Article Content
Chapter Four -- Organization and Meetings
| Article 16 |
（Terms and elections of directors and supervisors）
The term of directors and supervisors shall be three years and may be re-elected.
A director may not be elected a supervisor until three years after they cease to hold the office of director and until their duties have been released.
The office of a director and supervisor shall not remain vacant for more than one month after the expiry of its term without holding an election. Where no election is held within such period, the Competent Authority shall order that an election be held or cause to be held within such period, and the Competent Authority shall order that an election be held or cause to be held within one month after the expiry of such period.
The directors and supervisors shall be elected by the allotment of secret limited vote from a list of registered candidates at the general meeting of members (or member representatives), each of whom shall have a limited number of votes not exceeding one-half of the vacant positions.
The qualifications and the terms and conditions for member representatives, directors, supervisors, and managerial officers, as well as their selection procedures, shall be prescribed by the Central Competent Authority. |
| Article 16- 1 |
（Expenses for directors, supervisors, and membership representatives ）
Expenses for the directors, supervisors, and member representatives shall not be allocated except for expenses of study and research, honorarium, transportation allowance for member representatives, and expenses designated by the Central Competent Authority.
The standards of the expense allocations prescribed in the preceding paragraph shall be established by the National Federation of Credit Co-operatives R.O.C. and reported to the Central Competent Authority for approval. |
| Article 17 |
（Non-compete clause）
A director, supervisor, managerial officer, and staff member of a credit cooperative may not concurrently hold a position in another credit cooperative, bank, insurance company, securities firm, or other financial institutions, provided that they may, with the approval of the Central Competent Authority, concurrently serve as a director or supervisor of a bank invested by the cooperative. |
| Article 18 |
（Compensation of directors and supervisors for losses or damages incurred）
The directors shall perform their duties in accordance with law and regulations, the articles of cooperative, and the resolutions of the general meeting of cooperative members.
Where a resolution of the board of directors violates the preceding paragraph, causing losses or damages to the credit cooperative, the directors who participated in the adoption of the resolution are liable to compensate the cooperative for the losses or damages incurred, provided that those who opposed to the adoption of the resolution as can be proven by the minutes of the meeting or by written statements, are exempted from such liability.
The supervisors who are negligent in the performance of supervisory duties that cause losses or damages to the credit cooperative are liable to compensate the cooperative for the losses or damages incurred. Where both the supervisors and directors are liable to a credit cooperative or a third party for losses or damages incurred, they shall be jointly and severally liable. |
| Article 19 |
（Liability of directors and managerial officers ）
Where a credit cooperative cannot repay the depositors, the directors and managerial officers shall be jointly and severally liable thereto.
The liability of directors and managerial officers referred to in the preceding paragraph shall not be released until two years after they cease to hold office, provided that such liability shall not be released if the reason of the cooperative is incapable of repaying their depositor can be personally attributed to the directors and managerial officers. |