Chapter II Establishment and Registration

Article 10 For establishment of a specialized farmers cooperative, the following conditions shall be met:

(1) having five or more members who meet the requirements as are prescribed in Articles 14 and 15 of this Law;

(2) having a charter that meets the requirements as are prescribed by this Law;

(3) having an organizational structure that meets the requirements as are prescribed by this Law;

(4) having a name which is in conformity with the provisions of relevant laws and administrative regulations and a domicile as specified in the charter; and

(5) having capital contributions made by members who meet the requirements as are specified in the charter.

Article 11 For establishment of a specialized farmers cooperative, an assembly shall be convened with the participation of all of the founders. Persons who voluntarily become members of the cooperative at the time of its establishment are founders.

The founders’ assembly shall exercise the following functions and powers:

(1) to adopt the charter of the cooperative, which is required to be adopted unanimously by all of the founders;

(2) to elect the director-general, directors, the executive supervisor or members of the board of supervisors; and

(3) to examine and discuss other major issues.

Article 12 In the charter of a specialized farmers cooperative shall clearly be specified the following matters:

(1) its name and domicile;

(2) scope of business;

(3) membership qualifications, joining and withdrawing from the cooperative, as well as expelling a member;

(4) rights and duties of members;

(5) structure of the organization, measures for its formation, its functions and powers, term of office and the rules of procedure;

(6) forms and amounts of capital contributions to be made by members;

(7) financial management, distribution of profits and disposition of losses;

(8) procedures for modification of the charter;

(9) causes of dissolution and measures for liquidation;

(10) the items for announcement and the manners of announcement; and

(11) other matters that need to be specified.

Article 13 For establishment of a specialized farmers cooperative, the following documents shall be submitted to the administrative department for industry and commerce to apply for registration:

(1) letter of application for registration;

(2) minutes of the establishment assembly signed and sealed by all of the founders;

(3) charter signed and sealed by all of the founders;

(4) letters of appointment and identity certifications of the legal representative and of the directors;

(5) list of capital contributions signed and sealed by the members who make such contributions;

(6) certification for use of the domicile; and

(7) other documents as prescribed by relevant laws and administrative regulations.

The registration authority shall complete the registration procedure within 20 days from the date it accepts the application for registration and shall issue a business license to the applicant that meets the conditions for registration.

Where a specialized farmers cooperative intends to alter the statutory items for registration, it shall submit an application for the purpose.

The measures for registration of specialized farmers cooperatives shall be formulated by the State Council. No charges may be collected for registration.