Article Content
Chapter Seven -- Supervision
| Article 26 |
（Review of shortcomings and failures of business affairs）
A credit cooperative shall report to the boards of directors and supervisors the sanctions received from and improvements required by the Central Competent Authority on the shortcomings and failures of its business affairs and shall prepare the minutes of board meetings .
The shortcomings and failures of business affairs referred to in the preceding paragraph shall be discussed, and the resolutions of corrective measures thereof shall be adopted by the boards of directors and supervisors for prompt implementation, the progress of which be tracked and reviewed by the supervisors. |
| Article 27 |
（Sanctions）
When a credit cooperative fails to comply with the laws and regulations or the articles of the cooperative, or is incapable of sound management of its affairs, as likely to jeopardize the rights and interests of its members and depositors, the Competent Authority may impose the following sanctions:
1. Repealing the resolutions adopted at various statutory meetings. The resolutions with contents contravening the laws and regulations shall be null and void;
2. Dismissing the managerial officers and staff members, or ordering the credit cooperatives to take disciplinary measures against them;
3. Restricting the distribution of remuneration to its directors and supervisors;
4. Suspending or discharging directors or supervisors;
5. Suspending partial business operations;
6. Ordering to discontinue business, liquidate, or amalgamate;
7. Ordering to dissolve; and
8. Taking any other actions as may be necessary.
Sanctions referred to in Subparagraphs 1 to 4 of the preceding paragraph shall be imposed by the county (city) governments or by the municipal governments, and the measures taken thereby shall be reported to the Central Competent Authority for acknowledgment, whereas sanctions referred to in Subparagraphs 5 to 8 shall be forwarded to the Central Competent Authority for action.
When a director, supervisor, or managerial officer is suspected of committing an offense of embezzlement, breach of trust, or any other crimes, the credit cooperative shall refer the case to the appropriate authorities for legal action.
The vacancy left by a director or supervisor removed from duties according to the provisions of this Act shall be filled by an alternate director or supervisor, if any. Where the number of vacancies of directors or supervisors has reached one-half of the total positions, a by-election shall be held promptly to fill the vacancies. |