(d) Simulated use test. Tests shall be conducted on the completely assembled refrigerator in its normal operating position to determine that the release device complies with the requirements of § 260.4 during and after 300,000 cycles of door operation, and following exposure to spillage of foods and beverages, to cleaning and defrosting in accordance with manufacturer's recommendations, and to condensation. The equipment provided for operating the door shall open the door sufficiently on each cycle to assure a complete cycle of operation for the latch mechanism.

§ 260.6 Provision for changes in the

standard.

Section 5 of the act provides for the possibility of changes in the commercial standard first established pursu

ant to section 3 of the act and allows a period of one year and ninety days for compliance with such changes after they are published. Any person wishing to propose a change in this commercial standard shall submit to the Director, National Bureau of Standards, United States Department of Commerce, Washington 25, D. C., the proposed change. Before a change is recommended, the Director, National Bureau of Standards, shall secure advice and consultation from public or private sources including particularly the household refrigerator manufacturing industry and the Children's Bureau of the Department of Health, Education, and Welfare, and shall then forward such proposal with his recommendation to the Secretary of Commerce for such action as the Secretary deems appropriate.

Sec.

PART 363-CHINA TRADE ACT REGULATIONS

When used in this part, unless the context otherwise indicates,

(a) The term "Secretary" means the Secretary of Commerce;

(b) The term "Registrar" means the Registrar of the China Trade Act; and

(c) The term "corporation" means a corporation organized under the provisions of the China Trade Act (42 Stat. 849, 43 Stat. 995; 15 U.S.C. 141-162). § 363.3 Articles of incorporation.

(a) Articles of incorporation shall be filed in quintuplicate (accompanied by Application Form No. 1, in duplicate)

with the Secretary of Commerce at Washington, D.C., direct, when emanating within the United States, or with the Registrar for transmission to the Secretary when emanating within China.

(b) The original articles of incorporation shall be signed and acknowledged by all of the incorporators.

(c) The articles of incorporation shall state the names, addresses, and nationalities of the incorporators; the particular business in which the corporation is to engage so as to clearly show how the corporation will aid in developing markets in China for goods produced in the United States; and otherwise conform to the requirements of section 4 (b), subheadings (1) to (7), inclusive, of the China Trade Act.

(d) Said articles shall also state the name and address of the corporation's accredited agent, who shall reside within the District of Columbia. Any successor to said agent shall be appointed as provided for by § 363.12, without amendment to Articles of Incorporation (see sec. 20 (b) of the act.

(Secs. 4, 20 (b), 42 Stat. 850, 855, as amended; 15 U.S.C. 144, 160)

§ 363.4

Holding shares of stock in other corporations prohibited.

No corporation formed under the provisions of the China Trade Act shall purchase or acquire, either directly or indirectly, for investment purposes, shares of stock of any corporation engaged in any activity prohibited by section 4 (c) of the act.

(Sec. 4, 42 Stat, 850, as amended; 15 U.S.C. 144)

§ 363.5 Application for certificate of incorporation.

Persons desiring to incorporate under the provisions of the China Trade Act shall make application, in duplicate, for a certificate of incorporation.

§ 363.6 Certificate of property value.

(a) Each certificate of property value shall be filed in duplicate by the corporation with the Registrar or the Secretary, as the case may be.

(b) There shall be filed with each such certificate a statement in duplicate by the owner of any property to be received by the corporation in payment for its stock, showing the date he purchased the same, the price paid therefor, and the

amount, if any, for any lien, mortgage, or other encumbrance against said property at the time it is placed in the custody of the directors as provided for by section 4 (b) of the act.

(c) There shall be filed, in duplicate, with the certificate of property value, a statement under oath of two disinterested persons acceptable to the Registrar or Secretary, as the case may be. (Sec. 4, 42 Stat. 850, as amended; 15 U. 8. C. 144)

§ 363.7

Certificate of amendment to articles of incorporation.

(a) The certificate of amendment to articles of incorporation shall be signed by the president, or other authorized officer, and attested by the secretary of the corporation, and filed in quintuplicate with the Secretary or with the Registrar for transmission to the Secretary.

(b) When a certificate of amendment to articles of incorporation is for the purpose of increasing the capital stock of said corporation, a duly authorized officer thereof shall file with said certifcate, in duplicate, a certified statement to the effect that 25 per centum of the increased capital stock has been subscribed to in good faith: Provided, That no certificate, authorizing the increase of capital stock, shall be delivered to a corporation unless there is filed with the Registrar or the Secretary, as the case may be, a statement under oath, in duplicate, by an authorized officer of the corporation that 25 percent of said increased capital stock has been paid in in cash, or in real or personal property, as provided for by section 8 of the act. (Sec. 8, 42 Stat. 851; 15 U. S. C. 148)

§ 363.8 Certificate of authorization for voluntary dissolution.

(a) The certificate of authorization for voluntary dissolution shall be signed by the president or other authorized officer and attested by the secretary of the corporation and filed, in quintuplicate, with the Secretary or with the Registrar for transmission to the Secretary.

(b) Before any such corporation shall be deemed voluntarily dissolved under the provisions of section 10 (c) of the China Trade Act there shall be issued by the Secretary a certificate to the effect that such corporation has conformed to the requirements of said act.

(Sec. 10, 42 Stat. 852, as amended; 15 U.S.C. 150)

§ 363.9 Certificate of authorization for

extension.

The certificate of authorization for extension shall be signed by the president or other authorized officer and attested by the secretary of the corporation and filed, in quintuplicate, with the Secretary or with the Registrar for transmission to the Secretary.

§ 363.10 Documents of stockholders' meeting to be filed.

When a stockholders' meeting is held for any of the purposes stated in section 10(b) of the act, or for any other purpose, the following documents shall be filed with the Registrar or Secretary, as the case may be (unless made a part of the minutes as hereinafter provided), and shall be signed and certified by

duly authorized officer of the corporation:

(a) Two copies of the minutes of any such meeting, which shall set forth in detail the action taken or business transacted. Said minutes shall also show that notice of call (unless waived) was delivered or mailed to each stockholder of record and the date thereof. In lieu of filing two certified copies of said notice the same may be incorporated, verbatim, in the minutes.

(b) Notice of call of a stockholders' meeting may be waived by the stockholders filing with a proper officer of the corporation waivers of said notice in writing, signed by all of said stockholders of record. When notice is so waived the secretary of the corporation or other authorized officer thereof, may file his certificate, in duplicate, to the effect that waivers of notice of the particular meeting have been signed by all said stockholders and filled with such officer. Such certificate shall be accepted in lieu of certified copies of waivers filed by said stockholders with the corporation.

(c) When any share of stock is voted by proxy, the secretary or other authorized officer of the corporation may file his certificate, in duplicate, showing the total number of shares voted by proxy at any such meeting, the name and address of each stockholder represented by proxy, the name and address of each proxy voting at such meeting, the number of shares voted by each said proxy, and that the proxies so voted were authorized by an instrument in writing signed and filed by each said stockholder with the corporation. Said certificate

shall be accepted in lieu of certified copies of proxies filed with the corporation.

(d) List in duplicate of current officers and directors of said corporation, stating the name, residence, and nationality of each.

(e) Statement in duplicate that all shares of stock voted at any such meeting were fully paid.

Provided, That such statements (referred to in paragraphs (d) and (e) of this section) need not be filed if the information required is incorporated in the minutes.

(Sec. 10, 42 Stat. 852, as amended; 15 U.S.C. 150)

(56 Stat. 1067; 5 U.S.C. 606, 15 CFR 4.2) [29 F.R. 15569, Nov. 20, 1964]

§ 363.12 Accredited agent.

(a) Articles of incorporation of a China Trade Act corporation shall state the name and address of its accredited agent, who shall reside within the District of Columbia. Power of attorney appointing said agent shall be certified by the incorporators and filed in duplicate with the Secretary or the Registrar, as the case may be, at the time of filing application for certificate of incorporation. Before issuance of said certificate a letter of consent to act shall be certified by said agent and filed with the Registrar or Secretary, as the case may be, in duplicate.

(b) No corporation shall remove, or accept the resignation of, its accredited

agent until a successor has been appointed and a certified copy of said appointment and written consent of such successor to act has been filed in duplicate; except that in the event of the death of such agent the corporation shall, within 30 days after notice thereof, appoint a successor in the manner set forth in paragraph (a) of this section. § 363.13 Appeal from decision of Reg. istrar.

(a) An appeal to the Secretary may be taken from any decision or action of the Registrar within 6 months thereafter; provided that time for filing an appeal may be extended at the discretion of the Secretary.

(b) The person taking an appeal shall first submit to the Registrar a written statement setting forth, in full, the alleged facts upon which the appeal is based; which when certified to by the Registrar as a true, full, and correct statement of such facts, shall be transmitted to the Secretary with a statement in writing from the Registrar setting forth his decision, or action, from which the appeal is taken.

(c) If the Registrar refuses to certify, as provided for above, the person aggrieved may submit his aforementioned statement to the Secretary: Provided, That a copy of such statement shall first be filed with the Registrar, and the Registrar shall transmit, to the Secretary, a statement of his decision or action and his reasons for refusing to so certify.

(d) The Secretary, as soon as practicable, shall render his decision to the person taking the appeal and to the Registrar.

§ 363.14 Inspection of records.

Any person desiring to inspect the records of a China Trade Act corporation on file with the Registrar or the Secretary, shall submit his application to the Secretary or the Registrar, as the case may be.

§ 363.15 Citizenship of incorporators, directors, or officers.

Whenever an incorporator, a director, or officer of a China Trade Act corporation, resident in China, is a naturalized American citizen, he shall set forth in writing and file with the Registrar the name and place of the diplomatic or consular office where he is registered as a naturalized American citizen, and such registration shall be verified by the