| 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 of course 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 compensations to its directors and supervisors;
4. Suspending or releasing directors or supervisors from their duties;
5. Suspending partial business operations;
6. Ordering to discontinue business, liquidate, or to 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 acknowledgement; whereas sanctions referred to in subparagraphs 5 to 8 shall be forwarded to the Central Competent Authority for action.
When a director, supervisor, or a managerial officer is suspected of committing an offence 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 has reached one-half of the total positions, a by-election shall be held promptly to fill the vacancies. |