I hereby give My sanction to the Imperial Ordinance concerning the partial amendment to the Imperial Ordinance No. 567 of 1946 (regarding the Restrictions of Securities Holdings, etc. by Companies) under the Imperial Ordinance No. 542 of 1945 relating to 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 twelfth day of the second month of the twenty-second year of Showa (February 12, 1947)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Justice. KIMURA Tokutaro
Minister of Finance ISHIBASHI Tanzan
Minister of Commerce and Industry ISHII Mitsujiro
Imperial Ordinance No. 48
A part of the provisions of Imperial Ordinance No. 567 of 1946 shall be amended as follows:
Article 1, paragraph 2. "Article 15" shall be added and inserted after "Article 9."
Article 4, paragraph 2, item 5. "Stocks of a company" shall read "stocks issued by a company." The undermentioned two items shall be added to the same paragraph:"
6. Stocks held by a closed institution (such a designated institution as provided for in Article 1 of Joint Ministry Ordinance of the Ministries of Finance, Foreign Affairs, Home Affairs, and Justice No. 1 of 1945; hereinafter the same).
7. Stocks issued by a company that has been dissolved."
Article 5, paragraph 2, item 1. "Stocks" shall read "stocks, provided that stocks held for the account of a designated company shall be excluded."
Article 5, paragraph 2, item 2. "Item 3 or" shall be deleted and "or item 7" shall be added and inserted after "item 5."
The following item shall be added to the same paragraph:" 3.
Stocks held for the account of a holding company or a closed institution."
The following paragraph shall be added and inserted after paragraph 2 of this Article: "The Holding Company Liquidation Commission shall not give approval to the plan for disposal of stocks when the Securities Coordinating Liquidation Committee (the Committee as provided for by Article 3 of Law No. 8 of 1947: On Coordination, etc. of Disposal of Securities; hereinafter the same) fails to give approval or gives approval subject to certain revisions with respect to the comprehensive program submitted pursuant to the provisions of paragraph 1 of Article 9 of the said Law, in accordance with the provisions of paragraph 2 of Article 8 of the said Law which are applied mutatis mutandis as provided for by paragraph 2 of Article 9 of the said Law.In this case, the Holding Company Liquidation Commission shall direct the necessary revision of the plan for disposal of stocks in accordance with the disposition of the Securities Coordinating Liquidation Committee.
"The preceding two paragraphs" of paragraph 3 of this Article shall read "the preceding three paragraphs," and "the preceding three paragraphs" of paragraph 4 of this Article shall read "the preceding four paragraphs."
Article 10. "A person as provided for by item 3 of paragraph 1 of Article 7" shall read as follows: "An employeee of the company issuing the said stocks."
Article 13. "Other laws or ordinances" in the proviso shall read as follows: "The Temporary Commodities Supply and Demand Adjustment Act or other laws or ordinances promulgated after the enforcement of this Imperial Ordinance."
Article 13-2(newly inserted Article). A designated company, a subsidiary company, or an affiliated company shall not become a party to or a member of a juridical person or any other organization (excluding companies), whose business includes the control of sales ordistribution of goods.
The provisions of the proviso to the preceding Article shall be applied mutatis mutandis to such a case as provided for by the preceding paragraph.
Article 14, paragraph 2. "Other laws or ordinances" shall read as follows:
"The Temporary Commodities Supply and Demand Adjustment Act and other laws or ordinances promulgated after the enforcement of this Imperial Ordinance."
Article 15. The following two paragraphs shall be added:
A designated company, a subsidiary company, or an affiliated company shall, in case it is a party to or a member of a juridical person or any other organization whose business includes the control of sales or distribution of goods at the time as designated by the Prime Minister, withdraw from the said organization or dispose of the said stocks, with exception of such disposal as provided for by other provisions, in accordance with the provisions of Cabinet Ordinance,
provided that the foregoing shall not apply to such a case whereby the said organization has dissolved within the period of time as provided for by Cabinet Ordinance.
The provisions of paragraph 2 of the preceding Article shall apply mutatis mutandis to such a case as provided for by the preceding paragraph.
Article 18, item 1. After "acquisition" the following shall be added: "Or requiring of acquisition." The following item shall be added to the same Article:" 7.
In case of becoming a party to or a member of an organization, or of failure to withdraw from an organization in violation of the provisions of Article 13-2 or paragraph 2 of Article 15. "Article 19, item 3. The following item shall be added after item 3 and the following items shall be moved down in turn:"
4. A person who transfers stocks in violation of the provisions of Article 9."
Supplementary Provisions:
This present Ordinance shall come into force as from the day of its promulgation.
The delegation by proxy of voting rights, in accordance with the provisions of paragraph 5 of Article 4 (including such a case whereby application mutatis mutandis is made as in paragraph 2 of Article 5) of Imperial Ordinance No. 567, 1946 (hereinafter referred to as the Ordinance), with respect to stocks as provided for in items 6 and 7 of paragraph 2 of Article 4 and item 3 of paragraph 2 of Article 5 of the Ordinance shall lose effect on the day of the enforcement of this Imperial Ordinance.
With respect to the application of the provisions of paragraph 5 of Article 4 of the Ordinance as applied mutatis mutandis by paragraph 2 of Article 5 of the Ordinance for stocks coming under the proviso of item 1 of paragraph 2 of Article 5 of the Ordinance, "on the day of the enforcement of this Imperial Ordinance" in the said paragraph shall read "on the day of the enforcement of Imperial Ordinance No. 48 of 1947."
With respect to the application of the provisions of paragraph 1 of Article 15 of the Ordinance to contracts which are actually in existence on the day of the enforcement of this Imperial Ordinance and newly violate the provisions of Article 13 of the Ordinance or those of paragraph 1 of Article 14 of the Ordinance, "at the time of the enforcement of this Imperial Ordinance" in Article 15 shall read "at the time of enforcement of Imperial Ordinance No. 48 of 1947."