The Feed Distribution Kodan Law Chapter 1 General Provisions

Article 1. The Feed Distribution Kodan shall have for its object the performance of the business relative to appropriate and equitable distribution of such feeds as prescribed by Orders (hereinafter referred to as feeds only) in accordance with quota programs and rationing procedures set up or to be set up by the Director-General of the Economic Stabilization Board. The Feed Distribution Kodan shall be a juridical person.

Article 2. The main office of the Feed Distribution Kodan shall be established in Tokyo. The Feed Distribution Kodan may, with an approval of the competent Minister, establish branch offices in the localities necessary for the performance of business relative to distribution.

Article 3. The authorized fixed capital of the Feed Distribution Kodan shall be 10,000,000 yen. The authorized fixed capital as mentioned in the preceding paragraph shall be subscribed exclusively by the Government. Working capital of the Feed Distribution Kodan shall be obtained by loan when necessary from the Reconversion Finance Bank.

Article 4. The Feed Distribution Kodan shall stipulate the following matters in its Articles of Incorporation: 1. Object; 2. Firm name; 3. Location of office; 4. Matters relative to capital; 5. Matters relative to officers; 6. Matters relative to business and its execution; 7. Matters relative to accounting; 8. Method of making public notices. The Articles of Incorporation may be revised witn the approval of the competent Minister and the Director-General of the Economic Stabilization Board.

Article 5. The Feed Distribution Kodan shall register as prescribed by Cabinet Order. The matters required to be registered as provided for in the preceding paragraph shall not be valid against a third person unless they are registered.

Article 6. The Feed Distribution Kodan shall not be levied income tax and corporation tax. The prefecture, city, town, village and those corresponding to them shall not levy local taxes on the enterprise of the Feed Distribution Kodan;provided, however, that this shall not apply to where the Ministers for Home Affairs and Finance have approved under a special circumstance.

Article 7. The Feed Distribution Kodan shall be dissolved by the unlification of the Temporary Demand and Supply Adjustment Law or by the order of the Director-General of the Economic Stabilization Board. In addition to the matters referred to in the preceding paragraph, those necessary for dissolution of the Feed Distribution Kodan shall be prescribed by Cabinet Orders.

Article 8. Any person other than the Feed Distribution Kodan shall not use the words Food Distribution Kodan or similar words in his firm name.

Article 9. The provisions of Articles 44, 50, 54 and 57 of the Civil Code and Article 35, Paragraph 1 of the Non-litigant Case Procedural Law shall apply correspondingly to the Feed Distribution Kodan.

Chapter 2 Officers and Employees

Article 10. The Feed Distribution Kodan shall have as its officers one president, one Vice-President, two or more directors and one or more auditors. The President shall represent the Feed Distribution Kodan and supervise its business in accordance with the provisions of Article 15 of this Law. The Vice-President shall, as prescribed in the Articles of Incorporation, represent the Feed Distribution Kodan, assist the President in conducting business, act for him in case he cannot take his duty, and perform his function in case his post becomes vacant. The Directors shall, as prescribed in the Articles of Incorporation, represent the Feed Distribution Kodan, assist the President and Vice-President in control of its affairs, and act for them in case they cannot take their duties, and perform their functions in case their positions become vacant. The Auditors shall inspect the business of the Feed Distribution Kodan.

Article 11. The President, Vice-President and Directors and Auditors shall be appointed by the competent Minister.

Article 12. The President, Vice-President and Directors may, in accordance with the provisions of the Articles of Incorporation, delegate power to employees of the Feed Distribution Kodan who shall have authority to perform all juridical and nonjuridical matters in regard to the affairs of the main or branch offices.

Article 13. The officers and employees shall not be permitted to be stockholders or employees or to have any beneficial interest in any company or enterprise engaged in the production, storage, transportation, mixing, purchase or sale of feed, except that derived from their position as officers and employees of the Feed Distribution Kodan.

Article 14. The officers and employees of the Feed Distribution Kodan shall be Government officials or other Government employees. The ranking of the President shall be of Vice-Minister, officials other than the President shall be of first class officials. Other employees shall be of first, second or third class officials. The competent Minister shall fix the number of the above staff. The officials and employees of the Feed Distribution Kodan shall be governed by all laws and ordinances relating to the Government employees;provided, that it shall not apply in cases where the Competent Minister makes special exception concerning the amount of salaries, service rules and any other necessary matters with approval of the Director-General of the Economic Stabilization Board.

Chapter 3 Business

Article 15. The Feed Distribution Kodan shall performm the following business under supervision of the competent Minister in accordance with the quota programs, rationing procedures and directions relating thereto set up and issued by the Director-General of the Economic Stabilization Board; 1. Sole purchase and sole sale of feeds at prices determined by the Price Board; 2. Storage, transportation and mixing of feeds; 3. Designation of dealers in feeds; 4. Matters incidental to the business mentioned in Items 1and 2. The designation of Item 3 of the preceding Paragraph shall be made with the approval of the competent Minister within terms and conditions set forth by the Director-General of the Economic Stabilization Board.

Article 16. The Feed Distribution Kodan shall, at the commencement of its functioning, establish its method of doing business and submit the same to the Director-General of the Economic Stabilization Board for his approval. This shall also apply to where a change is to be made thereto. In case the Director-General of the Economic Stabilization Board makes the approval as prescribed in the preceding Paragraph, he shall consult with the competent Minister and the Minister of Finance. In this case the final responsibility for approval shall rest with the Director-General of the Economic Stabilization Board.

Article 17. The Feed Distribution Kodan shall, at the beginning of the first term and the second term of each business year, establish a business program and a financial program for each six months and submit them to the Director-General of the Economic Stabilization Board for his approval. This shall also apply to where a change is to be made thereto. In case the Director-General of the Economic Stabilization Board makes the approval as prescribed in the preceding Paragraph, he shall consult with the competent Minister and the Minister of Finance. In this case the final responsibility for approval shall rest with the Director-General of the Economic Stabilization Board.

Chapter 4 Accounting

Article 18. The business year of the Feed Distribution Kodan shall be from April 1 of each year to March 31 of the following year, and divided into the first term and the second term.

Article 19. The Feed Distribution Kodan shall prepare a statement of assets, a balance sheet, and a statement of profit and loss for each term of the preceding Article and submit them to the Director-General of the Economic Stabilization Board for his approval within two months after the conclusion of each term. In case the Director-General of the Economic Stabilization Board makes the approval as prescribed in the preceding paragraph, he shall consult with the competent Minister and the Minister of Finance. In this case the final responsibility for approval shall rest with the Director-General of the Economic Stabilization Board. The Feed Distribution Kodan shall, when it has obtained the approval of the Director-General of the Economic Stabilization Board prescribed in Paragraph 1, make a public notice of the statement of assets, balance sheet, and a statement of profit and loss and keep them together with the Articles of Incorporation in each office. The statement of assets, balance sheet, and statement of profit and loss referred to in the preceding paragraph shall be audited and approved by the Board of Audit. The Feed Distribution Kodan shall, when it has obtained the approval of the Director-General of the Economic Stabilization Board, pay to the National Treasury the entire profit as determined by stipulations of Cabinet Orders. The books, documents and other necessary records of the Feed Distribution Kodan shall be orderly and clearly written by the said Kodan, and kept in custody available for inspection of the Board of Audit, the Economic Stabilization Board and the competent authorities.

Chapter 5 Supervision and Fostering

Article 20. The Director-General of the Economic Stabilization Board shall direct and supervise the Feed Distribution Kodan in regard to quota program and rationing procedures. The Director-General of the Economic Stabilization Board may, when deemed necessary to secure appropriate distribution of feed, issue for supervision a necessary order, through the competent Minister, to the Feed Distribution Kodan. The competent Minister may, when deemed necessary to secure appropriate distribution of feed, issue, for supervision, a necessary order to the Feed Distribution Kodan under the quota program and rationing procedures determined by the Director-General of the Economic Stabilization Board. The competent Minister or the Director-General of the Economic Stabilization Board may, when deemed necessary, have an official concerned inspection a necessary place to examine the state of business, books, documents or any other necessary matters. In case the official concerned is sent for inspection and examination in accordance with the provisions of the preceding paragraph, he shall carry an indentification certificate with him to prove his post as prescribed by orders.

Article 21. The Feed Distribution Kodan shall prepare rules on remuneration for its officers and employees, when deemed necessary to pay special payment to them, and submit them to the Director-General of the Economic Stabilization Board for his approval. This shall also apply to where a change is to be made thereto. The Director-General of the Economic Stabilization Board shall consult with the competent Minister and the Minister of Finance, when he makes an approval in the preceding paragraph. In this case the final responsibility for permission shall rest with the Director-General of the Economic Stabilization Board.

Article 22. The competent Minister may remove an officer of the Feed Distribution Kodan in case he violated laws and ordinances, the Articles of Incorporation or orders issued on the basis of this Law. The Director-General of the Economic Stabilization Board may also remove an officer of the Feed Distribution Kodan, if he considers that he is not suitable or properly carrying out his duty in connection with the objects and business of the Feed Distribution Kodan.

Article 23. The competent Minister may, when deemed necessary for the operation of the Feed Distribution Kodan, order the liquidator of the Japan Feed Company Ltd., to lease any or all facilities owned by the said Company to the Feed Distribution Kodan. The competent Minister may, if he deems it necessary for carrying on the business of the Feed Distribution Kodan, order or require any owner, any holder or any administrator, including the Minister of Finance, of the facilities to lease any of facilities which have hitherto been available for carrying on the business with respect to distribution, storage, and mixing of feedstuffs, and which may be needed for the benefit of Feed Distribution Kodan. A fair and adequate rental for the use of such facilities prescribed in the preceding paragraph shall be determined by the Director-General of the Economic Stabilization Board based on policies established by him. When the rental is determined in accordance with the provisions of the preceding paragraph, the Feed Distribution Kodan shall lease the facilities referred to in Par.1 or 2 for a period of time not exceeding its life, prescribed in Art.7, Par.1, with the approval of the Director-General of the Economic Stabilization Board. The competent Minister may, when deemed necessary for the operation of the Feed Distribution Kadan, order the liquidator of the Japan Feed Company Ltd., to hand over the Feed Distribution Kadan any or all materials owned by or in possession of the Japan Feed Company. In case the order in the preceding paragraph is issued, the Feed Distribution Kodan shall pay the fair compensations to the parties concerned within one month from the day when the materials mentioned in the preceding paragraph were delivered. The competent Minister shall not issue the order as mentioned in Par.5 unless he has made necessary regulations concerning the compensations in the preceding paragraph with the approval of the Director-General of the Economic Stabilization Board. The competent Minister shall be responsible for not neglecting supervision to cause the Feed Distribution Kodan to take charge of establishments or facilities hired thereby or, when he deems it necessary to do so, to effect insurance thereon. The competent Minister may order or request the persons interested, including the Feed Distribution Kodan and the Ministers concerned, to take prompt measures for the execution of provisions of all the preceding paragraphs.

Chapter 6 Penal Provisions

Article 24. Those who violate provisions prescribed in Par.1, 2, or 5 of the preceding Article shall be liable to penal servitude not exceeding 5 years or a fine not exceeding 50,000 yen.

Article 25. The Feed Distribution Kodan officers and employees who come under and commit an act contrary to one of the following items shall be liable to penal penal servitude not exceeding 5 years or a fine not exceeding 50,000 yen: 1. Those who perform business not prescribed in Art.15, Par.1; 2. Those who violate an order relative to supervision of the Director-General of the Economic Stabilization Board or the competent Minister, prescribed in Art.20, Par.2 or 3.

Article 26. All persons who fail to report as required under this Law or submit a falsified report or refuse, interfere with, or evade inspections shall be liable to a penal servitude not exceeding one year or a fine not exceeding 10,000 yen.

Article 27. Those who commit the crimes as prescribed in the foregoing three Articles may be liable both to a penal servitude and to a fine, according to circumstances.

Article 28. In case a representative of a juridical person or an agent, employee or any other person engaged by juridical person or a person commits the violation mentioned in Art.24, with regard to the business of the respective juridical person or person, the respective juridical person or the person shall be liable to a fine of Art.24, in addition that the offender shall be punished.

Article 29. Those who used the name of the Feed Distribution Kodan or any other similar name in violation of the provisions of Art.8 shall be liable to a fine not exceeding 10,000 yen.

Supplementary Provisions:

Article 30. The date of the enforcement of this Law shall be set forth by Cabinet Orders.

Article 31. The Feed Distribution Control Law shall become null and void at the date of the establishment of the Feed Distribution Kodan, provided, however, that as for the application of penalties to acts done by that date, the old Law shall still be effective after that date.

Article 32. This Law shall become null and void as of April 1, 1946, or at the time of the dissolution of the Economic Stabilization Board, whichever the earlier date. The Feed Distribution Kodan shall be dissolved at the time prescribed in the preceding paragraph. In so far as the application of penal regulations for commitments done up to that time and liquidation of the Feed Distribution Kodan are concerned, however, this Law shall hold good even after that date.

Article 33. The Japan Feed Company Limited shall be dissolved, when the Feed Distribution Kodan has come into existence. The liquidation of the Japan Feed Company Limited in accordance with the provisions of the preceding paragraph shall be completed not later than April 1, 1948.

Article 34. The Government shall appoint an organizing committee to take charge of works relative to the establishment of the Feed Distribution Kodan.

Article 35. The organizing committee shall prepare Articles of In-corporation and obtain the approval of the competent Minister and the Director-General of the Economic Stabilization Board to the same. The organizing committee shall, when the approval referred to in the preceding paragraph has been given, demand to make a payment of the authorized fixed capital without delay.

Article 36. The organizing committee shall, when payment of the authorized fixed capital has been made, transfer its work to the President of the Feed Distribution Kodan without delay. When the President has taken over the work referred to in the preceding paragraph, all of the President, Vice-President, directors and auditors shall effect the registration of the establishment without delay. The Feed Distribution Kodan shall come into being upon the registration of the establishment.

Article 37. The provisions of Art.8 shall not apply for six month after the date of the enforcement of this Law to those other than the Feed Distribution Kodan, who use the name of Feed Distribution Kodan or similar name at the time this Law is put into effect.