I hereby promulgate the Law for Partial Amendments to the Agricultural Cooperative Association Law.
Signed:HIROHITO, Seal of the Emperor
This sixth day of the fifth month of the twentyfifth year of Showa (May 6, 1950)
Prime Minister YOSHIDA Shigeru
Law for Partial Amendments to the Agricultural Cooperative Association Law
The Agricultural Cooperative Association Law (Law No.132 of 1947) shall be partially amended as follows:
In Article 10 paragraph 1 item 3, ", or make available common facilities for members" shall be deleted, and the following one item shall be added next to the same item, and, in item 9 of the same paragraph, "those common services which will improve the living conditions and culture of the agricultural community" shall be amended as "those common services which will improve the living conditions and culture of the agricultural community or medical services" :
3-(2). Make available common facilities for business or living of members (exclusive of medical facilities);
Article 10 paragraph 6 shall be amended as follows:
A federation of agricultural cooperative associations referred to in the preceding paragraph, may, on behalf of its member associations, discount bills, guarantee loans which its member associations have borrowed from financial institutions with which they are authorized to do business in accordance with the provisions of their articles of incorporation, collect such loans on commission for the said financial institutions, or act as agent for the Central Cooperative Bank for Agriculture and Forestry or other financial institutions designated by the competent Minister, or engage in domestic exchange transaction in accordance with the provisions of the Cabinet Order pertaining thereto.
The following two paragraphs shall be added next to Article 10 paragraph 6:
No federation of agricultural cooperative associations, notwithstanding the provision of paragraph 1, shall simultaneously engage in the activities specified in item 9 or item 10 of the same paragraph and those activities specified in items of the same paragraph other than items 9 and 10 (hereinafter referred to as activities of economical character). However, with regard to the following cases, the same shall not apply:
1. Where a federation of agricultural cooperative associations performing the activities specified in paragraph 1 item 9 or item 10 simultaneously engages in those activities specified in item 5 of the same paragraph on behalf of contracting members at their request for which it is unnecessary to borrow fund for meeting the expenses from the third person;
2. Where a federation of agricultural cooperative associations performing the activities specified in paragraph 1 item 9 or item 10 simultaneously engages in the activities of economical character within such limit as to perform them in connection with the said primary activities is usually necessary for the accomplishment of the purpose thereof;
3. Where a federation of agricultural cooperative associations performing activities of economical character simultaneously engages in the activities specified in item 9 or item 10 of the same paragraph within such limit as to perform them in connection with the said primary activities is usually necessary for the accomplishment of the purpose thereof.
No federation of agricultural cooperative associations having a business area larger than To, Do, Fu or prefecture, notwithstanding the provision of paragraph 1, shall simultaneously perform activities specified in item 3 or item 6 of the same paragraph and any activities specified in the items of the same paragraph other than item 3 or item 6. However, with regard to the following cases, the same shall not apply:
1. Where the said federation of agricultural cooperative associations performing activities specified in paragraph 1 item 3 or item 6 simultaneously engages in the other activities specified in the items of the same paragraph within such limit as to perform them in connection with the said primary activities is usually necessary for the accomplishment of the purpose thereof;
2. Where the said federation of agricultural cooperative associations performing activities specified in the items of paragraph 1 other than items 3 and 6 simultaneously engages in the activities specified in item 3 or item 6 of the same paragraph within such limit as to perform them in connection with the said primary activities is necessary for the accomplishment of the purpose thereof;
3. Where the said federation of agricultural cooperative associations performing the activities specified in par.1 item 7 engages in activities of processing and supplying goods needed for business or living of the members, or processing and marketing goods produced by the members.
The following one Article shall be added next to Art.52:
Article 52-(2). Other than those provided for in the preceding two Articles, matters to be observed by associations as standards on which the financial relations between the associations concerned and the members thereof are made clear and the financial affairs thereof are properly managed to protect the interests of the members, shall be provided for by Cabinet Order.
The following two paragraphs shall be added next to Art.65 par.1;
"With regard to a federation of agricultural cooperative associations, a resolution authorizing amalgamation provided for in the preceding paragraph shall be settled by ballot.
In case member associations of the federation of agricultural cooperative associations or the federation of agricultural cooperative associations vote for amalgamation in accordance with the provision of the preceding paragraph, a document certifying that at each general meeting one half or more of the members thereof were present and the resolution by a majority of two-thirds or more of the votes was made by secret ballot, shall be presented simultaneously.
Art.93 shall be amended as follows:
Article 93. The administrative authorities may require cooperative associations to furnish such report as necessary for insuring compliance by such associations with laws and orders, measures taken thereunder by the said authorities, articles of incorporation or by-laws, or to provide data regarding membership, officers, employees, volume of business and other general conditions of associations and especially essential for the proper administration of the cooperative program.
The following one paragraph shall be added to Art.94:
Each year the administrative authorities shall make an audit of the business or accounting affairs of such cooperative association as engaging in activities specified in Art.10 par.1 item 2 or as serves the area of To, Do, Fu or prefecture or larger than that unless circumstances do not permit.
In Art.95, "the reports furnished in accordance with the provisions of Art.93 or" shall be added before "the investigation made in accordance with the provisions of the preceding Article" .
In Art.100 par.1, "one thousand yen" shall be amended as "ten thousands yen" .
Supplementary Provisions:
1. This Law shall come into force as from the day of its promulgation.
2. Any federation of agricultural cooperative associations simultaneously performing those activities which it is not authorized to perform simultaneously in accordance with the provisions of Art.10 of the amended Agricultural Cooperative Association Law, at the time of enforcement of this Law, notwithstanding the provisions of the same Article, may perform the said activities simultaneously during one year from the effective date of this Law.
Minister of Finance, pro tempore Minister of State UEDA Shunkichi
Minister of Agriculture and Forestry MORI Kotaro
Prime Minister YOSHIDA Shigeru