) Election right, the right to be elected and voting right of the Association;

(II) The right to know, the right to advise and the right to supervise of the work of the Association;

(III) Priority to participate in the activities of the Association and to obtain the services of the Association;

(IV) Freedom to withdraw the membership.

Article 16 The member shall perform the following obligations:

(I) Comply with the Articles of Association and regulations of the Association;

(II) Execute resolutions of the Association;

(III) Pay their membership fees in accordance with the relevant provisions;

(IV) Safeguard the legal rights of the Association;

(V) Complete the work assigned by the Association;

(VI) Report the situation to the Association and provide the relevant information.

Article 17 If a member violates the laws, regulations and the constitution, the following sanctions shall be imposed approved by voting of Council:

(I) Warnings;

(II) Circulating notice of criticism;

(III) Pause the exercise of membership rights;

(IV) Expulsion.

Article 18 The withdrawal of the membership shall be made in writing to the association and the Membership Certificate shall be returned.

Article 19 If a member has any of the following circumstances, he/she will automatically lose his/her membership:

(I) Not pay the membership dues according to the regulations for 2 years;

(II) Not participate in the activities of the Association as required for 2 years;

(III) Not conform to the membership conditions;

(IV) Lose the capacity for civil conduct;

Article 20 In case of withdrawal of members, automatic loss of membership or removal from membership, the corresponding functions, rights and obligations in the Association will be terminated automatically.

Article 21 The Association prepares the register of members to record members. In the event of any change in membership, the register of members shall be revised timely and be also announced to the members.

Chapter V Organizational Structure

Section I General Assembly

Article 22 General Assembly is the highest authority of the Association. The functions and powers include:

(I) Formulate and amend the articles of association;

(II) Decide on the objectives and development planning of the Association;

(III) Formulate and revise the methods for the election of council members and responsible persons, and report to the leading body for Party construction for filing;

(IV) Elect and remove directors and supervisors;

(V) Formulate and modify the standard of membership fees;

(VI) Review the work report and financial report of Council;

(VII) Decide on establishment of an honorary position;

(VIII) Review the work report of the Board of Supervisors;

(IX) Decide on the alterations of name;

(X) Decide on the termination matters;

(XI) Decide other important matters and issues.

Article 23 The General Assembly is held once a year.

If the Association hosts the General Assembly, it shall notify the members of the topic of the meeting 15 days in advance.

The General Assembly shall adopt the on-site vote mode.

Article 24 A temporary General Assembly shall be convened by the Council or more than 1/5 of the members of the Association.

The temporary General Assembly is chaired by the Chairman. If the Chairman does not or cannot chair the General Assembly, the Council or the members may elect one responsible person of the Association to chair the General Assembly.

Article 25 General Assembly may be convened if over 2/3 members are present. The decision matters may take effect if meeting the following conditions:

(I) Formulate and modify the Articles of Association and decide the termination of the Association by the vote of over 2/3 members present;

(II) Elect directors and Supervisors. The quantity of votes of elected directors or Supervisors shall not be less than 1/2 of members.

Recall of the council members shall be voted by over 1/2 members;

(III) The formulation or revision of the membership fee standard shall be voted by 1/2 members in secret ballot mode;

(IV) Other resolutions shall be decided by secret ballot and passed by above 1/2 members.

Section II Council

Article 26 The Council is the executive body of the General Assembly. It guides the Association to carry out the daily works during the adjournment and is responsible for the General Assembly.

The maximum number of directors shall not exceed 1/3 of the members. The directors should not come from the membership unit.

The Council members of the Association shall conform to the following conditions:

(I) Adhere to the Party line, principles and policies and be imbued with good political qualities;

(II) Have a greater impact within the business scope of the Association;

(III) For the chairman and vice chairman, he/she shall not be older than 70 years old when taking office in principle;

(IV) The Secretary General shall not be older than 65 years old when taking office and shall take the post by full time in principle.

(V) Be in good health and capable of regular work;

(VI) Never be inflicted of such criminal penalties as deprivation of political rights;

(VII) Be in full capacity for civil conduct.

Article 27 Election and removal of Council members:

(I) The Council members of the first session shall be jointly nominated by the members when the sponsor applies for the establishment, and is elected by the General Assembly after reporting to the party building leading organ for approval;

(II) The transition of the Council shall be nominated by the Council 3 months before the convening of General Assembly. The transition leading group shall be established, consisting of Council member representatives, supervisor representatives, Party organization's representatives and membership representatives;

If the Council cannot convene it, over 1/5 directors, Board of Supervisors, party organization of the Association or the party building liaison persons shall apply for the leading body for Party construction. The leading body for Party construction organizes the leading group for the change of the work, which is responsible for the general election;

The transition leadership group draws up the transition plan, and should be reported to the leading body for Party construction for approval 2 months before convening General Assembly;

With the consent of the leading body for Party construction, General Assembly shall be convened, to elect and recall the council members;

(III) According to the authorization of the General Assembly, the Council may add or recall part of council members. The maximum number should not exceed 1/5 of total number of Council members.

Article 28 Each council unit may appoint only one representative to serve as the Council member. The adjustment of the representatives of the Council members of the unit shall be notified to the Association in writing and reported to the Council for the record.

Article 29 Rights of Council members:

(I) Election right, the right to be elected and voting right of the Council;

(II) Have the right to know, advise and supervise the work, financial situation and important matters of the Association;

(III) Participate in the formulation of internal management system and make suggestions for comments;

(IV) Put forward a proposal to convene an interim meeting with the Chairman or Council

Article 30 The Council members shall abide by the provisions of the laws, regulations and the Articles of Association, faithfully perform their duties, safeguard the interests of the association, and perform the following obligations:

(I) Attend the Council meeting and execute the decisions of Council;

(II) Exercise rights within the scope of responsibilities without exceeding the power;

(III) Do not take advantage of the Council member's functions and powers to seek illegitimate benefits;

(IV) Do not engage in the activities which will damage the legitimate interests of the Association;

(V) Do not disclose the confidential information of the Association obtained during the term of office, except as otherwise provided for in the laws and regulations;

(VI) Exercise legally vested functions and powers independently, conscientiously, assiduously;

(VII) Accept legal supervisions and reasonable suggestions of the supervisors for his/her duty performance;

Article 31 Functions and powers of the Council include the following:

(I) Execute the resolutions of the General Assembly;

(II) Elect and recall the Chairman and the Vice Chairman as well as decide whether to hire and dismiss the Secretary General;

(III) Decide the honorary position candidate;

(IV) Prepare to hold a General Assembly, and be responsible for the general election;

(V) Report work and financial status to the General Assembly;

(VI) Decide to establish, change and terminate representatives, offices and other institutions;

(VII) Decide the candidate of deputy Secretary General and main principals of each subsidiary organ;

(VIII) Lead the work of the organizations of the Association;

(IX) Review the annual work report and work plan;

(X) Review annual financial budget, and final accounts;

(XI) Formulate important management systems such as information disclosure method and financial control system;

(XII) Determine the measures for assessment and compensation management for the responsible persons and workers of the Association;

(XIII) Decide other important matters and issues.

Article 32 The tenure of the Council is 4 years. The advanced or postponed transition due to the special circumstances shall be voted at the council meeting and then be reported to the leading body for Party construction for review and also to the registration and management authority for approval. The longest deferred change of term office shall not exceed 1 year.

Article 33 The Council shall be attended by more than 2/3 members of Council, and its resolution takes effect only upon the approval of 2/3 present representatives by voting.

If the director doesn't attend the council meeting for three times, the director's qualifications will be automatically lost.

Article 34 The principals (excluding Secretary General) shall be elected from directors by secret ballot by the Council.

The recruitment and dismissal of the Secretary General shall be voted by over 2/3 council members.

The dismissal of Council member and responsible person should be approved with the consent of over 2/3 members.

Article 35 Responsible person should be determined depending on the votes. But the number of votes of the elected persons should not be lower than 2/3 of total votes.

Article 36 The Council should convene conference at least once a year. If the conditions are special, the conference may be convened in the form of communication. The communication meeting shall not determine the following matters: (I) Adjustment of the responsible person; (II) Review the annual work report and work plan; (III) Review annual financial budget, and final accounts; (IV) Determine the measures for assessment and compensation management for the responsible persons and workers of the Association.

Article 37 The Chairman or 1/5 members may propose to convene the temporary meeting of Council.

When the Chairman cannot chair the temporary council meeting, he/she may propose one convener to choose one head of the Association as the chair.

Section III Principals

Article 38 The principles of the Association shall include 4 chairmen taking turns on duty (each Chairman taking turns on duty is on duty for 1 year), several Vice Chairmen and 1 Secretary General.

The responsible persons of the Association should meet the following conditions:

(I) Adhere to the leadership of the communist party of China, support socialism with Chinese characteristics, resolutely execute the party's line, policy and rules, and have good political quality;

(II) Obey the law and obey the law, conduct due diligence, and have good personal social credit record;

(III) Have the corresponding professional knowledge, experience and ability, familiar with the industry situation, have a greater impact in the business field of the Association;

(IV) The age of the Chairman and the Vice Chairman shall not exceed 70 in principle. The age of Secretary General shall not exceed 65. The Secretary General shall be full-time in principle;

(V) Be in full capacity for civil conduct;

(VI) Be able to perform duties faithfully and diligently, and protect the legitimate rights and interests of the Association and its members;

(VII) Other situations specified in the laws, regulations and national policies.

The Chairman on duty and the Secretary General shall not concurrently serve as the Chairman and Secretary General of other social organizations. The Chairman on duty and the Secretary General shall not be concurrently employed by the same individual and shall not be from the same member enterprise.

Article 39 The term of the responsible person of the Association should be the same with Council, with no more than two consecutive terms.

The Secretary General who is appointed or recruited from the society in public may not be restricted from the term without the democratic election process.

Article 40 The Vice Chairman is the legal representative of the Association.

In the case of special circumstance, with the recommendations of the Chairman, and with the consent of Council, it shall be reported to the leading body for Party construction for review and also to the registration and management agency for approval; the vice Chairman or Secretary General may act as the legal representative. The Secretary General who is appointed or recruited from the society in public should not act as the legal representative of the Association.

The legal representative shall sign related important documents on behalf of the Association.

The legal representative of the Association shall not concurrently serve as the legal representative of other associations.

Article 41 The responsible person as the legal representative should not fulfill the functions and powers of the legal representative of the Association after the dismissal or relief from office. Within 20 days after the dismissal or leaving office, the Association shall report to the leading body for Party construction for review, and then to the registration and management agency for handling the change registration.

Where the former legal representative does not cooperate to handle the change registration of the legal representative, the Association shall report to the leading body for Party construction for review, and then to the registration and management agency for applying the change registration, in accordance with the change resolution agreed by the Council.

Article 42 The Chairman on duty shall fulfill the following responsibilities at the moment of being on duty;

(I) Convene and preside over the Council;

(II) Check the execution of resolutions of the General Assembly and the Council;

(III) Report work to the General Assembly and the Council;

(IV) Organize communication between members, carry out exchange visits, communicate the development experience and share the innovative product;

(V) Visit the administrative department in the industry where the Association is or other government bodies in the name of the Chairman on duty;

(VI) Participate in important meetings or important activities of such organizations as government organization and social organization on behalf of the Association;

(VII) Organize to research the development plan and major issues of the Association and the industry;

(VIII) Supervise the financial condition of the Association.

The Chairman on duty shall report its work during the period of being on duty to the Council. When the Chairman on duty isn't on duty, it shall fulfill the responsibilities of the Vice Chairman. When the Chairman on duty isn't on duty, other Chairman taking turns on duty entrusted by it or elected by the Council shall fulfill its responsibilities on behalf of it.

Article 43 The Vice Chairman and the Secretary General shall assist the Chairman on duty to carry out work. Secretary General should fulfill the following responsibilities:

(I) Coordinate all institutions to carry out the work;

(II) Chair the office's daily work;

(III) Attend the Meeting of the Council and General Assembly;

(IV) Nominate the Deputy Secretary General and the principal of the institution as well as submit to the Council for decision;

(V) Decide on the employment of the full-time staff;

(VI) Draw up annual work report and work plan and submit to the Council for deliberation;

(VII) Draw up annual financial budget and final account reports and submit to the Council for deliberation;

(VIII) Draw up the internal management system and submit to the Council for approval.

(IX) Handle other daily routines.

Article 44 The minutes of meeting shall be formulated for General Assembly and the Meeting of Council. If the resolution is formed, a written resolution shall be made and signed by the members present at the meeting. The minutes of meeting and the meeting resolution shall be reported to and filed with the members in proper manner and shall be stored for at least 10 years.

The election results of the council members and responsible personnel shall be reported to the leading body for Party construction for review within 20 days, and, with consistent, be filed with the registration and management authority and reported to or filed with the members.

Section IV Board of Supervisors

Article 45 The Association sets up Board of Supervisors. The term of supervisors is the same with the directors and may be re-selected. The Board of Supervisors consist of 3-7 supervisors. The Board of Supervisors sets up 1 chief supervisor and 2 supervisors. They are elected by the Board of Supervisors. The age of the supervisors should not exceed 70 in principle. The term should not exceed 2 sessions.

The Association accepts and supports the supervision and guidance of the appointed supervisors.

Article 46 Election and removal of supervisors:

(I) Selected at the General Assembly;

In case of a few members of the Board of Supervisors, the Chief Supervisor can be directly elected by General Assembly;

(II) The dismissal of supervisors refers to the election procedures.

Article 47 The responsible persons, Council members and the financial management personnel of the Association should not act as the supervisors.

Article 48 The Board of Supervisors shall exercise the following functions and powers:

(I) Present at Council meeting and Standing Council meeting and put forward suggestions or questions to the consideration matters;

(II) Monitor the behaviors of the council members and responsible persons fulfilling the duties in the Association, and put forward the dismissal suggestions against the members who seriously violate the Articles of Association or the resolution made on the General Assembly.

(III) Check the financial reports of the Association, report the work of the Board of Supervisors to General Assembly and propose the proposal;

(IV) Require the responsible persons, Council members, Standing Council members and financial managers to timely correct the behaviors of damaging the benefits of the Association;

(V) Reflect the problems existing in the work of the Association to the party leadership authority, industry management department, registration and management agency, tax and accounting department;

(VI) Decide on other matters which should be deliberated by Board of Supervisors.

The Board of Supervisors shall be held at least every 6 months. The meeting of the Board of Supervisors can only be held if more than 2/3 of the supervisors attend, and the resolution can only take effect by the voting of more than 1/2 of the supervisors present.

Article 49 The supervisors should observe the relevant laws, regulations and Articles of the Association, and perform duties faithfully and diligently.

Article 50 The Board of Supervisors may investigate the activities of the Association; It may hire an accounting firm to assist in the work, if necessary. The expenses necessary for the Board of Supervisors to exercise its functions and powers shall be borne by the Association.

Section V Internal Management System and Conflict Resolution Mechanism

Article 51 The Association should establish the internal management system and perfect the relevant management regulations. Establish related systems and documents such as Management System for Membership Fees and Election Procedures of Council.

Article 52 The Association sets up the internal management system for the certificates, seals, documents and archives, and properly safeguards the above articles and data in our place. Any unit and individual should not illegally encroach on them. In the case of management personnel being transferred or leaving their post, they shall handle the handover procedures with the takeover staff.

Article 53 In case of loss in the certificates and seals of the Association, over 2/3 members of Council may apply for the reproduction or production in the registration and management agency after publishing the missing statement in the newspapers. If it is illegally occupied by an individual, the return shall be required through legal channels.

Article 54 The Association sets up democratic consultation and internal conflict resolution mechanism. If internal contradictions cannot be resolved through consultation, they can be resolved through mediation, litigation and other channels.

Chapter VI Assets Management and Use Principles

Article 55 Revenue sources of the Association:

(I) Membership fee;

(II) Endowment;

(III) Government funding;

(IV) Revenues from activities or services within the approved business scope.

(V) Interests;

(VI) Other lawful incomes.

Article 56 The Association shall collect membership fees according to the relevant state regulations.

The Association carries out activities like competition, selection and award, etc. without any charges.

Article 57 The income of the Association is used for the business scope and non-profit business as stipulated in the Articles of Association, except for the reasonable expenses related to this Association.

Article 58 The Association implements the “Accounting System for Civil Non-Profit Organizations” and establishes a strict financial management system to ensure that the accounting information is legal, true, accurate and complete.

Article 59 The Association is equipped with professionally qualified accountants. The accountants shall not double as the cashier. The accountant must carry out financial accounting and accounting control. When the accountant transfers or resigns, he or she must go through the handover procedures with the receiver.

Article 60 The asset management of the Association must implement the state-specified financial management system and accept the supervision of the General Meeting of the members and relevant departments. If the assets of the Association is state-funded or social-funded, it must accept the supervision of the auditing agency and publicize the relevant information to the society in an appropriate manner.

Article 61 The allocation and disposal of major assets of the Association shall be reviewed by the General Meeting or the Council.

Article 62 If the resolution of the Council violates the laws, regulations or articles of association and causes losses to social groups, the members of the Council participating in the review shall shoulder the responsibility. However, if it is proved that one member of the Council objected the resolution and his or her behavior is recorded in the meeting minutes, the member may be exempted from liability.

Article 63 The financial audit must be conducted before the Association switches or changes its legal representative.

During the tenure of the legal representative, he or she should assume the responsibility of any violation of the "Regulations for the Registration and Management of Social Organizations" and this Articles of Association by the Association. If the legal representative fails to perform his duties, resulting in illegal activities or loss of property of the Association, the legal representative shall bear personal responsibility.

Article 64 All assets and added value of the Association shall be owned by the Association. No unit or individual shall occupy, privately divide or misappropriate, nor distribute among members.

Chapter VII Information Disclosure and Credit Commitment

Article 65 The Association fulfills its obligation of information disclosure in accordance with relevant policies and regulations, establishes an information disclosure system to publishes annual work reports, reports issued by third-party organizations, membership receipts and expenditures, and other information deemed necessary by the Council to its members and disclosures information such as registration items, articles of association, organization, acceptance of donations, credit commitments, government transfers or entrusted items, service-provided items and operation status to the society in a timely manner.

The Association establishes a news spokesman system. After the adoption of the Council, it appoints a person in charge as the news spokesman. It holds regular or irregular press conferences and briefings or accepts interviews to introduce important activities, major events or hot issues of the organization to actively respond to social concerns. The contents of the news should be reviewed and approved by the legal representative or the main person in charge of the Association to ensure the correct orientation of public opinion.

Article 66 The Association has established an annual report system, and the contents of the annual report shall be disclosed to the society in a timely manner and subject to public supervision.

Article 67 The Association establishes a credit commitment system with the focus of service contents, service methods, service objects and charging standards, etc., and discloses the contents of credit commitment to the society.

Chapter VIII Amendment Procedures

Article 68 Amendments to the Association shall be approved by the Council and submitted to the General Meeting for consideration.

Article 69 The amended Articles shall be submitted to the Party Construction Leading Organization for review after approval by more than two-thirds of the members of the General Meeting, and shall be submitted to the registration management authority for approval within 30 days.

Chapter IX Termination Procedures and Disposal of Property After Termination

Article 70 The motion for termination of the Association shall be proposed by the Council and reported to the General Meeting for approval.

Article 71 Before the termination of this Association, a liquidation organization shall be established in accordance with the law to clear the creditor's rights and debts and deal with the aftermath. During the liquidation, no other activities could be carried out.

Article 72 This association shall be terminated after the registration administrative authority has gone through the procedures for cancellation of registration.

Article 73 The remaining property after the termination of the Association shall be used for the development of undertakings related to the purposes of the Association or donated to social organizations with similar purposes under the supervision of the Party Construction Leading Organization and registration administrative authority in accordance with relevant national regulations.

Chapter Ten Supplementary Provisions

Article 74 This Article was approved by the first General Meeting of members on June 11, 2019.

Article 75 The interpretation of this Article belongs to the Council of the Association.

Article 76 This Article shall take effect on the date of approval by the registration administrative authority.