Chapter 1 General Principles
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| Article 1 |
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The term “cooperatives” as used in this Act refers to the associations organized based on the principle of equality and mutual aid, and with a view to improve the economic benefit and living standard of the members by means of joint operating. The number of members and the total amount of capital stocks of a cooperative is variable.
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| Article 2 |
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A cooperative is a legal person.
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| Article 2-1 |
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The regulating authorities of cooperatives refer to the Ministry of the Interior at the central level, the municipal governments at the municipal level, and the county (city) governments at the county (city) level. However, the target businesses of cooperatives shall be directed and supervised by the regulating authorities in charge of the target businesses.
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| Article 3 |
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The classes and business scopes of cooperatives are as follows:
1. Production cooperatives: engaged in all or a proportion of production, processing, and manufacturing.
2. Marketing cooperatives: engaged in marketing of various products.
3. Supply cooperatives: provide the members with raw materials, tools, and goods required for production.
4. Utility cooperatives: purchase production, manufacturing, storage, and marketing equipment for the members to use in production.
5. Labor cooperatives: provide the members with labor and technical labor service.
6. Consumption cooperatives: sell the goods used for daily life.
7. Public utility cooperatives: provide house, medical treatment, child and elder nursing, and other public utilities for the members to use in living.
8. Transportation cooperatives: provide transportation services for the members.
9. Credit cooperatives: provide banking service.
10. Insurance cooperatives: provide insurance service.
11. Cooperative farms: engaged in agricultural production, marketing, supply, and utility services.
12. Other classes and businesses approved by the central regulating authority jointly with the central regulating authorities of target businesses.
In order to satisfy the demand of the members, the cooperatives as listed in the above paragraph, except in Subparagraph 10, may provide other auxiliary services related to the principal business,.
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| Article 3-1 |
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Credit cooperatives and insurance cooperatives shall be applied to the Credit Cooperatives Act and the Insurance Act; for any affairs other than prescribed thereinto, the provisions of this Act shall apply.
A cooperative other than prescribed in the above paragraph shall be restricted by the following provisions unless it is entrusted by the government or a public welfare association:
1. Production cooperatives shall only include producer members, and may not operate or sell any products other than produced by the members.
2. Marketing cooperatives may not sell any products other than produced by the members.
3. Supply cooperatives and consumption cooperatives may not provide or sell goods to anyone other than members.
4. Utility cooperatives and public utility cooperatives may not provide equipment for anyone other than members to use.
5. Labor cooperatives and transportation cooperatives many not employ anyone other than members.
6. Cooperative farms shall observe the restrictions set forth in Subparagraphs 1~4 above.
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| Article 4 |
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The liabilities of cooperatives are divided into the following three types:
1. Limited liability: a member shall be liable within the range of the shares he holds.
2. Guaranteed liability: a member shall be liable within the range of the shares he holds and the guarantee.
3. Unlimited liability: where the properties of such a cooperative are insufficient to pay the debts, the members shall be jointly and severely liable.
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| Article 5 |
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(Deleted)
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| Article 6 |
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The name of cooperatives shall indicate the scope of business and liability. However, it is not necessary to indicate the auxiliary services related to the principal business concurrently provided pursuant to Paragraph 2, Article 3.
Businesses registered at the local regulating authority and other than prescribed in Article 3 of this Act may not be operated in the name of the cooperatives.
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| Article 7 |
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Cooperatives may be exempted from income tax and business tax.
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Chapter 2 Establishment
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| Article 8 |
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A cooperative may not be established without seven members or more.
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| Article 9 |
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The founder of a cooperative shall summon an initiators’ meeting to work out the constitution, elect directors and supervisors, and organize the cooperative affairs committee, and submit the proceedings of the initiators’ meeting, the constitution, and the roll list of the members within one month to the local regulating authority for registration of establishment.
The matters that should be registered include the following:
1. Name
2. Scope of business
3. Liability
4. Address
5. Name, sex, age, place of birth, position, and dwelling address of the directors and the supervisors
6. Payment method of the share of cooperatives
7. Share of cooperatives subscribed and the amount already paid by each member
8. Regulations on membership, affiliation, disaffiliation, and dismissal.
9. Regulations on implementation of cooperative affairs as well as appointment and removal of the personnel
10. Members of guaranteed liability cooperatives and their guarantees
11. Regulations on disposal of surplus
12. Regulations on public accumulation fund and public welfare fund
13. Causes for disincorporation (if prescribed)
In case of alteration of the matters listed above except the age, place of birth, and position in Subparagraph 5 and Subparagraph 7, registration of alteration shall be made within one month. Before such registration is made, the altered matters may not be used to act against a third party of good intention.
The constitution of a cooperative may be modified only with the resolution of the member’s congress, and written proceedings of the congress shall be submitted to the regulating authority for registration of alteration.
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| Article 9-1 |
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The constitution of a cooperative shall include the following contents:
1. Name
2. Liability
3. Address
4. Organizational area
5. Type of the operated business
6. Regulations on the capital stocks of cooperatives and payment or refund
7. Guarantee money of guaranteed liability cooperatives
8. Rights and obligations of the members
9. Quota, authority, and tenure of the staff
10. Starting and terminating date of a business year
11. Regulations on disposal of surplus and sharing of losses
12. Regulations on public accumulation fund and public welfare fund
13. Regulations on membership, affiliation, disaffiliation, and dismissal
14. Regulations on implementation of cooperatives affairs as well as appointment and removal of directors and supervisors
15. Term of existence or causes for disincorporation (if prescribed)
16. Disposal of other affairs.
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| Article 10 |
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Upon receipt of an application submitted under Article 9, the regulating authority shall determine to approve or reject it within 15 days.
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| Article 10-1 |
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After being established, a cooperative shall start its business within six months. However, in case of act of God or force majeure, application may be submitted to the regulating authority for postponement.
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| Article 10-2 |
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A cooperative may establish branches where necessary, but shall, within one month after a branch is established, report to the regulating authority for reference.
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Chapter 3 Share of Cooperatives and Surplus
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| Article 11 |
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A cooperatives member shall have any of the following qualifications:
1. Over 20 years old
2. Under 20 years old, and with the capacity to act.
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| Article 12 |
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A legal person may only be a member of a cooperative of limited liability or guaranteed liability, and such legal person shall be a non-profit one.
A member of a cooperative of unlimited liability may not be a member of another cooperative of unlimited liability.
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| Article 13 |
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Anyone who meets any of the following may not be a member of a cooperative:
1. Deprived of public rights
2. Bankrupted
3. Addict in opium or its substitutes
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| Article 14 |
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After a cooperative is established, anyone who applies for affiliation into the cooperative shall submit references produced by two or more members, or directly submit a written application. Such application shall be determined according to the following provisions.
1. Affiliation into cooperatives of limited liability or guaranteed liability requires the consent of the board of directors, and shall be reported to the member’s congress.
2. Affiliation into cooperatives of unlimited liability shall be proposed by the cooperative affairs committee and requires the consent of not less than 3/4 of the attendees of the member’s congress.
Cooperatives shall register their new members at the regulating authorities within 1 month after the affiliation is approved.
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| Article 15 |
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New members shall burden the same liability as old members do for the debts burdened before they are affiliated.
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| Article 16 |
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The par value of each share of a cooperative shall be not less than NT$6 and not more than NT$150, and must be unified in a same cooperative.
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| Article 17 |
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The proportion of shares subscribed by a member shall be not less than 1 share and not more than 20% of the total capital. And the first payment may not be less than 1/4 of the amount of the shares subscribed.
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| Article 18 |
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The shares that a member has subscribed but has not paid may not be charged off by the member’s claim of creditor’s rights against the cooperative or other members, and the shares that have been paid may not be used to set off the debts owed by the member to the cooperative or other members.
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| Article 19 |
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Cooperatives may allocate the earned dividend and surplus of a member to make up for the shares that the member has not paid for yet.
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| Article 20 |
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Without the consent of the cooperative, a member may not transfer the shares he holds to someone else or use it as the guarantee of debts.
The transferee or heritor of shares shall succeed the rights and obligations of the transfer or ancestor. If the transferee or heritor is not a member of a cooperative, the provisions of Article 11 and Article 14 shall apply.
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| Article 21 |
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If a cooperative of limited liability reduces the par value of each share, or a cooperative of guaranteed liability reduces the par value of each share or the guarantee money, it shall be resolved in the member’s congress; and notices shall be given to the creditors or a public announcement shall be made to inform the creditors about the reduction, and a time limit of not less than one month shall be set for the creditors to file an opposition against the reduction.
If a creditor files an opposition within the time limit set forth in the above paragraph, the cooperative may not reduce the par value of each share or the guarantee money unless it pays off the debts owed to the creditor or provides an equivalent guarantee.
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| Article 22 |
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The annual interest of the shares may not exceed 1% and, without surplus, no interest may be distributed to the members.
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| Article 23 |
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Surplus shall be used to make up for the accumulated losses and pay the interest; besides, in a credit cooperative or a cooperative providing loans, not less than 20%, and in other cooperatives, not less than 10% of the surplus shall be allocated into the public accumulation fund, 5% into the public welfare fund, and 10% as the reward for the directors, clerks, and technicians.
Where the public accumulation fund as referred to in the above paragraph is more than 2 times of the total capital, the cooperative itself may determine the percentage of surplus that should be allocated into the fund every year.
The members may not request to distribute the public accumulation fund.
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| Article 24 |
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After the surplus is allocated in accordance with the provision of the above article, the residuals shall be distributed according to the transaction amount of the members.
If it is resolved in the member’s congress that the residuals as referred to in the above paragraph should not be distributed, it may be deposited as capital stocks subscribed by the members or allocated into the public accumulation fund.
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| Article 25 |
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Public accumulation fund shall be stored in credit cooperatives or other reliable banks with the resolution of the member’s congress.
Where the public accumulation fund is more than 50% of the total capital stock, the excessive proportion may be used to operate the cooperative with the resolution of the member’s congress.
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| Article 26 |
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In any of the following occasions, a member shall be disaffiliated:
1. Any of the occasions as prescribed in Article 13
2. Death
3. Application for disaffiliation on one’s own initiative
4. Dismissed.
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| Article 27 |
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A member may quit from the cooperative at the end of a business year, but shall submit a letter of application three months before.
The term prescribed in the above paragraph may be prolonged to six months in the constitution; if the member is a legal person, the term may be prolonged to one year.
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| Article 28 |
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Dismissal of a member requires the consent of not less than 3/4 of the directors and supervisors who attend the cooperatives affairs meeting and shall be reported to the member’s congress, and a written notice shall be sent to the dismissed member.
Causes for dismissal shall be prescribed in the constitution.
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| Article 29 |
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A disaffiliated member may apply for affiliation again pursuant to Article 14.
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| Article 30 |
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A disaffiliated member may request the cooperative to refund all or a part of the capital stocks he holds according to the provision of the constitution, and the capital stocks shall be calculated according to the properties at the end of the business year. However, if it is otherwise prescribed in the constitution, such prescription shall apply.
The cooperatives engaged in the businesses listed in Subparagraph 3, Article 3 may refund the capital stocks of the disaffiliated members by the goods.
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| Article 31 |
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A disaffiliated member of a cooperative of unlimited liability or guaranteed liability may, after he has been disaffiliated for two years, be relieved from the liability that has come into existence before he is disaffiliated.
If the cooperative referred to in the above paragraph is disincorporated within six months after a member is disaffiliated, the member shall be regarded as affiliated all the same.
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Chapter 4 Directors, Supervisors and Other Personnel
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| Article 32 |
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There shall be at least three directors and three supervisors in a cooperative, and they shall be elected in the member’s congress from the members.
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| Article 33 |
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The tenure of director shall be one to three years, and supervisor one year, and both can be reappointed continuously.
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| Article 34 |
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Directors shall implement tasks according to the provisions of this Act and the constitution of the cooperative as well as resolutions of the member’s congress, and shall elect one or several of them to represent the cooperative toward the outside.
Where a director infringes the provision of the above paragraph, thus resulting in damage to the cooperative, the director shall be liable to compensate the cooperative.
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| Article 35 |
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The board of directors shall place the constitution, a roll list of members, proceedings of the member’s congress, and other books that should be prepared according to law in the cooperative. The roll list of members shall include the following contents:
1. Name, sex, age, native place, occupation, and address of the members
2. Date of the member’s subscribing shares as well as the quantity of shares and serial number of the stocks
3. The money already paid by each member and the date of payment
4. The guarantee money paid by each member of guaranteed liability cooperatives
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| Article 36 |
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Upon termination of a business year, the board of directors shall compile a business report, a statement of assets and liabilities, calculation of profit and loss, inventory of properties and surplus allocation schemes and shall, 10 days before a meeting of the member’s congress is called, submit the documents to the member’s congress after they have been examined by the board of supervisors. However, this is not applicable when a temporary meeting of the member’s congress is held.
The cooperatives shall, within one month after the documents as referred to in the above paragraph are admitted by the member’s congress, report them in writing to the regulating authority for reference.
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| Article 37 |
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All the members and creditors of a cooperative have the right to look over the documents as referred to in the above two articles.
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| Article 38 |
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(Deleted)
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| Article 39 |
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The supervisors have the following authorities:
1. To supervise and inspect the properties of the cooperatives
2. To supervise and inspect the implementation of business
3. To examine the documents set forth in Article 35 and Article 36
4. To act on behalf of the cooperative when it signs a contract with or is in a lawsuit against its director(s)
The supervisors may call temporary meetings of the member’s congress where it is deemed necessary to do so for performing the duties as listed in the above paragraph.
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| Article 40 |
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A supervisor may not concurrently hold a position of director, clerk, or technician.
A member who has once been made a director may not be elected supervisor before he is relieved from the responsibilities.
A director or supervisor may not concurrently hold a position of director or supervisor in a cooperative of a same level and same business scope, or assume a position in an association or enterprise that competes with the cooperative.
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| Article 40-1 |
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The members who hold a position in the regulating authorities and burden the administrative responsibility to supervise the cooperatives under jurisdiction may be elected supervisors, but may not be elected directors.
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| Article 41 |
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Supervisors may not enjoy the reward set forth in Article 23.
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| Article 42 |
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In case of infringement of law or the constitution of the cooperative, a director or supervisor may be recalled by the member’s congress with the consent of more than a half of the members; the same for breach of duty.
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| Article 43 |
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Where a director or supervisor infringes law or commits any misconduct that is likely to damage the cooperative, the regulating authority may compel him to quit the job where necessary.
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| Article 44 |
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Cooperatives may set positions of clerk and technician for the necessity of business, and they shall be appointed and recalled by the board of directors.
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Chapter 5 Meetings
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| Article 45 |
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The meetings of cooperatives are divided into the following four classes:
1. Member’s congress: shall be held at least once every year.
2. Cooperative affairs meeting: shall be held at least once every three months.
3. Meeting of the board of directors: shall be held at least once every month
4. Meeting of the board of supervisors: shall be held at least once every month.
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| Article 46 |
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The member’s congress shall be convened by the board of directors.
A written notice indicating the causes for convening the congress and the proposed topics shall be sent to the members 7 days before the meeting is held.
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| Article 47 |
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Where necessary, the board of directors may call temporary meetings of the member’s congress. With the consent of more than 1/4 of the members, a written application marked with the proposed topics and the causes may be submitted to request the board of directors to call a temporary meeting of the member’s congress.
If the board of directors doesn’t give a notice for calling the temporary meeting within 10 days after the application as referred to in the above paragraph has been submitted, the members may call the meeting by themselves after having reported to the regulating authority.
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| Article 48 |
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A meeting of the member’s congress may be opened only with the attendance of more than a half of the members, and a resolution requires the consent of more than a half of the present members.
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| Article 49 |
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In a meeting of the member’s congress, each member can take only one vote. However, if a member is a legal person, its right to vote shall be executed by the representatives and each representative shall take one vote. The number of the representatives shall be determined according to the constitution, and shall be not more than five.
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| Article 49-1 |
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Where the procedure of calling a meeting of the member’s congress or the resolution method infringes law or the constitution, the members may, within one month after a resolution is made, request in writing the regulating authority to cancel the resolution. However, this is not applicable where the present members don’t express opposition on the spot against the procedure or the resolution method.
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| Article 50 |
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Where a member cannot attend a meeting of the member’s congress, he can entrust in writing another member to represent him. A representative may not act as the agent of more than one member.
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| Article 51 |
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Where a meeting of the member’s congress fails twice, the board of directors may prepare the matters to be discussed in written form, and request all the members to take a vote by correspondence within a certain time limit, and the time limit shall be not less than 10 days.
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| Article 52 |
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The cooperative affairs meeting shall be convened by the board of directors; and the chairperson shall be elected by and from the directors and supervisors.
A cooperative affairs meeting may be opened only with the attendance of 2/3 of all the directors and supervisors, and a resolution requires the consent of more than a half of the present directors and supervisors. The clerks and technicians may attend the meeting as nonvoting delegates to present their opinions.
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| Article 53 |
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A meeting of the board of directors shall be convened by the chairperson.
A meeting of the board of directors may be opened only with the attendance of more than a half of all the directors, and a resolution requires the consent of more than a half of the present directors and supervisors. The clerk and technicians may attend the meeting as nonvoting delegates to present their opinions.
The chairperson of the board of directors shall be elected by and from the directors.
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| Article 54 |
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The provision of the above article is also applicable to meeting of the board of supervisors.
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Chapter 6 Disincorporation and Liquidation
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| Article 55 |
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A cooperative may be disincorporated in any of the following occasions:
1. A cause for disincorporation set forth in the constitution occurs.
2. The member’s congress determines a resolution of disincorporation.
3. There are less than seven members.
4. The cooperative is incorporated into another.
5. Bankrupted.
6. Order of disincorporation.
The resolution referred to in Subparagraphs 2 and 4 requires the attendance of more than 3/4 of all the members and the consent of more than 2/3 of the present members.
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| Article 55-1 |
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The regulating authority may order a cooperative to disincorporate if any of the following conditions occur:
1. The information stated in the incorporation application or the submitted documents have been found to be false, and its registration has been cancelled by the regulating authority.
2. The regulating authority has issued a public announcement to abolish its registration in accordance with the provisions of Paragraph 2 of Article 57.
3. More than half of the members did not express their opinions when being requested to take a vote by correspondence within a certain time limit pursuant to the provisions of Article 51.
4. It has failed to convene the annual meetings of the member’s congress for two consecutive years, and still failed to do so within a given time limit after the regulating authority sent a written request, issued a notice by publication, or issued a public announcement.
5. It violated the regulations stipulated in Article 10-1 or Subparagraph 2 of Article 58, and was subject to more than three consecutive punishments pursuant to the provisions of Subparagraph 1 of Article 73-1, without any improvements within a given time limit.
6. It violated the regulations stipulated in Article 56, and was subject to more than three consecutive punishments pursuant to the provisions of Subparagraph 4 of Article 74, without any improvements within a given time limit.
7. The conditions stated in Subparagraph 1 or 3, Paragraph 1 of Article 55 have occurred, but the cooperative failed to file a registration application to the regulating authority for its disincorporation within a month.
Except for Subparagraphs 1 and 2 of the preceding paragraph, the regulating authority shall issue a public announcement to abolish the registration when ordering a cooperative to disincorporate for any of the above conditions, and shall request the cooperative to proceed with liquidation in accordance with the relevant provisions of the Act.
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| Article 56 |
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Where a cooperative of limited liability or guaranteed liability cannot pay off the debts, the court may announce the bankruptcy at the request of the board of directors, the board of supervisors, or the creditors.
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| Article 57 |
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Resolution of disincorporation f cooperatives shall be reported to the regulating authority within 1 month for registration; where it is disincorporated according to the provision of Subparagraphs 1~4, Paragraph 1, Article 55, the causes for disincorporation shall be explained; if it is disincorporated according to the provision of Subparagraph 2 or 4, the proceedings of the member’s congress shall be submitted.
Where the disincorporation is not registered within the time limit set forth in the above paragraph, the regulating authority may directly issue a public announcement to abolish the registration.
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| Article 58 |
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Upon incorporation of cooperatives, application shall be submitted to the regulating authority within one month for registration according to the following provisions:
1. Registration of alteration shall be made for the cooperatives continued due to incorporation..
2. Registration of disincorporation shall be made for the cooperatives eliminated due to incorporation.
3. Registration of establishment shall be made for the cooperatives newly established due to incorporation.
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| Article 59 |
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In case of disincorporation or incorporation of a cooperative, notices shall be separately given to the creditors within one month, and public announcement shall be issued. And a time limit of not less than one month shall be set for the creditors to file opposition.
Where the cooperative doesn’t issue the notice or announcement set forth in the above paragraph, or doesn’t pay off the debts owed to the creditors who have filed an opposition within the time limit or provide an equivalent guarantee, it may not act against the creditors by name of disincorporation or incorporation.
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| Article 60 |
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In case of disincorporation of a cooperative, the liquidator shall be assumed by a director unless otherwise prescribed in the constitution of the cooperative or elected by the member’s congress.
If the liquidator is not elected according to the provision of the above article, the court may appoint a liquidator at the request of the interested persons.
The liquidator shall, within 15 days after accession, report his name, address, and date of accession to the regulating authority for reference; if he is appointed by the court, a report shall also be sent to the court for reference.
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| Article 61 |
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The duties of a liquidator are as follows:
1. To deal with the current affairs.
2. To claim the creditor’s rights and pay off the debts.
3. To allocate the residual properties.
In order to implement the duties set forth in the above paragraph, a liquidator has the right to take any action on behalf of the cooperative.
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| Article 62 |
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Where there are several liquidators, the implementation of liquidation affairs shall be resolved with the consent of more than a half of all the liquidators. However, each liquidator has the right to act in the name of the cooperative over a third party.
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| Article 63 |
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After accession, a liquidator shall immediately examine the status of the cooperative, and compile a statement of assets and liabilities and an inventory of properties, and submit them to the member’s congress for confirmation. In case of abortion of the member’s congress, the liquidator may submit the documents to the regulating authority for recording.
Upon being inquired, the liquidator shall provide answers about the liquidation immediately.
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| Article 63-1 |
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The regulating authorities may order liquidators to report the implementation of liquidation or send personnel to examine the liquidation affairs at any time, and a liquidator may not evade, encumber or refuse the authorities to do so.
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| Article 64 |
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A liquidator shall, within 15 days after accession, issue a public announcement to hasten the creditors to declare their rights within a time limit, and shall separately notify the known creditors.
The time limit as referred to in the above paragraph shall be not less than 15 days.
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| Article 65 |
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After liquidation is finished, the liquidator shall, within 20 days, compile a report and submit it to the regulating authority and separately send duplicated copies to the members.
Where the liquidator is appointed by the court, the report shall also be submitted to the court.
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Chapter 7 Cooperatives Union
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| Article 66 |
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Two or more cooperatives or cooperatives unions may establish a cooperatives union according to the relation in geography or business.
There may not be two unions in a same region or in cooperative enterprises of same business scope in a same region.
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| Article 67 |
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A cooperatives union is a legal person.
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| Article 68 |
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Affiliation or disaffiliation of cooperatives requires the resolution of the member’s congress of the cooperatives.
Affiliation or disaffiliation of a cooperatives union requires the resolution of the representative’s congress of the union.
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| Article 68-1 |
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The par value of each share of a cooperatives union may not exceed NT$150.
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| Article 69 |
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The representative’s congress of a cooperatives union shall be composed of the representatives of the cooperatives or unions.
The quota of the representatives referred to in the above paragraph shall be determined using any of the following methods:
1. Determined according to the number of members of each cooperative or cooperatives unions.
2. Determined according to the total capital of each cooperative or cooperatives union.
3. Determined according to the proportion of capital invested by each cooperative or cooperative union into the union.
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| Article 70 |
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The liabilities of cooperatives unions are limited to the following two types:
1. Limited liability.
2. Guaranteed liability.
The guaranteed liability of each cooperative or cooperatives union affiliated into a cooperatives union of guaranteed liability shall be determined according to the capital stock invested by the cooperative or cooperative union.
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| Article 71 |
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The directors and supervisors of a cooperatives union shall be elected by the union’s congress from the representatives of the affiliated cooperatives or cooperatives unions.
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| Article 72 |
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The provisions set forth in this Act on cooperatives shall be applicable to cooperative unions unless otherwise prescribed in this Chapter or other laws and regulations.
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Chapter 8 Penal Provisions
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| Article 73 |
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A director or liquidator of cooperatives who commits any of the following shall be fined a sum of not less than NT$2,000 and not more than NT$10,000:
1. Violate the provision on the time limit of notice set forth in Paragraph 2 of Article 47
2. Violate the provision on the time limit of notice or announcement set forth in Article 51 or 64.
3. Violate the provision of Paragraph 3 of Article 60.
In occasions as prescribed in Subparagraph 2 or 3 of the above paragraph, a sum will be fined; besides, a time limit shall be set for the director or liquidator to correct his misconduct. If correction is not made within the time limit, consecutive punishment will be executed.
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| Article 73-1 |
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A cooperative that commits any of the following misconducts shall be fined a sum of not less than NT$2,000 and not more than NT$10,000, and a time limit shall be set for correction; if correction is not made within the time limit, consecutive punishment will be executed:
1. Violate the provisions on registration, commencement of operating, report for reference, or determination of time limit set forth in Paragraphs 1 and 3 of Article 9, Article 10-1, Article 10-2, Paragraph 2 of Article 14, Paragraph 2 of Article 36, Paragraph 1 of Article 57, or Article 58.
2. Violate the provisions on the time limit of notice or announcement set forth in Paragraph 1 of Article 21 or Paragraph 1 of Article 59.
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| Article 74 |
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A director, supervisor, or liquidator of cooperatives who commits any of the following shall be fined a sum of not less than NT$4,000 and not more than NT$20,000, and a time limit shall be set for correction; if correction is not made within the time limit, consecutive punishment may be executed:
1. Not prepare, fabricate, prepare, file, report, or submit the related books and registers according to the provisions set forth in Article 35, Paragraph 1 of Article 36, Paragraph 1 of Article 63, or Article 65, or make false records.
2. Evade, encumber, or refuse a member or creditor to look over the documents according to the provision of Article 37.
3. Violate the provision of Article 40-1 and Article 63-1.
4. Not apply for announcement of bankruptcy in a case as prescribed in Article 56.
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| Article 74-1 |
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A cooperative that commits any of the following misconducts shall be fined a sum of not less than NT$4,000 and not more than NT$20,000, and a time limit shall be set for correction; if correction is not made within the time limit, consecutive punishment will be executed:
1. Violate the provision of Paragraphs 2 of Article 3-1 or Paragraph 1 of Article 6.
2. Violate the provision of Article 22 or Paragraph 1 of Article 23.
3. Violate the provision of Article 40
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Chapter 9 Supplementary Provisions
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| Article 75 |
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The business of all kinds of cooperatives shall be implemented in accordance with the provisions of this Act, and other laws may be stipulated where necessary.
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| Article 75-1 |
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Regulations on election and dismissal in cooperatives, regulations on examination of accounting books of cooperatives, regulations on supervision and inspection performed by the board of supervisors, regulations on encouragement for cooperative enterprises, regulations on organizational framework and disposal of funds of cooperatives, and regulations on establishment of cooperative farms shall be prescribed by the central regulating authority; the contents and scope of the regulations are as follows:
1. Regulations on election and dismissal in cooperatives: type of election and dismissal, registration of candidates, procedure of qualification examination, voting and counting of votes, result of election, method of dismissal, and other matters that should be stipulated.
2. Regulations on examination of accounting books cooperatives: type, method, and procedure of examination, supervision performed by the regulating authorities, and other matters that should be stipulated.
3. Regulations on supervision and inspection performed by the board of supervisors: the method, procedure, and scope of the board of supervisors’ executing authorities, and other matters that should be stipulated.
4. Regulations on encouragement for cooperative enterprises: procedure of evaluation, grading, items of encouragement, and other matters that should be stipulated.
5. Regulations on organizational framework and disposal of funds of cooperatives: organizational system, quota of staff, personnel management, allocation of funds, and other matters that should be stipulated.
6. Regulations on establishment of cooperative farms: standard of establishment, qualification of members, organization framework, meeting procedure and resolution method, business funds, land utilization, distribution of profit and loss, encouragement, and other matters that should be stipulated.
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| Article 76 |
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Enforcement rules for this Act shall be prescribed by the Ministry of the Interior.
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| Article 77 |
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This Act shall become effective as of the date of promulgation. |