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Regulations on Supervision and Inspection Performed by the Board of Supervisors in Cooperatives(合作社監事監查規則)

  • Data:2020-11-12 00:00

Article 1 These Regulations are stipulated pursuant to Article 75-1 of the Cooperatives Act. Article 2 Regulations on spell and sharing of supervisors' duties shall be determined by the board of supervisors. A supervisor may individually execute the supervision and inspection set forth in Article 6. However, a proposal raised by a supervisor to request the board of directors to deal with a matter shall be approved by the board of supervisors at first. Article 3 The execution of supervision and inspection set forth in Article 6 may not affect the proceeding of the cooperative's business. Article 4 The board of supervisors may set several inspectors and where necessary, may set a supervision office to take the responsibility of supervision & inspection and auditing of business and finance, the result of supervision and inspection shall be reported to the board of supervisors for approval. To perform duties according to law, the board of supervisors may dispatch inspectors to provide assistance. Inspectors shall be appointed and recalled by the board of directors with the consent of the board of supervisors. Inspectors shall be assumed by those who have graduated from a department or specialty of cooperative economy, accounting, finance, or banking of a college or university or from a senior commercial occupational school and have accepted professional training or have worked in accounting and auditing jobs for three years, and are of good morality. Article 5 To perform supervision and inspection, field examination shall be made at least once every half year, and selective examination of inventory and other related affairs may be performed at any time. The periodical field examination referred to in the above paragraph shall be finished in one day in principle, but the term may be prolonged where necessary. Article 6 The following matters shall be inspected: 1. General affairs, accounting, organization, and management. 2. Observance of laws and decrees. 3. Observance of the constitution and related regulations. 4. Implementation of resolutions of the member's congress or representative's congress, cooperative affairs meeting, the board of directors, the board of supervisors, and other meetings. 5. Collation and storage of the roll list of members, archives, and accounting books. 6. Implementation of business plans and review of operating methods. 7. Incomes. 8. Expenditures. 9. Receiving & paying and management of cash, deposits, and various floating assets. 10. Acquisition, disposal, and safekeeping of fixed assets. 11. Management and use of properties. 12. Auditing of budgets and final settlement. The final settlement referred to in Subparagraph 12 of the above paragraph shall be audited according to the Regulations on Examination of the Accounting Books of Cooperatives. Article 7 When performing supervision and inspection, a supervisor may request the board of directors to provide various books, letters, forms, and other documents that should be prepared according to law. Where necessary, the supervisor may ask directors or related personnel to make explanation. Article 8 The board of supervisors shall prepare a book of supervision and inspection, and separately record the time of supervision and inspection, inspectors, result of supervision and inspection, and the fundamentals for transferring the case to the board of directors for disposal in the book. A report on the result of supervision and inspection shall be submitted to the board of supervisors, and then send by the board of supervisors to the board of directors for disposal. Article 9 For the matters transferred to the board of directors for disposal as referred in the above article, the board of directors shall reply in writing. Article 10 Upon termination of a business year, the board of supervisors shall submit a written report to report the result of supervision and inspection to the member's congress or the member representative's congress. Article 11 Besides to make report according to the provision of the above article, supervisors and inspectors shall keep confidential the information on the affairs, business, and finance acquired in supervision and inspection, and may not expose them to the outside. Where a supervisor or an inspector violates the provision of the above paragraph, thus resulting in damage to the rights and benefits of the cooperative, the case shall be handled according to related laws and decrees; besides, the regulating authority may deprive the supervisor of the authority, and the cooperative may dismiss the inspector. Article 12 The provisions set forth in these Regulations on cooperatives shall also be applicable to cooperatives unions. Article 13 These Regulations shall become effective as of the date of promulgation.