(Establishment, etc.)
Article 4. Any local public entity which actually manages port facilities at the port concerned, which has borne expenses for establishment or maintenance and management of port facilities at the port concerned, or whose area includes the land area bordering the scheduled port area (hereinafter referred to as "the interested local public entity" ) or combination of such local public entities may establish a Port Authority after making out the articles of incorporation separately and jointly, through the decision of respective local assemblies, and by mutual agreement through consultation taking in advance the procedures prescribed in paragraphs 3 and 4.
2 The provisions of the preceding paragraph shall not apply to a port where all or most of water facilities and contour facilities have been established or are maintained and managed by any person or persons other than the State and local public entity, excepting the case where such person or persons request any of the interested local public entities to establish a port authority.
3 Any local public entity which intends to establish a Port Authority in accordance with the provision of paragraph 1 shall in advance make public the intention, the scheduled port area and the period within which the interested local public entities are to offer their opinions on the matter and shall, upon offering of such opinions, make them participate in the consultation as referred to in the same paragraph, provided that the period which the interested local public entities are to offer their opinions shall not be shorter than one month.
4 When the mutual agreement on the establishment of the Port Authority as provided for in paragraph 1 has been reached, the local public entity which intends to establish the Port Authority shall, with respect to the port area to be placed under the jurisdiction of the Port Authority, obtain an approval from the Minister of Transportation or the governor of To, Do, Fu or prefecture, according to the following classification:
(1) In case of a major port, the approval of the Minister of Transportation;
(2) In case of a minor port and in case the To, Do, Fu or prefecture is one of the parties to the establishment of the Port Authority, the approval of the Minister of Transportation;
(3) Of a port other than those specified in the preceding two items, the approval of the governor of the To, Do, Fu or perfecture the area of which includes the land area bordering the scheduled port area.
5 The Minister of Transportation or the governor of To, Do, Fu or prefecture shall, in case he intends to give the approval referred to in the preceding paragraph as to the area of a river as stipulated in Article 2 paragraph 1 of the River Law (Law No.71 of 1896), consult on the port area with the local administrative agency which has jurisdiction over the said river.
6 The Minister of Transportation of the governor of To, Do, Fu or prefecture shall not give the approval referred to in paragraph 4, unless the scheduled port area is a minimum area necessary for management and operation of the water area as an economically single port, and unless it is uninjurious to the interest of the local public entities whose area borders the water area adjacent to the scheduled port area, and also unless, in case of a port the area of which is determined in the Port Areas Law (Law No.175 of 1948), the scheduled port area does not exceed such area.
7 If the agreement as referred to in paragraph 1 has not been reached, the interested local public entities may apply for mediation thereupon to the Minister of Transportation or the governor of To, Do, Fu or prefecture according to the classification as provided for in paragraph 4. In this case, "one of the parties to the establishment of the Port Authority" in paragraph 4 item (2) shall read "one of the parties to the issue."
8 To the application as referred to in the preceding paragraph shall be attached a full account of the consultation and respective views of the interested local public entities.
9 When the application as referred to in paragraph 7 has been made, the Minister of Transportation or the governor of To, Do, Fu or prefecture shall mediate on the matter, taking account of the history of the port, financial condition of the interested local public entities, plan for development of the port in future, degree of utilization of the port and other relations between the said port and the interested local public entities and further, in case of a major port, after consultation with the Prime Minister.
10 In case the governor of To, Do, Fu or prefecture has taken action under the provisions of paragraph 4, or has made the mediation referred to in the preceding paragraph, he shall immediately report to that effect to the Minister of Transportation.
(Juridical Person)
Article 5. The Port Authority shall be a nonprofit, juridical person of public law.
(Articles of Incorporation)
Article 6. The following matters shall be stipulated in the articles of incorporation of the Port Authority:
(1) Name of the Port Authority;
(2) Local public entity organizing the Port Authority;
(3) Location of the office of Port Authority;
(4) Activities of the Port Authority;
(6) Matters concerning the fixed number, term of office, appointment and removal and salary of members of the Board of Directors, and proceedings and decisions thereof;
(7) Matters concerning organization of the Secretariat of Port Authority, and personnel thereof;
(8) Matters concerning property and accounting of Port Authority;
(9) Matters concerning investment and sharing of expenditure by the local public entity organizing the Port Authority;
(10) Matters concerning disposition of surplus and loss;
(11) Method of public notice.
2 The articles of incorporation or any alteration thereof shall be ineffective unless aporoved by the assembly of the Local Public Entity under which the Port Authority is organized.
(Registration)
Article 7. The Port Authority shall register its establishment, change of location of its main office and other matters which will be specified in Cabinet Order in accordance with the procedure set forth in the Cabinet Order.
2 The matters required to be registered as to the Port Authority shall not be set against a third person unless they have been registered.
(Formation)
Article 8. A Port Authority shall come into existence in care the registration of establishment has been effected.
(Public Notice on the Port Area)
Article 9. The Port Authority shall, immediately after it has come into being, give a public notice of the fact and the port area. The same shall apply to the case where any change has taken place in the port area,
2 The provisions of Article 4 paragraphs 4 to 6 inclusive shall apply mutatis mutandis to the case where the Port Authority intends to alter the port area.
(Non-Taxation)
Article 10. The income tax and corporation tax shall not be levied on the Port Authority.
(Application of the Civil Code etc.)
Article 11. The provisions of Articles 44, 50, 54, 57, Article 68 paragraph 1, Articles 71 to 80 inclusive, Articles 82 and 83 of the Civil Code (Law No.89 of 1896) and Articles 35, 37 and 37-(2) of the Law of Procedure in Non-Contentious Matters (Law No.14 of 1898) shall apply mutatis mutandis to the Port Authority.