Chapter Four -- Organization and Meetings |
| Article 16 |
（Terms and elections of directors and supervisors）The directors and supervisors shall hold office for a term of three years and shall be eligible for re-election. A director may not be elected a supervisor until three years after he (she) ceases to hold the office of director and until his (her) 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, 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 secret ballots from a list of registered candidates at the general meeting of members (or membership 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 membership 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 membership representatives shall not be allocated, except for expenses of study and research, honorarium, transportation allowance for membership 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 ROC Credit Cooperative Union 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 position in another credit cooperative, bank, insurance company, securities firm or other financial institutions, provided however that, they may, with the approval of the Central Competent Authority, concurrently hold the position of director or supervisor in a bank, in which the cooperative has investment relations. |
| Article 18 |
（Compensation of directors and supervisors for losses or damages incurred）The directors shall perform functions and 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 however 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 neglected in the performance of supervisory duties that causes 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 is incapable of repaying 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 however that, such liability shall not be released if the directors or the managerial officers are personally at fault. |