I hereby promulgate the Fishing Boat Damage Compensation Law. Signed:HIROHITO, Seal of the Emperor This thirty-first day of the third month of the twenty-seventh year of Showa (March 31, 1952) Prime Minister YOSHIDA Shigeru Law No.28 Fishing Boat Damage Compensation Law Contents Chapter I General Provisions (Articles 1-3) Chapter II Fishing Boat Insurance Association Section 1 General Provisions (Articles 4-12) Section 2 Establishment (Articles 13-21) Section 3 Membership (Articles 22-29) Section 4 Fishing Boat Insurance Business (Articles 30-54) Section 5 Management (Articles 55-74) Section 6 Dissolution and Liquidation (Articles 75-87) Section 7 Registration (Articles 88-108) Section 8 Supervision (Articles 109-113) Chapter III Reinsurance Business by the Government (Articles 114-126) Chapter IV Fishing Boat Insurance Central Federation (Articles 127-138) Chapter V Payment of Insurance Premium and Grant of Subsidy (Articles 139-143) Chapter VI Penal Provisions (Articles 144-146) Supplementary Provisions CHAPTER I General Provisions

(Purpose of this Law) Article 1. The purpose of this Law is to facilitate the repairing of fishing boat by compensating for any damage caused thereto by unexpected accident and thus contribute to the stabilization of the fishery management.

(Compensation for damage to fishing boat) Article 2. The compensation for damage to fishing boat shall be given by way of fishing boatinsurance business conducted by Fishing Boat Insurance Association and reinsurance business conducted by the Government.

(Definitions) Article 3. The term, "fishing boat insurance" as used in this Law shall be construed to mean a mutual insurance scheme to compensate for damage to fishing boat (meaning such fishing vessel as defined in Article 2 paragraph 1 (definition of fishing vessel) of the Fishing Vessel Law (Law No.178 of 1950)) which is the object of insurance, due to loss, sinking, damage and other accident. 2 The fishing boat insurance shall be classified into special and ordinary forms of insurance. The term, "special insurance" as used in this Law shall be construed to mean an insurance scheme insuring against risks due to war, insurrection and other risks similar thereto as may be determined by Cabinet Order (hereinafter referred to as "special insurance risks" ) and "ordinary insurance" to mean an insurance scheme insuring against risks other than special insurance risks (hereinafter referred to as "ordinary insurance risks" ).

CHAPTER II Fishing Boat Insurance Association

Section 1 General Provisions

(Purpose) Article 4. A Fishing Boat Insurance Association (hereinafter referred to as an "association" ) shall undertake, as its purpose, fishing boat insurance business with respect to fishing boats owned by its members.

(Status of association) Article 5. The Fishing Boat Insurance Association shall be a juridical person.

(Residence of the association) Article 6. The residence of the association shall be at the place where its main office is located.

(Types of association and area under its jurisdiction) Article 7. An association shall be either a district association or an operational association. 2 The area of a district association shall be that of To, Do, Fu or prefecture. However, with respect to those to be established in the area of Hokkaido and Hyogo Prefecture, Ministerial Ordinance may determine special provisions therefor. 3 An operational association shall limit its insurance business to designated fishing boats engaged in a designated fishery to be provided for by Cabinet Order.

(Title of the association) Article 8. The title of an association shall contain the term "Fishing Boat Insurance Association" . 2 No person other than an association may use the title of "Fishing Boat Insurance Association" in its title.

(Registration) Article 9. The validity of such matters as are to be registered under the provisions of this Law may not be established as against a third person unless the same have been registered.

(Business year of the association) Article 10. The business year of an association shall be from April 1 to March 31 of the following year.

(Tax exemption) Article 11. No registration tax shall be imposed on the registration of an association made under this Law.

Article 12. No stamp tax shall be imposed in reference to a document concerning compensation for fishing boat damage under this Law.

Section 2 Establishment

(Promoters) Article 13. For the establishment of an association, fifteen or more persons, in, the case of a district association, and five or more persons, in the case of an operational association, among such persons as are qualified for membership of the association, shall be the promoters.

(Preliminary organizational meeting) Article 14. The promoters shall hold a preliminary organizational meeting, by making a statement of the area of an association and the qualification for membership beforehand, and announcing the same together with the date and place of the meeting with an advance notice of a period not shorter than a fixed period. 2 The fixed period as mentioned in the preceding paragraph shall not be shorter than two (2) weeks.

Article 15. The preliminary organizational meeting shall elect from among the persons present who are qualified for membership of the association in accordance with the statement as mentioned in paragraph 1 of the preceding Article, such persons as shall take charge of drafting the articles of association (hereinafter referred to as "articles of association framing committee" ), and shall determine the area, the qualification for membership and other matters forming the basis of the articles of association to be drafted. 2 The articles of association framing committee shall be composed of fifteen or more members in the case of a district association, and five or more members in the case of an operational association. 3 The proceedings at a preliminary organizational meeting shall be decided by a majority of the persons present who are qualified for membership of the association in accordance with the statement as mentioned in paragraph 1 of the preceding Article.

(Inaugural general meeting) Article 16. The promoters shall, in case the articles of association framing committee has drawn up the articles of association, announce the same together with the date and place to hold an inaugural general meeting, with an advance notice of a period not shorter than a fixed period, and hold an inaugural general meeting. 2 The fixed period as mentioned in the preceding paragraph shall not be shorter than two (2) weeks. 3 The approval of the articles of association drafted by the articles of association framing committee, the formulation of business plan and the determination of other matters necessary for the establishment shall be subject to the decision of the inaugural general meeting. 4 The articles of association as mentioned in the preceding paragraph may be amended by the inaugural general meeting. However, this shall not apply to the provision with respect to the area and the qualification for membership. 5 The proceedings at an inaugural general meeting shall be decided by two-thirds or more of rights of voting, with a quorum to be constituted by the attendance of not less than one half of the persons who are qualified for membership and who submitted his consent for the establishment of the association to the promoters by the day of the meeting. 6 The persons as mentioned in the preceding paragraph may exercise his right of voting in writing or by proxy. 7 The provisions of Article 28, Article 29 paragraphs 2 and 3, and Article 66 (the case where a member has no vote) of the Civil Code (Law No.89 of 1896) shall apply mutatis mutandis to an inaugural general meeting.

(Application for authorization for the establishment) Article 17. The promoters shall submit the articles of association and business plan to the Minister of Agriculture and Forestry, immediately after the end of the inaugural general meeting and apply for the authorization for the establishment. 2 The promoters shall, in case the Minister of Agriculture and Forestry demands, submit a report on the establishment.

(Authorization for establishment) Article 18. The Minister of Agriculture and Forestry, in case, upon receipt of the application of paragraph 1 of the preceding Article, he recognizes that the said application does not fall under any of the following items and that the business of the association promises to develop on a sound basis without any harm to public interest, shall authorize the establishment: (1) When the procedure of establishment, the articles of association or the content of business plan violates laws or orders, or administrative measures enforced on the basis thereof; (2) When there is false statement with respect to important matters in the articles of association or business plan, or failure to give full information therein. 2 The Minister of Agriculture and Forestry, when he has given or has withheld the authorization of the preceding paragraph, shall inform the promoters to that effect in writing without delay.

(Transfer of the business to directors) Article 19. The promoters, in case the authorization for the establishment has been received, shall immediately transfer the business to the directors.

(Time of coming into existence) Article 20. An association shall come into existence when duly registered as to its establishment at the place of its main office.

(Matters to be defined in the articles of association) Article 21. The following matters shall be defined in the articles of association: (1) Purpose; (2) Name or title; (3) Area; (4) Location of office; (5) Business; (6) Objects of insurance and rate of insurance premium; (7) Provisions for method of accumulation and administration of reserve fund; (8) Provisions for disposition of surplus and deficit; (9) Provisions for qualification for membership and for admission into and withdrawal from the association; (10) Provisions for the execution of business; (11) Provisions for the number of officers, allocation of duties and appointment to offices; (12) Method of public announcement; (13) Period of existence or reasons for dissolution, if any such period or reasons are prescribed. 2 The Minister of Agriculture and Forestry may set a general model for the articles of association.

Section 3 Membership

Article 22. A person to be qualified for membership shall be an owner of such fishing boat as is to be the object of the insurance whose residence or the main base of the said fishing boat is located within the area of the association concerned.

(Status of members) Article 23. A member of an association at the time of the establishment thereof, unless he makes payment of insurance premium within the period as prescribed by the articles of association, shall lose his status as a member of the association forthwith. 2 When a person who intends to acquire a membership of the association after the establishment thereof makes payment of insurance premium, he shall acquire a membership forthwith (unless otherwise provided for by the articles of association).

(Withdrawal) Article 24. A member may withdraw from the association by giving an advance notice of a period not shorter than three (3) months. 2 A member shall withdraw from the association for the undermentioned reasons;provided, however, that the articles of association may stipulate otherwise in regard to item (1): (1) Total disappearance of insurance matters; (2) Disqualification for membership; (3) Death or dissolution; (4) Bankruptcy; (5) Expulsion.

(Transferee of the object of insurance, etc.) Article 25. In case a transferee of a fishing boat which is the object of insurance has succeeded to such rights and obligations with respect to the insurance matters of the said fishing boat as belong to an association member under the provision of Article 33 paragraph 1, such transferee shall become a member from the time he received the transfer of the said fishing boat. However, the foregoing provision shall not apply to such cases as those where the association concerned has refused the succession in accordance with the provision of paragraph 2 of the same Article. 2 The provision of the preceding paragraph shall apply mutatis mutandis to the case where the rights and obligations with respect to the insurance matters have been succeeded to under the provision of Article 33 paragraph 3.

(Expulsion) Article 26. The reasons for expulsion shall be provided for by the articles of association. 2 The expulsion shall be made by the decision of a general meeting. In this case, the association shall inform the member concerned to that effect at least seven days prior to general meeting and shall give him an opportunity to defend himself at the general meeting. 3 The provision of Article 69 paragraph 1 shall apply mutatis mutandis to expulsion. 4 The expulsion may not be valid against the member expelled unless the member has been informed to that effect.

(Effect of withdrawal) Article 27. In case a member has withdrawn under the provisions of Article 24 paragraph 1, or paragraph 2 items (2) to (5) inclusive of the same Article, insurance matters shall become null and void except the case where the provision of Article 25 applies. 2 A member, in case he has withdrawn from the association, may not be exempted from the obligations with respect to the additional levy and the reduction of insured amount for the business year in which the day of his withdrawal belongs.

(Voting right) Article 28. Each member shall have one vote.

Article 29. A member may, under the provisions of the articles of association, exercise his voting right either in writing or by proxy with respect to the matters reported to him beforehand under the provision of Article 62 paragraph 3. 2 A member who exercises his voting right under the provision of the preceding paragraph shall be deemed to have attended the meeting. 3 A proxy shall submit to the association a letter of attorney certifying his power of representation.

Section 4 Fishing Boat Insurance Business

Article 30. A fishing boat to be the object of the insurance shall be a boat of less than 1,000 gross tons, and, in the case of operational association, shall be a boat engaged in fisheries designated by Cabinet Order, whose gross tonnage is not less than the gross tonnage as prescribed by Cabinet Order, and, in the case of district association, shall be a boat not covered by the insurance of operational association. However, in the case of district association, a fishing boat of not less than the gross tonnage as prescribed by Cabinet Order, even if it is not coveded by the insurance of operational association, may not be made an object of insurance, unless otherwise provided for by the articles of association, when the said fishing boat belongs to a juridical person who is not a fishery cooperative association and whose number of employees is 300 or more at all times and the total gross tonnage of whose fishing boats employed is 300 gross tons or more. 2 Fishing gears may be made the object of insurance together with the fishing boat to which they belong, only when a special contract exists in accordance with the provisions of the articles of association. 3 In case fishing gears are made the object of insurance in accordance with the provision of the preceding paragraph, "fishing boat" as used in the provisions of this Law shall read "fishing boat (including fishing gears)" .

(Limitation on refusal of insurance) Article 31. An association, in case an application has been received for insurance from an association member or any person qualified for a membership, may not refuse the said application without proper reason.

(Obligation of effecting insurance, etc.) Article 32. In cases where two-thirds or more of those persons who reside in the district of a fisheries cooperative association and who own the fishing boats as designated by Cabinet Order (hereinafter referred to as the "owner of designated fishing boats" in this Article) have given consent to a scheme wherein all owners of designated fishing boats effect ordinary insurance on all the fishing boats in their possession through a procedure as prescribed by Cabinet Order, all the owners of designated fishing boats (inclusive of those persons who have become owners of designated fishing boats after the said consent was given) shall effect an ordinary insurance on all fishing boats in their possession. 2 In cases where the consent under the provision of the preceding paragraph has been given, the representative of those who have given consent shall report thereon to the mayor of the city, town or village (or ward in the case of a city coming under Article 155 paragraph 2 of the Local Autonomy Law (Law No.4 of 1947)) or the head of the special ward (hereinafter referred to as "city, town or village" ) of which the area of the association forms a part;and the mayor of a city, town or village on receipt of such report, shall give a public announcement to that effect along with a notice as to the area which the provision of the preceding paragraph shall be applicable. 3 If, in case the consent under the provision of paragraph 1 has been given, the representative of those who have given consent proposes to the fisheries cooperative association of the district, submitting a document evidencing the saidconsent, that the said cooperative association will undertake a business to collect insurance premiums payable to the association by the owners of designated fishing boats who are the members of the said cooperative association and to pay the same to the association in place of the said owners, the said fisheries cooperative association shall conduct the business as proposed, unless there exists any justifiable reason for refusal. 4 The fisheries cooperative association which conducts the business under the provision of the preceding paragraph, in cases where a member of the said cooperative association makes a proposal similar to the one mentioned in the preceding paragraph in reference to the effecting of an ordinary insurance on any fishing boats in his possession which are not those designated by Cabinet Order mentioned in paragraph 1, but are to be made the object of insurance, the said cooperative association shall conduct the business as mentioned in the preceding paragraph with respect to the said fishing boats, unless there exists any justifiable reason for refusal. 5 The fisheries cooperative association which conducts the business under the provision of paragraph 3 may engage in the business mentioned in the same paragraph also with respect to ordinary insurance on the fishing boats owned by non-members who reside in its district. 6 The insured amounts of fishing boats which are insured under ordinary scheme under the provision of paragraph 1, and those under ordinary insurance scheme of the fishing boats to which the provisions of paragraphs 4 and 5 are applicable shall not be less than the amounts as provided for by Cabinet Order. 7 As business expenses, the association shall pay an amount provided for by Cabinet Order to the fisheries cooperative association which conducts the business mentioned in paragraph 3. 8 Necessary matters concerning the application of the provisions of paragraphs 1 to 5 inclusive shall be provided for by Cabinet Order.

(Transfer of the object of insurance) Article 33. A transferee of a fishing boat which is an object of insurance may succeed to the rights and obligations of the transferrer with respect to insurance matters by giving a notification to the association. 2 If there exists a justifiable reason, the association may refuse the rights and obligations being succeeded to as mentioned in the preceding paragraph by notifying the transferee thereof immediately on receipt of the notification as mentioned in the preceding paragraph. 3 The provisions of the preceding two paragraphs shall apply mutatis mutandis to the case of inheritance and other cases of comprehensive succession with respect to a fishing boat which is an object of insurance.

(Responsibility for compensation of the association) Article 34. The association shall compensate for damage caused to a fishing boat which is an object of insurance due to loss, sinking, damage and other accidents. 2 Necessary matters with respect to the scope of accidents and damage to be compensated for as mentioned in the preceding paragraph shall be determined by Ministerial Ordinance.

(Concluding of insurance relations, etc.) Article 35. The relations of the insurer and the insured shall be concluded when an association has received the insurance premium. 2 Unless otherwise provided for by the articles of association, the responsibility of an association to compensate for the insured damage shall commence on the day following the conclusion of the insurance relations.

(Period of insurance) Article 36. The period of insurance shall be one year. However, an association may prescribe otherwise by the articles of association in accordance with the provisions of Ministerial Ordinance.

(Issuance of insurance policy and matters to be indicated therein) Article 37. An association, on demand from a member thereof, shall issue an insurance policy. 2 Matters to be indicated in an insurance policy shall be prescribed by Ministerial Ordinance.

(Disappearance of risks) Article 38. If the risk against which a fishing boat is insured disappears within the insured period, the association may, in accordance with the provisions of the articles of association, refund the member concerned a part of the premium already received. 2 The cases where a premium may be refunded and the limitation on the amount to be refunded in accordance with the provision of the preceding paragraph shall be provided for by Cabinet Order.

(Additional levy) Article 39. An association, in accordance with the provisions of the articles of association, may cause a member thereof to make a payment of an additional levy. 2 The limitation on the additional levy as mentioned in the preceding paragraph shall be prescribed by Ministerial Ordinance.

(Non-counterbalancing) Article 40. A member of an association may not defy the demand of the association for the payment of insurance premium and additional levy by way of counterbalancing.

(Reduction of insured amount) Article 41. An association, in case of being short of fund for the payment of insurance money, may reduce the insured amount under the provisions of the articles of association. 2 Even in the case where an association reduces the insured amount under the provision of the preceding paragraph, the amount to be covered shall not be less than the reinsured amount payable by the Government.

(Obligation to prevent and reduce damage) Article 42. A member of an association shall be under obligation to make efforts to prevent and reduce damage with respect to fishing boat which is the object of insurance. Any expenses necessary or beneficial therefor shall be repayable by the association under the provisions of Ministerial Ordinance.

(Obligation to report of association member) Article 43. A member of an association, if and when a damage to be compensated for by the association has occurred to a fishing boat which is the object of insurance, shall notify the association thereof without delay in accordance with the provisions of the articles of association.

Article 44. A member of an association, when he intends to make an important change in the construction, equipment, type of fishing operation, etc. of a fishing boat which is the object of insurance, shall report the same beforehand to the association under the provisions of the articles of association. 2 In case the risks to a fishing boat which is the object of insurance is seriously increased due to an important change in the construction, equipment, type of fishing operation, etc., the association concerned may prescribe to the member concerned to limit such change or to take other necessary measures.

(Investigation, etc. of the object of insurance by the association) Article 45. An association may conduct an investigation with respect to a fishing boat which is the object of insurance or may instruct a member to make ordinary repairs and take other necessary measures.

(Reasons for exemption of association from responsibilities) Article 46. An association may be relieved of its responsibility with respect to the whole or a part of the amount to be paid as compensation for damage in the following cases: (1) When an accident damage to a fishing boat covered by insurance was caused on account of its having navigated or operated in contravention of laws and orders; (2) When an association member has neglected to prevent or reduce damage to a fishing boat which is covered by insurance; (3) When the acknowledgement of the condition damage has rendered difficult because of an undue delay of an association member in making the report as prescribed in Article 43; (4) When an association member has neglected to report in accordance with the provision of Article 44 paragraph 1, or has failed to comply with the prescription of the association as provided for in paragraph 2 of the same Article; (5) When an association member has refused to be investigated or has failed to comply with the instructions as prescribed in the preceding Article.

Article 47. An association shall be exempt from any responsibility to pay compensation for a damage that has been caused through bad faith or gross negligence of an association member or through bad faith of the captain of a fishing boat or any other person in a commanding position on board.

Article 48. An association shall be exempt from any responsibility to compensate for a damage that has been caused to a fishing boat covered by insurance by a disposition duly made in accordance with laws and orders due to the fact it was employed in contravention of laws and orders.

Article 49. Unless specifically contracted for, an association shall be exempt from any responsibility to compensate for a damage caused by capture, seizure or detention even in case a special insurance is effected.

(Causes for abandonment) Article 50. A member of an association may demand the whole amount of the insured value of a fishing boat covered by insurance by abandoning the same to the association in the following cases: (1) In case a fishing boat is sunken; (2) In case a fishing boat is missing; (3) In case a fishing boat is incapable of being repaired; (4) In case a fishing boat captured, seized or detained is not released for thirty days. 2 The case falling under the provision of item (3) of the preceding paragraph shall be prescribed by Ministerial Ordinance.

(Laying aside of obligatory reserve) Article 51. An association shall lay aside an obligatory reserve, as prescribed by Ministerial Ordinance, for the amount of fishing boat insurance as of the end of each business year.

(Laying aside of reserve) Article 52. An association shall lay aside a reserve, as prescribed by Ministerial Ordinance, out of every business year's surplus to provide for deficit.

(Distribution of surplus) Article 53. As provided for by the articles of association, an association may distribute surplus in proportion to the amount of premium paid by association members.

(Application mutatis mutandis of the Commercial Code) Article 54. To the fishing boat insurance undertaken by an association shall be applicable mutatis mutandis the provisions of Articles 631 to 639 inclusive, Articles 642 to 646 inclusive, Article 659, Articles 661 to 663 inclusive (general provisions of damage insurance), Article 834 paragraph 1, Article 836 paragraphs 1 and 2, and Articles 837 to 841 (abandonment) of the Commercial Code (Law No.48 of 1899). In this case, "the obligation to pay insurance premium" in Article 663 shall read "the obligation to pay insurance premium and the obligation to pay additional levy" , "during six months" in Article 834 paragraph 1 and "during three months" in Article 836 paragraph 1 shall read respectively "for a period as determined by Ministerial Ordinance" , and "items 1, 3 and 4 of Article 833" in Article 836 paragraph 2 shallread "Article 50 paragraph 1 items (1), (2) and (3) of the Fishing Boat Damage Compensation Law" .

Section 5 Management

(Fixed number and appointment of officers) Article 55. The association shall, as its officers, have directors and auditors. 2 The fixed number of directors shall be five or more and that of auditors, two or more. 3 Officers shall be elected at the general meeting as provided for by the articles of association. However, officers at the time of the establishment shall be elected at the inaugural general meeting. 4 At least three-fifths of the fixed number of directors of the association shall be association members. However, three-fifths of the fixed number of directors at the time of the establishment shall be those who proposed the consent to the establishment.

(Term of office for officers) Article 56. The term of office for officers shall be one year. However, in case the term of office not exceeding two years is fixed by the articles of association, the said term shall be the term of office. 2 The term of office for officers elected at the time of the establishment shall be such a period as determined at the inaugural general meeting, irrespective of the provision of the preceding paragraph;provided that the period shall not exceed one year.

(Prohibition upon holding of concurrent post for officers) Article 57. Any director shall not hold concurrently the post of auditor or member of association personnel;any auditor shall not hold concurrently the post of director or member of association personnel.

(Prohibition upon self-contract, etc. for directors) Article 58. In case an association makes a contract with a director, auditor shall represent the association. As regards a lawsuit between the association and a director, the same shall apply.

(Call of general meeting) Article 59. The directors shall call the ordinary general meeting once every business year. 2 The directors may call an extraordinary general meeting whenever they deem it necessary.

Article 60. In case association members demand a call of general meeting presenting to directors a writing stating subject matters of meeting and reasons for the call, with a consent of one-fifth or more of the whole association members, the directors shall call an extraordinary general meeting within twenty days from the date of that demand.

Article 61. If there exists no person who administers duties of directors or the directors do not take steps to call a general meeting without proper reasons in case the demand has been made under the preceding Article, the auditors shall call the general meeting.

(Report or notification to association members) Article 62. It is sufficient that the report or notification which is made by the association for its members be done simply by addressing them to their residence written in the list of members of the association (if the member has specially informed the association of the place where the report or notification be addressed, to that place). 2 The report or notification under the preceding paragraph shall be regarded as having been delivered at the time when it usually reaches. 3 The report of call of a general meeting shall be given at least ten days prior to that meeting setting for the subject matters of that meeting.

(Preparation and inspection of articles of association and other documents) Article 63. The directors shall prepare the articles of association and minutes of general meeting at each office, and shall provide the list of members of association at its principal office as prescribed by Ministerial Ordinance. 2 Any association member and any creditor to association may ask for the inspection of documents as mentioned in the preceding paragraph.

(Presentation, keeping and inspection of documents related to settlement of accounts) Article 64. The directors shall submit to auditors the business report, inventory, balance sheet, profit and loss account and surplus disposition plan or deficit disposition plan, and shall keep these documents at the principal office. 2 Any association member and any creditor to association may ask for the inspection of the documents as mentioned in the preceding paragraph. 3 In case the documents as mentioned in paragraph 1 is presented to an ordinary general meeting, it shall be accompanied with a written opinion of auditors.

(Demand for release of officer from office) Article 65. Association members may demand the release of officers from their office through their representatives with the joint signatures of onefifth or more of the whole association members. 2 The demand for the release from office under the provision of the preceding paragraph shall be made to all directors or all auditors at the same time. However, this shall not apply to the case where the demand for the release from office is made because of the violation of laws and orders, the disposition taken by the administrative agency under laws and orders, or articles of association. 3 The demand for the release from office under the provision of paragraph 1 shall be made by presenting to the association a writing stating reasons therefor. 4 In case the demand for the release from office under the provision of paragraph 1 has been received, the directors shall submit it for the deliberation of a general meeting. In this case the provisions of Article 60 and Article 61 shall apply mutatis mutandis. 5 When the writing under the provision of paragraph 3 is received, the association shall send that writing or its copy to the officer related to the said demand at least seven days prior to the general meeting and shall give him an opportunity to explain at the general meeting.

(Application mutatis mutandis of Civil Code to officers) Article 66. To the directors, the provisions of Article 44 paragraph 1 (damage reparation of juridical person), Article 52 paragraph 2 (execution of duties of directors) and Articles 53 to 56 inclusive (representative power of directors, etc.) and to the auditors, the provisions of Article 59 (duties of auditors), of the Civil Code shall apply mutatis mutandis. In this case, "the court" in Article 56 of the Civil Code shall read "the Minister of Agriculture and Forestry" .

(Matter decided by general meeting) Article 67. The following matters shall be passed with the resolution at a general meeting: (1) Revision of articles of association; (2) Business report, inventory, balance sheet, profit and loss account and surplus disposition plan or deficit disposition plan.

(Proceedings of general meeting) Article 68. The proceedings of a general meeting shall be decided by a majority of votes of those present except the cases otherwise prescribed by this Law or by the articles of association, and in case of a tie, the chairman shall decide the issue. 2 The chairman shall be elected at a general meeting. 3 The chairman may not vote on a decision of a general meeting as an association member.

(Revision of articles of association) Article 69. A decision on a revision of the articles of association shall be passed by a majority of two-thirds or more of votes with the attendance of a majority of the whole association members. 2 No revision of the articles of association shall be valid unless approved by the Minister of Agriculture and Forestry. 3 To the approval under the preceding paragraph, the provisions of Article 18 shall apply mutatis mutandis. 4 The Minister of Agriculture and Forestry may order a revision of the articles of association as regards the rate of premium for a special insurance. 5 In case a revision of the articles of association is ordered under the provision of the preceding paragraph, such revision of the articles of association shall be valid regardless of the provisions of Article 67 and of paragraphs 1 to 3 inclusive.

(Application mutatis mutandis of Civil Code to general meeting) Article 70. To a general meeting, the provisions of Article 64 (Resolution matters of general meeting) and Article 66 (in case of no right to vote) of the Civil Code shall apply mutatis mutandis. In this case, "Article 62" in Article 64 of the same Code shall read "Article 62 paragraph 3 of the Fishing Boat Damage Compensation Law" .

(Meeting of representative members) Article 71. An association may, in accordance with the provisions of the articles of association, set up a meeting of representative members instead of a general meeting. 2 A representative member shall be the association member. 3 The quorum of representative members shall be fifteen or more. 4 A representative member shall be elected under the provisions of the articles of association;provided that the representative members at the time of establishment shall be elected at the inaugural general meeting. 5 The election of representative members shall be made by secret ballot. 6 Each member shall have one vote. 7 In cases where an association provides, by its articles of association, for the electoral districts for the election of representative members, the number of representative members to be elected from the said electoral district, etc. in accordance with the provision of paragraph 4, it is sufficient that the notice to be given by the association to its members for the election of representative members, irrespective of the provision of Article 62 paragraph 1, be made simply by putting a document stating the date of election, method of election and other matters necessary for the election on a bulletin board of the office of a city, town or village which is included in the area of the said association. 8 The notice under the preceding paragraph shall be given at least ten days before the date of election. 9 The provisions of Articles 56 and 65 shall apply mutatis mutandis to the representative member. 10 The provisions of the general meeting shall apply mutatis mutandis to the meeting of representative members;provided that no resolution concerning dissolution or amalgamation shall be adopted at a meeting of representative members.

(Councillor and chief accountant) Article 72. An association may appoint the councillor and chief accountant and cause them to engage in its business at the principal office or the subordinate office. 2 The appointment and removal of the councillor and the chief accountant shall be made by a majority vote of directors. 3 The provisions of Article 38 paragraphs 1 and 3 (right of representation of manager), Article 39 (joint managers), Article 41 (duties of manager) and Article 42 (designated manager) of the Commercial Code shall apply mutatis mutandis to the councillor.

Article 73. Any association member or representative member may, with the consent of more than one-fifth of all association members or of all representative members, require the directors to remove the councillor or chief accountant. 2 The requirement under the provision of the preceding paragraph shall be made by submitting to the directors a document stating the reason for removal. 3 In cases where the requirement under the provision of paragraph 1 has been received, the directors shall vote for or against the removal of the said councillor or the said chief accountant. 4 The directors shall, at least seven days before the day on which the decision for or against the removal under the preceding paragraph is to be made, send to the said councillor or the said chief accountant a document specified in paragraph 2 or a copy thereof so that a full opportunity be given to the latter to defend himself against it.

(Retiring allowance) Article 74. The association shall provide the retiring allowance for full-time paid officers and personnel by its articles of association.

Section 6 Dissolution and Liquidation

(Reasons for dissolution) Article 75. An association shall be dissolved by any of the following reasons: (1) Expiration of the period fixed for the duration of the association or the happening of any cause of dissolution specified by the articles of association; (2) Resolution of the general meeting; (3) Amalgamation of associations; (4) Bankruptcy; (5) Order of dissolution under the provision of Article 110 paragraph 2. 2 The provision of Article 69 paragraph 1 shall apply mutatis mutandis to the resolution of dissolution. 3 No resolution of dissolution shall be effective unless approved by the Minister of Agriculture and Forestry. 4 An association shall, in addition to the reasons specified in paragraph 1, be dissolved in cases where the number of its members has been reduced to less than 15 with respect to the district association, and to less than 5 with respect to the operational association. 5 The association shall, in cases where it has been dissolved under the provision of the preceding paragraph, report to that effect to the Minister of Agriculture and Forestry without delay.

(Effect of dissolution) Article 76. Upon the dissolution of an association, the insurance relationship shall, except in the case of amalgamation, be terminated. 2 In the case under the preceding paragraph, the association shall refund the premiums for the unexpired terms.

(Procedure of amalgamation) Article 77. In cases where an association intends to amalgamate with any other association, a resolution therefor shall be adopted at a general meeting. The provision of Article 69 paragraph 1 shall apply mutatis mutandis to this case. 2 No amalgamation shall be effective unless approved by the Minister of Agriculture and Forestry. 3 The provisions of Article 18 shall apply mutatis mutandis to the case under the preceding paragraph.

(Preparation of inventory and balance sheet) Article 78. In cases where an association has adopted a resolution authorizing amalgamation, it shall prepare the inventory and balance sheet within two weeks from the date of the said resolution.

(Objection by creditors) Article 79. Within the period specified in the preceding Article, the association shall give public notice to its creditors requesting them to state their objections, if any, to the amalgamation within a fixed period, and a peremptory notice to the same effect shall be given separately to each of the creditors known to the association. 2 The fixed period specified in the preceding paragraph shall not be less than one month. 3 A creditor who has failed to state any objection within the fixed period specified in paragraph 1 shall be deemed to have given his consent to the amalgamation. 4 In cases where a creditor stated an objection, the association shall discharge the obligations due to him or furnish an adequate security, or else shall leave a property of reasonable value in trust to a trust company or a bank which transacts the trust business to make the creditor receive the obligations due to him.

(Procedure of establishment by amalgamation) Article 80. In order to establish an association by amalgamation, the preliminary organizational committees, who have been elected from among the members of each association at its general meeting, shall prepare jointly the articles of association, elect the officers and perform any other acts necessary for its establishment. 2 The election of officers under the provision of the preceding paragraph shall be made from among the members of the association which intends to amalgamate;provided, however, that the officers may, if there exists any special reason, be elected from among the non-members. In this case, the provision of the main clause of Article 55 paragraph 4 shall apply mutatis mutandis. 3 The provision of Article 69 paragraph 1 shall apply mutatis mutandis to the election of preliminary organizational committees under the provision of paragraph 1.

(Time of amalgamation) Article 81. The amalgamation of associations shall be effective when the association which continues to exist after the amalgamation or the association which has come into existence in consequence of the amalgamation has effected registration at the seat of the principal office under the provision of Article 94.

(Succession to rights and duties by amalgamation) Article 82. The association which continues to exist after the amalgamation or the association which has come into existence in consequence of the amalgamation shall succeed to the rights and duties of the association which has ceased to exist in consequence of the amalgamation (including those rights and duties resulting from the permission, approval or other disposition of administrative agencies with respect to the activities to be conducted by the said association).

(Liquidator) Article 83. In cases where an association has been dissolved, the directors shall be the liquidators except in the case of dissolution in consequence of amalgamation and bankruptcy;however, this shall not apply to the case where other persons have been appointed at a general meeting.

(Liquidation business) Article 84. The liquidator shall, after he has assumed office, investigate without delay the existing state of the association's property, prepare the inventory and balance sheet, decide the method of disposal of property, and submit it to a general meeting for approval.

Article 85. The liquidator may not distribute the property of the association until all the obligations of the association have been discharged.

Article 86. When the liquidation business has come to an end, the liquidator shall prepare without delay a statement of final accounts and submit it to a general meeting for approval.

(Application mutatis mutandis of Civil Code and Law of Procedure in Non-Contentious Litigation) Article 87. To the dissolution and liquidation of an association, the provisions of Article 73 (juridical person in liquidation), Article 75 (appointment of liquidators by the Court), Article 76 (removal of liquidators), and Articles 71 to 83 inclusive (duties and powers of liquidators) of the Civil Code as well as Article 35 paragraph 2 (jurisdiction of supervision over dissolution and liquidation of juridical persons), Article 36 (appointment of inspectors), Article 37-(2)(provisions to be applicable mutatis mutandis), Article 135-(25) paragraphs 2 and 3 (hearing of opinions, etc.), Article 136 (competent Court), Article 137 (judgment of appointment or removal of liquidator) and Article 138 (persons not eligible for liquidator) of the Law of Procedure in Non-Contentious Litigation (Law No.14 of 1898) shall apply mutatis mutandis. In this case, "the preceding Article" in Article 75 of the Civil Code shall read "Article 83 of the Fishing Boat Damage Compensation Law" .

Section 7 Registration

(Registration of establishment) Article 88. The association shall effect the registration of its establishment within two weeks from the date of approval for its establishment at the seat of the principal office. 2 The registration of establishment shall contain the following matters: (1) Matters specified in Article 21 paragraph 1 items (1) to (3) inclusive, item (5), items (12) and (13); (2) Offices; (3) Name and address of officers. 3 The association shall register the matters specified in the preceding paragraph at the seat of each subordinate office within two weeks after the registration of its establishment has been effected.

(Registration of establishment of subordinate offices) Article 89. In cases where a subordinate office has been established after the coming into existence of the association, the establishment of such subordinate office shall be registered at the seat of the principal office within two weeks, and the matters specified in paragraph 2 of the preceding Article shall be registered at the seat of such subordinate office within three weeks, and at the seat of all other subordinate offices, the establishment of such subordinate office shall be registered within the last-mentioned period. 2 In cases where a new subordinate office has been established within the area under the jurisdiction of a registry governing the principal or subordinate office, it is sufficient simply to register the fact of the establishment of such subordinate office.

(Registration of the removal of offices) Article 90. In cases where an association has removed its principal office, the removal shall be registered at the former seat within two weeks, and the matters specified in Article 88 paragraph 2 shall be registered at the new seat within three weeks;and in cases where it has removed the subordinate office, the removal shall be registered within three weeks at the former seat and the matters specified in Article 88 paragraph 2 shall be registered within four weeks at the new seat. 2 In cases where the principal or subordinate office has been removed from one place to another within the area under the jurisdiction of the same registry, it is sufficient simply to register the said removal.

(Registration of alteration in registered matters of establishment) Article 91. In cases where any alteration has occurred in any of the matters specified in Article 88 paragraph 2, such alteration shall be registered within two weeks at the seat of the principal office and within three weeks at the seat of each subordinate office.

(Registration of councillor) Article 92. In cases where the councillors have been appointed, the association shall, at the seat of the office to which they belong, register within two weeks their name, address and the office to which they belong as well as the fact that several councillors exercise jointly the right of representation, if determined so. The same shall apply to the case where the registered matters have been altered or the right of representation of councillors has ceased to exist.

(Registration of dissolution) Article 93. In cases where an association has been dissolved, except in the cases of amalgamation and bankruptcy, its dissolution shall be registered within two weeks at the seat of the principal office and within three weeks at the seat of each subordinate office.

(Registration of amalgamation) Article 94. In cases where the associations have been amalgamated, the registration of the alteration for the association which continues to exist after the amalgamation, that of the dissolution for the association which ceases to exist in consequence of the amalgamation, and that under the provision of Article 88 paragraph 2 for the association which has come into existence in consequence of the amalgamation, shall be effected within two weeks at the seat of the principal office and within three weeks at the seat of each subordinate office.

(Registration of liquidator) Article 95. The liquidator shall register his name and address within two weeks from the day of his assumption of office at the seat of the principal office and within three weeks at the seat of each subordinate office. 2 To the registration of alteration in the matters registered under the provision of the preceding paragraph, the provision of Article 91 shall apply mutatis mutandis.

(Registration of completion of liquidation) Article 96. In cases where the liquidation has been completed, the liquidator shall register the completion of the liquidation within two weeks from the day of the completion of the said liquidation at the seat of the principal office and within three weeks at the seat of each subordinate office.

(Competent registry and register) Article 97. The registration of an association shall be administered by the Legal Affairs Bureaus, or the District Legal Affairs Bureaus, or their Branch Bureaus or Branch Offices, having jurisdiction over the seat of the office, as a competent registry. 2 The Fishing Boat Insurance Association Register shall be kept at the registry.

(Application for registration of establishment) Article 98. The registration of establishment of an association shall be effected based on the application submitted by the entire officers. 2 The application for registration under the preceding paragraph shall be accompanied with the articles of association and a document proving that the applicants are association's officers. 3 The application for registration of the establishment of an association through amalgamation shall, in addition to the documents as mentioned in the preceding paragraph, be accompanied with the documents proving that the public and peremptory notices were given in accordance with the provision of Article 79 paragraph 1 and, in case there is any creditor stating an objection, also the documents proving that the obligations due to him have been discharged, or furnishing of security has been made or the property has been conveyed in trust.

Article 99. The registration as provided for in Article 88 paragraph 3 shall be effected in accordance with the application of the director.

(Application for registration of establishment and removal of office and alteration of registered particulars regarding establishment) Article 100. The registration of establishment of the office of the association or removal of the office and alteration of particulars mentioned in Article 88 paragraph 2 shall be effected in accordance with the application of the director or liquidator. 2 The application for registration mentioned in the preceding paragraph shall be accompanied with a document proving the establishment of the office or the alteration of the registered particulars. 3 The provisions of Article 98 paragraphs 1 and 3 shall apply mutatis mutandis to the application for registration of the alteration arising from the amalgamation of association.

(Application for registration of councillors) Article 101. The registration of the selection of councillors and that of the alteration of the particulars registered in accordance with the provision of Article 92 and the extinguishment of the power of representation of councillors shall be effected based on the application of the director. 2 Of the registrations mentioned in the preceding paragraph, the application for registration of the selection of councillors shall be accompanied with the document proving their selection and in cases where it provides that several councillors are to exercise jointly the right of representation, the document proving to that effect and any other application for registration shall be accompanied with the document proving the fact that the registration is applied for.

(Application for registration of dissolution) Article 102. The registration of the dissolution of an association under the provision of Article 93 shall be effected based on the application of the liquidator, except for the case as specified in paragraph 3. 2 The application for registration mentioned in the preceding paragraph shall be accompanied with a document proving the reason for dissolution. 3 The registration of dissolution of an association in the case where it has been ordered to be dissolved by the Minister of Agriculture and Forestry shall be effected at his request.

Article 103. The registration of dissolution under the provision of Article 94 shall be effected based on the application of the director of an association which has ceased to exist as a result of amalgamation. 2 The provisions of Article 98 paragraph 3 and paragraph 2 of the preceding Article shall apply mutatis mutandis to the case mentioned in the preceding paragraph.

(Application for registration of liquidators) Article 104. The application for registration under the provision of Article 95 paragraph 1 shall be accompanied with a document proving the qualification of the applicant in cases where the director is not a liquidator. 2 The registration under the provision of Article 95 paragraph 2 shall be effected based on the application of the liquidators. 3 The application for registration under the preceding paragraph shall be accompanied with a document proving the alteration of registered particulars.

(Application for registration of completion of liquidation) Article 105. The registration of the completion of liquidation of an association shall be effected based on the application of the liquidator. 2 The application for registration mentioned in the preceding paragraph shall be accompanied with a document proving that the liquidator has obtained the approval for the statement of final accounts in accordance with the provision of Article 86.

(Computation of periods of time for registration) Article 106. As regards matters requiring registration for which the approval of the Minister of Agriculture and Forestry is required, the periods of time for registration shall be computed as from the time of arrival of the written approval therefor.

(Public notices of registered matters) Article 107. The matters registered shall be publicly notified by the registry concerned without delay.

(Application mutatis mutandis of Law of Procedure in Non-Contentious Litigation) Article 108. The provisions of Article 139-(2), Articles 141 to 151-(6) inclusive and Articles 154 to 177 inclusive (general provisions of commercial registration) of the Law of Procedure in Non-Contentious Litigation shall apply mutatis mutandis to the registration of an association.

Section 8 Supervision

(Collection of reports on conditions of business or property) Article 109. The Minister of Agriculture and Forestry may cause the association to make a report on the conditions of its business or property, whenever he deems it necessary for making a supervision thereon.

(Inspection on conditions of business or account) Article 110. In cases where association members or their representatives have demanded, with the consent of more than one-tenth of the total membership or all the representatives, the inspection of business or account of the association on the ground that there exists a doubt as to their contravention of laws and orders, disposition of administrative agency effected based on them or the articles of association, the Minister of Agriculture and Forestry shall inspect the conditions of business or account of the association. 2 In cases where the Minister of Agriculture and Forestry deems that there exists a doubt in the business or account of an association as to the contravention of laws and orders, disposition of administrative agency effected based on them or the articles of association, or he deems it necessary for making a supervision thereon, in consideration of the condition of its business or property, he may inspect the conditions of business or account of the association at any time.

(Measures to be taken against contravention of laws, orders, etc.) Article 111. When the Minister of Agriculture and Forestry deems that the business or account of the association contravenes laws and orders, any disposition of the administrative agency effected based on them or the articles of association, in case he has collected the report in accordance with the provision of Article 109 or effected inspection in accordance with the provisions of the preceding Article, he may order the association to discharge officers, to suspend business, to change its articles of association, or to take other necessary measures. 2 In cases where the association has contravened the order under the provision of the preceding paragraph, the Minister of Agriculture and Forestry may order the association to be dissolved.

(Cancellation of resolution, election or return) Article 112. In cases where association members or their representatives have demanded, with the consent of more than one-tenth of the total membership or all the representatives, the cancellation of the resolution, election or return within one month counting from the day of such resolution, election or decision on election, on the ground that the procedure for the convocation of a general meeting or a meeting of representatives, the method of resolution or the election is in contravention of laws, and orders, any disposition of administrative agency effected based on them or the articles of association, the Minister of Agriculture and Forestry may cancel such resolution, election or return, if he has recognized the existence of the alleged contravention.

(Entrusting of powers) Article 113. The powers of the Minister of Agriculture and Forestry as specified in this Chapter may partially be entrusted to the governor of To, Do, Fu or prefecture as provided for by Cabinet Order.

CHAPTER III Reinsurance Business by the Government

(Reinsurer) Article 114. The Government shall reinsure the insurance responsibility which is assumed by the association for its members in respect to the fishing boat insurance business.

(Establishment of reinsurance relationship) Article 115. In cases where insurance relationship has been established between the association and its members, the reinsurance relationship shall thereby be established between the Government and the association concerned.

(Amount of reinsurance) Article 116. The amount of reinsurance shall be ninety (90) per cent of the amount of insurance.

(Rate of reinsurance premium) Article 117. The rate of reinsurance premium shall be the same as the rate of net premium fixed by the association with the approval of the Minister of Agriculture and Forestry.

(Disappearance of risks) Article 118. In cases where an association has refunded a premium in accordance with the provisions of Article 38, the Government may refund a partial reinsurance premium as provided for by Cabinet Order.

(Notice of acceptance of insurance) Article 119. When the insurance relationships have been established with its members, the association shall notify the matters relating to such relationships to the Minister of Agriculture and Forestry as provided for by Ministerial Ordinance. The same shall also apply to the case where any alteration has been made in the matters notified.

(Notice of happening of risk) Article 120. In cases where the association considers that a risk has occurred, it shall give a notice to that effect to the Minister of Agriculture and Forestry without delay, as provided for by Ministerial Ordinance.

(Exemption from reinsurance responsibility) Article 121. The Government may, as provided for by Ministerial Ordinance, be exempted from the responsibility for reimbursing, either partially or wholly, the amount of reinsurance money in the following cases: (1) When the association has made good the loss in violation of laws and orders or articles of association; (2) When the association has made good the loss based on an amount which was decided by it unreasonably; (3) When the association has, with a dishonest purpose, neglected to give notice as specified in the provisions of the preceding two Articles or made false notification.

(Rights acquired by the Government through abandonment, etc.) Article 122. The association shall, as provided for by Ministerial Ordinance, decide any matters with respect to the exercise or disposition of all the rights acquired through abandonment and obtain approval of the Minister of Agriculture and Forestry. 2 When the Minister of Agriculture and Forestry has given the approval mentioned in the preceding paragraph, the Government shall pay the reinsurance money to the association concerned. 3 The association which has got the payment of reinsurance money in acccordance with the provision of the preceding paragraph, shall reimburse without delay to the Government the amount of money computed at the ratio reinsurance money to insurance money, out of the remainder obtained by deducting from the fund obtained through the exercise or disposition of all the rights acquired through the abandonment the expenses required for such exercise or disposition of rights. 4 The provisions of the preceding three paragraphs shall apply mutatis mutandis to the case where the association has acquired any right in accordance with the provisions of Articles 661 and 662 (Insurance subrogation) of the Commercial Code which apply mutatis mutandis under the provision of Article 54.

(Legal action against the Government) Article 123. In case the association brings a legal action against the Government on the subject of reinsurance, it shall lay the matter before the Fishing Boat Reinsurance Council for examination. 2 The demand for the examination under the preceding paragraph shall be deemed the demand under the court action with respect to the interruption of prescription.

(Provisions to be applicable mutatis mutandis) Article 124. The provisions of Articles 636,637,643,646, and 663 (general provisions of insurance against loss) of the Commercial Code shall apply mutatis mutandis to the reinsurance of the Government.

(Establishment of Council and its powers) Article 125. There shall be established in the Ministry of Agriculture and Forestry the Fishing Boat Reinsurance Council (hereinafter referred to as "the Council" ). 2 The Council shall deal with the matters which have been placed under its powers in accordance with the provision of Article 123.

(Organization and management of Council) Article 126. The Council shall be organized by the following members appointed by the Minister of Agriculture and Forestry: (1) Three officials of the Ministry of Agriculture and Forestry; (2) Three officers of associations; (3) Three persons of learning and experience 2 The Council shall have a chairman who is elected by mutual vote of its members. 3 The chairman shall preside over the affairs of the Council and represent it. 4 When the chairman is unable to perform his duties, another member designated by the chairman beforehand from among the members shall act in his place. 5 The members shall serve part-time. 6 Other than those prescribed in the preceding each paragraph, the matters necessary for the members, proceedings and management of the Council shall be provided for by Cabinet Order.

CHAPTER IV Fishing Boat Insurance Central Federation

(Purpose of establishment) Article 127. Associations may establish the Fishing Boat Insurance Central Federation with a view to achieving the sound development of fishing boat insurance business.

(Number of Central Federation) Article 128 The number of the Fishing Boat Insurance Central Federation (hereinafter referred to as "the Central Federation" ) shall be one throughout the country.

(Establishment) Article 129. The number of the associations to sponsor the establishment of the Central Federation shall not be less than five.

(Matters to be mentioned in articles of association) Article 130. The articles of association of the Central Federation shall contain the matters mentioned in Article 21 paragraph 1 items (1) to (5) inclusive and items (9) to (13) inclusive and also those relating to the allotment of expenses.

(Qualification for membership) Article 131. Those who are eligible for the membership of the Central Federation shall be the associations. 2 When those who are eligible for the membership are to join the Central Federation, it shall not decline their admission without proper reason nor impose more unfavorable conditions for their admission than those which were imposed when the present members joined it.

(Business) Article 132. The Central Federation shall conduct the following business in accordance with the provisions of its articles of association: (1) Computation of the rates of insurance premium; (2) Investigation and guidance relating to the prevention and check of occurrence of damage; (3) Investigation at the request of a member association of fishing boats for the acceptance of insurance and of damage caused to an insured fishing boat; (4) Diffusion and publicity of fishing boat insurance; (5) Guidance and weifare of the personnel of a member association; (6) Other investigations and guidance for the sound development of fishing boat insurance business; (7) Business accessory to the matters mentioned in the preceding items.

(Premium rate) Article 133. The Central Federation may request its member associations to submit any data necessary for computation of premium rates in accordance with its articles of association. 2 The premium rates to be computed by the Central Federation shall be reasonable and equitable for sound development of the insurance business of member associations;and they shall not be unduly discriminative against member associations nor binding on member associations. 3 Any member association shall, in case it intends to apply for the approval of the Minister of Agriculture and Forestry as to the revision of the articles of association in respect to its premium rates, do it directly by and for itself. 4 The Central Federation shall, in case it has computed its premium rates, keep at its main place of business a list of premium rates as computed and the data upon which such computation is based. 5 Any member association may request the Central Federation to be permitted to see the list and the data as specified in the preceding paragraph or to obtain a copy of that list.

(Advice, etc.) Article 134. The Central Federation shall submit its views on important matters relating to the compensation for fishing boat damage in response to request from the Minister of Agriculture and Forestry. 2 The Central Federation may make recommendations to the competent administrative agency on important matters concerning compensation for fishing boat damage.

(Allotment of expenses) Article 135. The Central Federation may allot expenses to member associations in accordance with the provisions of its articles of associations.

(Fixed number and election of officers) Article 136. The Central Federation shall have directors and auditors as its officers. 2 The fixed number of directors shall not be less than ten;and that of auditors shall not be less than two. 3 The officers shall be elected at a general meeting in accordance with the provisions of the articles of association. However, officers at the time of the establishment of the Central Federation shall be elected at the inaugural general meeting. 4 Officers shall be elected by secret ballot. 5 One ballot shall be cast by one person. 6 At least three-fifths of the fixed number of directors of the Central Federation shall be officers or councillors of member associations. However, at least three-fifths of the fixed number of directors at the time of the establishment of the Central Federation shall be officers or councillors of the associations which consented to its establishment.

(Matters for decision at general meeting) Article 137. The matters as listed below shall be decided at a general meeting: (1) Alteration in the articles of association; (2) Formulation of or alteration in the business plan for each business year; (3) Method for the allotment and collection of expenses; (4) Maximum amount of the loan for each business year; (5) Business report, inventory, balance sheet and the statement of final account of receipts and disbursements.

(Provisions applicable mutatis mutandis) Article 138. With regard to the personality, etc. of the Central Federation, the provisions of Article 5, Article 6 and Articles 8 to 12 inclusive shall apply mutatis mutandis. 2 With regard to the establishment of the Central Federation, the provisions of Articles 14 to 20 inclusive, Article 21 paragraph 2 and Article 29 paragraph 1 shall apply mutatis mutandis. In this case, in Article 15 paragraph 2, "fifteen or more members in the case of a district association, and five or more members in the case of an operational association" shall read "five or more associations" ;and in Article 16 paragraph 6, Article 29 paragraph 1 and Article 29 paragraph 2 which is applicable mutatis mutandis under Article 16 paragraph 7, "right of voting" shall read "right to vote or right to select" . 3 With regard to the membership of the Central Federation, the provisions of Article 24 paragraph 1, paragraph 2 items (3) to (5) inclusive of the same Article, Article 26, Article 27 paragraph 2, and Articles 28 and 29 shall apply mutatis mutandis. In this case, in Article 24 paragraph 2 item (3), "death or dissolution" shall read "dissolution" ;and in Article 27 paragraph 2, "additional levy and the reduction of insured amount" shall read "allotted expenses" . 4 With regard to the administration of the Central Federation, the provisions of Articles 56 to 66 inclusive, Article 68, Article 69 paragraphs 1 to 3 inclusive, and Articles 70 and 74 shall apply mutatis mutandis. In this case, in Article 64 paragraph 1, "profit and loss account and surplus disposition plan or deficit disposition plan" shall read "statement of final account of receipts and disbursements" . 5 With regard to the dissolution and liquidation of the Central Federation, the provisions of Article 75 paragraph 1 items (1), (2), (4) and (5), paragraphs 2 to 5 inclusive of the same Article and Articles 83 to 87 inclusive shall apply mutatis mutandis. In this case, in Article 75 paragraph 4 "less than 15 with respect to the district association, and to less than 5 with respect to the operational association" shall read "less than 15 member associations" ;and in Article 83, "amalgamation and bankruptcy" shall read "bankruptcy" . 6 With regard to the registration of the Central Federation, the provisions of Articles 88 to 91 inclusive, Article 93, Articles 95 to 97 inclusive, Article 98 paragraphs 1 and 2, Article 99, Article 100 paragraphs 1 and 2, Article 102 and Articles 104 to 108 inclusive shall apply mutatis mutandis. In this case, in Article 93, "amalgamation and bankruptcy" shall read "bankruptcy" ;and in Article 97 paragraph 2, "fishing boat insurance association register" shall read "Fishing Boat Insurance Central Federation register" . 7 With regard to the supervision over the Central Federation, the provisions of Articles 109 to 112 inclusive shall apply mutatis mutandis.

CHAPTER V Payment of Insurance Premium and Grant of Subsidy

(Payment of insurance premium) Article 139. With reference to the fishing boats insured in accordance with the provision of Article 32 paragraph 1 and the fishing boats provided for by Cabinet Order, the National Treasury shall pay fifty per cent of the net premium on such insurance amount for the fishing boats as is equivalent to the amount fixed by Cabinet Order under paragraph 6 of the same Article. 2 An amount equivalent to the amount payable under the provision of the preceding paragraph shall be transferred from the general account to the fishing boat reinsurance special account, as prescribed in the budget for each fiscal year.

Article 140. The amount payable under the provision of paragraph 1 of the preceding Article shall be given to an association as a part of the premiums payable to the association by its members. 2 The amount to be given to an association under the provision of the preceding paragraph may, instead of being given thereto, be caused to be included in the reinsurance premium receipts of the fishing boat reinsurance special account as a part of the reinsurance premiums payable by the association to the Government.

(Subsidy for business expenses of fisheries cooperative association) Article 141. The Government may, as provided for by Cabinet Order, subsidize, within the limits of the budgetary appropriations, for a part of the amount payable as business expenses by an association to a fisheries cooperative association under the provision of Article 32 paragraph 7. 2 An amount equivalent to the subsidy under the provision of the preceding paragraph shall be transferred from the general account to the fishing boat reinsurance special account, as prescribed in the budget for each fiscal year.

(Subsidy for association's business expenses) Article 142. The Government may, as provided for by Cabinet Order, subsidize, within the limits of the budgetary appropriations, for a part of the association's business expenses for each fiscal year.

(Transfer of expenses for conduct of reinsurance business) Article 143. The Government shall transfer from the general account to the fishing boat reinsurance special account an amount equivalent to the expenses for the conduct of reinsurance business, as prescribed in the budget for each fiscal year.

CHAPTER VI Penal Provisions

Article 144. Any person who neglects to submit a report under the provision of Article 109 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 7 and the cases where powers are entrusted under the provision of Article 113) or submits a false report, or refuses, interferes with or averts an inspection under the provision of Article 110 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 7 and the cases where powers are entrusted under the provision of Article 113) shall be punished with a fine of two thousand yen. 2 In cases where any representative, proxy, member of the personnel or other employee of an association or the Central Federation has committed any act falling under the preceding paragraph in respect to the functions of the said association or Central Federation, the association or the Central Federation shall be amenable to the punishment under the same paragraph besides the person who committed such act being punishable. However, this provision shall not apply in cases where the evidence is given that offices of the association or the Central Federation did not neglect proper caution to prevent such act.

Article 145. In the following cases an officer or liquidator of an association or the Central Federation shall be punished with a non-criminal fine not exceeding ten thousand yen: (1) Where no approval of the Minister of Agriculture and Forestry is obtained when such approval is required by this Law; (2) Where a registration under this Law is neglected, or a false registration is made; (3) Where an association or the Central Federation conducts such affairs as deviate from its purpose; (4) Where the provision of Article 26 paragraph 2 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 3) or of Article 65 paragraph 5 (including the cases where the said provision applies mutatis mutandis under Article 71 paragraph 9 and Article 138 paragraph 4) is violated; (5) Where the provisions of Articles 51 and 52 are violated; (6) Where a surplus fund is disposed of, or an insurance amount is decreased, in violation of laws and orders or the articles of association; (7) Where the provision of Article 57 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 4) is violated; (8) Where the provision of Article 59 paragraph 1, Article 60 or Article 61 is violated; (9) Where, in violation of the provision of Article 63 paragraph 1 or Article 64 paragraph 1 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 4), no document is kept, or a matter to be entered therein is not entered or a false entry is made;or where the inspection under the provision of Article 63 paragraph 2 or Article 64 paragraph 2 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 4) is refused without a proper reason; (10) Where associations are amalgamated in violation of the provision of Article 78 or Article 79 paragraph 1 or 4; (11) Where a matter to be entered in any document as mentioned in Article 84 or 86 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 5) is not entered or a false entry is made therein; (12) Where property is distributed in violation of the provision of Article 85 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 5); (13) Where repayment is made to a creditor within the period prescribed in Article 79 paragraph 1 of the Civil Code which applies mutatis mutandis under Article 87 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 5;hereinafter the same in this Article); (14) Where a public notice is neglected or a false public notice is made in violation of the provision of Article 79 paragraph 1 of the Civil Code or Article 81 paragraph 1 of the same Code which applies mutatis mutandis under Article 87; (15) Where a request for judgment of bankruptcy is neglected in violation of the provision of Article 81 paragraph 1 of the Civil Code which applies mutatis mutandis under Article 87.

Article 146. Any person who violates the provision of Article 8 paragraph 2 (including the cases where the said provision applies mutatis mutandis under Article 138 paragraph 1) shall be punished with a non-criminal fine not exceeding one thousand yen.

Supplementary Provision: This Law shall come into force as from April 1, 1952 Minister of Finance IKEDA Hayato Minister of Agriculture and Forestry HIROKAWA Kozen Prime Minister YOSHIDA Shigeru