I hereby promulgate the Fisheries Cooperative Association Law. Signed:HIROHITO, Seal of the Emperor This fifteenth day of the twelfth month of the twenty-third year of Showa (December 15, 1948) Prime Minister YOSHIDA Shigeru Law No.242 Fisheries Cooperative Association Law CONTENTS Chapter I. General Provisions (Art.1 to Art.10) Chapter II. Fishermen's Cooperative Association Section 1. Business (Art.11 to Art.17) Section 2. Membership (Art.18 to Art.31) Section 3. Administration (Art 32 to Art.58) Section 4. Establishment (Art.59 to Art.67) Section 5. Dissolution and Liquidation (Art.63 to Art.77) Chapter III. Fishermen's Production Association (Art.78 to Art.86) Chapter IV. Federation of Fishermen's Cooperative Associations (Art.87 to Art.92) Chapter V. Marine Products Processing Cooperative Association (Art.93 to Art.96) Chapter VI. Federation of Marine Products Processing Cooperative Association (Art.97 to Art.100) Chapter VII. Registration (Art.101 to Art.121) Chapter VIII. Supervision (Art.122 to Art.127) Chapter IX. Penal Provisions (Art.128 to Art.131) Supplementary Provisions Chapter I. General Provisions

(Purpose of Law) Article 1. This Law has for its purpose advancement of the national economy by increasing fisheries productivity and improving the economic and social status of fishermen and marine products processors through the development of fisheries cooperative association.

(Types) Article 2. The Fisheries Cooperative Associations (hereinafter referred to as Association in this Chapter) shall be the Fishermen's Cooperative Association, Fishermen's Production Association and Federation of Fishermen's Cooperative Associations and the Marine Products Processing Cooperative Associations and Federation of Marine Products Processing Cooperative Associations.

(Title) Article 3. Any Association shall use in its title such letters as Fishermen's Cooperative Association, Fishermen's Production Association, Federation of Fishermen's Cooperative Associations, Marine Products Processing Cooperative Association or Federation of Marine Products Processing Cooperative Associations. 2 No person other than a Fisheries Cooperative Association shall use in its title such letters as Fishermen's Cooperative Association, Fishermen's Production Association, Federation of Fishermen's Cooperative Associations, Marine Products Processing Cooperative Association or Federation of Marine Products Processing Cooperative Associations.

(Objective of Association) Article 4. The objective of each Association shall be to furnish the direet service for the benefit of its membership consistent with the functions which it is authorized to perform.

(Juridical Person) Article 5. Any Fisheries Cooperative Association shall be a juridical person.

(Official Address) Article 6. The efficial address of any Association shall be the place where its principal office is located.

(Relation to the Law relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade) Article 7. In application of the Law relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade (Law No.54 of 1947), the Association excluding those which are given below shall be deemed to be the Associations conforming to all of the items of Art.24 of the same Law: 1. Any Fishermen's Cooperative Association whose qualification for membership mentioned in Art.18, Par.2 is limited to those who operate or engage in one or several types of fisheries given below and the management scale of more than one-third of the members, who are fisheries operators, are not less than the provisions given below; Fisheries Type Management scale Tuna-bonito fisheries Fishing-boats not less than 20 gross tons managed, 2 boats Small trawl fisheries operated in Sea areas west of Long.130°E. Sets managed, 2 sets Seine net (including purse seine) fisheries Nets managed with a net boat of not less than 20 gross tons, 2 nets Fixed net fisheries. Constantly employing 5 fisheries employees 2. Any Marine Products Processing Cooperative Association of which more than one-third of the total members constantly employ more than 10 fisheries employees; 3. Any Federation of Fishermen's Cooperative Associations or Federation of Marine Products Processing Cooperative Associations more than one-third of whose members as prescribed in Art.88, item 1 or item 2 or Art.98, item 1 are such Associations as prescribed in the preceding two items; 4. Any Federation of Fishermen's Cooperative Associations or Federation of Marine Products Processing Cooperatiye Associations more than one-third of whose members as prescribed in Art.88, item 1 or item 2 or Art.98, item 1 are such Associations or Eederations as prescribed in the preceding three items. 2 In application of the Law given in the preceding paragraph to the Associations as prescribed in items 1, 3 and 4 of the preceding paragraph, the Associations shall be deemed to be conforming to the necessary matters in Art.24, item 3 of the same Law.

(Exemption from Taxation) Article 8. With regard to the amount equivalent to the dividend of the surplus fund executed by the Association according to the proportion that the functions thereof have been utilized or the proportion that the members have engaged in the business of the Association no tax shall be levied upon that Association.

(Registration) Article 9. Any matter which is required to be registered under this Law may not be set up against a third person until after registration has been effected.

(Definition) Article 10. 'Fisheries "as used in this Law means a business to carry on gathering, taking or culturing of marine animals and plants, and" Marine Products Processing"means a business to carry on manufacturing foodstuff, feed stuff, fertilizer, paste, oil or hide with marine animals and plants as their raw materials or stuffs. 2 "Fishermen" as used in this Law means individuals who operate fisheries, and employees who engage in gathering, taking or culturing of marine animals and plants on behalf of fisheries operators, and"Marine Products Processors means individuals who operate marine products processing.

Chapter II. Fishermen's Cooperative Association

Section 1. Business

(Kinds of Business) Article 11. A Fishermen's Cooperative Association (hereinafter referred to as "Association" in this Chapter and in Chapter IV) may engage in part of whole of the following functions: 1. Making loans through advancement of funds necessary for reasonable business or personal requirements of its members; 2. Making available banking facilities for the receiving of deposits of its members; 3. Supplying necessary goods for the business and family use of its members; 4. Activities making available common facilities necessary for reasonable business or personal requirements of its members; 5. Transport, processing, storage or sale of fish catches and other things produced by its members; 6. Activities contributing to propagation and conservation of marine animals and plants and exploitation of fishing grounds; 7. Establishments of such equipments necessary for the fisheries of its members as moorage, ship-landings and fish shoals; 8. Activities of prevention of sea disaste, disaster relief, and intercession of fishing boat insurance for its members; 9. Promotion of the benefit and welfare of its members; 10. Activities concerning the elevation of the fisheries technique of its members, education for infusion of knowledge of the business of the Association and dissemination of general information for its members; 11. Accomplishment of such collective bargaining contract that will improve the economic conditions of its members; 12. Collateral activities required for the accomplishment of any of the preceding items. 2 Any Association without capital stock (hereinafter referred to as "non-capitalized association" in this Chapter) may not carry on the activities mentioned in item 1 or 2 of the preceding paragraph, notwithstanding the provision of the preceding paragraph. 3 Any Association may, in accordance with the provisions of the articles of incorporation, make its facilities available to nonmembers. However, the business transacted for non-members shall be less than the total financial volume of business for its members during the business year. 4 Any Association which carries on the activities mentioned in par.1, item 1 or 2 may guarantee the debt which the members of association bear towards the banking organ authorized to do business in accordance with the provisions of articles of incorporation, or may collect the debt concerned on commission of the said banking organ.

(Issuance of Warehouse Warrants) Article 12. Any Association carrying on the business of storage mentioned in par.1, item 5 of the preceding Article may issue warehouse warrants in respect of the goods deposited by its members, subject to the permission of the competent Minister. 2 The Association permitted as mentioned in the preceding paragraph shall, upon demand by a depositor, furnish him with a warehouse warrant. 3 The provisions of Art.627, par.2 and Art.628 of the Commercial Code (Law No.48 of 1899) shall apply with the necessary modifications to the warehouse warrant mentioned in par.1. 4 The provisions of Art.4, Arts.8 to 10 inclusive and Art.12 of the Warehousing Law (Law No.41 of 1935) shall apply with the necessary modifications to the case mentioned in par.1.

Article 13. Any warehouse warrant prepared by the Association permitted as mentioned in par.1 of the preceding Article shall bear such letters as "Warehouse Warrant" on whose top the title of that Association is included. 2 No warrant, pawn warrant or warehouse warrant prepared by any other person than an Association shall bear such letters as "Fisheries Cooperative Association Warehouse Warrant."

Article 14. The period of storage of the deposited goods for which a warehouse warrant is issued shall be not more than six months from the date of its deposit. 2 The period mentioned in the preceding paragraph may be renewed within the extent of six months. However, if the holder of the warrant at the time of its renewal is not a member of the Association, it shall be limited to the cases where any utilization by the members is not impeded thereby.

Article 15. The provisions of Arts.616 to 619 inclusive and Arts.624 to 626 inclusive of the Commercial Code shall apply with the necessary modifications to the case where an Association has issued any warehouse warrant.

(Effect of Collective Bargaining Contract) Article 16. In order to cause the collective bargaining contract mentioned in Art.11, par.1, item 11 to be effective, it shall be made in writing. 2 The part of a contract concluded by a member that contravenes the standards established in the collective bargaining contract mentioned in the preceding paragraph shall be deemed null and void and the standards relating to that part shall be substituted therefor.

(Operating Fisheries) Article 17. Any Association who has all of the following conditions involved in its organization may operate, in addition to the functions as prescribed in Art.11, fisheries and collateral activities therewith: 1. The number of the households of the members as prescribed in Art.18, par.1 being over two-thirds of the number of the households of the fishermen who have their residence within the area of the Association; 2. A majority of the members being engaged in the fisheries or collateral businesses therewith operated by the Association; 3. The Association being a capitalized Association as prescribed in Art.19, par.1. 4. The units of one member's capitalization not exceeding double the average units of the whole members; 5. The whole units of capitalization held by the members who are engaged in the fisheries or collateral businesses therewith operated by the Association being a majority of the whole units of capitalization of the Association; 6. Two-thirds or more of the persons engaged in the fisheries or collateral businesses therewith operated by the Association being its members or those living in the same households. 2 In case any Association operating the fisheries and collateral businesses therewith as prescribed in the preceding paragraph has come to lose any of the items of the conditions mentioned in the same paragraph, it shall without delay make notice thereof to the administrative authorities and at the same time it shall make necessary alterations in the articles of incorporation in order to close the business concerned. In this case, the Association may continue to carry on the business until such alterations in the articles of incorporation have been effected.

Section 2. Membership

(Qualifications for Membership) Article 18. Any person qualified for membership of an Association shall be a fisherman who has his residence within the area of the Association and operates or engages in fisheries for over the period in a year from thirty days to ninety days which shall be determined by the articles of incorporation. 2 In the case of any Association whose area is larger than the sphere of a city, town or village, special ward or administrative ward, the fishermen qualified for membership as prescribed in the preceding paragraph may be limited to those operating or engaging in fisheriers of specific types which shall be determined by the articles of incorporation. 3 In addition to those prescribed in the preceding two paragraphs, any Association may admit, in accordance with the articles of incorporation, marine products processors having their residence within the area of the Association who are not members of any Marine Products Processing Cooperative Association, and may admit Fishermen's Production Associations or fishermen other than those as prescribed in par.1 or the preceding paragraph.

(Capitalization) Article 19. An Association may make its members capitalize in accordance with the articles of incorporation. 2 Each member of a capitalized association as prescribed in the preceding paragraph (hereinafter referred to as "capitalized association" in this Chapter) shall possess one or more units of capitalization. 3 The amount of each unit of capitalization shall be equal. 4 The liability of a member shall be limited to the amount of his investment. 5 No member may exercise the right of setoff against the Association with respect to the payment for his investment.

(Transfer of Share) Article 20 No member may transfer his share without the assent of the capitalized association. 2 In case any person other than a member desires to acquire a share by transfer, he shall take the same procedure as in the case of admission. 3 Any transferee of share shall succeed to the rights and obligations of the transferor in respect of the share. 4 No share may be held jointly by the members.

(Voting Right and Election Right) Article 21. Each member of any Association shall be entitled to only one voting right and one election right of officers. However, any member as prescribed in Art.18, par.3 (hereinafter referred to as "associate member" in this Chapter and Chapter IV) shall have no voting right and election right. 2 Any member may, in accordance with the articles of incorporation, exercise his voting right or election right on the matters previously noticed of in accordance with the provision of Art.41, par.3 by a written ballot or his proxy. 3 Any member who exercises his voting right or election right in accordance with the provision of the preceding paragraph shall be deemed to be present at the meeting. 4 No proxy may represent more than one member for such voting purpose. 5 Any proxy shall submit to the Association a document certifying his attorney.

(Charge of Assessment) Article 22. Any Association may, in accordance with the articles of incorporation, charge assessment upon its members. 2 No member may exercise the right of setoff against the Association with respect to the payment of assessment mentioned in the preceding paragraph.

(Monetary Obligation for Contractual Infringement) Article 23. Any Association may provide in the articles of incorporation for monetary penalties in cases where any member fails to comply with his contractual obligations to the association.

(Exclusive Utilization) Article 24. Members of an Association may, in accordance with the articles of incorporation, authorize the Association to enter into contracts with members for the exclusive utilization of a part of the facilities of the Association by its member for a specific period of time not exceeding one year. 2 The contract mentioned in the preceding paragraph shall be voluntary and services carried on by an Association shall not be denied to a member because of his refusal to enter into such a contract.

(No Restriction on Admission) Article 25. No eligible applicant for membership shall be refused by any Association without due cause or no heavier condition shall be imposed upon him than those attached to other members at such application.

(Secession) Article 26. Any member may secede from the Association at the end of the business year by giving a minimum of sixty days'notice. 2 A longer period than mentioned in the preceding paragraph may be designated in the articles of incorporation. However, the period of the required notice may not exceed one year.

Article 27. Any member shall secede from an Association upon the occurance of any of the following events: 1. Disqualification for membership; 2. Death, or dissolution; 3. Expulsion. 2 Expulsion may be exercised against a member by a resolution at a general meeting upon the occurrence of any of the following events. However, it shall not be effective against such member until notices of such action have been communicated to him: 1. When a member has failed to utilize the facilities of the Association for an unreasonably long period of time; 2. When a member has continually refused to comply with his obligations such as payment of investment and assessment, etc.; 3. When a member has come under such cause as prescribed in the articles of incorporation.

(Refundment of Seceder's Share) Article 28. Any person who has seceded from a capitalized association may, in accordance with the articles of incorporation, demand the refundment of the whole or part of his share. 2 The share mentioned in the preceding paragraph shall be determined in accordance with the assets of the said association as they stand at the end of the business year in which such secession has been effected.

Article 29. The right of demand in accordance with the provision of the preceding Article shall be extinguished by prescription, if it has not been exercised for two years from the time of his secession.

Article 30. Any capitalized association may suspend refundment of the share of a person who has seceded from the association until he has completely performed his obligation to it.

(Reduction of Number of Units of Capitalization) Article 31. Any member may, in accordance with the articles of incorporation, reduce the number of the units of capitalization held by him. 2 The provisions of Arts.28 and 29 shall apply with the necessary modifications to the case mentioned in the preceding paragraph.

Section 3. Administration

(Particulars to be included in Articles of Incorporation) Article 32. The articles of incorporation of any Association shall include the following particulars. However, any non-capitalized association who does not carry on the functions mentioned in item 3 to 5 inclusive of Art.11, par.1, may not specify in its articles of incorporation the particulars mentioned in items 6, 8 and 9, and the other noncapitalized associations may not specify the particular mentioned in item 6: 1. Functions which the Association shall be authorized to perform; 2. Title of the Association; 3. Area of the Association; 4. Location of the office; 5. Qualifications for membership and provisions for admission to and secession from the Association; 6. Matters relative to the amount of each share and provisions as to payment for such shares and maximum number of shares to be owned by a member; 7. Provisions for charge of assessments; 8. Provisions relating to the distribution of surplus funds and the disposition of losses; 9. Provisions regarding the amount and accumulation of reserve funds; 10. Provisions relating to the number, division of duties and election of officers; 11. Business year; 12. Method of public notice. 2 In addition to the particulars mentioned in the preceding paragraph, in the event that any Association has determined the period of duration of the Association, the period shall be included, in the event that any Association has determined those who make investment of assets other than money, such particulars as their names, the kinds and prices of such assets and numbers of shares to be given to such persons, shall be included in the articles of incorporation. 3 The competent Minister may provide for uniform forms to be used in drafting articles of incorporation for Associations.

(Particulars which may be Adopted in By-laws) Article 33. Any Association may, except for the particulars to be provided for in the articles of incorporation, provide for the following matters in its by-laws: 1. Provisions relating to a general meeting and meeting of representatives; 2. Provisions relating to management of business affairs and account; 3. Provisions relating to officers; 4. Provisions relating to members; 5. Any other provisions as deemed necessary for carrying out the purpose of this Law.

(Fixed Number and Election of Officers) Article 34. There shall be directors and auditors for any Association as the officers. 2 Any Association shall have a minimum of five directors and two auditors. 3 Officers shall be elected at a general meeting of the members in accordance with the articles of incorporation. However, officers at the time of establishment of the Association shall be elected at the constituent general meeting. 4 Officers shall be elected by secret ballot. 5 One member shall have one vote of election. 6 Persons who have polled the majority in accordance with the method of election as prescribed in the articles of incorporation, shall be elected. 7 At least three-fourths of the directors shall be its members (excluding associate members). However, at least three-fourths of the directors at the time of establishment of the Association shall be elected only from among those fishermen who have agreed to the establishment of the Association.

(Term of Office of Officers) Article 35. The term of office of officers of an Association shall be one year. However, the articles of incorporation may provide for terms of office not exceeding two years. 2 The term of office of officers at the time of establishment shall be the same as that resolved at the constituent general meeting. However, the term shall not be more than one year.

(No Concurrent Appointment of Officers) Article 36. Any director shall concurrently be neither an auditor nor an employee, of the Association, and any auditor, neither a director nor an employee of the Association.

(No Double Agency of Directorship) Article 37. Any auditor of an Association shall act on behalf of such Association in any contract or litigation between the Association and the director thereof.

(Convention of General Meeting) Article 38. The directors of an Association shall convene not less than one general meeting of the membership during each business year.

Article 39. The directors shall convene a general meeting within 20 days from the date of the presentation to the board of directors of any petition requesting such a meeting with a statement of the purposes and reasons therefor signed by one-fifth or more of the voting membership (excluding associate members).

Article 40. In case there are no directors available, or the directors without justifiable reason fail to convene a general meeting of the membership at the presentation of request mentioned in the preceding Article, any one of the auditors of the Association shall convene such a meeting.

(Notice towards Members) Article 41. Any notice or peremptory notice of an Association to be given towards its members shall be sufficient to be addressed to their permanent residences which have been entered in the list of members (or, if they have especially informed the Association of the places for receiving such notice or peremptory notice, to such places). 2 The notice or peremptory notice mentioned in the preceding paragraph shall be deemed to have reached at such time as it should have reached in the ordinary course of affairs. 3 A notice of convening a general meeting shall be given ten days prior to the date of the meeting with agenda of the meeting.

(Keeping and Inspection of Articles of Incorporation and Other Documents) Article 42. The directors shall keep a copy of the articles of incorporation, by-laws and minutes of each general meeting of each office of the Association and a list of the members at the principal office. 2 A list of the members shall include the following particulars. However, any noncapitalized association may not prescribe those mentioned in items 3 and 4, and any Association who does not operate fisheries and collateral activities therewith as prescribed in Art.17 need not prescribe those mentioned in item 5: 1. Full name or title as well as permanent residence; 2. Date of admission and whether a voting member or associate member; 3. Number of shares of stock held and the dates acquired by each number; 4. Amount of shares paid up and the dates; 5. In case the member does not engage in the fishery or collateral activities therewith operated by the Association, to the effect. 3 Any member or creditor of the Association may inspect the documents specified in par.1.

(Submitting, Keeping and Inspection of Documents relating to Settling Accounts) Article 43. The directors shall, one week prior to the day fixed for an ordinary general meeting of members, submit to the auditors a business report an inventory, a balance sheet and a plan for the disposal of surplus fund or loss in respect of a capitalized association and a business report and inventory in respect of a non-capitalized association who does not carry on the functions mentioned in Art.11, par.1, items 3 to 5 inclusive, and keep them at the principal office. 2 Any member or creditor of the Association may inspect the documents mentioned in the preceding paragraph. 3 In case the documents mentioned in par.1 are submitted at an ordinary general meeting of members, they shall be accompanied by a written opinion of the auditors.

(Demand for Re-election of Officers) Article 44. Voting members (excluding associate members) may, with the joint signature of one-fifth or more of the whole number of them, apply for re-election of any officers through the representatives selected from among themselves. 2 The demand for the re-election as prescribed in the preceding paragraph shall be done with respect to the whole directors or auditors at the same time. However, this shall not apply to any re-election of the director or auditor who has contravened any laws or ordinances, measures of the administrative authorities taken under laws or ordinances, the articles of incorporation or by-laws of the Association. 3 The demand for the re-election as prescribed in par.1 shall be submitted to the board of directors in a document stating the reasons of such re-election. 4 In case such re-election as prescribed in the preceding paragraph has been demanded, the board of directors shall lay the demand before a general meeting of its members. 5 In case such statement as prescribed in par.3 has been submitted, the board of directors shall forward it to the officers concerned seven days prior to the day on which the general meeting will be held and give them an opportunity to express their opinion thereupon at the general meeting.

(Modified Application of Civil Code to Officers) Article 45. The provisions of Art.44, par.1, Art.52, par.2, Arts.53 to 56 inclusive, Art.59 and Art.61, par.1 of the Civil Code (Law No.89 of 1896) shall apply with the necessary modifications to the directors and auditors of the Association.

(Councillors and Chief Accountants) Article 46. Any association may appoint councillors or chief accountant and make them carry out the work of the Association in its principal or subordinate offices. 2 The appointment and discharge of the councillors or chief accountants shall be decided by the majority of directors. 3 The provisions of Art.38, pars.1 and 3 and Art.39, Art.41 and Art.42 of the Commercial Code shall apply with the necessary modifications to the councillors.

Article 47. Any voting member may, with the consent of one-tenth or more of the whole number of voting members, apply to the directors for the discharge of any councillors or chief accountant. 2 In the came of the preceding paragraph, any voting member making such an application shall submit a statement of reasons therefor. 3 In case the application mentioned in par.1 has been filed, the directors shall decide whether or not the discharge of the councillors or chief accountant concerned is to be made. 4 The directors shall forward the statement mentioned in par.2 to the councillors or chief accountant concerned seven days prior to the day when the decision is to be made in accordance with the provisions of the preceding paragraph, and give them an opportunity to express their opinion thereupon.

(Matters to be decided by General Meeting) Article 48. The following matters shall be decided at a general meeting of members of the Association: 1. Amendment of the articles of incorporation; 2. Establishment, amendment and abolition of the by-laws of the Association; 3. Establishment and alteration of business plan to be followed during the business year; 4 Method of assessment and collection of expenditures; 5. Maximum rate of interest which may be charged on loans; 6. Approval of the business report, inventory, balance sheet, financial plan for distribution of surplus funds, or if the Association has sustained a loss, the plan for making up for such loss; 7. Maximum amount of loans during the business year; 8. Presenting a petition, bringing an action or reconciliating; 9. Enacting, obtaining, losing or alterating of fishery rights, real rights relating to them or real rights relating to immovable properties (including ships over 20 gross tons or over capacity of 200 koku). 2 Any resolution relating to amendment to the articles of incorporation shall be effective with approval of the administrative authorities. 3 The provisions of Art.63. par.2, Art.64 and Art.65 shall apply with the necessary modifications to the case where the application for the approval mentioned in the preceding paragraph has been filed.

(Proceedings of General Meeting) Article 49. Except as otherwise provided for in this Law, the articles of incorporation or by-laws, the proceedings of a general meeting of members shall be decided by a majority vote of the members present;in case of a tie, the chairman shall have the casting vote. 2 The chairman who shall preside over the meeting shall be elected by the membership on each such occasion. 3 The chairman shall have no vote as a member.

(Matters to be decided by Special Proceedings) Article 50. The following matters shall be required to be decided by two-thirds or more of the votes of the members present at a meeting at which one half or more of the total voting members are present: 1. Amendment of the articles of incorporation; 2. Dissolution or amalgamation of the Association; 3. Expulsion of members; 4. Enacting, obtaining, losing or altering of fishery rights or real rights relating thereto.

(Modified Application of Civil Code to General Meeting) Article 51. The provisions of Art.64 and Art.66 of the Civil Code shall apply with the necessary modifications to a general meeting of members of an association. In this case, in Art.64, "Art.62" shall read "Art.41, par.3 of the Fisheries Cooperative Association Law."

(Meeting of Representatives) Article 52. There may be a meeting of representatives which is authorized to take the place of a general meeting of members in accordance with the provisions of articles of incorporation in any association with membership in excess of 200 voting members. 2 The representatives shall be voting members. 3 Minimum number of the representatives shall be 50. 4 The provisions of Art.34, pars.3 to 6 inclusive shall apply with the necessary modifications to the representatives. 5 The provisions relating to the general meeting of members shall apply with the necessary modifications to the meeting of representatives. However, no election of officers of representatives, no selection of organization committee as prescribed in Art.70, par.1, may be exercised, or any matters mentioned in Art.50 may not be resolved, at the meeting or representatives.

(Reduction of Amount of Units of Capitalization) Article 53. In case a capitalized association has adopted a resolution for the reduction of the amount of the units of capitalization, it shall prepare an inventory and a balance sheet within two weeks from the day upon which such resolution has been adopted. 2. A capitalized association shall, within the period mentioned in the preceding paragraph, issue public notice to its creditors to the effect that they shall raise objection, if any, within a certain period and also give notice to that effect respectively to each of such creditors as are known to it. 3 In the case of the preceding paragraph, such period shall not be less than one month.

Article 54. If any creditor has failed to raise any objection within the period mentioned in par.2 of the preceding Article he shall be deemed to have approved the reduction of the amount of each unit of capitalization. 2 If any creditor has raised any objection thereto, the capitalized association shall effect performance or offer adequate security or effect trust of adequate property with a trust company or a bank carrying on trust business, in order that such creditor may receive performance.

(Reserve Fund and Amount Carried Forward) Article 55. At the close of each business year, any Association (excluding the non-capitalized associations not carrying on the functions as mentioned in Art.11, par.1, items 3 to 5 inclusive;hereinafter the same in this Article and Art.56) shall set aside as reserve fund a minimum of one-tenth or more of the surplus fund of each business year untill the reserve fund reaches the maximum amount as prescribed in its articles of incorporation. 2 The amount of the reserve fuud prescribed in the articles of incorporation mentioned in the preceding paragraph shall not be less than one-half of the total amount of stock in case of any capitalized association. 3 The reserve fund mentioned in par.1 shall be used only for the payment of losses. 4 Any Association shall carry forward five per cent or more of the surplus fund of each business year to the following business year for the purpose of appropriating for carrying on the function mentioned in Art.11, par.1, item 10.

(Distribution of Surplus Fund) Article 56. Any Association shall not effect any distribution of surplus fund until after it has made up for losses therewith and subtracted therefrom the reserve fund mentioned in par.1 of the preceding Article, and the amount carried forward mentioned in par.4 of the same Article. 2 In case of a capitalized association, the remaining fund shall be distributed by first paying a dividend not exceeding five percent per year on the units of capitalization and the further remainder, if any, shall be distributed to the users in proportion to the extent of their use of the facilities of the Association, in accordance with the articles of incorporation;(in case of a non-capitalized association, the remaining fund, if any, shall be distributed to the users inproportion to the extent of their use of the facilities.

Article 57. Any capitalized association may, in accordance with the articles of incorporation, appropriate the surplus fund which is to be divided to its members to their payment for shares until such payment has been completed.

(No Acquiring Share of Members) Article 58. Any capitalized association may not acquire any share of its members or receive it as the object of pledge.

Section 4. Organization

(Number of Promoters) Article 59. Twenty or more fishermen shall be required to become promoters in organizing an Association.

(Preliminary Meeting for Organization) Article 60. Promoters shall prepare in advance a program for the scope of business, area of function and qualifications for membership of the proposed association and hold a preliminary meeting for organization after giving public notice of the program together with the date and place of the meeting a certain period of time prior to the day of the meeting. 2 The period of time mentioned in the preceding paragraph shall not be less than two weeks.

Article 61. At the preliminary meeting for organization, drafters of the articles of incorporation shall be selected from among the fishermen who are present thereat and shall determine the area, qualifications for membership and other principal matters necessary for formulation of the articles of incorporation. 2 The drafters of the articles of incorporation shall be twenty or more. 3 The matters to be determined at the preliminary meeting shall require a consent of a majority of the fishermen present thereat.

(Constituent General Meeting) Article 62. The promoters, upon completion of formulation of the articles of incorporation by the drafters, shall hold a constituent general meeting after giving public notice of the draft together with the date and place of the meeting a certain period of time prior to the day of the meeting. 2 The period of time mentioned in the preceding paragraph shall not be less than two weeks. 3 The approval of the articles of incorporation formulated by the drafters, adoption of business plan and other matters necessary for the organization shall be resolved by the constituent general meeting. 4 At the constituent general meeting, the articles of incorporation mentioned in the preceding paragraph may be amended. However, this shall not apply to the provisions of its area and qualifications for membership therein. 5 Any agenda of the constituent general meeting shall be decided by two-thirds or more of the votes of those present in the case where one-half or more of those qualified for membership (excluded associate members) who have given their consent for the organization to the promoters by the day of the meeting are present thereat. 6 The provisions of Art.21, par.1 of this Law and Art.66 of the Civil Code shall apply with the necessary modifications to the constituent general meeting.

(Application for Approval of Organization) Article 63. The promoters shall, without delay after the completion of the constituent general meeting, make application to the administrative authorities for approval of the organization, submitting the articles of incorporation and business plan to the same authorities. 2 The promoters shall, when demanded by the administrative authorities, furnish reports on the organization of the association to the same authorities.

(Approval of Administrative Authorities) Article 64. In case the application as prescribed in par.1 of the preceding Article has been filed, the administrative authorities shall approve the organization of the Association except when the procedural requirements for organization, the contents of the articles of incorporation and business plan submitted by the promoters do not accord with the provisions of laws or ordinances or measures taken by the administrative authorities under laws or ordinances.

Article 65. In case the application for approval as prescribed in Art.63, par.1 has been submitted, the administrative authorities shall notify the promoters within two months whether or not the approval has been given therefor. 2 In case the administrative authories do not give any notice within the period as mentioned in the preceding paragraph, the application shall be deemed to have been approved at the time of the expiration of the period. In this case, the promoters may apply to the administrative authorities for a certificate of approval therefor. 3 The period as prescribed in par.1 shall not include the time from the day upon which the administrative authorities demanded to furnish reports as prescribed in Art.63, par.2 to the arrival of the reports to the authorities. 4 In case the administrative authorities disapproved the application, the reasons for such action shall be included in the notice of disapproval. 5 If, in case where the promoters have applied to the court for any hearing and ruling upon revocation of the disapproval, the court adjudges that the disapproval should be revoked, the approval shall be deemed to have been made at the date when the judgement was passed. In this case, the provision of the latter part of par. 2 shall apply with the necessary modifications thereto.

(Handing Duties Over to Directors) Article 66. In case the approval for organization has been given, the promoters shall without delay hand their duties over to the directors. 2 In case the directors of a capitalized association have taken over the duties of the promoters in accordance with the provisions of the preceding paragraph, they shall cause the members of the association to pay the first quota of capitalization. 3 Those who invest assets other than money shall deliver the whole of the said assets at the date of payment of the first quota of capitalization. However, they may effect, the registration thereof or other deeds necessary for enabling the creation or transfer of rights to be effective as against a third person, after the completion of organization of the Association.

(Time of Establishment) Article 67. The Association shall be established upon the registration of its establishment at the location of its principal office.

Section 5. Dissolution and Liquidation

(Causes of Dissolution) Article 68. Any Association shall be dissolved by any of the following causes: (1) Resolution at a general meeting of the members; (2) Amalgamation of Associations; (3) Bankruptcy of Association; (4) Expiration of period of duration; (5) Order of Dissolution as provided for in Art.124, par.2. 2 Any dissolution of an Association by resolution at a general meeting of members shall not come into effect unless it obtains the approval therefor of the administrative authorities. 3 The provisions of Art.63, par.2, Arts.64 and 65 shall apply with the necessary modifications to the application mentioned in the preceding paragraph. 4 In addition to the cases enumerated in par.1, any Association shall be dissolved with the reduction of the number of its voting members to less than twenty. 5 In case an Association has been dissolved in accordance with the provision of the preceding paragraph, it shall without delay give notice thereof to the Administrative authorities.

(Procedures of Amalgamation) Article 69. A resolution authorizing amalgamation shall be adopted at a general meeting of the members of each Association. 2 The amalgamation shall be devoid of effect if any approval of the administrative authorities is not obtained. 3 The provisions of Art.63, par.2, Arts.64 and 65 shall apply with the necessary modifications to the application as prescribed in the preceding paragraph. 4 The provisions of Arts.53 and 54 shall apply with the necessary modifications to the amalgamation of capitalized associations.

Article 70. In order that any Association may be established in consequence of amalgamation, the organization committee selected from among members (excluding associate members of each Association) at the general meeting of members of respective Associations shall jointly prepare its articles of incorporation, select officers and execute other matters requisite for its establishment. 2 The principal clause of Art.34, par.7 shall apply with the necessary modifications to the selection of directors out of the officers as prescribed in the preceding paragraph. 3 The provision of Art.50 shall apply with the necessary modifications to the selection of the organization committee as prescribed in par.1.

(Registration of Amalgamation) Article 71. The amalgamation of Associations shall take its effect when the Association which continues to exist after the amalgamation of the Association which comes into existence in consequence of its amalgamation, has effected the registration as prescribed in Art.107 in the locality where its principal office is situated.

(Succession of Rights and Obligations in Consequence of Amalgamation) Article 72. The Association which continues to exist after the amalgamation or the Association which comes into existence in consequence of amalgamation shall succeed to the rights and obligations of the Association which has cased to exist in consequence of amalgamation (including such rights and obligations as the last-mentioned Association possesses under the permission, approval or any other disposition effected by the administrative authorities, in respect of the business carried on thereby).

(Liquidator) Article 73. In case an Association has been dissolved on any account other than its amalgamation or bankruptcy, the directors shall become the liquidators therefor except for the cases when at a general meeting of its members liquidators have been selected from among persons other than the directors.

(Business of Liquidator) Article 74. The Liquidators shall, without delay upon assuming office, investigate the actual conditions of the property of the Association, prepare an inventory in respect of a non-capitalized association, an inventory and balance sheet in respect of a capitalized association, and plan for disposition of the assets and submit the same to a general meeting of its members for approval.

Article 75. The liquidotors shall not dispose of the assets of the Association until after paying all of its liabilities.

Article 76, When the affairs of liquidation have been completed, the liquidators shall without delay prepare a statement of the final accounts and submit the same to a general meeting of its members for approval.

(Modified Application of Civil Code and Non-litigans Case Procedure Law) Article 77. The provisions of Arts.73, 75, 76, 78 through 83 of the Civil Code and Art.35, par.2, Arts.36 and 37-(2), Arts.135-(25), pars.2 and 3, Art.136, par.1, Arts.137 and 138 of the Non-litigant Case Procedure Law (Law No.14 of 1898) shall apply with the necessary modifications to the dissolution and liquidation of an Association. In this case, in Art.75 of the Civil Code, "the preceding Article" shall read "Art.73 of the Fisheries Cooperative Association Law."

Chapter III. Fishermen's Production Association

(Kinds of Business) Article 78. A Fisheries Production Association (hereinafter referred to as "Association" in this Chapter) may operate fisheries and collateral businesses therewith.

(Qualifications for Membership) Article 79. The qualifications for membership shall be determined by the articles of in corporation from among the fishermen.

(Relations between Businesses and Members of Association) Article 80. Two-thirds of the members of an Association shall be fishermen engaging in the business operated thereby.

Article 81. More than two-thirds of those who engage in the business operated by the Association shall be its members.

(Capitalization) Article 82. Each member of an Association shall hold one or more units of capitalization. 2 The maximum number of units of capitalization which may be hold by one member shall be not exceeding twice the average units for one member. 3 A majority of the total units of capitalization of the Association shall be held by those who engage in the business operated thereby.

(Particulars to be included in Articles of Incorporation) Article 83. The articles of incorporation of an Association shall include the particulars mentioned in Art.32, par 1, items 1, 2, 4 to 6 inclusive and 8 to 12 inclusive. 2 The provisions of Art.32, pars.2 and 3 shall apply with the necessary modifications to the articles of incorporation of the Association mentioned in the preceding paragraph.

(Keeping and Inspection of Articles of Incorporation and Other Documents) Article 84. The directors shall keep a copy of the articles of incorporation, by-laws and minutes of each general meeting at each effice of the Association and a list of the members at the principal office. 2 The list of the members shall include the following particulars concerning each member: 1. The matters mentioned in Art.42, par.2, item 1 and items 3 to 5 inclusive; 2. The date of their admission. 3 Any member of creditor of the Association may inspect the documents specified in Par.1.

(Distribution of Surplus Fund) Article 85. Any Association shall not effect any distribution of surplus fund until after it has made up for losses therewith and subtracted therefrom the reserve fuhd mentioned in Art.55, par.1 which applies with the necessary modifications in Art.86, par.2. 2 The remaining fund shall be distributed by first paying a dividend not exceeding ten percent per year on the units of capitalization and the further remainder, if any, shall be distributed to the members in propertion to the extent which they have engaged in the business operated by the Association, in accordance with the articles of incorporation.

(Modified Application of Provisions) Article 86. In addition to the provisions of Arts.79 to 82 inclusive, to the matters relating to the members of the Association, the provisions of Art.19, pars.3 to 5 inclusive, Art.20, the principal clause of Art.21, par.1, pars.3 to 5 inclusive of the same Article, Art.23 and Arts.26 to 31 inclusive shall apply with the necessary modifications. 2 In addition to the provisions of Arts.83 to the preceding Article inclusive, to the matters relating to the administrative of the Association, the provisions of Arts.33 to 41 inclusive, Arts.43 to 51 inclusive, Art.53, Art.54, Art.55, pars.1 to 3 inclusive, Art.57 and Art.58 shall apply with the necessary modification. However, in this case, in Art.34, par.2, "five directors" shall read "three directors" ;in par.7 of the same Article, "at least three-fourths of the directors" shall read'all of the directors ";in Art.44, par.1," one-fifth "shall read " one-third, "and in Art.47, par.1," one-tenth "shall read" one-sixth." 3 To the matters relating to the organization of the Association, the provisions of Arts.59 to 67 inclusive shall apply with the necessary modifications. However, in this case, in Art.59 and Art.61, par.2, "twenty" shall read "seven." 4 To the Matters relating to the dissolution and liquidation of the Association, the provisions of Arts.68 to 77 inclusive shall apply with the necessary modifications. However, in this case, in Art.68, par.4, "twenty" shall read "seven" ;in Art.34, par.7 which applies with the necessary modifications in Art.70, par.2, "at least three-fourths of the directors" shall read "all of the directors."

Chapter IV. Federation of Fishermen's Cooperative Associations

(Kinds of Business) Article 87. A Federation of Fishermen's Cooperative Associations (hereinafter referred to as "Federation" in this Chapter) may engage in the whole or part of the following functions: 1. Making loans through advancement of funds necessary for reasonable business of its members; 2. Making available banking facilities for the receiving of deposits of its members; 3. Supplying necessary goods for the business of its members who constitute directly or indirectly the Federation (hereinafter referred to as "constituent member" in this Chapter); 4. Activities making available common facilities necessary for reasonable business of its constituent members; 5. Transport, processing, storage or sale of fish catches and other things produced by its constituent members; 6. Activities contributing to propagation and conservation of marine animals and plants and exploitation of fishing grounds etc.; 7. Establishment of such equipments necessary for the fisheries of its constituent members as moorages, ship landings and fish shoals; 8. Activities relative to audit and guidance of its member Associations which are juridicial persons; 9. Activities of prevention of sea disaster, disaster relief and intercession of fishing boat insurance for its constituent members; 10. Promotion of the benefit and welfare of its constituent members; 11. Activities concerning the elevation of the fisheries technique, education for influsion of knowledge of the business of the Federation and dissemination of general information for its constituent members; 12. Accomplishment, on behalf of and for the benefit of its constituent members, of such collective bargaining contract that will improve the economic condition of its constituent members; 13. Collateral activities required for the accomplishment of any of the preceding items. 2 Any Federation without capital stock (hereinafter referred to as "non-capitalized federation" in this Chapter) may not carry on the activities mentioned in item 1 or 2 of the preceding paragraph, notwithstanding the provision of the preceding paragraph. 3 Any Federation may, in accordance with the articles of incorporation, make its facilities available to non-constituent members. However, the business transacted for non-constituent members shall be less than the total financial volume of the business utilized by the constituent members during one business year. 4 Any Federation which carries on together the activities mentioned in par.1, item 1 or item 2, may not perform functions not collateral with the said activities, notwithstanding provision of the same paragraph. 5 The Federation mentioned in the preceding paragraph may, in behalf of the member Association, discount bills, and may guarantee the debt which the member Association bears towards the banking organ authorized to do business in accordance with the articles of incorporation or collect the debt concerned on commission of the said banking organ.

(Qualifications of Membership) Article 88. The qualifications for membership of a Federation shall be determined by the articles of incorporation from among the following: 1. Associations or Federations who have the whole or part of the jurisdicational area of the Federation as their sphere; 2. Fishermen's Production Associations who have their official addresses in the jurisdictional area of the Federation; 3. Cooperative organizations which have their official addresses in the jurisdictional area of the Federation and have been set up in accordance with other laws, and carry on the same activities as those mentioned in the preceding two items.

(Restrictions on Scale) Article 89. Any Federation shall come under any of the following items: 1. The jurisdictional area of a Federation shall not be larger than that of the Metropolis, Hokkaido or Prefecture; 2. The number of the Fishermen's Cooperative Associations as constituent members of a Federation shall not exceed three hundred.

(Matters to be decided by General Meeting) Article 90. The following matters shall be decided at a general meeting of the members of the Federation: 1. The matters mentioned in any item of Art.48, par.1; 2. Maximum amount of bills which will be discounted for one member.

(Number of Promoters) Article 91. Two or more of Associations, Fishermen's Production Associations or Federations shall be required to become promoters in organizing a Federation.

(Modified Application of Provisions) Article 92. In addition to the provision of Art.87, to the matters relating to the business of the Federation, the provisions of Arts.12 to 16 inclusive shall apply with the necessary modifications. However, in this case, in Art.12, par.1, "the preceding Article" shall read "Art.87," and in Art.16, par.1, "Art.11, par.1, item 11" shall read "Art.87, par.1, item 12." 2 In addition to the provisions of Art.88 and Art.89, to the matters relating to the members of the Federation, the provisions of Arts.19 to 31 inclusive shall apply with the necessary modifications. However, in this case, in the proviso to Art.21, par.1, "any member as prescribed in Art.18, item 3 (hereinafter referred to as" associate member "in this Chapter and Chapter 4)" shall read "any member as prescribed in Art.88, item 3 (hereinafter referred to as" associate member "in Article 92 and the provisions which apply in the same Article with the necessary modifications)." 3 In addition to the provisions of Art.90, to the matters relating to the administrations of the Federation, the provisions of Arts.32 to 47 inclusive, Art.48, pars.2 and 3 and Arts.49 to 58 inclusive shall apply with the necessary modifications. However, in this case, in Art.34, par.7, "its members (excluding associate members)" shall read "its individual constituent members (excluding those who organize the associate members of the Federation and the association members of the Association)" ;and in the proviso of the same paragraph, "only from among those fishermen" shall read "only from among the individual constituent members of the Association, Fishermen's Production Association or Federation (excluding those who organize associate members of the Federation and the associate members of the Association)." 4 In addition to the provision of Art.91, to the matters of the establishment of a Federation, the provisions of Arts.60 to 67 inclusive shall apply with the necessary modifications. However, in this case, in Art.61, pars.1 and 3, "the fishermen" shall read "directors of the Association, Fishermen's Production Association or Federation" ;in par.2 of the same Article, "twenty" shall read "two" ;in the proviso to Art.21, par.1 which applies with the necessary modifications in Art.62, par.6, "any member as prescribed in Art.18, par.3 (hereinafter referred to as" associate member "in this Chapter and Chapter 4)" shall read "associate member." 5 To the matters relating to the dissolution and liquidation of the Federation, the provisions of Arts.68 to 77 inclusive shall apply with the necessary modifications. However, in this case, in Art.68, par.4, "to less than twenty" shall read "to one" ;in Art.70, par.1, "from among members (excluding associate members)" shall read "from among the directors of voting members (excluding associate members)" ;and in the principal clause of Art.34, par.7 which applies with the necessary modifications in par.2 of Art.70, "its members (excluding associate members)" shall read "individual constituent members (excluding those who organize the associate members of the Federation and the associate members of the Association)."

Chapter V. Marine Products Processing Cooperative Association

(Kinds of Business) Article 93. A Marine Products Processing Cooperative Association (hereinafter referred to as "an Association" in this Chapter and Chapter VI) may carry on the whole or part of the following functions: 1. Making loans through advancement of funds necessary for reasonable business of its members; 2. Making available banking facilities for the receiving of deposits of its members; 3. Supplying necessary goods for the business of its members; 4. Activities making available common facilities necessary for reasonable business of its members; 5. Transport, processing, storage or sale of products by its members; 6. Inspection of products manufactured by its members, there raw materials and and stuffs or facilities for manufacturing and processing; 7. Promotion of the benefit and welfare of its members; 8. Activities concerning the elevation of the manufacturing and processing technique of marine products, education for infusion of knowledge of the business of the Association and dissemination of general information of its members; 9. Collateral activities required for the accomplishment of any of the preceding items. 2 Any Association may, in accordance with the articles of incorporation, make its facilities available to non-members. However, the business transacted for non-members shall not exceed one-fifth of the total financial volume of the business utilized by the members during one business year. 3 Any Association which carries on the activities mentioned in par.1, items 1 and 2 may gurantee the debt which the association member bears towards the banking organ authorized to do business in accordance with the articles of incorporation or collect the debt concerned on commission of the said banking organ.

(Qualifications of Membership) Article 94. Any person qualified for membership of an Association shall be the marine products processor who has his residence or working office within the area of the Association. However, the qualifications may, in accordance with the articles of incorporation, be limited to those who carry on the specific marine products processing industry.

(Capitalization) Article 95. Each member of an Association shall hold one or more units of capitalization.

(Modified Application of Provisions) Article 96. In addition to the provision of Art.93, to the matters relating to the business of the Association, the provisions of Arts.12 to 15 inclusive shall apply with the necessary modifications. However, in this case, in Art.12, par.1, "the preceding paragraph" shall read "Article 93." 2 In addition to the provisions of the preceding two Articles, to the matters relating to the members of the Association, the provisions of Art.19, pars.3 to 5 inclusive, Art.20, the principal clause of par.1 of Art.21 and pars.2 to 5 inclusive of the same Article and Arts.22 to 31 inclusive shall apply with the necessary modifications. 3 To the matters relating to the administration of the Association, the provisions of Arts.32 to 58 inclusive shall apply with the necessary modifications. 4 To the matters relating to the organization of the Association, the provisions of Arts.59 to 67 inclusive shall apply with the necessary modifications. However, in this case, in Art.59 and Art.61, par.2, "twenty" shall read "fifteen." 5 To the matters relating to the dissolution and liquidation of the Association, the provisions of Arts.68 to 77 inclusive shall apply with the necessary modifications. However, in this case, in Art.68, par.4, "twenty" shall read "fifteen."

Chapter VI. Federation of Marine Products Processing Cooperative Association

(Kinds of Business) Article 97. A Federation of Marine Products Processing Cooperative Associations (hereinafter referred to as "a Federation" in this Chapter) may carry on the whole or part of the following functions: 1. Making loans through advancement of funds necessary for reasonable business of its members; 2. Making available banking facilities for the receiving of deposits of its members; 3. Supplying necessary goods for the business of those who constitute directly or indirectly the Federation (hereinafter referred to as "constituent member" in this Chapter); 4. Activities making available common facilities necessary for reasonable business of its constituent members; 5. Transport, processing, storage or sale of products by its constituent members; 6. Inspection of products manufactured by its constituent members, their raw materials and stuffs or facilities for manufacturing and processing; 7. Activities relative to audit and guidance of its member associations which are juridical persons; 8. Promotion of the benefit and welfare of its constituent members; 9. Activities concerning the elevation of the manufacturing and processing technique of marine products, education for infusion of knowledge of the business of the Federation and dissemination of general information for its constituent members; 10. Collateral activities required for the accomplishment of any of the preceding items. 2 Any Federation may, in accordance with the articles of incorporation, make its facilities available to non-constituent members. However, the business transacted for non-constituent members shall not exceed one-fifth of the total financial volume of business utilized by the constituent members during one business year. 3 Any Federation which carries on the activities mentioned in par.1, item 1 or 2 may not perform functions not collateral with the said activities, notwithstanding the provisions of the same paragraph. 4 Any Federation mentioned in the preceding paragraph may, in behalf of the members of the Federation, discount bills, and may guarantee the debt which any member of the Federation bears towards the banking organ authorized to do business in accordance with the articles of incorporation or collect the debt concerned on commission of the said banking organ.

(Qualification for Membership) Article 98. The qualifications for membership of a Federation shall be determined by the articles of incorporation from among the following associations: 1. Associations or Federations who have the whole or part of the jurisdictional area as their sphere; 2. Cooperative organizations which have their official addresses in their jurisdictional area of the Federations and have been set up in accordance with other laws and carry on the same activities as those mentioned in the preceding item.

(Number of Promoters) Article 99. Two or more of Associations or Federations shall be required to become promoters in organizing a Federation.

(Modified Application of Provisions) Article 100. In addition to the provision of Art.97, to the matters relating to the business of the Federation, the provisions of Arts.12 to 15 inclusive shall apply with the necessary modifications. However, in this case, in Art.12, par.1, "the preceding paragraph" shall read "Art.97." 2 In addition to the provision of Art.98, to the matters relating to the members of the Federation, the provisions of Art.19, pars.3 to 5 inclusive, Arts.20 to 31 inclusive, Art.89 and Art.95 shall apply with the necessary modifications. However, in this case, in this proviso to Art.21, par.1, "any member as prescribed in Art.18, item 3 (hereinafter referred to as" associate member "in this Chapter and Chapter IV.)" shall read "any member as prescribed in Art.98, item 2 (hereinafter referred to as" associate member "in the provisions which apply in Art.100 with the necessary modifications)." 3 The matters relating to the administration of the Federation, the provisions of Arts.32 to 47 inclusive, Art.48, pars.2 and 3, Arts.49 to 58 inclusive and Art.90 shall apply with the necessary modifications. However, in this case, in Art.34, par.7, "its members (excluding associate members)" shall read "its individual constituent members (excluding those who organize the associate members of the Federation)" and in the proviso to the same paragraph, "the fishermen" shall read the individual constituent members of the Association or Federation (excluding those who organize associate members of the Federation)." 4 In addition to the provision of Art.99, to the matters relating to the organization of the Federation, the Provisions of Arts.60 to 67 inclusive shall apply with the necessary modifications. However, in this case, in Art.61, pars.1 and 3, "the fishermen" shall read "the directors of the Association on Federation," ;in par.2 of the same Article, "twenty" shall rerd "two" ;and in the proviso to Art.21, par.1 which applies with the necessary modifications in Art.62, par.6, "members as prescribed in Art.18, par.3 (hereinafter referred to as" associate member "in this Chapter and Chapter IV)" shall read "associate member of the Federation." 5 To the matters relating to the dissolution and liquidation of the Federation, the provisions of Arts.68 to 77 inclusive shall apply with the necessary modifications. However, in this case, in Art.68, par.4, "less than twenty" shall read "one" ;in Art.70, par.1, "members (excluding associate members)" shall read "the directors of voting members," and in the principal clause of Art.34, par.7 which applies with the necessary modifications in par.2 of the same Article, "its members (excluding associate members)" shall read "individual constituent members (excluding those who organize the associate members of the Federetion)."

Chapter VII. Registration

(Registration of Establishment of Association) Article 101. Registration of establishment of a Fisheries Cooperative Association (hereinafter referred to as "an Association" ) shall be made at the seat of its principal office within two weeks from the day of approval of its establishment in case of an Association which does not make its members capitalize, or in case of an Association which makes its members capitalize (hereinafter referred to as "a capitalized Association" ) within two weeks from the day on which the first payment of capitalization was made. 2 The registration of establishment shall include the following matters. However, the registration of establishment of a Fishermen's Production Association may omit the matter mentioned in item 3: 1. Functions which the Association shall be authorized to perform; 2. Official name; 3. Area; 4. Location and address of offices; 5. Value per share, method of its payment and total number of shares and total amount of paid up shares in case of a capitalized Association; 6. Term of duration, in case its operational term has been decided; 7. Names and addresses of offices; 8. Method of public notice. 3 The Association shall register the matters mentioned in the preceding paragraph at the seat of its branch office within two weeks from the day when the registration of establishment was made.

(Registration of Establishment of Branch Office) Article 102, An Association, if it establishes a branch office after the organization thereof, shall register the establishment of the branch office at the seat of its principal office within two weeks, and it shall register the matters as mentioned in par.2 of f the preceding Article at the seat of the same branch office within three weeks;also it shall register the establishment of the branch office at the seats of other branch offices within the same period. 2. Tn case a new branch office is established within the boundary of the jurisdiction of a registry office holding under its authority the seat of the principal office or the other branch office, only the registration of its establishment shall be sufficient.

(Registration of Removal of Office) Article 103. In case an Association removes its principal office, it shall make the registration of removal at the former seat within two weeks and shall register the matters as mentioned in Art.101, par.2 at the new seat within three weeks;in case it removes its branch office, it shall make the registration of removal at the former seat within three weeks and shall register the matters mentioned in the same paragraph at the new seat within four weeks. 2 In case the principal office or the branch office is removed within the boundary of the jurisdiction of the same registry office, only the registration of its removal shall be sufficient.

(Registration of Alteration of Matters Registered concerning Establishment of Association) Article 104. In case any alteration is made in the matters as prescribed in Art.101, par.2 the registration of alteration shall be made at the seat of the principal office within two weeks and, at the scat of the brance office, within three weeks. 2 The registration of alteration of the total number of shares and the total amount of shares paid up mentioned in Art.101, par.2, item 5, notwithstanding the provision of the preceding paragraph, may be made as of the close of every business year at the seat of the principal office within four weeks and, at the seat of the branch office, within five weeks after the lapse of every business year.

(Registration of Councillors) Article 105. In case an Association has appointed councillors, the names and addresses of the councillors and the offices in which they carry on their work and any provisions when stipulated on the delegated authority of councillorship in case two or more councillors jointly exercise that authority, shall be registered within two weeks at the seat of the said office. The same shall apply in the alteration of the matters registered and the lapse of the delegated authority of the councillors.

(Registration of Dissolution of Association) Article 106. In case an Association is dissolved, the registration of dissolution shall be made, except in cases of amalgamation and bankruptcy, at the seat of its principal office within two weeks, and at the seat of its branch office within three weeks.

(Registration of Amalgamation) Article 107. In case any amalgamation happens in connection with Associations, the registration of alteration as regards the Association continuing to exist after amalgamation, the registration of dissolution as regards the Association dissolved by amalgamation and the registration of the matters as prescribed in Art.101, par.2 as regards the Association established by amalgamation, shall be made at the seat of its principal office within two weeks, and at the seat of its branch office within three weeks.

(Registration of liquidator) Article 108. Any Association shall, within two weeks at the seat of its principal office and within three weeks at the seat of its branch office, from the time when a liquidator assumes office, effect registration of the full name and address of the liquidator. 2 The provision of Art.107, par.1 shall apply with the necessary modifications to the registration of any alteration of the matters registered as prescribed in the preceding paragraph.

(Registraion of Completion of Liquidation) Article 109. When any liquidation is completed, the registration of completion of the liquidation shall be effected within two weeks at the seat of the principal office and within three weeks at the seat of each branch office, from the time of completion of the liquidation.

(Jurisdictional Registry Office) Article 110. With regard to the registration of any Association, a juridical affairs office or its branch office having jurisdiction over the locality in which the office of the Association is situated, shall be its jurisdictional registry office. 2 Each registry office shall keep a register of Fishermen's Cooperative Association, Fishermen's Production Association, Federation of Fishermen's Cooperative Associations, Marine Products Processing Cooperative Association and Federation of Marine Products Processing Cooperative Associations.

(Application for Registration of Establishment of Association) Article 111. The establishment of an Association shall be registered upon the joint application of all its directors and auditors. 2 The letter of application mentioned in the preceding paragraph shall be accompanied with a document stating the articles of incorporation and certifying the officers of the Association, and, in case of a capitalized Association, a document stating the total number of investment and also certifying completion of the first payment of the investment. 3 Any letter of application for the registratration of establishment by amalgamation shall be accompanied, besides the letters mentioned in the preceding paragraph, with a document stating that the notice has been made according to the provision of Art.53, par.2 which applies with the necessary modifications in Art.69, par.4 (including the case in which the same provision applies with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5), and in case there is any obligee insisting objections, a document certifying that due performance has been effected or adequate security or trust has been furnished with him.

Article 112. The registration as prescribed in Art.101, par.3 shall be effected upon the application by the directors therefor.

(Application for Registration of Establishment of New Office and Removal of Office or Alteration of Matters concerning Establishment of Association) Article 113 Any registration of the establishment of a new office of an Association, removal of an office or other alteration in the matters mentioned in Art 101, par.2 shall be effected upon the application of the directors or the liquidators therefor. 2 The letter of application for the registration mentioned in the preceding paragraph shall be accompanied with a document certifying the establishment of a new office or alteration of the matters to be registered. 3 Any letter of application for the registration of alteration by the amalgamation or decrease of the value of each capitalization shall, besides the document mentioned in the preceding paragraph, be accompanied with a document certifying that the notice as prescribed in Art.53, par.2 (including the case in which the same provision applies with the necessary modifications in Art.69, par.4, and the cases in which the same applies with the necessary modifications in Art.86, par.3, Art.92, par.3, Art.96, par.3 and Art.100, par.3) has been made and that in case there is any obligee insisting objections, due performance has been effected to him or adequate security or trust has been furnished with him.

(Application for Registration of Councillors) Article 114. Any registration of the appointment of councillors, the alteration of the matters registered in accordance with the provision of Art.105 and the lapse of the delegated authority of councillors shall be effected upon the application of the directors therefor. 2 The letter of application for the registration as prescribed in the preceding paragraph shall be accompanied with a document certifying the appointment of the councillors and in case their delegated authority is restricted, a document certifying the restrictions, and any letter of application for the other registrations shall be accompanied with a document certifying the matters.

(Application for Registration of Dissolution) Article 115. The registration of dissolution as prescribed in Art.106 shall, with the exception of the cases as prescribed in par.3 of this article, be effected upon the application by the liquidator therefor. 2 The letter of application for the registration mentioned in the preceding paragraph shall be accompanied with a document certifying the reasons for that dissolution. 3 The registration of dissolution, in case such dissolution has been ordered by the administrative authorities, shall be effected on commission of the administrative authorities.

Article 116. The registration of dissolution as prescribed in Art.107 shall be effected upon the application of the directors of an Association which is to cease to exist in consequence of its amalgamation. 2 The provisions of Art.111, par, 3 and par.2 of the preceding Article shall apply with the necessary modifications to the case of the preceding paragraph.

(Application for Registration of Liquidator) Article 117. The letter of application for the registration as prescribed in Art.108, par.1 shall, in case the director is not the liquidator, be accompanied with a document certifying his liquidatorship. 2 The letter of application for the registration as prescribed in Art.108, par.2 shall be accompanied with a document certifying the alteration in the matters to be registered.

(Application for Registration of Completion of Liquidation) Article 118. The registration of completion of an liquidation of an Association shall be effected upon the application by the liquidator therefor. 2 The letter of application for the registration mentioned in the preceding paragraph shall be accompanied with a document certifying that an approval for the statement of the final accounts has been given to the liquidator in accordance with the provision of Art.76 (including the cases in which the same provision applies with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5).

(Computation of Term of Registration) Article 119. As regards the matters to be registered which require an approval of the administrative authorities, the term of registration shall be computated as from the day of acceptance of a letter of the approval. However, it shall be computated as from the day of acceptance of a document certifying the approval in cases of Art.65, pars.2 and 5 (including the cases in which the same paragraphs apply with the necessary modification in Art.86, par.3, Art.92, par.4, Art.96, par.4 and Art.100, par.4).

(Public Notice of Registration) Article 120. Any public notice of the registered matters shall be given by the juridical affairs office without delay.

(Modified Application of Non-litigant Case Procedure Law) Article 121. The provisions of Arts.141 to 151-(6) inclusive and Arts.154 to 157 inclusive of the Non-litigant Case Procedure Law shall apply with the necessary modifications to the registration of an Association.

Chapter VIII. Supervision

(Requirement to Furnish Reports) Article 122. The administrative authorities may require Associations periodically or occasionally to furnish such reports concerning the conditions of business or property as are deemed necessary to insure compliance by such Associations with applicable laws, ordinances, measures of the administrative authorities taken thereunder, the articles of incorporation or by-laws which have been adopted.

(Investigation of Business or Account Affairs) Article 123. The administrative authorities shall investigate the business or account affairs of an Association when a petition is presented clearly stating that the business or account affairs of an Association is deemed to violate any of the laws, ordinances, measures taken thereunder, the articles of incorporation or by-laws, with the consent of one-tenth or more of the whole membership. 2 The administrative authorities may investigate at any time the business or account affairs of an Association when it is deemed to violate any of the laws, ordinances, measures of the administrative authorities taken thereunder, the articles of incorporation or by-laws.

(Measures against Violation of Laws, Ordinances or Others) Article 124. If the investigation made in accordance with the provisions of the preceding Article discloses a probable violation of any applicable laws, ordinances, measures of the administrative authorities taken thereunder, the articles of incorporation or by-laws, the administrative authorities may order the Association to take an appropriate corrective action. 2 In case any Association has engaged in any business other than those authorized to perform by this Law or specially authorized by other laws, or has disobeyed the orders as prescribed in the preceding paragraph or has violated the provisions of Art.80, Art.81, Art.82, pars.2 and 3 or Art.89 (including the case in which the same Article applies with the necessary modifications in Art.100, par.2), the administrative authorities may order the dissolution of that association.

(Revocation of Resolution, Election or Decision) Article 125. In case any voting member, deeming that the procedure to convene a general meeting of the members, the method of resolution or the election violates any of the laws and ordinances, measures of the administrative authorities taken thereunder, the articles of incorporation or the by-laws, and with the consent of one-tenth or more of the voting members, within one month from the day of resolution, election or final decision of those elected, demands the revocation of the said resolution, election or decision, the administrative authorities may, if it is deemed that there is any violation, revoke the said resolution, election or decision. 2 The provision mentioned in the preceding paragraph shall apply with the necessary modifications to the case of a constituent general meeting.

(Cancel of Contract) Article 126. The administrative authorities shall have authority to cancel the contracts mentioned in Art.24, par.1 (including the case in which the same paragraph applies with the necessary modifications in Art.93, par.2, Art.96, par.2, and Art.100, par.2) if any such contracts are found to be in violation of the public interest.

(Meaning of Administrative Authorities) Article 127. "The administrative authorities" referred to in this Law, except for the cases of Art.72 (including the cases in which the same provision applies with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5) means the competent Minister in respect of any Association (excluding Fishermen's Production Associations) having for its sphere the whole of, or a larger area than, the sphere of the Metropolis, Hokkaido or Prefecture, or a Special City;and in respect of any other Associations it means the Governor of the Metropolis, Hokkaido or Prefecture, or the Mayor of a Special City who has jurisdiction over the principal office of the Association. 2 A part of the powers of the competent Minister as prescribed in the preceding paragraph may be delegated to the Governor of the Metropolis, Hokkaido or Prefecture, or the Mayor of a Special City.

Chapter IX. Penal Provisions

Article 128. In case any officer of an Association has, under whatever name it may be, made such actions as loaning or bill discounting beyond the business of the Association authorized or has disposed of any property belonging thereto for the sake of speculation, he shall be subjected to imprisonment with hard labor for a term not exceeding three years or a fine not exceeding ten thousand yen. 2 Persons who have committed the crime mentioned in the preceding paragraph may be subjected to both imprisonment with hard labor and a fine according to the circumstances. 3 The provision of par.1, however, shall not apply to the case provided for in the Criminal Law.

Article 129. In case any person fails to submit a report according to the provision of Art.122 of this Law or the provision of Art.8, par.1 of the Warehousing Law which apply with the necessary modifications in Art.12, par.4 (including the case in which the same provision applies with the necessary modifications in Art.92, par.1, Art.96, par.1 and Art.100, par.1;hereinafter the same in this Article), or submits a false report or refuses, prevents or evades the inspection as prescribed in Art.123 of this Law of Art.8, par.1 of the Warehousing Law which applies with the necessary modifications in Art.12, par.4, he shall be subjected to a fine not exceeding one thousand yen. 2 In case any representative, agent, employee or other worker of an Association has committed any act as prescribed in the preceding paragraph in connection with the business of the Association, the Association itself, in addition to the person who has so acted, shall be subjected to the fine as specified in the same paragraph.

Article 130. Any officer or liquidator of an Association shall be subjected to an administrative fine not exceeding ten thousand yen in the following cases: 1. In case an Association has engaged in any business other than those authorized to perform by this Law or specially authorized by other laws; 2. In case it has acted in violation of the provisions of the proviso to Art.11, par.3, the proviso to Art.87, par.3, the proviso to Art.93, par.2 or the proviso to Art.97, par.2; 3. in case it has acted in violation of the provision of Art.17, par.2; 4. Tn case it has acted in violation of the provisions of Art.24, par.2 (including the cases in which the same provision applies with the necessary modifications in Art.92, par.2, Art.96, par.2, and Art.100, par.2); 5. In case it has acted in violation of the provisions of Art.25 (including the cases in which the same provision applies with the necessary modifications in Art.92, par.2, Art.96, par.2 and Art.100, par.2); 6. In case it has acted in violation of the provisions of Art.36 (including the cases in which the same provision applies with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.96, par.3 and Art.100, par.3); 7. In case it has acted in violation of the provisions of Arts.38, 39 or 40 (including the cases in which the same provisions apply with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.96, par.3 and Art.100, par.3); 8. In case it has failed to keep the documents or to state therein the matters to be included, or has made any false statement therein or refused to make them open to public inspection without due cause, in violation of the provisions of Art.42 (including the cases in which the same provision applies with the necessary modifications in Art.92, par.3, Art.96, par.3 and Art.100, par.3), Art.43 (including the cases in which the above mentioned provisions apply with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.96, par.3 and Art.100, par.3) or Art.84; 9. In case it has acted in violation of the provisions of Art.44, par.5 or Art.47, par.4 (including the cases in which the same provisions apply with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.95, par.3 and Art.100, par.3); 10. In case it has reduced the value of each unit of investment in violation of the provisions of Art.53 or Art.54, par.2 (including the cases in which the same provisions apply with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.96, par.3 and Art.100, par.3), or in case it has effected any amalgamation of capitalized Association in violation of the provisions of Art.53 or Art.54. par.2 which apply with the necessary modifications in Art.69, par.4 (including the cases in which the same provisions apply with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5); 11. In case if has acted in violation of the provisions of Art.55, Art.56 (including the cases in which the same provisions apply with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.96, par.3 and Art.100, par.3) or Art.85; 12. It case it has acquired any share of its members or received it as the object of pledge, in violation of the provisions of Art.58 (including the cases in which the same provision applies with the necessary modifications in Art.86, par.2, Art.92, par.3, Art.96, par.3 and Art.100, par.3); 13. In case it has acted in violation of the provisions of Art.68, par.5 (including the cases in which the same provision applies with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5); 14. In case it has failed to mention in the documents the matters to be included therein under Art.74 or Art.76 (including the cases in which the same provisions apply with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5) or made a false statement thereof; 15. In case it has disposed of its property in violation of the provision of Art.75 (including the cases in which the same provision applies with the necessary modifications in Art.86, par.4, Art.92, par.5, Art.96, par.5 and Art.100, par.5); 16. In case it has neglected to give the public notice as prescribed in Art.79, par.1 or Art.81, par.1 of the Civil Code which applies with the necessary modifications in Art.77, (ihcluding the cases in which the same provision applies with the necessary modifications in Art.86, par.4, Art.92 par.5, Art.96, par.5 or Art.100, par.5;hereinafter the same in this Article), or has given any false notice thereof; 17. In case it has effected performance to any obligee within the period of time as prescribed in Art.79 of the Civil Code which applies with the necessary modifications in Art.77, in violation of the provision of the same; 18. In case it has neglected to make an application for adjudication of bankruptcy in accordance with the provision of Art.81, par.1 of the Civil Code which applies with the necessary modifications in Art.77; 19. In case it has neglected to effect any registration under this Law or effected any false registration.

Article 131. Any person who has acted in violation of the provisions of Art.3, par.2 and Art.13, par.2 (including the cases in which the same provisions apply with the necessary modifications in Art.92, par.1, Art.96, par.1 and Art.100, par.1) shall be subjected to an administrative fine not exceeding one thousand yen.

Supplementary Provision: The date of enforcement of this Law shall be determined by Cabinet Order within ninety days from the day of its promulgation. Minister of Finance pro tem. Minister of State OYA Shinzo Minister of Agriculture and Forestry SUDO Hideo Prime Minister YOSHIDA Shigeru