Chapter One -- General Provisions |
| Article 1 |
（Purpose of legislation）This Act is adopted for the purposes of strengthening the sound operation of credit cooperatives, safeguarding the rights and interests of cooperative members and depositors, meeting the needs of national economy, and of coordinating with national financial policies. |
| Article 2 |
（Definitions of credit cooperatives）In this Act, credit cooperative means a cooperative that is organized and registered under this Act, and that the institution has been approved by the Central Competent Authority to carry on the business of providing banking services. |
| Article 3 |
（Establishment of credit cooperatives）The incorporation of a credit cooperative shall be subject to the approval of the Central Competent Authority, and shall be registered with the Competent Authority responsible for credit cooperatives.
A credit cooperative incorporated under the preceding paragraph shall not engage in or carry on business until a business license has been issued by the Central Competent Authority.
The procedures and the terms and conditions for the application to incorporate a credit cooperative shall be prescribed by the Central Competent Authority. |
| Article 4 |
（Management of credit cooperatives）The regulation of credit cooperatives shall be governed by the provisions of this Act; where this Act is silent, it shall be governed by those of other relevant laws. |
| Article 5 |
（Competent authority）In this Act, the Competent Authority means, in respect to the central government, the Financial Supervisory Commission; in respect to the municipal level, the municipal governments, and in respect to the county (city) level, the county (city) governments. |
| Article 6 |
（Responsible person）In this Act, responsible person of credit cooperative means a director of the cooperative.
The managerial officers, liquidators, control supervisors, and supervisors who are acting within the scope of their duties shall also be deemed responsible persons of a credit cooperative. |
| Article 7 |
（Establishment of business territory and branches）The business territory of a credit cooperative shall be delimited or adjusted at the discretion of the Central Competent Authority who, in determining the limits, though not required to conform with the administrative boundaries, shall take into account the economic and financial conditions of the locality and the business situation of the cooperative.
A credit cooperative may establish branches within its business territory. The regulations for such establishment shall be identical to those of bank branches. |
| Article 8 |
（Items to be specified in the articles of cooperative）There shall be set out in the articles of cooperative incorporated a credit cooperative:
1. The name of the cooperative;
2. The place where the head office, and the branch offices, if any, of the cooperative are to be situated;
3. The scope of business;
4. The business territory;
5. The nature of liabilities;
6. The membership qualifications, methods for admission to, withdrawal and expulsion from membership;
7. The par value of each membership share, and terms and conditions for paying in or redemption;
8. The minimum aggregate amount of share capital received;
9. The rights and obligations of members;
10. The amount guaranteed, where the liabilities of a credit cooperative are limited by guarantee;
11. The organization, functions and powers of the general meetings of members, and of those of the boards of directors and supervisors;
12. The methods for handling managerial matters and business affairs of the cooperative, the number of directors and supervisors, and their terms of office;
13. The rules concerning the appointments of general managers and vice general managers;
14. The distribution of earnings and the sharing of losses;
15. The use of surplus reserves and welfare funds;
16. The methods for making public notices;
17. The causes for dissolution of the cooperative;
18. Other matters specified by the Central Competent Authority; and
19. The dates of adoption of and amendment to the articles of cooperative.
The adoption of and amendment to the articles of cooperative shall besubmitted to the county (city) Competent Authority for transmission to the Central Competent Authority, or be submitted to the municipal Competent Authority, for review and approval.
An amendment to the articles of cooperative or change of directors and supervisors shall be registered within one (1) month of the amendment or change. The amendment or change shall not be effective against a bona fide third party prior to the registration. |
| Article 9 |
（Advances of necessary funds to credit cooperatives and the redeposit of surplus funds）The advances of necessary funds to credit cooperatives and the redeposit of surplus funds thereby shall be administered by the Central Bank, or by such other organization as it may designate, in such manner as the Bank may determine, after consultation with the Central Competent Authority. The rules for such administration shall be made by the Bank.
The receipt and custody of the deposit-reserves of credit cooperatives shall be administered by the Central Bank, or by such other financial institution as it may designate. |
| Article 10 |
（National federation of credit cooperatives）The credit cooperatives may, with the approval of the Central Competent Authority, form national federation, which shall be subject to the guidance of and supervision by the Central Competent Authority. The adoption of and amendment to the charter of the federation shall be submitted to the Central Competent Authority for review and approval. |