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  • Interpretation
  • No.276【Under Translation】
  • Date
  • 1991/03/08
  • Issue
    • Is the lack of clear elements and procedures for demanding an involuntary disincorporation of a cooperative in the Cooperative Act and the Regulations on the Encouragement of Cooperative Enterprises unconstitutional?
  • Holding
    •        The involuntary dissolution order of Subsection 6, Paragraph 1, of Article 55 of the Cooperative Act is a disposition dissolving any cooperative. However, no clear elements and procedures of such disposition have been clarified in the said Act Therefore, the governmental authority in charge shall accordingly review and amend said Act Further, the related Regulations on the Encouragement of Cooperative Enterprises issued by the Ministry of Interior on February 26, 1980,  which require the involuntary dissolution of those cooperative enterprises that were graded as E class by the regional county or city governmental authority in charge shall be reviewed and amended accordingly.
      
  • Reasoning
    •        It is specified in Paragraph 1, Article 55, of the Cooperative Act that: “A cooperative may be disincorporated in any of the following circumstances: 1. A cause for disincorporation as set forth in the Constitution occurs; 2. The members’ congress determines a resolution of disincorporation; 3. There are less than seven members; 4. The cooperative is incorporated into another cooperative. 5. Bankruptcy; and 6. Order of disincorporation.” In the above paragraph, the disincorporation order of Section 6 means a disincorporation that will dissolve a cooperative and terminate its personality accordingly. However, no clear elements and procedures of such disposition have been clarified in the said Act. We therefore believe that the governmental authority in charge of such act should accordingly review and amend such act. Further, regarding the related Regulations on the Encouragement of Cooperative Enterprises issued by the Ministry of Interior on February 26, 1980, which require the involuntary disincorporation of those cooperative enterprises that were graded as E class by the regional county or city governmental authority in charge, we confirm that the purpose of such requirement is just and reasonable. Nonetheless, it shall be reviewed and amended in accordance with the amendment of the aforementioned Credit Cooperative Association Act.
      
    • *Translated by Professor Fuldien Li.
      
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