Act on Authorization of Public Interest Incorporated

Associations and Public Interest Incorporated

Foundations

(Act No. 49 of June 2, 2006)

Table of Contents

Chapter I General Provisions (Article 1 - 3)

Chapter II Authorization of Public Interest Corporations

Section 1 Authorization of Public Interest Corporations (Article 4 - 13)

Section 2 Business Activities of Public Interest Corporations

Subsection 1 Implementation of Business for Public Interest Purposes

(Article 14 - 17)

Subsection 2 Property for Business for Public Interest Purposes (Article 18)

Subsection 3 Special Provisions for Accounting of Public Interest

Corporations (Article 19 - 23)

Subsection 4 Merger, etc. (Article 24 - 26)

Section 3 Supervision of Public Interest Corporations (Article 27 - 31)

Chapter III Public Interest Corporation Commission and Council Organization

Established in Prefectures

Section 1 Public Interest Corporation Commission

Subsection 1 Establishment and Organization (Article 32 - 42)

Subsection 2 Consultation (Article 43 - 46)

Subsection 3 Miscellaneous Provisions (Article 47 - 49)

Section 2 Council Organizations Established in Prefectures (Article 50 - 55)

Chapter IV Miscellaneous Provisions (Article 56 - 61)

Chapter V Penal Provisions (Article 62 - 66)

Supplementary Provisions

Chapter I General Provisions

(Purpose)

Article 1 The purpose of this Act is, in view of the fact that the implementation

of business voluntarily conducted by organizations in the private sector for

public interest purposes has become important for the promotion of the public

interest as a result of changes in social and economic situations in and out of

the country, to establish a system for authorizing public interest corporations

that are capable of implementing such business in a suitable manner, to

prescribe measures to ensure suitable implementation of such business

conducted by the public interest corporations and thereby to contribute to the

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promotion of the public interest and the realization of a vibrant society.

(Definition)

Article 2 In this Act, the meanings of the terms listed in each of the following

items shall be as prescribed respectively in those items.

(i) Public Interest Incorporated Association: a general incorporated association

that has received the authorization under Article 4;

(ii) Public Interest Incorporated Foundation: a general incorporated foundation

that has received the authorization under Article 4;

(iii) Public Interest Corporation: public interest incorporated associations and

public interest incorporated foundations

(iv) Business for public interest purposes: business of the kind listed in each

item of the appended table that relates to scholarship, art, charity or other

public interests and that contributes to the promotion of interests for many

and unspecified persons.

(Administrative Agency)

Article 3 The administrative agency in this Act shall be the Prime Minister or

the prefectural governor, as set forth in each of the following items according to

the classification of public interest corporations listed in such items:

(i) Public interest corporations listed in the following: the Prime Minister

(a) Those having their offices within the area of more than one prefecture

(b) Those having articles of incorporation setting forth that they operate the

business for public interest purposes within the area of more than one

prefecture

(c) Those operating the business for public interest purposes closely related

to the administration or business of the national government and

designated by Cabinet Order

(ii) Public interest corporations other than those listed in the preceding item:

the Governor of the prefecture where their office is located

Chapter II Authorization of Public Interest Corporations

Section 1 Authorization of Public Interest Corporations

(Public Interest Corporation Authorization)

Article 4 General incorporated associations and general incorporated

foundations that operate the business for public interest purposes may be

authorized by the administrative agency.

(Standards for Public Interest Corporation Authorization)

Article 5 In the event that the administrative agency approves that general

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incorporated associations or general incorporated foundations that have

applied for the authorization under the preceding Article (hereinafter referred

to as the "Public Interest Corporation Authorization") conform to the following

standards, the administrative agency shall grant Public Interest Corporation

Authorization for such juridical person.

(i) Its principal objective is to operate the business for public interest purposes.

(ii) It has an accounting base and technical capability necessary to operate the

business for public interest purposes.

(iii) When it operates its business, it does not provide its members, councillors,

directors, auditors, employees or other concerned persons specified by

Cabinet Order with any special interest.

(iv) When it operates its business, it does not engage in any act providing any

donation or other special interest to any persons who run a stock company or

other business for profit purposes or any other persons specified by Cabinet

Order as ones that engage in any activity to seek interest for any specific

individual or entity; provided, however, that this shall not apply to cases in

which it engages in any act providing a public interest corporation with any

donation or other special interest for the business for public interest

purposes operated by said public interest corporation.

(v) It does not operate any speculative transaction, financing with high interest

or other businesses specified by Cabinet Order as ones being not suitable for

maintaining the social trust of a public interest corporation or any business

that could be harmful to public policy.

(vi) With respect to the business for public interest purposes operated by it, the

revenue pertaining to said business for public interest purposes is expected

not to exceed the amount compensating the reasonable cost for its operation.

(vii) If it operates any business other than the business for public interest

purposes (hereinafter referred to as "Profit-Making Businesses"), the

operation of the Profit-Making Businesses does not cause trouble to the

operation of the business for public interest purposes.

(viii) When it operates its business activity, the ratio of the business for public

interest purposes set forth in Article 15 is expected to exceed 50/100.

(ix) When it operates its business activity, the amount of idle property set forth

in paragraph 2 of Article 16 is expected not to exceed the restriction under

paragraph 1 of said Article.

(x) With respect to each director, the total number of said director and his or

her spouse or relatives within the third degree of kinship (including persons

having special relationships specified by Cabinet Order with said director as

those standing in a position similar to these persons) who are directors does

not exceed one third of the total number of directors. The same shall apply to

auditors.

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(xi) The total number of directors who are directors or employees of other

identical organizations (excluding public interest corporations or others

specified by Cabinet Order as those standing in a position similar to them)

and other persons specified by Cabinet Order as those who stand in a similar

position and have mutually close relationships with them does not exceed one

third of the total number of directors. The same shall apply to auditors.

(xii) It has an accounting auditor; provided, however, that this does not apply

in the event that the amount of revenue, the amount of cost and loss the

amount of and such other accounts as specified by Cabinet Order of such

juridical person in each business year does not reach the standards specified

by Cabinet Order.

(xiii) With respect to remuneration, etc. paid to its directors, auditors and

councillors (which means remuneration, bonus or other property benefit paid

as the consideration for the execution of their duties and the retirement

allowance: the same shall apply hereinafter), it has standards for payment,

as specified by Cabinet Office Ordinance, so that the amount of payment is

not unsuitably high in view of the remuneration, etc. for directors and

officers of business operators in the private sector, salary of employees,

accounting situation of the juridical person in question or other

circumstances.

(xiv) In case of general incorporated associations, those falling under all of the

following:

(a) It does not attach any unreasonably discriminatory conditions for

treatment, or any other unreasonable conditions, for the acquisition or loss

of qualification of members in the light of the purpose of the juridical

person in question.

(b) In the event that its articles of incorporation have provisions relating to

the number of voting rights that are exercisable at the general meeting of

members, matters for which voting rights are exercisable, conditions for

exercising voting rights or any other provisions relating to voting rights of

members, such provisions fall under all of the following:

1. It does not treat voting rights of members in an unreasonably and

discriminatory manner in the light of the purpose of the juridical

person in question.

2. It does not treat voting rights of members in a different manner

according to the amount of money or other properties provided by

members to the juridical person in question.

(c) It has a board of directors.

(xv) It has no stock or other properties specified by Cabinet Office Ordinance

that enable it to be involved in the decision making of other organizations;

provided, however, that this does not apply to cases specified by Cabinet

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Order as those in which the possession of such properties would not result in

substantial control of the business activities of other organizations.

(xvi) In the event that it has specific property indispensable for operating the

business for public interest purposes, its articles of incorporation specify

such circumstance and necessary matters for its maintenance and restriction

on disposition.

(xvii) In the event that any remaining amount of the public interest purposes

acquired property (which means the remaining amount of the public interest

purposes acquired property set forth in paragraph 2 of Article 30) exists

when it receives a disposition of the cancellation of the Public Interest

Corporation Authorization pursuant to the provisions of paragraph 1 or

paragraph 2 of Article 29 or that a juridical person extinguishes as a result

of a merger (excluding a case in which a juridical person that succeeds its

rights and obligations is a public interest corporation), it provides in its

articles of incorporation that it shall donate the property equivalent to such

amount to other public interest corporations having a similar purpose of

business or juridical persons listed below or the national government or local

governments within one month after the day of such cancellation of Public

Interest Corporation Authorization or the day of such merger.

(a) Educational institution set forth in Article 3 of the Private Educational

Institutions Act (Act No. 270 of 1949)

(b) Social welfare juridical person set forth in Article 22 of the Social Welfare

Act (Act No. 45 of 1951)

(c) Relief and rehabilitation juridical person set forth in paragraph 6 of

Article 2 of the Relief and Rehabilitation Business Act (Act No. 86 of 1995)

(d) Incorporated administrative agency set forth in paragraph 1 of Article 2

of the Act on General Rules for Incorporated Administrative Agency (Act

No. 103 of 1999)

(e) National university corporation set forth in paragraph 1 of Article 2 of the

Act on National University Corporation (Act No. 112 of 2003) or Inter-

University Research Institute Corporation set forth in paragraph 3 of said

Article

(f) Local incorporated administrative agency set forth in paragraph 1 of

Article 2 of the Act on Local Incorporated Administrative Agency (Act No.

118 of 2003)

(g) Other juridical persons specified in Cabinet Order as juridical persons

similar to those listed in (a) to (f)

(xviii) It provides in its articles of incorporation that, in case of liquidation, it

causes the remaining property to be attributed to any other public interest

corporations having similar business purpose or any juridical person listed in

(a) to (g) in the preceding item or the national government or local

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governments.

(Reason for Disqualification)

Article 6 Notwithstanding the provisions of the preceding Article, Public

Interest Corporation Authorization shall not be granted to general

incorporated associations or general incorporated foundations falling under

any one of the following items.

(i) Persons falling under any of the following are among its directors, auditors

and councillors:

(a) In the case of a public interest corporation for which its Public Interest

Corporation Authorization is cancelled pursuant to the provisions of

paragraph 1 or paragraph 2 of Article 29, a person who was a director

executing the business of such public interest corporation within one year

from the day of a fact causing such cancellation and for whom five years

have not passed from the day of such cancellation.

(b) A person for whom five years have not passed from a day on which the

person is punished by a fine by reason of violation against the provisions of

this Act, the Act on General Incorporated Associations and General

Incorporated Foundations (Act No. 48 of 2006: hereinafter referred to as

the "General Incorporated Associations/Foundations Act") or the Act on

Prevention, etc. of Unjustifiable Acts by Members of Crime Syndicates

(excluding the provisions of paragraph 7 of Article 32-3 and paragraph 1 of

Article 32-11 of said Act) (Act No. 77 of 1991), by reason of committing a

crime under Article 204, Article 206, Article 208, paragraph 1 of Article

208-2, Article 222 or Article 247 of the Penal Code (Act No. 45 of 1907) or

under Article 1, Article 2 or Article 3 of the Act on Punishment for Physical

Violence and Others (Act No. 60 of 1926) or by reason of violation against

the provisions of laws concerning national taxes or local taxes setting forth

a crime in connection with exemption of or failure to pay national taxes or

local taxes or with receipt of return of these taxes or intention to commit

such acts of violation by fraudulent or other illegal acts, from a day on

which the punishment is over or the punishment becomes no longer

executable.

(c) A person for whom five years have not passed from a day on which the

person is punished by imprisonment or severer, from a day on which the

punishment is over or the punishment becomes no longer executable.

(d) A person who is a member of a crime syndicate set forth in item (vi) of

Article 2 of the Act on Prevention, etc. of Unjustifiable Acts by Members of

Crime Syndicates (hereinafter referred to in this item as a "Member of

Crime Syndicate") or a person for whom five years have not passed from a

day on which the person becomes no longer a Member of Crime Syndicate

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(hereinafter referred to in item (vi) as a "Member of Crime Syndicate, etc.")

(ii) Its Public Interest Corporation Authorization has been cancelled pursuant

to the provisions of paragraph 1 or paragraph 2 of Article 29, and five years

have not passed from the day of such cancellation.

(iii) The content of its articles of incorporation or a written business plan

violates laws and regulations or a disposition by an administrative organ

based on laws and regulations.

(iv) License or authorization, etc. (which means the license or authorization,

etc. set forth in item (iii) of Article 2 of the Administrative Procedure Act

(Act No. 88 of 1993): the same shall apply hereinafter) from an

administrative organ necessary for operating its business based on laws and

regulations cannot be obtained.

(v) Disposition for delinquent payment of national taxes or local taxes has been

executed, or three years have not passed from a day on which said

disposition for delinquent payment completes.

(vi) Its business activity is controlled by a Member of Crime Syndicate, etc.

(Application for Public Interest Corporation Authorization)

Article 7 (1) Application for the Public Interest Corporation Authorization shall

be filed, as provided for in Cabinet Office Ordinance, by submitting to an

administrative agency a written application setting forth matters listed in the

following:

(i) Name and full name of representative person

(ii) Area of prefecture in which the business for public interest purposes is

operated (which is limited to a case in which such area is provided for in its

articles of incorporation) and the place where its principal office and

subordinate offices are located

(iii) Category and content of its business for public interest purposes

(iv) Content of its Profit-Making Businesses

(2) Documents listed in the following shall be attached to the written application

under the preceding paragraph:

(i) The articles of incorporation

(ii) A written business plan and a written budget for revenue and expenditure

(iii) In the event that laws and regulations require it to obtain a license or

authorization, etc. from an administrative organ for operating its business,

documents that certify that it has obtained, or it is eligible to obtain, such

license or authorization, etc.

(iv) Documents provided for in Cabinet Office Ordinance that certify that it has

the accounting base necessary to operate the business for public interest

purposes in question such as inventory of property, balance sheet or others

(v) A document that describes the standards for payment of remuneration, etc.

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set forth in item (xiii) of Article 5

(vi) Other documents provided for in Cabinet Office Ordinance in addition to

those listed in respective items in the foregoing

(Hearing of Opinion for Public Interest Corporation Authorization)

Article 8 In the event that administrative agencies grant the Public Interest

Corporation Authorization, they shall hear the opinions of persons provided for

in the following items, according to the classification of reasons listed in the

respective items, as to whether or not such reason exists:

(i) Reasons set forth in items (i), (ii) and (v) of Article 5 and items (iii) and (iv)

of Article 6 (which is limited to cases in which laws and regulations require

it to obtain the license or authorization, etc. from the administrative organ

for operating its business): The administrative organ in question (hereinafter

referred to as the "Authorization Granting Administrative Organ")

(ii) In cases of reasons set forth in items (i)(d) and (vi) of Article 6: The

Commissioner General of the National Police Agency in the event that the

administrative agency is the Prime Minister, and the Superintendent

General of the Tokyo Metropolitan Police Department or the Chief of

Prefectural Police Headquarters in the event that the administrative agency

is the prefectural governor (hereinafter referred to as the "Commissioner

General of the National Police Agency, etc.")

(iii) In cases of reasons set forth in item (v) of Article 6: Commissioner of the

National Tax Agency, the prefectural governor concerned or the mayor of

municipality concerned (hereinafter referred to as the "Commissioner of the

National Tax Agency, etc.")

(Name, etc.)

Article 9 (1) A general incorporated association or general incorporated

foundation that has received Public Interest Corporation Authorization shall

be deemed to have amended its articles of incorporation to amend the

characters of general incorporated association or general incorporated

foundation in its name into public interest incorporated association or public

interest incorporated foundation, respectively.

(2) A document certifying that Public Interest Corporation Authorization is

granted shall be attached to a written application for the registration of the

amendment to the name pursuant to the provisions of the preceding paragraph.

(3) A public interest incorporated association or public interest incorporated

foundation shall, according to its category, use the characters of public interest

incorporated association or public interest incorporated foundation in its name.

(4) A person that is not a public interest incorporated association or public

interest incorporated foundation shall not use any characters that could give

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the misunderstanding that it is a public interest incorporated association or

public interest incorporated foundation in its name or trade name.

(5) Any person shall not use any name or trade name that could be

misunderstood as other public interest incorporated associations or public

interest incorporated foundations with unauthorized purposes.

(6) The provisions of paragraph 1 of Article 5 of the General Incorporated

Associations/Foundations Act shall not apply to public interest corporations.

(Public Announcement of Public Interest Corporation Authorization)

Article 10 When an administrative agency grants Public Interest Corporation

Authorization, it shall publicly announce such fact as provided for in Cabinet

Office Ordinance.

(Authorization for change)

Article 11 (1) Public interest corporations shall obtain authorization from the

administrative agency in the event that they intend to change the following

matters; provided, however, that this shall not apply to minor changes

provided for in Cabinet Office Ordinance.

(i) Change of the area of prefecture in which the business for public interest

purposes is operated (which is limited to a case in which such area is

provided for in its articles of incorporation) or the place where its principal

office and subordinate offices are located (including the establishment or

abolition of subordinate offices)

(ii) Change of the category and content of its business for public interest

purposes

(iii) Change of the content of its Profit-Making Businesses

(2) Public interest corporations that intend to obtain the authorization for change

under the preceding paragraph shall submit a written application, in which

matters relating to the change are described, to the administrative agency as

provided for in Cabinet Office Ordinance.

(3) Documents provided for in Cabinet Office Ordinance shall be attached to the

written application under the preceding paragraph.

(4) The provisions of Article 5 and Article 6 (excluding item (ii)) shall apply

mutatis mutandis to the authorization for change set forth in the respective

items in paragraph 1, the provisions of item (i) of Article 8 (those of the

respective items of said Article in case of the authorization for change in

question as a result of an absorption-type merger) shall apply mutatis

mutandis to the authorization for change set forth in items (ii) and (iii) in

paragraph 1, and the provisions of the preceding Article apply mutatis

mutandis when the authorization for change under paragraph 1 is granted.

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Article 12 (1) The written application under paragraph 2 of the preceding Article,

which relates to the authorization for change accompanying the change of the

administrative agency, shall be submitted to the administrative agency after

the change through the administrative agency before the change.

(2) When the authorization for change in question is granted in the case of the

preceding paragraph, the administrative agency after the change shall have

the work transferred from the administrative agency before the change without

delay as provided for in Cabinet Office Ordinance.

(Notification of Change)

Article 13 (1) When the following changes (excluding those as a result of a

merger) arise, public interest corporations shall notify the administrative

agency of such fact without delay as provided for in Cabinet Office Ordinance:

(i) Change of name or of the name of representative person

(ii) Minor changes provided for in Cabinet Office Ordinance under the proviso

in paragraph 1 of Article 11

(iii) Changes in the articles of incorporation (excluding those relating to the

changes set forth in the respective items of paragraph 1 of Article 11 and

those relating to changes set forth in the preceding two items)

(iv) Changes in matters provided for in Cabinet Office Ordinance in addition to

those set forth in the preceding three items

(2) When changes set forth in item (i) of the preceding paragraph are notified

pursuant to the provisions of said paragraph, the administrative agency shall

publicly announce such fact as provided for in Cabinet Office Ordinance.

Section 2 Business Activities of Public Interest Corporations

Subsection 1 Implementation of Business for Public Interest Purposes

(Revenue of Business for Public Interest Purposes)

Article 14 When public interest corporations operate their business for public

interest purposes, they shall not obtain revenue that exceeds the amount

compensating the reasonable cost required for the operation of said business

for public interest purposes.

(Ratio of Business for Public Interest Purposes)

Article 15 Public interest corporations shall operate their business for public

interest purposes so that the ratio of the business for public interest purposes

(which means the ratio of the amount set forth in item (i) against the total of

the amounts set forth in items (i) through (iii) ) in each business year shall be

50/100 or more.

(i) Amount that is calculated, as provided for in Cabinet Office Ordinance, as

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the amount of cost pertaining to the implementation of the business for

public interest purposes

(ii) Amount that is calculated, as provided for in Cabinet Office Ordinance, as

the amount of cost pertaining to the implementation of the Profit-Making

Businesses.

(iii) Amount that is calculated, as provided for in Cabinet Office Ordinance, as

the amount of ordinary cost necessary for the operation of the public interest

corporation in question

(Restriction on Possession of Idle Property Amount)

Article 16 (1) The amount of idle property of a public interest corporation at the

last day of each business year shall not exceed the amount that is calculated,

as provided for in Cabinet Office Ordinance, as the amount necessary to

operate continuously in the following business year the business for public

interest purposes of the same content and scale as the business for public

interest purposes operated by the public interest corporation in the business

year in question on the basis of the amount of cost required for the operation of

the business for public interest purposes in the business year in question

(including the amount of items provided for in Cabinet Office Ordinance as

those similar to the amount of cost in question according to the circumstances

of property owned by them and type of their business activity).

(2) The "amount of idle property" set forth in the preceding paragraph means the

total amount of value provided for in Cabinet Office Ordinance as the property,

in view of the circumstances of use or management of property by public

interest corporations or of the nature of said property, that are not currently

used for the business for public interest purposes or the Profit-Making

Businesses necessary to operate the business for public interest purposes or

other businesses or activities and that are not expected to be used for these

businesses or activities in the future.

(Prohibited Acts on Solicitation of Donations)

Article 17 Directors or auditors or agents, employees or other workers of public

interest corporations shall not engage in the following acts in connection with

the solicitation of donations.

(i) To solicit or demand to donate continuously to persons who were solicited or

demanded and declared their intention not to donate

(ii) To solicit or demand to donate with coarse or violent speech or behavior or

in an offending manner

(iii) To engage in acts that could cause the usage of donated property to be

misunderstood

(iv) To engage in any act, in addition to those set forth in the preceding three

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items, that could prejudice the interest of persons who were solicited or

demanded to donate or of donators

Subsection 2 Property for Business for Public Interest Purposes

Article 18 Public interest corporations shall use or dispose of the following

property (hereinafter referred to as the "Property for Business for Public

Interest Purposes") to operate the business for public interest purposes;

provided, however, that this shall not apply in case of justifiable events

provided for in Cabinet Office Ordinance.

(i) Property donated on and after the day on which Public Interest Corporation

Authorization was granted (excluding those that the donator designated to

use for a purpose other than the business for public interest purposes)

(ii) Subsidy or other properties delivered on and after the day on which Public

Interest Corporation Authorization was granted (excluding those that

persons who delivered properties designated to use for a purpose other than

the business for public interest purposes)

(iii) Property obtained as the consideration of an activity pertaining to the

business for public interest purposes engaged in on and after the day on

which Public Interest Corporation Authorization was granted

(iv) Property equivalent to the amount that is obtained by multiplying a rate

provided for in Cabinet Office Ordinance by the revenue arising from the

Profit-Making Businesses engaged in on and after the day on which Public

Interest Corporation Authorization was granted

(v) Property obtained by disbursing property set forth in each of the preceding

items

(vi) Property set forth in item (xvi) of Article 5 (excluding those set forth in

each of the preceding items)

(vii) Property that was obtained prior to the day on which Public Interest

Corporation Authorization was granted and that was announced, on and

after said day, to be used for the business for public interest purposes in a

way provided for in Cabinet Office Ordinance

(viii) Properties, in addition to those set forth in each of the preceding items,

provided for in Cabinet Office Ordinance as those that were obtained by such

public interest corporation as the result of the operation of the business for

public interest purposes or as those possessed by such public interest

corporation for the operation of the business for public interest purposes

Subsection 3 Special Provisions for Accounting of Public Interest

Corporations

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(Separate Accounting of Profit-Making Businesses)

Article 19 Accounting for the Profit-Making Businesses shall be separated from

the accounting for the business for public interest purposes and shall be settled

as a special account by the respective Profit-Making Businesses.

(Remuneration, etc.)

Article 20 (1) Public interest corporations shall pay the remuneration, etc. to

their directors, auditors and councillors in accordance with the standards for

payment of the remuneration, etc. set forth in item (xiii) of Article 5.

(2) Public interest corporations shall publicly announce the standards for

payment of the remuneration, etc. under the preceding paragraph. The same

shall apply when they have changed it.

(Keeping and Inspection of Inventory of Property)

Article 21 (1) Public interest corporations shall prepare a written business plan

and a written budget for revenue and expenditure for each business year and

other documents provided for in Cabinet Office Ordinance no later than the

day preceding the commencement of the business year (with respect to a

business year which includes the day on which Public Interest Corporation

Authorization was granted, without delay after the grant of said Public

Interest Corporation Authorization) as provided for in Cabinet Office

Ordinance and shall keep said documents at their principal office and their

copies at their subordinate offices until the last day of the business year in

question.

(2) Public interest corporations shall prepare the following documents within

three months after the end of each business year (with respect to a business

year which includes the day on which Public Interest Corporation

Authorization was granted, without delay after the grant of said Public

Interest Corporation Authorization) as provided for in Cabinet Office

Ordinance and shall keep said documents for five years at their principal office

and their copies for three years at their subordinate offices:

(i) An inventory of property

(ii) A name list of officers (which means a name list in which the names and

addresses of directors, auditors and councillors are described: the same shall

apply hereinafter)

(iii) A document that describes the standards for payment of the remuneration,

etc. set forth in item (xiii) of Article 5

(iv) Other documents provided for in Cabinet Office Ordinance in addition to

those listed in the preceding three items

(3) A document set forth in paragraph 1 and documents listed in each item of the

preceding paragraph may be prepared by an electromagnetic record (which

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means a record that is prepared in electronic format, magnetic format or other

methods which cannot be recognized by human sense and that is provided for

in Cabinet Office Ordinance as one made available for use in information

processing by an electronic computer: the same shall apply hereinafter).

(4) Any person may, at any time during the business hours of public interest

corporations, make the following demands with regard to the document set

forth in paragraph 1, documents listed in each item of paragraph 2, the articles

of incorporation, a name list of members and calculation documents, etc. set

forth in paragraph 1 of Article 129 of the General Incorporated

Associations/Foundations Act (including the cases where it is applied mutatis

mutandis pursuant to Article 199 of the General Incorporated

Associations/Foundations Act)(hereinafter referred to as the "Inventory of

Property, etc."). In this case, the public interest corporations in question shal l

not refuse such demand without justifiable reasons.

(i) In the event that the Inventory of Property, etc. is prepared in writing, a

demand to inspect said document or a copy of said document

(ii) In the event that the Inventory of Property, etc. is prepared by

electromagnetic record, a demand to inspect a display, in a method provided

for in Cabinet Office Ordinance, of matters recorded in such electromagnetic

record

(5) Notwithstanding the provisions of the preceding paragraph, in the event that

a demand under said paragraph is made with regard to a name list of officers

or a name list of members by persons other than members or councillors of the

public interest corporations, such public interest corporations may permit the

inspection under said paragraph while excluding the part of the description or

the record pertaining to the addresses of individuals in the matters described

or recorded in such name lists.

(6) In the event that the Inventory of Property, etc. is prepared by

electromagnetic record and that the provisions of paragraphs 1 and 2 apply to

public interest corporations that take measures provided for in Cabinet Office

Ordinance as those that enable the public interest corporations to respond to

the demand set forth in item (ii) of paragraph 4 at their subordinate offices, "at

their principal office and their copies at their subordinate offices" in paragraph

1 shall be deemed to be replaced with "at their principal office", and "at their

principal office and their copies for three years at their subordinate offices" in

paragraph 2 shall be deemed to be replaced with "at their principal office".

(Submission and Publication of Inventory of Property, etc.)

Article 22 (1) Public interest corporations shall submit the Inventory of Property,

etc. (excluding the articles of incorporation) to the administrative agency

within three months after the end of each business year (with respect to

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documents set forth in paragraph 1 of the preceding Article, no later than the

day preceding the commencement of each business year) as provided for in

Cabinet Office Ordinance.

(2) In the event that a demand is made to inspect or copy the Inventory of

Property, etc. submitted by public interest corporations, the administrative

agency shall permit such inspection or copying as provided for in Cabinet

Office Ordinance.

(3) Notwithstanding the provisions of the preceding paragraph, in the event that

a demand under said paragraph is made with regard to a name list of officers

or a name list of members, the administrative agency shall permit such

inspection or copying while excluding the part of the description pertaining to

the addresses of individuals in the matters described in such name lists.

(Authority of Accounting Auditors)

Article 23 Accounting auditors of public interest corporations shall audit, in

addition to those set forth in paragraph 1 of Article 107 of the General

Incorporated Associations/Foundations Act (including the cases where it is

applied mutatis mutandis pursuant to Article 197 of the General Incorporated

Associations/Foundations Act), the Inventory of Property, etc. and other

documents provided for in Cabinet Office Ordinance. In this case, accounting

auditors shall describe or record the result of such audit in an accounting audit

report at the same time.

Subsection 4 Merger, etc.

(Notification of Merger, etc.)

Article 24 (1) In the event that a public interest corporation intends to engage in

the following acts, it shall notify the administrative agency of such fact in

advance as provided for in Cabinet Office Ordinance.

(i) Merger (excluding cases where they apply for the authorization for change

under paragraph 1 of Article 11 or for the approval under paragraph 1 of the

following Article in connection with the merger in question)

(ii) Transfer of business in whole or in part (excluding cases where they apply

for the authorization for change under paragraph 1 of Article 11 in

connection with the transfer of business in question)

(iii) Total abolition of the business for public interest purposes

(2) When the notification under the provisions of the preceding paragraph is

made, the administrative agency shall publicly announce such fact as provided

for in Cabinet Office Ordinance.

(Approval of Succession of Status by Merger)

15

Article 25 (1) When a public interest corporation concludes a consolidation-type

merger agreement in which the public interest corporation becomes the

juridical person that ceases to exist as a result of the merger, such public

interest corporation (in the event that two or more such public interest

corporations are involved, one of them) may apply for approval from the

administrative agency with respect to a fact that a juridical person newly

established as a result of such consolidation-type merger (hereinafter referred

to in this Article as the "Newly Established Juridical Person") succeeds the

status of the public interest corporation that ceases to exist as the result of

such consolidation-type merger.

(2) The administrative agency shall grant the approval under the preceding

paragraph in the event that it considers that the Newly Established Juridical

Person conforms to the following requirements:

(i) It conforms to the standards listed in each of the items of Article 5.

(ii) It does not fall under any one of the items of Article 6.

(3) In the event that the approval under paragraph 1 is granted, the Newly

Established Juridical Person shall, on the day of formation, succeed the status

of the public interest corporation that ceases to exist as the result of such

consolidation-type merger.

(4) The provisions of Articles 7, 8, 10 and 12 shall apply mutatis mutandis to the

approval under paragraph 1. In this case, "matters listed in the following"

under paragraph 1 of Article 7 shall be deemed to be replaced with "matters

listed in the following (matters pertaining to the public interest corporation

that ceases to exist as a result of the consolidation-type merger and a juridical

person newly established as a result of the consolidation-type merger

(hereinafter referred to in this Article as the "Newly Established Juridical

Person") with respect to the matter set forth in item (i), and the matter

pertaining to the Newly Established Juridical Person, with respect to the

matter set forth in items (ii) to (iv))", "its articles of incorporation" in item (ii)

of said paragraph with "a draft of its articles of incorporation", "Documents

listed in the following" in paragraph 2 of said Article with "Documents listed in

the following (documents pertaining to the Newly Established Juridical Person,

with respect to the draft of the articles of incorporation under item (i) and to

the documents listed in items (ii) to (v))", "The articles of incorporation" in item

(i) of said paragraph with " The consolidation-type merger agreement and the

draft of the articles of incorporation", "paragraph 2 of the preceding Article"

under paragraph 1 of Article 12 with "paragraph 1 of Article 7 as applied

mutatis mutandis pursuant to paragraph 4 of Article 25" respectively.

(5) With respect to the application of the provisions of Article 18 and paragraph 2

of Article 30 concerning the Newly Established Juridical Person that succeeds

the status of the public interest corporation that ceases to exist as a result of

16

the merger upon obtaining the approval under paragraph 1, "the day on which

Public Interest Corporation Authorization was granted" in the provisions under

items (i) to (iv) of Article 18 shall be deemed to be replaced with "the day of its

formation", "each of the preceding items" under item (v) of said Article with

"each of the preceding items and item (vii)", "property that was obtained prior

to the day on which Public Interest Corporation Authorization was granted and

that was announced, on and after said day, to be used for the business for

public interest purposes in a way provided for in Cabinet Office Ordinance"

under item (vii) of said Article with "property that was succeeded from the

public interest corporation that ceases to exits as a result of the merger at the

time of its formation and that was the Property for Business for Public Interest

Purposes of the public interest corporation that ceases to exits", "acquired by",

"in case of the property listed in item (vi) of Article 18" and "those" under item

(i) of paragraph 2 of Article 30 with "succeeded or acquired as a result of the

merger by", "in case of the property listed in item (vii) of Article 18 applied by

replacement pursuant to the provisions of paragraph 5 of Article 25, by the

public interest corporation that ceases to exits as a result of the merger" and

"those (excluding ones for which such public interest corporation has

announced, on and after said day, to be used for the business for public interest

purposes as provided for in Cabinet Office Ordinance under item (vii) of Article

18)" respectively, "the day on which Public Interest Corporation Authorization

was granted" under item (ii) of said paragraph with "the day of its formation",

"the day on which Public Interest Corporation Authorization was granted" and

"payments provided for in Cabinet Office Ordinance" under item (iii) of said

paragraph with "the day of its formation" and "payments provided for in

Cabinet Office Ordinance and the property other than the Property for

Business for Public Interest Purposes that the public interest corporation that

ceases to exist as s result of the merger consumed or transferred on and after

the day on which Public Interest Corporation Authorization was granted for

the operation of its business for public interest purposes and the payments of

taxes and other public dues or other payments incurred by such public interest

corporation on and after said day in connection with the operation of its

business for public interest purposes" respectively.

(Notification of Dissolution)

Article 26 (1) In the event that a public interest corporation has dissolved by

reasons other than merger, its liquidator (or a bankruptcy trustee in the event

that the dissolution is caused by the ruling of commencement of bankruptcy)

shall notify the administrative agency of such fact within one month after the

date of such dissolution.

(2) When the period under paragraph 1 of Article 233 of the General Incorporated

17

Associations/Foundations Act has passed, the liquidator shall notify the

administrative agency without delay of the prospect for the delivery of the

remaining property. The same shall apply in the event that any change arises

in such prospect.

(3) When the liquidation has completed, the liquidator shall notify the

administrative agency of such fact without delay.

(4) When the notification pursuant to the provisions of paragraph 1 or the

preceding paragraph is made, the administrative agency shall publicly

announce such fact as provided for in Cabinet Office Ordinance.

Section 3 Supervision of Public Interest Corporations

(Report and Inspection)

Article 27 (1) To the extent necessary for ensuring suitable operation of business

by public interest corporations, the administrative agency may, as provided for

in Cabinet Office Ordinance, require the public interest corporations reports

necessary for the circumstances of their operational organization and business

activity or cause its employees to enter the office of said public interest

corporations, to inspect the circumstances of their operational organization and

business activity or books, documents or other items or to question their

concerned persons.

(2) Employees who implement the on-site inspection pursuant to the provisions of

the preceding paragraph shall carry a certificate showing their status and

produce it when requested by person concerned.

(3) The authority for the on-site inspection pursuant to the provisions of

paragraph 1 shall not be considered as having been granted for the

investigation of a crime.

(Recommendation, Order, etc.)

Article 28 (1) In the event that the administrative agency has reasonable ground

sufficient to believe that public interest corporations could fall under any one

of the respective items of paragraph 2 of the following Article, it may issue a

recommendation to them by setting a time limit that they should take

necessary measures.

(2) When an administrative agency issues a recommendation pursuant to the

preceding paragraph, it shall publicly announce the content of such

recommendation as provided for in Cabinet Office Ordinance.

(3) When a public interest corporation to which the recommendation under

paragraph 1 is issued fails to take measures pertaining to such

recommendation without justifiable grounds, the administrative agency may

order such public interest corporation to take measures pertaining to such

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recommendation.

(4) When an administrative agency issues an order pursuant to the provisions of

preceding paragraph, it shall publicly announce such fact as provided for in

Cabinet Office Ordinance.

(5) In the event that the administrative agency intends to issue the

recommendation pursuant to the provisions of paragraph 1 or the order

pursuant to the provisions of paragraph 3, it may hear the opinion of persons

provided for in respective items, according to the classification of reasons listed

in the following items, as to whether or not such reason exists:

(i) Reasons set forth in items (i), (ii) or (v) of Article 5, items (iii) or (iv) of

Article 6 or item (iii) of paragraph 2 of the following Article (which is limited

to cases in which laws and regulations require them to obtain the license or

authorization, etc. from the Authorization Granting Administrative Organ

for operating its business): Authorization Granting Administrative Organ

(ii) In cases of reasons set forth in items (i)(d) and (vi) of Article 6:

Commissioner General of the National Police Agency, etc.

(iii) In cases of reasons set forth in item (v) of Article 6: Commissioner of the

National Tax Agency, etc.

(Cancellation of Public Interest Corporation Authorization)

Article 29 (1) In the event that public interest corporations fall under any of the

following items, the administrative agency shall cancel their Public Interest

Corporation Authorization:

(i) In the event that they fall under any of the items (excluding item (ii)) of

Article 6

(ii) In the event that they obtain the Public Interest Corporation Authorization,

the authorization for change under paragraph 1 of Article 11 or the approval

under paragraph 1 of Article 25 by fraudulent or illegal means

(iii) In the event that they fail to comply with the order pursuant to the

provisions of paragraph 3 of the preceding Article without justifiable grounds

(iv) In the event that they apply for the cancellation of the Public Interest

Corporation Authorization

(2) In the event that public interest corporations fall under any of the following

items, the administrative agency may cancel their Public Interest Corporation

Authorization:

(i) In the event that they no longer conform to any of the standards listed in

each of the items of Article 5

(ii) In the event that they fail to comply with the provisions of the preceding

section

(iii) In addition to the preceding two items, in the event that they violate laws

and regulations or the disposition by the administrative organ based on the

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laws and regulations

(3) The provisions of paragraph 5 of the preceding Article shall apply mutatis

mutandis to the cancellation of the Public Interest Corporation Authorization

pursuant to the provisions of the preceding two paragraphs.

(4) When an administrative agency cancels a Public Interest Corporation

Authorization pursuant to the provisions of paragraph 1 or 2, it shall publicly

announce such fact as provided for in Cabinet Office Ordinance.

(5) A public interest corporation that received a disposition of the cancellation of

its Public Interest Corporation Authorization pursuant to the provisions of

paragraph 1 or 2 shall be considered to have amended its articles of

incorporation to amend the characters in its name of public interest

incorporated association or public interest incorporated foundation into general

incorporated association or general incorporated foundation, respectively.

(6) When an administrative agency cancels a Public Interest Corporation

Authorization for a public interest corporation pursuant to the provisions of

paragraph 1 or 2, such public interest corporation shall commission, without

delay, to the registry office that governs the place where its principal office and

subordinate offices are located to register the change of its name.

(7) Documents that certify that a disposition pertaining to an event causing such

register was rendered shall be attached to a written commission for

registration of change of name pursuant to the provisions of the preceding

paragraph.

(Donation as a Result of Cancellation of Public Interest Corporation

Authorization)

Article 30 (1) In the event that the administrative agency cancels the Public

Interest Corporation Authorization pursuant to the provisions of paragraph 1

or 2 of the preceding Article or a public interest corporation ceases to exist as a

result of a merger (excluding a case in which a juridical person that succeeds

its rights and obligations is a public interest corporation) and that a written

agreement pertaining to the donation of the property, the amount of which is

equivalent to the remaining amount of the public interest purposes acquired

property, is not concluded within one month after the day of such cancellation

of the Public Interest Corporation Authorization or such merger in accordance

with the provisions of its articles of incorporation set forth in item (xvii) of

Article 5, it shall be considered that a written agreement is concluded to the

effect that the national government, in case the Prime Minister is the

administrative agency, or the prefecture, in case the prefectural governor is the

administrative agency, receives the donation, as provided for in the articles of

incorporation set forth in said item, of the money, the amount of which is

equivalent to the remaining amount of such public interest purposes acquired

20

property, from the juridical person whose Public Interest Corporation

Authorization was cancelled or the juridical person that succeeds the rights

and obligations of the public interest corporation that ceases to exist as a

result of the merger (which is referred to as the "Authorization Cancelled

Juridical Person, etc." in paragraph 4). In the event that a written agreement

is concluded, within one month after the day of such cancellation of the Public

Interest Corporation Authorization or such merger, concerning the donation

provided for in the articles of incorporation set forth in said item in respect of

the property, the amount of which is equivalent to a part of the remaining

amount of the public interest purposes acquired property, the foregoing shall

also apply to a remaining part.

(2) The "remaining amount of the public interest purposes acquired property" set

forth in the preceding paragraph means the amount that is obtained by

deducting the amount listed in item (iii) from the total amount of the value of

remaining property which is obtained by excluding the property listed in item

(ii) from the property listed in item (i).

(i) Any and all Property for Business for Public Interest Purposes acquired by

the public interest corporation in question (excluding those acquired before

the day on which Public Interest Corporation Authorization was granted, in

case of the property listed in item (vi) of Article 18)

(ii) Property for Business for Public Interest Purposes that is consumed or

transferred by the public interest corporation in question for the purpose of

operating the business for public interest purposes on and after the day on

which Public Interest Corporation Authorization was granted

(iii) The total amount of the property other than the Property for Business for

Public Interest Purposes that is consumed or transferred by the public

interest corporation in question for the purpose of operating the business for

public interest purposes on and after the day on which Public Interest

Corporation Authorization was granted and the payment, made on and after

said day and borne by the public interest corporation, of taxes and other

public dues as a result of the operation of the business for public interest

purposes or other payments provided for in Cabinet Office Ordinance.

(3) Details for the calculation of the amount set forth in the preceding paragraph

and other matters necessary for calculation of the remaining amount of the

public interest purposes acquired property shall be provided for in Cabinet

Office Ordinance.

(4) In the case of paragraph 1, the administrative agency shall notify the

Authorization Cancelled Juridical Person, etc. of the amount of the remaining

amount of the public interest purposes acquired property calculated pursuant

to the provisions of the preceding two paragraphs and of a fact that an

agreement is concluded pursuant to the provisions of paragraph 1 between the

21

Authorization Cancelled Juridical Person, etc. in question and the national

government or the prefecture pertaining to the donation of money, the amount

of which is equivalent to such remaining amount of the public interest

purposes acquired property or part thereof.

(5) Public interest corporations shall not amend the provisions of the articles of

incorporation set forth in item (xvii) of Article 5.

(Opinion to Administrative Agency)

Article 31 Persons listed in each of the following items may state their opinion to

the administrative agency in the event that they consider that the

administrative agency needs to take appropriate measure regarding public

interest corporations for reasonable ground to suspect that public interest

corporations are involved in circumstances provided for in the respective items

in question:

(i) Authorization Granting Administrative Organs: Circumstances in which

they do not conform to the standards listed in items (i), (ii) or (v) of Article 5,

or circumstances that fall under items (iii) or (iv) of Article 6 or item (iii) of

paragraph 2 of Article 29 (which is limited to cases in which laws and

regulations require them to obtain the license or authorization, etc. from the

Authorization Granting Administrative Organ for operating their business)

(ii) Commissioner General of the National Police Agency, etc.: Circumstances

that fall under items (i) (d) or (vi) of Article 6

(iii) Commissioner of the National Tax Agency, etc.: Circumstances that fall

under items (v) of Article 6

Chapter III Public Interest Corporation Commission and Council

Organization Established in Prefectures

Section 1 Public Interest Corporation Commission

Subsection 1 Establishment and Organization

(Establishment and Authority)

Article 32 (1) Public Interest Corporation Commission (hereinafter referred to as

the "Commission") shall be established in Cabinet Office.

(2) The Commission shall deal with the matters that are caused to belong to its

authority by this Act.

(Exercise of Authority)

Article 33 Commissioners shall exercise their authority independently.

(Organization)

Article 34 (1) The Commission shall be organized by seven commissioners.

22

(2) Commissioners shall be on part-time basis; provided, however, that four of

them may be on full-time basis.

(Appointment of Commissioner)

Article 35 (1) Commissioners shall be appointed by the Prime Minister upon

obtaining the consent of both houses of the Diet from among persons who are of

noble character, who can fairly judge matters belonging to the authority of the

Commission and have excellent knowledge and experience for laws, accounting

or activity pertaining to public interest corporations.

(2) In the event that the term of office of a commissioner expires or a vacancy

arises and that the consent of both houses of the Diet cannot be obtained

because the Diet is closed or the House of Representatives is dissolved, the

Prime Minister may appoint a commissioner, notwithstanding the provisions of

the preceding paragraph, from among persons who are qualified as provided for

in said paragraph.

(3) In the case of the preceding paragraph, an ex-post approval of both houses of

the Diet shall be obtained at the first Diet following the appointment. In this

case, in the event that the ex-post approval of both houses of the Diet cannot be

obtained, the Prime Minister shall dismiss the commissioner immediately.

(Term of Office of Commissioners)

Article 36 (1) Term of office of commissioners shall be three years; provided,

however, that the term of office of commissioners who are appointed to fill a

vacancy shall be the remaining term of office of their predecessors.

(2) Commissioners may be reappointed.

(3) When the terms of office of commissioners expire, such commissioners shall

perform their duty continuously until their successors are appointed.

(Guarantee of Status of Commissioners)

Article 37 Commissioners shall not be dismissed against their will during their

term of office unless they are considered by the Commission that they cannot

execute their duty due to their mental or physical trouble or that they commit

a violation of duty pertaining to their jobs or other delinquency which is not

suitable for a commissioner.

(Dismissal of Commissioners)

Article 38 In the event that a commissioner falls under the cases set forth in the

preceding Article, the Prime Minister shall dismiss the commissioner.

(Discipline of Commissioners)

Article 39 (1) Commissioners shall not divulge any secrecy which becomes known

23

to them in connection with their duty. The same shall apply after their

retirement.

(2) During the term of office, commissioners shall not be an officer of a political

party or other political bodies nor shall engage in political movements actively.

(3) During the term of office, commissioners on full-time basis shall not engage in

other jobs with remuneration, run business for profit purposes or operate other

businesses seeking for monetary interest unless they are permitted by the

Prime Minister.

(Salary of Commissioners)

Article 40 Salary of commissioners shall be provided for in a separate Act.

(Chair)

Article 41 (1) The Commission shall have a chair, who is decided by a mutual

election by commissioners.

(2) The chair shall preside over the affairs of, and represent the Commission.

(3) In the event that the chair is not available, a commissioner who is designated

by the chair in advance shall perform its duty on its behalf.

(Secretariat)

Article 42 (1) The secretariat shall be established in the Commission for the

purpose of dealing with the office work of the Commission.

(2) The secretariat shall have a secretary-general and necessary staffs.

(3) The secretary-general shall control the matters of the secretariat by following

instructions of the chair.

Subsection 2 Consultation

(Consultation with Commission)

Article 43 (1) In case of the following, the Prime Minister shall consult with the

Commission by attaching the opinion of the Authorization Granting

Administrative Organ (excluding the opinion pertaining to the existence of

circumstances falling under items (iii) and (iv) of Article 6) pursuant to the

provisions of Article 8 or paragraph 5 of Article 28 (including the cases where

it is applied mutatis mutandis pursuant to paragraph 3 of Article 29); provided,

however, that this shall not apply to the cases in which the Commission

considers that the consultation is not necessary.

(i) In the event that the application for the Public Interest Corporation

Authorization, the application for the authorization for change under

paragraph 1 of Article 11 or the application for the approval under

paragraph 1 of Article 25 is dealt with (excluding the cases where the a

24

juridical person that applied falls under any of the respective items of Article

6 or where these applications are rejected pursuant to the provisions of

Article 7 of the Administrative Procedure Act)

(ii) In the event that the recommendation under paragraph 1 of Article 28, the

order pursuant to the provisions of paragraph 3 of said Article or the

cancellation of the Public Interest Corporation Authorization pursuant to the

provisions of paragraph 1 or 2 of Article 29 (hereinafter referred to as the

"Supervising Disposition, etc.") is issued (excluding the cases listed below).

(a) In the event that public interest corporations that are the subject of the

Supervising Disposition, etc. fall under either of items (i) or (iv) of

paragraph 1 of Article 29

(b) In the event that the Supervising Disposition, etc. is rendered by reason

of failure to notify pursuant to the provisions of paragraph 1 of Article 13

or paragraph 1 of Article 24 or failure to submit the Inventory of Property,

etc. pursuant to the provisions of paragraph 1 of Article 22

(c) In the event that the Supervising Disposition, etc. is rendered on the

basis of the recommendation under paragraph 1 of Article 46

(2) In case of the following, the Prime Minister shall consult with the

Commission; provided, however, that this shall not apply to the cases that the

Commission considers that the consultation is not necessary:

(i) In the event that the establishment, revision or abolishment of a Cabinet

Order under items (iii) through (v), items (x) and (xi), proviso of item (xii),

proviso of item (xv) and item (xvii) (e) of Article 5, proviso of paragraphs 1

and 3 of Article 43 as deemed to be replaced with and applied mutatis

mutandis pursuant to Article 51 and the appended table 23 is planned, or

that a Cabinet Office Ordinance under items (xiii) and (xv) of Article 5,

paragraph 1 and items (iv) and (vi) of paragraph 2 of Article 7, paragraphs 2

and 3 of Article 11, paragraph 1 of Article 13 (excluding item (ii)), respective

items of Article 15, Article 16, proviso and items (iv), (vii) and (viii) of Article

18, paragraphs 1 and 2 of Article 21, Article 23, paragraph 1 of Article 24,

paragraph 1 of Article 27, item (iii) of paragraph 2 (including cases as

deemed to be replaced with the provisions of paragraph 5 of Article 25) and

paragraph 3 of Article 30, paragraph 1 of the following Article and paragraph

2 of Article 46 is established, revised or abolished.

(ii) In the event that instructions pursuant to the provisions of Article 60 are

issued

(3) In the event that the Prime Minister renders a decision on the filing of an

objection on the basis of the Administrative Complaint Review Act (Act No. 160

of 1962) with regard to the disposition set forth in item (i) of paragraph 1, the

order pursuant to the provisions of paragraph 3 of Article 28 or the

cancellation of the Public Interest Corporation Authorization pursuant to the

25

provisions of items (ii) or (iii) of paragraph 1 or paragraph 2 of Article 29, it

shall consult with the Commission, except for the cases listed in the following;

provided, however, that this shall no apply to the cases in which the

Commission considers that the consultation is not necessary:

(i) The filing of objection is dismissed as it is illegal.

(ii) A general incorporated associations or a general incorporated foundations

or public interest corporation that files an objection falls under any of the

items of Article 6.

(iii) The filing of objection relates to the Supervising Disposition, etc. due to

the reason set forth in items (ii) (a) or (b) of paragraph 1.

(Public Announcement of Report)

Article 44 (1) When the Commission reports with respect to a consultation, it

shall publicly announce the content as provided for in Cabinet Office

Ordinance.

(2) When the Commission reports under the preceding paragraph, it may request

the Prime Minister to report measures that are taken on the basis of the report

in question.

(Sending by Prime Minister)

Article 45 (1) The Prime Minister shall send a copy of documents pertaining to

the notification pursuant to the provisions of paragraph 1 of Article 13,

paragraph 1 of Article 24 or paragraphs 1 through 3 of Article 26, and a copy of

the Inventory of Property, etc. submitted pursuant to the provisions of

paragraph 1 of Article 22, to the Commission.

(2) The Prime Minister shall notify the Commission of the opinion stated by the

Authorization Granting Administrative Organ pursuant to the provisions of

Article 31 (excluding the opinion pertaining to circumstances in which public

interest corporations fall under items (iii) or (iv) of Article 6).

(3) When the Prime Minister takes the measures listed in the following without

consulting with the Commission, he/she shall notify the Commission of such

circumstance:

(i) Application for the Public Interest Corporation Authorization, application

for the authorization for change under paragraph 1 of Article 11 or

disposition of the application for the approval under paragraph 1 of Article

25 (excluding the refusal pursuant to the provisions of Article 7 of the

Administrative Procedure Act)

(ii) Supervising Disposition, etc. (excluding the Supervising Disposition, etc.

based on the recommendation under paragraph 1 of the following Article)

(iii) Planning for the establishment, revision or abolishment of a Cabinet Order

under item (i) of paragraph 2 of Article 43 or the establishment, revision or

26

abolishment of a Cabinet Office Ordinance under said item

(iv) Decision on the filing of objection set forth in paragraph 3 of Article 43

(excluding the decision of dismissal by reason of a fact that the filing of

objection is illegal)

(v) Instruction pursuant to the provisions of Article 60

(Recommendation by Commission)

Article 46 (1) In the case of paragraph 1 or 2 of the preceding Article, or in the

event that the Commission collects, inspects or questions about report

pursuant to the provisions of paragraph 1 of Article 27 based on the provisions

of paragraph 1 of Article 59, the Commission shall examine whether or not

public interest corporations fall under any of items (ii) or (iii) of paragraph 1 of

Article 29 or respective items of paragraph 2 and, in the event that it deems

necessary, may recommend the Prime Minister to take measures of the

recommendation under paragraph 1 of Article 28, the order pursuant to the

provisions of paragraph 3 of said Article or the cancellation of the Public

Interest Corporation Authorization pursuant to the provisions of paragraph 1

or 2 of Article 29 or others.

(2) When the Commission recommends under the preceding paragraph, it shall

publicly announce the content of such recommendation as provided for in

Cabinet Office Ordinance.

(3) When the Commission recommends under paragraph 1, it may request the

Prime Minister to report measures that are taken on the basis such

recommendation.

Subsection 3 Miscellaneous Provisions

(Submission of Material and Other Cooperation)

Article 47 If the Commission deems it necessary for processing its affairs, it may

request chiefs of concerned administrative organs, chiefs of concerned local

governments or other concerned persons for submission of material, statement

of opinion, explanation or other necessary cooperation.

(Public Announcement of Status of Processing of Affairs)

Article 48 Each year, the Commission shall publicly announce the status of

processing of affairs.

(Delegation to Cabinet Order)

Article 49 In addition to those set forth in this section, matters necessary for the

Commission shall be provided for in Cabinet Order.

27

Section 2 Council Organizations Established in Prefectures

(Establishment and Authority)

Article 50 (1) A council or other council organizations (hereinafter simply

referred to as the "Council Organization") shall be established in prefectures

for the purpose of dealing with the matters that are caused to belong to its

authority by this Act.

(2) Matters necessary for the organization and management of the Council

Organization shall be provided for in the Prefectural Ordinance in accordance

with the standards provided for in Cabinet Order.

(Consultation with Council Organization)

Article 51 The provisions of Article 43 (excluding paragraph 2) shall apply

mutatis mutandis to prefectural governors. In this case, the term "the

Commission by attaching" in paragraph 1 of said Article shall be deemed to be

replaced with "the Council Organization set forth in paragraph 1 of Article 50

(hereinafter simply referred to in this Article as the "Council Organization") by

attaching", the term "the Commission" in the proviso of said paragraph with

"the Council Organization, in accordance with the standards provided for in

Cabinet Order,", the term "paragraph 1 of Article 46" in item (ii) (c) of said

paragraph with "paragraph 1 of Article 46 as applied mutatis mutandis

pursuant to Article 54", the term "with the Commission" in paragraph 3 of said

Article with "with the Council Organization" and the term "the Commission" in

the proviso of said paragraph with "the Council Organization, in accordance

with the standards provided for in Cabinet Order,".

(Public Announcement of Report)

Article 52 The provisions of Article 44 shall apply mutatis mutandis to the

Council Organization. In this case, the term "the Prime Minister" in paragraph

2 of said Article shall be deemed to be replaced with "the prefectural governor".

(Notice by Prefectural Governor)

Article 53 (1) In the event that the instruction pursuant to the provisions of

Article 60 is given to the prefectural governor, it shall notify the Council

Organization of such fact.

(2) The provisions of Article 45 (excluding items (iii) and (v) of paragraph 3) shall

apply mutatis mutandis to the prefectural governor. In this case, the term "the

Commission" in paragraph 1 of said Article shall be deemed to be replaced with

"the Council Organization set forth in paragraph 1 of Article 50 (hereinafter

simply referred to in this Article as the "Council Organization")", the term "the

Commission" in paragraphs 2 and 3 of said Article with "the Council

28

Organization", the term "paragraph 1 of the following Article" in item (ii) of

paragraph 3 with "paragraph 1 of the following Article as applied mutatis

mutandis pursuant to Article 54", the term "paragraph 3 of Article 43" in item

(iv) of said paragraph with "paragraph 3 of Article 43 as applied mutatis

mutandis pursuant to Article 51".

(Recommendation by Council Organization)

Article 54 The provisions of Article 46 shall apply mutatis mutandis to the

Council Organization. In this case, the term "paragraph 1 or 2 of the preceding

Article" and "paragraph 1 of Article 59" in paragraph 1 of said Article shall be

deemed to be replaced with "paragraph 1 or 2 of the preceding Article as

applied mutatis mutandis pursuant to paragraph 2 of Article 53" and

"paragraph 2 of Article 59" respectively and the term "the Prime Minister" in

said paragraph and paragraph 3 of said Article with "the prefectural governor".

(Submission of Material and Other Cooperation)

Article 55 The provisions of Article 47 shall apply mutatis mutandis to the

Council Organization.

Chapter IV Miscellaneous Provisions

(Request for Cooperation)

Article 56 In the event that the administrative agency deems it necessary for the

implementation of this Act, it may ask the government agencies, public bodies

and other persons or request them to cooperate.

(Provision of Information)

Article 57 The Prime Minister and the prefectural governor shall research and

analyze the situation of activity by public interest corporations, measures

taken by the administrative agency regarding public interest corporations and

other matters, shall prepare necessary statistics and other materials, shall

make efforts to maintain the database concerning public interest corporations

and shall take necessary measures so that information can be provided to the

citizen promptly by using the Internet and other advanced information and

communications networks.

(Measures on Taxation)

Article 58 In view of the important role played by activities pertaining to the

business for public interest purposes operated by public interest corporations,

and for the purpose of ensuring the security of appropriate taxes while

facilitating their activities, measures necessary for income tax, corporate

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income tax, inheritance tax and local tax as well as other necessary measures

for taxation shall be taken in connection with the imposition of income tax on

public interest corporations as well as individuals and juridical persons that

make donation.

(Delegation of Authority)

Article 59 (1) The Prime Minister shall delegate its authority pursuant to the

provisions of paragraph 1 of Article 27 (excluding the authority relating to the

research on whether or not a public interest corporation falls under general

incorporated associations or general incorporated foundations listed in

respective items of Article 6: the same shall apply in the following paragraph)

to the Commission.

(2) In the event that the administrative agency is the prefectural governor, the

term "the administrative agency" and the term "its employees" in paragraph 1

of Article 27 shall be deemed to be replaced with "the Council Organization set

forth in paragraph 1 of Article 50" and "employees engaging in general affairs"

respectively.

(Instruction to Prefectural Governors)

Article 60 In the event that the Prime Minister deems specifically necessary to

ensure the balance among regions in connection with the implementation of

affairs pursuant to the provisions of this Act and orders based on it, it may

give instructions to the prefectural governor to implement the recommendation

under paragraph 1 of Article 28, the order pursuant to the provisions of

paragraph 3 of said Article or the cancellation of the Public Interest

Corporation Authorization pursuant to the provisions of paragraph 2 of Article

29 or other measures.

(Delegation to Cabinet Order)

Article 61 In addition to those provided for in this Act, matters necessary for the

implementation of this Act shall be provided for in Cabinet Order.

Chapter V Penal Provisions

Article 62 Any person who falls under any of the following shall be punished by

imprisonment with work of shorter than six months or fine less than five

hundred thousand yen:

(i) Persons who obtain the Public Interest Corporation Authorization, the

authorization for change under paragraph 1 of Article 11 or the approval

under paragraph 1 of Article 25 by fraudulent or other illegal means

(ii) Persons who effect, without obtaining the authorization for change under

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paragraph 1 of Article 11, changes listed in items (i) or (ii) of said paragraph

(which is limited to the change that causes the administrative agency to

changes as the result)

(iii) Persons who effect, without obtaining the authorization for change under

paragraph 1 of Article 11, changes listed in items (ii) or (iii) of said

paragraph (which is limited to the change that causes them to fall under

item (i) of paragraph 2 of Article 29 as the result)

Article 63 Any person who falls under any of the following shall be punished by

fine less than five hundred thousand yen:

(i) Persons who use characters that could be misunderstood that they are

public interest incorporated associations or public interest incorporated

foundations in their name or trade name in violation of the provisions of

paragraph 4 of Article 9

(ii) Persons who use name or trade name that could be misunderstood as other

public interest incorporated associations or public interest incorporated

foundations in violation of the provisions of paragraph 5 of Article 9

Article 64 Any person who falls under any of the following shall be punished by

fine less than three hundred thousand yen:

(i) Persons who make fraudulent entry into a written application under

paragraph 1 of Article 7 (including the cases where it is applied mutatis

mutandis pursuant to paragraph 4 of Article 25) or into documents listed in

each of the items of paragraph 2 of Article 7 (including the cases where it is

applied mutatis mutandis pursuant to paragraph 4 of Article 25) and submit

them

(ii) Persons who make fraudulent entry into a written application under

paragraph 2 of Article 11 or into documents under paragraph 3 of said

Article and submit them

(iii) Persons who, in violation of the provisions of paragraph 1 or 2 of Article 21,

fail to keep documents or electromagnetic records, or fail to enter or record

matters to be entered or recorded in them or enter or record fraudulently

Article 65 (1) When a representative person or a manager of a juridical person

(including organizations which are not juridical persons and have a

representative person or a manager: the same shall apply in this paragraph

hereinafter) or agents, employees or other workers of a juridical person or an

individual commits acts of violation under the preceding three Articles in

connection with the business of such juridical person or an individual, the

punishment of fine under the respective Articles in question shall be imposed

on not only the person who commits such acts but also the juridical person or

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individual.

(2) In the event that the provisions of the preceding paragraph apply to

organizations which are not juridical persons, their representative person or

manager shall represent the organizations which are not juridical persons in

acts of court cases, and the provisions of law concerning criminal cases in

which a juridical person is a defendant or an accused shall apply mutatis

mutandis.

Article 66 In the event that any of the following is a case, directors, auditors or

liquidators of public interest corporations shall be punished by non-penal fine

of less than five hundred thousand yen:

(i) In the event that they fail to notify pursuant to the provisions of paragraph

1 of Article 13, paragraph 1 of Article 24, or paragraph 1 or 2 of Article 26, or

notify fraudulently

(ii) In the event that they fail to submit the Inventory of Property, etc., or

submit it with fraudulent entries, in violation of the provisions of paragraph

1 of Article 22

(iii) In the event that they fail to report under paragraph 1 of Article 27

(including the cases where such provisions are deemed to be replaced with

the provisions of paragraph 2 of Article 59: the same shall apply in this item

hereinafter) or report fraudulently, or refuse, interfere or avoid the

inspection pursuant to the provisions of paragraph 1 of Article 27, or fai l to

answer or answer fraudulently to the question pursuant to the provisions of

said paragraph

Supplementary Provisions

(Effective Date)

(1) This Act shall come into force on and after the effective date of the General

Incorporated Associations/Foundations Act; provided, however, that provisions

listed in following respective items shall come into force on and after the date

provided for in the respective items in question:

(i) A part relating to the obtaining the consent of both houses of the Diet in

paragraph 1 of Article 35: the date of promulgation

(ii) The provisions of Chapter III (excluding paragraph 1 of Article 35 (which is

limited to the part relating to the obtaining the consent of both houses of the

Diet), paragraph 1, items (ii) of paragraph 2 and paragraph 3 of Article 43,

paragraphs 1 and 2 and items (i), (ii), (iv) and (v) of paragraph 3 of Article 45,

Article 46, Article 48 and Article 51 through Article 54) and of the following

paragraph: the date specified by a Cabinet Order within a period not

exceeding a year and a half from the day of promulgation

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(Appointment of Initial Commissioners)

(2) In the event that the consent of both houses of the Diet cannot be obtained

because the Diet is closed or the House of Representatives is dissolved, the

provisions of paragraphs 2 and 3 of Article 35 shall apply mutatis mutandis to

the appointment of the commissioners of the Commission who are appointed for

the first time after the implementation of the provisions listed in item (ii) of

the preceding paragraph.

(Review)

(3) In the event that the national government examines, at a suitable timing

after the implementation of this Act, the situation in which this Act is

implemented and deems necessary, it shall review the provisions of this Act

and shall take necessary measures on the basis of the result

Appended Table (relating to Article 2)

(i) Business to promote academism and scientific technology

(ii) Business to promote culture and art

(iii) Business to support persons with disability or needy persons or victims of

accident, disaster or crime

(iv) Business to promote welfare of senior citizens

(v) Business to support persons having will to work for seeking the opportunity

of employment

(vi) Business to enhance public health

(vii) Business to seek sound nurturing of children and youths

(viii) Business to enhance welfare of workers

(ix) Business to contribute to sound development of mind and body of the

citizen or to cultivate abundant human nature through education and sports,

etc.

(x) Business to prevent crimes or to maintain security

(xi) Business to prevent accident or disaster

(xii) Business to prevent and eliminate unreasonable discrimination and

prejudice by reason of race, gender or others

(xiii) Business to pay respect or protect the freedom of ideology and conscience,

the freedom of religion or of expression

(xiv) Business to promote the creation of gender-equal society or other better

society

(xv) Business to promote international mutual understanding and for economic

cooperation to overseas developing regions

(xvi) Business to preserve global environment or protect and maintain natural

environment

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(xvii) Business to utilize, maintain or preserve the national land

(xviii) Business to contribute to sound operation of the national politics

(xix) Business to develop sound local community

(xx) Business to secure and promote fair and free opportunity for economic

activity and to stabilize and enhance the lives of the citizenry by way of

activating the economy

(xxi) Business to secure stable supply of goods and energy indispensable for the

lives of the citizenry

(xxii) Business to protect and promote the interest of general consumers

(xxiii) In addition to each of the foregoing items, business provided for in

Cabinet Order as one relating to the public interest

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