I hereby give My Sanction to the Imperial Ordinance concerning partial amendments to be made to the Holding Company Liquidation Commission Ordinance issued in accordance with the Imperial Ordinance No. 542 of 1945 concerning the Orders to be issued in consequence of the Acceptance of the Potsdam Declaration, and cause the same to be promulgated.
Signed: HIROHITO, Seal of the Emperor
This third day of the twelfth month of the twenty-first year of Showa (December 3, 1946)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Justice KIMURA Tokutaro
Minister of Finance ISHIBASHI Tanzan
Imperial Ordinance No. 592
A part of the Holding Company Liquidation Commission shall be amended as follows:
In Art. 1, par. 1, "and such persons (hereinafter referred to as 'designated persons')" shall be added next to "(hereinafter referred to as "holding companies")"; "disposed and shall read "by disposition or the like"; and "and deconcentrate the control held over enterprises by designated persons" shall be added next to "promote the liquidation of holding companies."
In Art. 9, par. 1, item 1 and item 2, " and designated persons" shall be added next to "the holding companies." In the same paragraph, item 4 shall be deleted, and item 5 shall be changed to item 4, item 6 shall be changed to item 5, and in the same paragraph the following three items shall be added:
6. Give approval, in accordance with the provisions of Art. 19-2, to such act of designated persons as may result in transfer of rights with regard to the properties owned by them.
7. Give approval, in accordance with the provisions of Art. 19-3 or Art. 19-4, to designated persons for assuming or retaining the position of an officer (a director, an auditor, or such similar post; hereinafter the same) of a company.
8. Execute those functions incidental to the business specified in the preceding items.
In Art. 9, par. 2, "specified by the provisions of items 1 to 4 inclusive of the preceding paragraph" shall read "with regard to the holding companies specified by the provisions of items 1 to 3 inclusive and item 8 of the preceding paragraph."
In Art. 10, the following two paragraphs shall be added:
"In so far as the Commission deems it necessary for the purpose of deconcentration of Controlling power held over enterprises by designated persons, the Commission may order them to transfer their securities and other properties owned by them to the Commission.
Transfer of properties to be carried out by order of the Commission in accordance with the provisions of the preceding two paragraphs may be executed notwithstanding the provisions of Laws or Ordinances, Articles of incorporation, or contracts."
In Art. 11, par. 1, "or designated persons" shall be added next to "the holding companies," and "to the holding companies" shall read "to the transferors."
Article 11-2. In case the properties, which are ordered by the Commission to be transferred to the Commission in accordance with the provisions of Art. 10, par. 1, or 2, are mortgaged, such mortgage right shall be nulified when the properties in question are transferred in accordance with such order, and the mortgages may, in accordance with the provisions of Ordinance, execute his rights upon the receipt of such transferred properties or upon the government bonds which will be delivered in payment of such transferred properties, and upon the income to be derived from such properties.
In Art. 14, "the holding companies" shall read "the transferors of the said properties."
Art. 19-2. Designated persons shall, when about to dispose of, to present as gifts, or in any way to carry out an act that shall result in transfer of rights with regard to movable property, immovable property, securities and other properties owned by them, obtain approval of the Commission with the exception of such cases as provided for by Ordinance.
Art. 19-3. Designated person shall not become an officer of a company, provided that the foregoing provision shall not apply to a case where the approval of the Commission has been obtained due to an unavoidable cause.
Art. 19-4. In case a designation of a person is made in accordance with the provisions of Art. 1, par. 1, the said designated person shall without delay resign from any position actually held at that time, as an officer of a company, provided that the above shall not apply to a case where the approval of the Commission has been obtained due to unavoidable causes.
Art. 19-5. The Commission may, when it is deemed necessary, cancel the order as provided for by Art. 10, par. 1 or 2, or cancel the contract for transfer of properties which has been effected by such order, in accordance with the provisions of Ordinance.
In Art. 29, par. 1, "the holding companies" shall read "the transferors of such properties," and the following paragraph shall be added next to Art. 29 par. 1:
"Necessary matters pertaining to the preceding paragraph shall be provided for by Ordinance."
In Art. 32, "par. 1 or par. 2" shall be added next to "Art. 10." "who have acted" shall be added next to "in case of contravention"; and "directors or corresponding officers" shall read "directors or corresponding officers or the designated persons."
In Art. 33, "the persons who have committed such contravention" shall be added next to "when false report is made."
In Art. 34, "who have committed such contravention" shall be added next to "in case of contravention."
Art. 34-2. Any person who has contravened the provisions of Art. 19-2 to Art. 19-4 shall be subject to penal servitude for not more than three years or a fine for not more than five thousand yen.
In Art. 35, "who have committed such contravention" shall be added next to "or when they submitted untrue reports."
In Art. 43, "companies or persons" shall be added next to "in accordance with provisions of par. 1 of Art. 1."
Supplementary Provision:
The present Ordinance shall come into force as from the day of its promulgation.