I hereby promulgate the Law for Partial Amendments to the Medical Service Law. Signed:HIROHITO, Seal of the Emperor This first day of the fifth month of the twenty-fifth year of Showa (May 1, 1950) Prime Minister YOSHIDA Shigeru Law No.122 Law for Partial Amendments to the Medical Service Law The Medical Service Law (Law No.205 of 1948) shall be partially amended as follows: In Article 5 paragraph 1, "and Article 39 or Article 41" shall be amended as "and Article 69 or Article 71." In Article 39 paragraph 1 item (2), "in Article 40 paragraph 1" shall be amended as "in Article 70 paragraph 1" and the same Article shall be made Article 69. Article 40 shall be made Article 70 and Article 41 shall be made Article 71. In Article 42 item (1), "Article 39," shall be amended as "Article 69," and "Article 40 para-graph 3 or Article 41 paragraph 1" as "Article 70 paragraph 3 or Article 71 paragraph 1" and the same Article shall be made Article 72. Article 43 shall be made Article 73 and Article 44 shall be made Article 74. In Article 45, "under Article 42" shall be amended as "under Article 72" and the same Article shall be made Article 75 and the following two Articles shall be added to the same Article in Chapter V.

Article 76. The directors, inspectors or liquidators of the medical juridical person shall be punished with a non-criminal fine not exceeding ten thousand yen in case they come under any one of the following items. However, in case they shall be punished with penalty, the same shall not apply: (1) In case they neglected the registration under the provisions of the Cabinet Order based upon this Law, or registered a false statement; (2) In case they neglected to provide the documents under the provision or Article 52 paragraph 1, failed to enter matters which shall be entered therein, entered a false statement therein, or refused the inspection as provided for by paragraph 2 of the same Article without good reason; (3) In case they distributed the surplus violating the provision of Article 54; (4) In case they violated the provisions of Article 58, Article 59 paragraph 1 or paragraph 3; (5) In case they performed their services violating the orders in accordance with the provision of Article 64; (6) In case they neglected to provide an inventory of property under the provision of Article 51 paragraph 1 of the Civil Code that applies mutatis mutandis in Article 68, failed to enter matters which should be entered therein, or entered a false statement therein; (7) In case they neglected to make an application for adjudication of bankruptcy under the provisions of Article 70 or Article 81 paragraph 1 of the Civil Code that apply mutatis mutandis in Article 68; (8) In case they neglected to give a public notice under the provision of Article 79 paragraph 1 or Article 81 paragraph 1 of the Civil Code that applies mutatis mutandis in Article 68 or give a public notice of a false statement.

Article 77. Those who violated the provision of Article 40 shall be punished with a non-criminal fine not exceeding five thousand yen.

Article 46 shall be made Article 78 and Article 47 shall be made Article 79. In Article 48, "Article 39, Article 40 paragraph 3 or Article 41" shall be amended as "Article 69, Article 70 paragraph 3 or Article 71" and the same Article shall be made Article 80 and Article 49 shall be made Article 81. In Article 50 paragraph 2, "Article 36 paragraph 1 item (1) of the old Regulations" shall be amended as "the provisions of Article 36 paragraph 1 item (2) of the old Regulation" , and "Article 40 paragraph 1 item (3)" as "Article 70 paragraph 1 item (3)" and the same Article shall be made Article 82 and the numbering of Article 51 to Article 53 inclusive shall be moved down by 32. Chapter IV shall be made Chapter V and Chapter V as Chapter VI and the following one Chapter shall be added next to Chapter III. CHAPTER IV Medical Juridical Persons

Article 39. Associations or foundations, which intend to establish hospitals or clinics with not less than three medical practitioners or dentists serving in full time, may become juridical persons in accordance with the provisions of this Law. 2 Juridical persons in accordance with the preceding paragraph shall be named the medicalljuridical persons.

Article 40. Those who are not the medical juridical persons shall not use the appellation of the medical juridical persons in their titles.

Article 41. The medical juridical persons shall have the equipments or funds necessary for the hospitals or clinics they establish.

Article 42. The medical juridical persons may conduct the whole or a part of services mentioned below in accordance with the articles of incorporation, or the act of endowment, so long as they do not interfere with the services of hospitals or clinics they establish: (1) Training or re-education of those who are going to be, or are engaged in medical profession or medical works; (2) Establishment of laboratories concerning medicine or dentistry; (3) Establishment of clinics other than those mentioned in Article 39 paragraph 1; (4) Other services concerning health or sanitation.

Article 43. The medical juridical person shall be registered in accordance with the provisions of Cabinet Order, in case of its establishment, establishment of subordinate office, move of office, other change in registered matters, dissolution amalgamation, installation of liquidator, and completion of liquidation. 2 Any matter which is required to be registered in accordance with the provision of the preceding paragraph may not be set up against any third persons until after the registration has been effected. 3 The registry office shall give a public notice of the registered matters without delay, when it registered concerning the medical juridical persons.

Article 44. The medical juridical person may not be established without approval of the governor of To, Do, Fu or prefecture. 2 Any person who intends to establish a medical juridical persons shall determine at least the following items in accordance with the articles of incorporation or the act of endowment: (1) Object; (2) Name; (3) Name of the hospital or clinic to be established and its location; (4) Location of the office; (5) Provision concerning property and accounts; (6) Provisions concerning officers; (7) Provisions concerning the acquisition or loss of Membership, in case of the medical juridical person as corporation; (8) Provisions concerning dissolution; (9) Provisions concerning the change in the articles of incorporation or the act of endowment; (10) Method of public notice. 3 The officers at the time of the establishment of the medical juridical person shall be provided for by the articles of incorporation or the act of endowment. 4 Except what are provided for by this Chapter, necessary matters concerning the application for the approval of the establishment of the medical juridical person shall be determined by the Ministry of Welfare Ordinances.

Article 45. The governor of To, Do, Fu or prefecture, when there was the application for approval according to the provision of paragraph 1 of the preceding Article, shall decide the authorization of it, after examining whether the property of the medical juridical person concerned fulfils the terms under Article 41, and whether the contents of the articles of incorporation or the act of endowment are in contravention of the provisions of laws and orders. 2 The governor of To, Do, Fu or prefecture, on the execution of approval or disapproval according to the provision of paragraph 1 of the preceding Article, shall previously hear the opinions of the Council on Medical Care Facilities.

Article 46. The medical juridical persons shall come into existence when their establishments have been registered in accordance with the provisions of Cabinet Order at the places where their main offices are located.

Article 47. The medical juridical person, in case it has several directors, shall appoint the supervisor of the hospital or the clinic established thereby to the membership of the directors. However, in case a medical juridical person establishes two or more hospitals or clinics, one or more of the supervisors may be appointed to the membership of the directors in accordance with the stipulation of the articles of incorporation or the act of endowment. 2 The director as provided for by the preceding paragraph shall lose his position as director in case he has retired from the position as supervisor.

Article 48. In case the medical juridical person has an inspector, he shall not hold the concurrent position as director or any other position of the medical juridical person (including positions of supervisor or other employees of the hospital or clinic to be established).

Article 49. Directors shall be supplemented within one month, in case over one-fifth of the fixed number of them has become vacant.

Article 50. The changes in the articles of incorporation or the act of endowment shall not become effective unless they are authorized by the governor of To, Do, Fu or prefecture. 2 The governor of To, Do, Fu or prefecture, in case there was the application for approval according to the provision of the preceding paragraph, shall decide the authorization of it, after examining matters as provided for in Article 45 and examining whether the procedure of changing the articles of incorporation or the act of endowment is in contravention of the provisions of the laws and orders, the articles of incorporation or the act of endowment.

Article 51. The medical juridical person shall report the settlement of accounts to the governor of To, Do, Fu or prefecture within two months after the closing of every fiscal year. 2 Details of matters which shall be reported in accordance with the provision of the preceding paragraph and procedure of reporting shall be determined by the Ministry of Welfare Ordinances.

Article 52. The medical juridical person shall prepare an inventory of the property, the balance sheet, and the statement of accounts for revenue and expenditure within two months after the closing of every fiscal year, and shall keep them always at each office. 2 Creditor of the medical juridical person may demand inspection of the document mentioned in the preceding paragraph at any time while business is performed.

Article 53. The fiscal year of the medical juridical person shall begin on April 1, and end on March 31 of the following year.

Article 54. The medical juridical person shall not pay dividends out of the surplus in any way.

Article 55. The medical juridical person as corporation shall be dissolved by the following causes: (1) Occurrence of the causes for dissolution as provided for by the articles of incorporation; (2) Impossibility of the success of the services which are the object; (3) Resolution of the general meeting; (4) Amalgamation with other medical juridical person; (5) Deficiency of the member; (6) Bankruptcy; (7) Revocation of the approval of establishment. 2 The medical juridical person as foundation shall be dissolved by the following causes: (1) Occurrence of the causes for dissolution as provided for by the act of endowment; (2) Causes mentioned in item (2), (4), (6) or (7) of the preceding paragraph. 3 The dissolution by any of the causes mentioned in paragraph 1 item (2) or item (3) shall not become effective unless the authorization of the governor of To, Do, Fu or prefecture is obtained. 4 The governor of To, Do, Fu or prefecture, on the execution of approval or disapproval according to the preceding paragraph, shall previously hear the opinions of the Council on Medical Care Facilities. 5 In case of dissolution by the causes mentioned in paragraph 1 item (1) or (5) or paragraph 2 item (1), the liquidator shall report the governor of To, Do, Fu or prefecture to that effect.

Article 56. The surplus assets of the dissolved medical juridical person, excepting the cases of amalgamation and bankruptcy, shall be transferred to the person to whom it ought to belong in accordance with the stipulations of the articles of incorporation or the act of endowment. 2 Those, which are the property of medical juridical person as corporation and are not disposed of in accordance with the provision of the preceding paragraph, shall be disposed of by the liquidator after obtaining the consent of all the members and receiving the approval of the governor of To, Do, Fu or prefecture. 3 Those, which are the property of the medical juridical person as foundation and are not disposed of in accordance with the provision of paragraph 1, shall be transferred by directors to the persons who perform other medical works, receiving the approval of the governor of To, Do, Fu or prefecture. 4 Property not disposed of in accordance with the provisions of the preceding two paragraphs shall belong to the National Treasury.

Article 57. The medical juridical person as corporation may become amalgamated with any other medical juridical parson as corporation in case all the members agreed to it. 2 The medical juridical person as foundation may become amalgamated with any other medical juridical person as foundation only when there are stipulations in the act of endowment to the effect. 3 When the medical juridical person as foundation intends to become amalgamated the consent of two-thirds or more of the directors shall be required. However, in case there are special stipulations in the act of endowment, the same shall not apply. 4 The amalgamation shall not become effective unless the authorization of the governor of To, Do, Fu or prefecture is obtained. 5 The provision of Article 55 paragraph 4 shall apply mutatis mutandis to the approval of the preceding paragraph.

Article 58. The medical juridical person shall, when the authorization of the governor of To, Do, Fu or prefecture as provided for by paragraph 4 of the preceding Article is obtained, prepare the inventory of the property and the balance sheet within two weeks after the day when the authorization is notified.

Article 59. The medical juridical person shall give a public notice within the period under the preceding Article to its creditors to the effect that they shall raise an objection, if any, in a certa in definite period, and, it shall pronounce to the known creditors to that effect individually. The definite period of time, however, shall not be less than two months. 2 When the creditors did not raise any objection to the amalgamation within the period of time under the preceding paragraph, the amalgamation shall be deemed to have been approved. 3 When the creditors raised any objection, the medical juridical person shall make payment or offer an adequate security to them, or convey an adequate property in trust of a trust company or a bank carrying on trust business for the purpose of making such creditors receive payment.

Article 60. When the medical juridical person is to be established by the amalgamation, the preparation of the articles of incorporation or the act of endowment and other businesses concerning the establishment of the medical juridical person shall be performed by the cooperation of those who are selected by each medical juridical person concerned.

Article 61. The medical juridical person which continues to exist after the amalgamation or the medical juridical person which has been established in consequence of the amalgamation shall succeed to the rights and obligations of the medical juridical persons which have ceased to exist in consequence of the amalgamation (including rights and obligations which the medical juridical persons concerned possess, regarding their services, in accordance with the authorization or any other disposition of the executive offices.)

Article 62. The amalgamation shall become effective when the medical juridical person which continues to exist after the amalgamation or the medical juridical person which is newly established in consequence of the amalgamation is registered in accordance with the provisions of the Cabinet Order at the place where its main office is located.

Article 63. The governor of To, Do, Fu or prefecture, in case he considers it necessary for the purpose of making the medical juridical person act in accordance with the provisions of laws and orders, dispositions made by the governor of To, Do, Fu or prefecture is accordance with the provisions of law and orders, the articles of incorporation or the act of endowment, may require the medical juridical person concerned to submit the reports on its business or its financial status.

Article 64. The governor of To, Do, Fu or prefecture may order the medical juridical person concerned to suspend the whole or a part of the services, in case he considers that it performs services other than those stipulated in the articles of incorporation or the act of endowment. In case the continuation of the service mentioned in Article 42 interferes with the operation of hospitals established by the medical juridical person concerned or clinics as provided for by the provision of Article 39 paragraph 1, the same shall apply to the whole or a part of those services.

Article 65. In case the medical juridical person does not establish hospitals or clinics as provided for by the provision of Article 39 paragraph 1 within one year after its coming into existence without good reason, the governor of To, Do, Fu or prefecture may revoke its approval.

Article 66. In case the medical juridical person violates the provisions of laws and orders, or the orders given by the governor of To, Do, Fu or prefecture in accordance with the provisions of laws and orders, the governor of To, Do, Fu or prefecture may revoke the approval of its establishment, only in case the object of supervision can not be attained by any other way.

Article 67. The provisions of Article 30 paragraph 1 to paragraph 3 inclusive shall apply mutatis mutandis in case the governor of To, Do, Fu or prefecture disapproves according to the provisions of Article 44 paragraph 1, Article 55 paragraph 3 of Article 57 paragraph 4, or orders suspension of the services or revokes the approval in accordance with the provisions of the preceding three Articles.

Article 68. The provisions of Articles 40 to 44 inclusive, Article 50, Article 51 paragraph 1 (only the part which is related to the case of the establishment of a juridical persons) and paragraph 2, Articles 52 to 66 inclusive, Article 69, Article 70, Articles 73 to 76 inclusive, Article 77 paragraph 2 (only the part related to reporting) and Articles 78 to 83 inclusive of the Civil Code (Law No.89 of 1896), Article 125 and Article 131 of the Commercial Code (Law No.48 of 1899) and Article 35 paragraph 2, Article 36 to Article 37-(2) inclusive Articles 136,137, Article 138 and Article 138-(3) of the Law of Procedure in Non-contentious Matters (Law No.14 of 1898) shall apply mutatis mutandis to the medical juridical person. In this case, in Article 40 and Article 56 of the Civil Code, "court of justice, on request of those who are interested therein, or of a public procuration" shall read "the governor of To, Do, Fu or prefecture, on request of those who are interested therein, or on his own initiative" and in Article 42 paragraph 1 of the Civil Code, "When the establishment of juridical person is approval" shall read "when the medical juridical person comes into existence" and in Article 59 item (3), Article 77 paragraph 2 and Article 83 of the Civil Code, "the government offices in charge thereof" shall read "the governor of To, Do, Fu or prefecture" and in Article 74 of the same Law, "in the case of bankruptcy" shall read "in the case of amalgamation and bankruptcy" .

Supplementary Provisions: 1. This Law shall come into force as from the date three months after the day of its promulgation. 2. Those who are actually using the term "medical juridical person" in their titles at the time of the enforcement of this Law may use it, regardless of the provision of Article 40, for the period of three months after the day of the enforcement of this Law. Attorney-General UEDA Shunkichi Minister of Welfare HAYASHI Joji Prime Minister YOSHIDA Shigeru