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Notarization system plays important role
2004-12-29
China Business Weekly
The notarization system is an integral part of China's judicial system. The system, which first appeared in the 1940s, and boomed in the following decade, was dismantled during the "cultural revolution" (1966-76).
It was reconstructed in 1979. Since then, public notary services have played an outstanding role in China's social and economic development.
In the past two decades, notarial matters handled by China's notarization system increased more than 100 times, whereas notarized documents came to serve more than 180 countries and regions.
Today, through 3,000 notary offices and more than 10,000 notaries around the country, the system provides society with authentic, reliable and legally effective notarized documents.
Those documents prevent disputes, reduce litigation, facilitate law enforcement and stabilize the flow of economic and civil activities in society.
In essence, they protect the lawful rights and interests of citizens and entities, and help ensure economic, social and international exchanges.
The framework of the notarization system was created by the 30-article Interim Regulations of the People's Republic of China Concerning Notarization. That was promulgated by the State Council on April 13, 1982.
The original system, however, had some shortcomings. Because the public notary offices were affiliated with the State, and they did not claim legal status or property.
They were not able to bear, independently, social and/or legal responsibilities.
With distinguished features of an administrative organ, the notary offices did not have the means to attract talent, and lacked the mechanism for self-development and self-regulation.
That system neither fit the demand of a socialist market economy, nor matched international norms.
The system had to be reformed.
Reform of China's notary system started in 1993, and has been signified by the gradual transformation of the public notary offices from administrative organs to public service agencies.
While the basic nature of the notary offices remains the legal authentication and certification bodies of the State, remarkable changes have been introduced in the operation mechanism of many notary offices.
According to the reform plan that was implemented on October 1, 2000, public notary offices are no longer administrative bodies.
Rather, they are non-profit entities, with legal-person status, that independently conduct notary business to meet market demand, and they assume full responsibility for their operations.
A compensation system was also established, under which notary offices bear limited liability for their clients' economic losses directly caused by the offices and/or their staff in the process of performing their professional duties.
Under the new regime, the distribution of the notary offices shall be based on local social and economic needs, rather than on regional administrative divisions.
Recruitment of notaries is geared to the goals of attracting talented people and improving their quality.
The qualifying test for potential public notaries is being changed from a restricted, system-wide exam to an open national examination administered by the Ministry of Justice.
By now, a significant portion of the public notary offices in China has experienced these changes in organizational transfer and management structure.
Such reforms have brought the notarization system in sync with the trend of economic reform, and have made it better fit into the environment of a developing market economy.
Notarization is increasingly used by ordinary people in civil and economic fields, such as the notarization of ante-marital properties and notarization before surgery.
In fact, a full range of notary services are offered at the request of both domestic and foreign parties, covering every kind of civil activities and business transactions, from adoption, school application, marriage, inheritance, contract, real estate transactions to public bidding.
In addition, many laws have already provided on notarization in their respective fields. In many situations, such as in the cases of the transfer of real estate, notarization has become a must.
The development of China's notary system has provided the basis for a law on notarization.
The National People's Congress (NPC), China's top legislature, has placed the amendment of the notarization law on its agenda.
The new law is expected to define the profession's nature, functions, business scope and responsibilities.
The author is an attorney with Shanghai-based Richard Wang & Co Law Offices.
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