Section II. Formation
Article 20. In order to form an agricultural mutual relief association, fifteen or more of persons prescribed in Item 1 or Item 2 of Art.15, Par.1 must be promoters thereof, while two or more agricultural mutual relief associations shall be necessary as promoters in forming an agricultural mutual relief insurance association.
Article 21. As a preparatory course to the formation, promoters must draw up a program as regards the qualifications of members as well as the area where the association will function, giving public notice thereof prior to the given period. announcing, at the same time, the date and the place of the preliminary meeting for organization, which must be held without fail.
The above-stated period shall not be less than a fortnight.
Article 22. At the preliminary meeting for organization, persons who will draw up the articles of association (hereinafter referred to as drafting committee of articles of association) shall be selected from among those persons who have attended the meeting with the qualification of member (or member of agricultural mutual relief association in case the said person is the said association) and, at the same time, the area of operation, the qualification of member, and other matters which form the basis in drawing up articles of the association shall be decided.
Number of the foregoing drafting committee shall not be less than fifteen persons.
Proceedings of the preliminary meeting for organization shall be decided with the consent of a majority of those present thereat who are qualified as members as is prescribed in the program mentioned in Par.1 of the preceding article.
Article 23. When the drafting committee of articles of association has made up the articles, the promoters shall, prior to the definite period, give a public notice of these articles, together with the date and the place of the constituent general meeting, and shall hold the said meeting without delay. In case of the formation of agricultural mutual relief association, however, no constituent general meeting shall be held without the consent of more than two-thirds of those qualified as members in accordance with the provision of Art.15, Par.1, Item 1.
The definite period mentioned in the preceding paragraph shall not be less than a fortnight.
Approval of the articles made up by the drafting committee of articles of association, framing of business plan and decision of other matters necessary for the formation of the association, must depend on the resolution of the constituent general meeting.
The constituetn general meeting may amend the articles of association mentioned in the preceding paragraph;this shall not apply, however, with regard to the stipulations concerning the area of operation and the qualifications of members of the association.
Proceedings of the constituent general meeting shall be decided with the consent of more than two-thirds of the voting of the whole attendants who, in turn, comprise a majority of those qualified as members and, who have informed, previous to the date of meeting, the promoters of their consent to the formation of association.
Persons mentioned in the preceding paragraph may, either through document or by proxy, exercise their right of voting.
As to the constituent general meeting, the provisions of Art.17, Art.18, Pars.2 to 4 inclusive of the present Law as well as of Art.66 of Civil Code shall apply mutatis mutandis.
Article 24. Promoters shall, immediately after the constituent general meeting, submit the articles of association and the business plan to the administrative authorities and thereby request the approval of the formation of association.
In case the administrative authorities require it, the promoters must submit the report on the formation of agricultural mutual relief body to the same.
Article 25. When the request for approval mentioned in Par.1 of the foregoing article has been made to it, the administrative authorities must approve the formation of association in compliance with the said request, except when the proceedings of formation or the articles of association or the substance of the business plan, contravene laws and regulations or dispositions prescribed by the administrative authorities in conformity with the same laws and regulations.
Article 26. When a request for approval has been made in accordance with the provisions of Art.24, Par.1, the, administrative authorities shall notify the promoters, within a month reckoning from the day when the request was duly received, whether an approval has been given or not.
If the administrative authorities fail to give the notification referred to above within the period prescribed above, the approval prescribed in Art.24. Par.1, shall be deemed to have been given to the promoters. In this case the promoters may request the administrative authorities for a certificate of the approval.
In case the administrative authorities give notice of disapproval, the reason for the same disapproval shall be stated in the notice.
In case the promoters have instituted an action for the revocation of disapproval, and the court has decided in favour of them, the approval prescribed in Art.24, Par.1, shall be deemed to have been given on the day whereon the decision was given. In this case, the stipulation mentioned in the latter part of Par.2 of the same article shall apply mutatis mutandis.
Article 27. In case the approval for formation prescribed in Art.24, Par.1 has been given, the promoters shall hand over their duties to the directors without delay.
Article 28. Agricultural mutual relief body shall come into being through the registration of its formation at the seat of its main office.
Article 29. In case a prefectural agricultural mutual relief insurance inquiry commission proposes for it, the prefectural governor may, if he or she deems it necessary, fix the area of operation, decide the qualifications of members, and order the persons who enjoy membership to form an agricultural mutual relief association in accordance with the provision of order.
The persons ordered to form the association according to the provision of the preceding paragraph, must, in compliance with the provision of order, hold a constituent general meeting, draw up the articles of association and other matters necessary for the formation, and then obtain the approval of the prefectural governor concerned with regard to the formation.
Article 30. The articles of association of agricultural mutual relief body shall contain the following particulars;
3. The area within which it operates;
4. The location and address of its office;
5. Provisions relating to qualifications, entrance into and retirement from the body of members;
6. Provisions relating to mutual relief money payable by members, premium and office expenses;
7. Provisions relating to responsibility of mutual relief or responsibility of insurance;
8. Provisions relating to number as well as election of officials;
9. The amount of reserve funds and the method of its accumulation;
10. Provisions relating to disposal of surplus funds and covering of deficit;
11. Method of publication.
The administrative authorities may, if need be, draw up the examples of model articles of association.