Article 1.　This Law is intended to provide corporate organizational structure by which smaller enterprisers, workers or other persons may engage in lawful business on the cooperative plan and by mutual aid, achieve fair and equal business opportunity in the field of commerce, industry, mining, transportation, marketing and related services, thus to facilitate and encourage initiative and economic recovery.

Article 2.　The types of Cooperatives provided for herein shall be:

Article 3.　The Cooperative shall be a juridical person.

2　The domicile of the Cooperative shall be the location of its principal office.

Article 4.　With the exception of cases which are otherwise provided for in this Law, the Cooperative shall meet the standard conditions enumerated in the following items:

2　The Cooperative shall for its object render service to all of its members as a whole and not for the special benefit of individual members.

3　The Cooperative shall not be utilized for any particular political party.

Article 5.　The name of the Cooperative shall contain the following words:

2　No person other than the Cooperative established under this Law or other special laws shall use in its name the words mentioned in the previous paragraph.

3　The provisions of Articles 19 to 22 inclusive (firm name) of the Commercial Code (Law No.48 of 1899) shall apply mutatis mutandis to the name of the Cooperative.

Article 6.　The following Cooperatives shall be deemed to satisfy the elements of Article 24 item (1) of the Law Relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade (Law No.54 of 1947, hereinafter referred to as "the Auti-Monopoly Law" ):

2　In case a Common Facility Cooperative, or Credit Cooperative includes any member who is known to employ more than the number prescribed in item (1) of the preceding paragraph, the decision whether such Cooperative satisfies the elements of Article 24 item (1) of the Anti-Monopoly-Law or not shall be in the jurisdiction of the Fair Trade Commission.

3　It shall be the responsibility of the Cooperative concerned to notify the Commission within 30 days, if the above condition arises or if it exists at the time of application for membership in the Cooperative.

Article 7.　Any small entrepreneur as provided for by Article 6 of this Law may become a member of the Cooperative provided that:

(1)　His business shall be located within the area of the Cooperative, as defined by its Articles;and

(2)　His business shall be within the field of commerce, industry, mining, transportation or related service, or any part of such fields as defined by the Articles of the Cooperative.

4　Any person except a juridical person may be eligible for membership in a Joint Enterprise Cooperative according to its Articles.

Article 8.　Matters required to be registered by the provisions of this Law may not be set up against a third person acting in good faith until the registration thereof has been effected.

Article 9.　No tax shall be imposed on the Cooperative's profit distributed to members on the basis of utilization of the business of the Cooperative.

Article 10.　Each member shall hold at least one share.

2　The amount of each share shall be the same.

3　No member shall be allowed to hold more than twenty-five percentage (in case of Credit Cooperative, ten percentage) of the total number of shares of the Cooperative, unless there are less than 4 members.

4　No member may avail himself of any credit due or other setoff against the Cooperative to excuse non payment of his shares in the Cooperative.

5　The liability of a member of the Cooperative shall be limited to the amount of shares subscribed by him.

Article 11.　Each member shall be entitled to one vote and the right to vote at elections of officers or representatives.

2　Any member may, under the Articles of the Cooperatives, exercise his voting right or right to vote at election of officers or representatives by letter or by proxy on matters previously notified to him in accordance with the provisions of Article 49. Such member shall be deemed present at the meeting. However, no person other than members, kinsmen or employees of the principal can become his proxy.

3　Aforesaid member shall be deemed present at the meeting.

4　No person can vote more than one proxy.

5　The proxy shall file with the Cooperative his power of attorney.

Article 12.　The Cooperative may charge its expenditures on its members in accordance with the Articles of the Cooperative.

2　No member may avail himself of any setoff against the Cooperative to excuse non payment of expenditure.

Article 13.　The Cooperative may, in accordance with the Articles of the Cooperative, collect rents and fees on its facilities.

Article 14.　No applicant otherwise qualified for membership shall be refused to be a member without due cause and no special conditions not imposed on other members may be imposed on him.

Article 15.　Applicants for membership in the Cooperative must (1) secure its approval in accordance with the procedure previously established by the General Meeting, the Articles or the By-Laws;and (2) make the required payment on each share subscribed and of the entrance fee, likewise established for all members. Upon compliance with the foregoing requirements membership shall become effective.

Article 16.　Notwithstanding the provisions of the previous Article, in case where persons who are inheritors of members and who are qualified for membership applied for membership within the period prescribed in the Articles of the Cooperative the said persons shall be deemed to have become members at the time of the succession. In this case, the members who are inheritors shall succeed to the rights and duties of the deceased members in respect of the share.

2　If, in the case of the preceding paragraph, there are two or more inheritors, the provisions of the preceding paragraph shall apply to only one of them who has been selected from among them.

Article 17.　Members may not transfer their shares, without approval of the Cooperative.

2　Persons other than the members shall, in case they intend to receive the transfer of shares, go through the same procedure prescribed for the case of entrance to the Cooperative.

3　The assignee of a share shall succeed to the rights and duties of the assigner in respect of the share.

4　Members shall not be joint owners of shares in the Cooperative.

Article 18.　By giving ninety days'notice, any member may withdraw from the Cooperative at the close of its business year.

2　The period of notice mentioned in the previous paragraph may be extended by the Articles of the Cooperative. However, the period shall not exceed one year.

Article 19.　Membership shall terminate for any of the following reasons:

2　Expulsion may be ordered through a resolution adopted at a general meeting for any member who falls under any of the cases mentioned in the following items. In this case a member concerned shall be given notice stating to that effect ten days prior to the day of the general meeting and a chance shall be given to him at the said meeting to make explanation.

3　The expulsion can not be set up against the said person dismissed from membership unless he has been notified to that effect.

Article 20.　Any person may, upon withdrawal from membership, request, in accordance with the Articles of the Cooperative, repayment, in whole or in part, of money in exchange for the shares of the Cooperative returned.

2　The amount of money to be paid in compliance with the previous paragraph shall be decided in proportionn to the assets and liabilities held by the Cooperative at thb close of its business year in which the persons concerned withdrew from the Cooperative.

3　If, in the case where the amount of money to be repaid is calculated subject to the provisions of the previous paragraph, the Cooperative can not pay off its debts with its own assets, it may, in accordance with the Articles of the Cooperative, request persons who have withdrawn from it for the payment, in whole or in part, of the loss amount ascribable to his responsibility.

Article 21.　The right to make request mentioned in paragraph 1 or 3 of the preceding Article shall be extinguished by prescription, in case the said right has not been exercised two years since the time of withdrawal.

Article 22.　The Cooperative may, until persons who have withdrawn from membership have completely paid off their debts to the Cooperative, suspend the payment of the amount to be paid.

Article 23.　The member may, in accordance with the Articles of the Cooperative, reduce the number of shares he has subscribed for.

2　In the above case, the provisions of Articles 20 and 21 shall apply mutatis mutandis.

Article 24.　In case where formation of a Common Facility Cooperative Credit Cooperative or Joint Enterprise Cooperative (Kigyo) is intended, four or more persons proposing to be its members shall be its promoters, and in case a Federation of Cooperatives is intended two or more Cooperatives proposing to be its members shall be its promoters.

2　Credit Cooperative may not be composed of less than 300 members.

Article 25.　Promoters shall prepare in advance a business prospectus stating the proposed business, area and qualification for membership of the Cooperative and shall convene a preliminary consitutent meeting, giving public notice designating the date and place of the meeting together with the business prospectus.

2　The public notice mentioned in the previous paragraph shall be given in a proper manner at least two weeks prior to the day of the meeting.

Article 26.　The Preliminary Consituent Meeting shall be attended by persons who are qualified for membership in accordance with the prospectus mentioned in the previous Article and at this meeting, drafters shall be selected from among them. In addition, such basic matters shall be decided as are necessary to draw the Articles of the Cooperative as area, qualification for membership, etc.

2　The number of drafters of Articles of the Cooperative shall be at least four in the case of a Common Facility Cooperative, Credit Cooperatvie or Joint Enterprise Cooperative (Kigyo) and at least two in the case of Federation of Cooperatives.

3　The resolution at a preliminary constitutent meeting shall be carried by a majority of consent of those present at this meeting under the provision of paragraph 1.

Article 27.　Promoters shall, upon completion of formulation of the Articles of the Cooperative by drafters, hold a Constituent General Meeting, giving public notice, designating the date and place of the meeting together with the proposed Articles of the Cooperative.

2　The public notice mentioned in the preceding paragraph shall be given in a proper manner at least two weeks prior to the day of the meeting.

3　The approval of the Article of the Cooperative formulated by the drafters, determination of business program and other matters necessary for the formation of Cooperative shall be resolved at the Constituent General Meeting.

4　The Articles of the Cooperative mentioned in the preceding paragraph may be amended at the Constituent General Meeting, except the provisions concerning area and qualification for membership.

5　The agenda of the Constituent General Meeting shall be decided by two thirds or more of the votes of those present at the said meeting attended by one haif or more of those qualified for membership who have given their consent for the formation of Cooperative by the day of the said meeting.

6　The provisions of Article 11 of this Law, Article 239 paragraph 4, Article 240 (votes of interested parties), Article 244 (minutes) and Articles 247 to 253 (annulment or cancellation of resolution) inclusive of the Commercial Code shall apply mutatis mutandis to the Constituent General Meeting;in this case "Article 343" in Article 247 paragraph 1 of the Commercial Code shall read "Article 53 of the Smaller Enterprise, etc. Cooperative Law" .

Article 28.　Promoters shall, after the conclusion of the Constituent General Meeting, transfer without delay the business of the Cooperative to the directors elected by the meeting.

Article 29.　Directors shall, when they take over the business in accordance with the provisions of the preceding paragraph, cause members to make first payment on their shares.

2　The amount of the first payment mentioned in the preceding paragraph shall not be less than one fourth of the amount of each share.

3　Those who make investment in kind shall transfer on the date fixed for the first payment the entire assets subscribed for investment. However, any legal procedure such as registration or others necessary to set up against, the third person in respect of creation or transfer of rights may be allowed to be done after the formation of the Cooperative.

4　Notewithstanding the provisions of paragraphs 1 and 2 directors of Credit Cooperatives or Federation of Cooperatives carrying on the business mentioned in Article 77 paragraph 1 item (1) shall as soon as they have received the transfer mentioned in the preceding Article let the member make the payment in whole of their shares.

Article 30.　The formation of the Cooperative shall become effective upon the registration of its formation at the locality of its principal office.

Article 31.　The Cooperative shall submit to the Administrative Agency, the report on its formation together with the Articles of the Cooperative and the names of its officers within the period of two weeks after the formation:The same shall apply in case the matters mentioned above were altered.

Article 32.　The provisions of Article 428 (Annulment of Formation of Company) of the Commercial Code shall apply mutatis mutandis to the formation of the Cooperative.

Article 33.　In the Articles of the Cooperative, the following particulars shall at least be stated:

2　In addition to the matters mentioned in the preceding paragraph, there shall be stated in the Articles of Cooperative period of duration or reason for dissolution in case such was decided, the names of persons, if any, who make investment in kind, assets to be invested, kinds and prices of such assets and numbers of shares to be given to such persons. In case the promoters contemplated any contract or obligation to be undertaken after the Cooperative comes into being, such obligation shall be stated in the Articles, specifying the items of property, price and the names of parties.

3　The provisions of Article 167 (attestation) of the Commercial Code shall apply mutatis mutandis to the Articles of the Cooperative.

Article 34.　With the exception of those that shall be provided for in the Articles of the Cooperative, the following matters may be provided for in the By-laws of the Cooperative:

Article 35.　The officers of a Cooperative shall be the directors and auditors.

2　The Cooperative shall have at least three directors and one auditor.

3　Officers shall be elected at a General Meeting from among members or executive officers of any juridical person which is a member;provided that the officers at the time of formation of the Cooperative shall be elected at a Constituent General Meeting from among those intending to be its members or executive officers of any juridical person intending to be its members.

4　Officers shall be elected by secret ballot.

5　Each member shall have one vote at election.

Article 36.　The term of office for officers of the Cooperative shall be provided for in the Articles of the Cooperative. However, the term shall not be more than three years.

2　Notwithstanding the provisions of the preceding paragraph the term of officers at the time of establishment shall be that resolved at the Constituent General Meeting. However, the term shall not exceed one year.

Article 37.　An auditor of the Cooperative can not be at the same time a director or an employee of the same Cooperative.

2　No member may serve as an officer in a Cooperative while engaged in any activities outside those as a member which are likely to compete substantially with an activity of the Cooperative.

Article 38.　In case the Cooperative concludes a contract with any of its directors, an auditor shall represent the Cooperative. The same shall apply to any law-suit between the Cooperative and its Directors.

Article 39.　Directors shall keep the Articles of the Cooperative, the By-laws, minutes, records and resolutions of General Meetings at each office and the register of members at the principal office.

2　In the register of members, there shall be stated the following particulars:

3　Any "creditor" (being defaulted) or member of the Cooperative may at any time demand of its directors inspection of any book or records mentioned in paragraph 1. In this case, the directors shall not, without due cause, refuse the inspection.

Article 40.　The director shall submit to the auditors one week before the date of an ordinary General Meeting the following documents and shall keep them in the principal office:

2　The Directors shall submit the documents mentioned in the preceding paragraph with the Report of the Auditors to the General Meeting and request its approval.

3　Any creditor (being defaulted) or members of the Cooperative may demand of its directors inspection of any book and records mentioned in paragraph 1, and in this case, the directors shall not refuse same.

Article 41.　Officers may be released from office at the request of more than one-fifth of total number of members even during their term of office, if approved by a majority at the General Meeting called for that purpose.

2　The request for recall mentioned in the preceding paragraph shall apply only to the Board of directors or auditors as a whole at the same time. However, this shall not apply to the request for recall filed in consequence of any violation of law or order or the Articles or By-laws of the Cooperative.

3　The request mentioned in the preceding paragraph shall be made through the submission to directors of a document stating reasons for requesting such recall.

4　On-receiving the written request mentioned in paragraph 1, the director shall call a general meeting to decide the matters concerned and forward a copy of request to the officers concerned seven days prior to the day of the meeting and give them an opportunity to make explanation at the meeting.

5　The provisions of Article 47 paragraph 2 and Article 48 shall apply mutatis mutandis to the preceding case.

Article 42.　The provisions of Article 254 paragraph 2 (relations between director and company), Article 266 (responsibility of director), Article 267 (lawsuit to director) and Article 284 (relieving of responsibility) of the Commercial Code shall apply mutatis mutandis to directors or auditors of the Cooperative, and the provisions of Article 55 (delegation of representative right) of the Civil Code (Law No.89 of 1896) and the provisions of Articles 260 to 262 inclusive (execution and representation) of the Commercial Code shall apply mutatis mutandis to directors of the Cooperative, and provisions of Article 274 (inspection) and Article 278 (joint responsibility) of the Commercial Code shall apply mutatis mutandis to auditors of the Cooperative. In this case "paragraph 1 of the preceding Article" in Article 284 of the Commercial Code shall read "Article 40 paragraph 2 of the Smaller Enterprise, Etc. Cooperative Law."

Article 43.　One or two persons of learning and experience may be appointed by the Board of Directors as Special Councillors to advise the Board on special problems;however such appointment may carry no executive power.

Article 44.　The Cooperative may, by a majority of directors, appoint manager or chief accountant to carry out the business of the Cooperative in its principal or subordinate offices.

2　The provisions of Article 38 paragraphs 1 and 3 and Articles 39, 41 and 42 (manager) of the Commercial Code shall apply mutatis mutandis to managers.

Article 45.　Any member may, with the consent of one tenth or more of the total number of members, apply to directors for the discharge of any manager or chief accountant.

2　In the case of the preceding paragraph, any member making such an application must submit a written application stating reason therefor to the directors.

3　In case the application mentioned in paragraph 1 has been filed the directors must decide whether or not the discharge of the manager or chief accountant concerned is to be made.

4　The directors must send the application mentioned in paragraph 2 to the manager 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 must give him an opportunity to make explanation.

Article 46.　The directors of the Cooperative shall, in accordance with the Article of the Cooperative, convene a General Meeting at least once every business year.

Article 47.　The directors may convene an extraordinary general meeting whenever they deem it necessary, in accordance with the Article of the Cooperative.

2　In case the members by filing a petition stating the reason therefor signed by at least one fifth of the total membership, has requested for an extraordinary general meeting, the directors shall call it within 20 days of receiving such petition.

Article 48.　In case there is no director available, or the director has, without due cause, failed to hold a general meeting of members at the submission of request mentioned in paragraph 2 of the preceding Article any one of auditors of the Cooperative shall convene a general meeting.

Article 49.　A general meeting shall be convened in accordance with the procedure as provided for in the Articles of the Cooperative, giving notice of the subjects for discussion at least 10 days prior to the general meeting.

Article 50.　It is sufficient that any notice or peremptory notice of the Cooperative to be given to its members shall be addressed to their permanent residence which has been entered in the list of members (unless at the members'request such notices are to be sent to any other place).

2　The notice or peremptory 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.

Article 51.　In order to effect any of the following matters, a resolution adopted at a general meeting shall be required:

Article 52.　Resolutions at a general meeting of members shall be adopted by a majority vote of the members present;and in case of a tie, the chairman may cast the deciding vote;unless otherwise provided by this Law or by the Article or By-laws of the Cooperative.

2　The chairman shall be elected at each general meeting.

3　He shall have no right of vote in a general meeting as a member except as stated in this provisions.

4　At a general meeting, only the matters informed of beforehand in accordance with the provisions of Article 49 shall be decided unless otherwise provided for by the Article of the Cooperative.

Article 53.　The following matters shall require a resolution adopted by two-thirds or more of the members present at the meeting who shall constitute not less than one half of the total number of members:

Article 54.　The provisions of Article 239 paragraph 4, Article 240 (vote of interested parties), Article 244 (minutes) and Articles 247 to 253 inclusive (annulment or cancellation of resolution) of the Commercial Code shall apply mutatis mutandis to the general meeting. In this case "Articles 343" in Article 247 paragraph 1 of the Commercial Code shall read "Article 53 of the Smaller Enterprise, Etc. Cooperative Law."

Article 55.　There may be a meeting of representatives which is authorized to take place of a general meeting of members in accordance with the Articles of the Cooperative in any Cooperative with the number of members exceeding two hundred.

2　Representatives shall be elected in accordance with the Articles of the Cooperative at a general meeting from among members and be fairly distributed so as to be elected according to the locality of residence of members, kinds of their business, etc.

3　The regular number of representatives shall not be less than one tenth of the total membership. (200 in case of Credit Cooperative whose membership are over 1,000.)

4　The provisions of Article 35 paragraphs 4 and 5 shall apply mutatis mutandis to election of representatives.

5　The provisions concerning general meeting shall apply mutatis mutandis to meeting of representatives;however, no resolution shall be adopted at a meeting of representatives, regarding election of representatives (excluding a by-election) or the matter prescribed in Article 53 item (2) or (4)(special resolution matters) in the case of Credit Cooperative which membership are over 1,000 and no resolution shall be adopted regarding election of representatives or amalgamation committee under Article 64 paragraph 1 and regarding special resolution matters under Article 53 in the case of other Cooperatives.

Article 56.　In case the Cooperative has adopted a resolution for a reduction of the amount of each share, it shall prepare an inventory and a balance sheet within two weeks from the day upon which such resolution has been adopted.

2　The Cooperative shall, within the period mentioned in the preceding paragraph, give public notice for its creditors to the effect that they shall file objection, if any, within a stated period it shall serve such notice on each of its known creditors excluding depositors, depositors of fixed deposit.

3　In the case of then preceding paragraph, such period shall not be less than one month.

Article 57.　If any creditor has failed to file any objection within the period as mentioned in paragraph 2 of the preceding Article, he shall be deemed to have approved the reduction in the amount of each share.

2　If any creditor has filed any objection thereto, the Cooperative shall effect performance or offer an adequate security or else effect trust of adequate property with a trust company or a bank carrying on trust business, in order that such creditor may receive performance.

3　The provisions of Article 380 (a suit to annul reduction of capital) of the Commercial Code shall apply to reduction in the amount of each share.

Article 58.　The Cooperative shall set aside as reserve fund a minimum of one-tenth or more of profit existed at the close of each business year until the reserve fund reaches the maximum amount prescribed in its Articles.

2　The amount of the reserve fund prescribed in the Articles of the Cooperative which is mentioned in the preceding paragraph shall not be less than one half of the total amount invested.

3　The reserve fund mentioned in paragraph 1 shall be used exclusively, to make up for deficits.

4　The Cooperative shall carry over one-twentieth or more of the profit of each business year to the ensuing business year for the purpose of appropriating it for the business mentioned in Article 70 paragraph 1 item (4) or Article 77 paragraph 1 item (5).

Article 59.　No profit shall be disposed of by the Cooperative without first making up any loss existing and setting aside the reserve fund prescribed in paragraph 1 of the preceding Article and the amount carried in paragraph 4 of the same Article.

2　Profit shall be, in accordance with the provisions of Articles of the Cooperative, divided exclusively among members in proportion to the extent they have utilized the facilities of the Cooperative or in proportion to the amount of shares paid up.

3　In case the Cooperative divides its profit in proportion to the amount of shares paid up, the dividend shall not exceed six percent per annum on each share.

Article 60.　Any Cooperative may, in accordance with its Articles, appropriate the dividend to which a member becomes entitled and apply the same to any delinquency owed by him on his shares.

Article 61.　The Cooperative shall not acquire any share of its members or receive it as the object of pledge.

Article 62.　The Cooperative shall be dissolved by any of the following events:

2　The Cooperative shall in case it has been dissolved subject to the preceding paragraph, without delay make report to the Administrative Agency to that effect.

Article 63.　No amalgamation or transfer in whole of the business of the Cooperatives can be effected without the approvall of a general meeting of members.

2　The provisions of Articles 56 and 57 shall apply mutatis mutandis to amalgamation or transfer in whole of the business of the Cooperatives.

Article 64.　In order to establish the Cooperative by means of amalgamation, the formation committees selected by the general meetings of the Cooperatives concerned from among its members shall jointly prepare the Articles of the Cooperative and select officers and determine other matters necessary for its formation.

2　The officers prescribed in the preceding paragraph shall be selected from among members or officers of the juridical person which are members of the Cooperatives intending to amalgamate and they shall serve until the next annual meeting.

3　The provisional of Article 53 shall apply mutatis mutandis to the selection, of the formation committees mentioned in paragraph 1.

Article 65.　The amalgamation of Cooperatives shall become effective when the Cooperative which continues to exist after the amalgamation or the Cooperative which comes into existence in consequence of the amalgamation has registered in the locality of its principal office provided for in Article 89.

2　The Cooperative which continues to exist after the amalgamation or the Cooperative which comes into existence in consequence of the amalgamation shall succeed to the rights and obligations of the Cooperative which has ceased to exist in consequence of the amalgamation (including such rights and obligations as held by the latter Cooperative issued by any Administrative Agency).

Article 66.　The provisions of Articles 104 to 111 inclusive (a suit to annul amalgamation) of the Commercial Code and the provisions of Article 135-(8)(decision of liabilities) of the Non-Litigant Case Procedure Law (Law No.14 of 1898) shall apply mutatis mutandis to amalgamation of the Cooperatives.

Article 67.　In case the Credit Cooperative or the Federation of Cooperative carrying on the business as provided for in Article 77 paragraph 1 item (1) transferred in whole, its business, it shall serve public notice to that effect without delay.

2　In the case of serving public notice of the preceding paragraph, it shall be deemed to be the notice by a note having a fixed date in accordance with Article 467 of the Civil Code to all the debtors of the loan of the Cooperatives stated in the same paragraph. In this case, the date of the public notice shall be considered to be the fixed date.

Article 68.　In case the Cooperative has been dissolved due to causes other than its amalgamation or bankruptcy the directors shall become its liquidators, except where a general meeting of its members has selected other liquidators.

Article 69.　The provisions of Article 116, (companies under liquidation) Article 122, Article 124, Article 125, Article 128, Article 129, Article 131, Article 417, paragraph 2, Articles 418 to 424 inclusive, Article 426 and Article 427 (liquidation of company) of the Commercial Code, and the provisions of Article 35 paragraph 2, Article 36, 37-(2), Article 135-(25) paragraphs 2 and 3, Article 136, Articles 137 to 138 inclusive and Article 138-(3)(supervision over liquidation of juridical person) of the Non-Litigant Case Procedure Law shall apply mutatis mutandis to liquidation of the Cooperative, and the provisions of Articles 38 to 40 inclusive, Article 46 to 48 inclusive of this Law and Article 247 (cancellation of decision at a General Meeting), Article 254 paragraph 2 (relation between director and company), Article 266 (responsibility of director), Article 267 (lawsuit against director) and Article 284 (relieving director or auditor of responsibility) of the Commercial Code shall apply mutatis mutandis to liquidator of the Cooperative. In this case "paragraph 1 of the preceding Article" in Article 284 of the Commercial Code shall read "Article 40 paragraph 2 of the Smaller Enterprise, Etc. Cooperative Law."