Abstract
The significant milestones in the development of Japanese cooperative law were the enactment of the Industrial Cooperative Law (Sangyo Kumiai Ho—ICL) in 1900 and subsequent legislation passed after 1945. The ICL established the basis of formal cooperation embracing all types of cooperatives as part of the Central Union of Industrial Cooperatives (Sangyo Kumiai Chuokai) as the sole apex body, while the post 1945 legislation laid the legal framework of post-war cooperative organizations federated in different bodies.
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Notes
- 1.
There is no official English version of cooperative laws. This chapter is mainly based on the 2004 translation of the ACL by Mr. Shoji Nakagane of the Hokkaido Government, and of the 1978 translation of the CCL under the supervision of the Ministry of Health and Welfare.
- 2.
The CCL had undergone some changes toward stricter regulations mainly due to the pressure from small retailers. The amendment in 2007 marked a major step forward in the modernization of the law based on the requests of cooperatives.
- 3.
Agricultural cooperatives are the dominant player in food production/distribution and they have a pivotal role in implementing Japanese agricultural policy, while consumer cooperatives have about 26 million members or 40 % of households. The former have been promoted by protectionist agricultural policy, while the latter has often been hampered by protectionist commercial policy. Both of them are amongst the largest cooperatives in the world in terms of membership and turnover.
- 4.
Even the Act on General Corporations of 2006 was originally meant to provide the general rules for nonprofit associations and foundations, but largely followed the CA in its governance aspects.
- 5.
SME Cooperatives Law has several categories of cooperatives: (1) a business cooperative; (2) a minor business cooperative; (3) a fire mutual aid cooperative; (4) a credit cooperative; (5) a federation of cooperatives; and (6) a joint enterprise cooperative.
- 6.
Shinkin literally means credit bank, that is owned by members, mainly SMEs operating in communities.
- 7.
Norinchukin literally means the agricultural and forestry central bank, serving agricultural, fishery and forest-owner cooperatives. It was originally founded 1923 as the Industrial Cooperative Central Bank.
- 8.
The law distinguishes between “profit” and “surplus” and designates cooperatives as not-for-profit entities, although they do not conform to the criteria of non-distribution constraint.
- 9.
Kyosai literally means mutual aid but can be used in a variety of ways. It is used in the National Public Service Personnel Kyosai Association Law that covers both pension and health insurance while a number of private Kyosai organizations were neither incorporated nor regulated. There is a consensus in that Kyosai in cooperative laws means cooperative insurance as used in the English translation of those cooperatives undertaking Kyosai activity. Article 2 of the Insurance Act defines the “insurance contract” regardless of whether it is concerned with insurance or kyosai.
- 10.
There are other activities stipulated by other special laws for agricultural warehouses, land leasing and commissioned businesses.
- 11.
Article 4 of the Banking Act reads “no banking business be conducted without having obtained a license from the Prime Minister”. The Insurance Business Act allows a Stock Company and Mutual Company to conduct insurance business under the license of the Prime Minister as prescribed in art. 3, par. 1 and 2.
- 12.
Agricultural, fishery and credit cooperatives can provide loans and accept savings while business cooperatives can only lend.
- 13.
It is based on the “General Guidelines for Supervision of Agricultural Cooperatives” published by the MAFF in August 2012 and its notice ordering the collection of information (art. 93, sec. 1, ACL).
- 14.
The final administrative inspection was conducted by the Management and Coordination Agency in 1991.
- 15.
The term “administrative authorities” refers to the Minister of Agriculture, Forestry and Fisheries (and the Prime Minister delegating to the FSA Commissioner the responsibility to inspect banking activity) with respect to the central unions of agricultural cooperatives, agricultural cooperatives, agricultural cooperative federations, and so on, whose area of activity exceeds the sphere of a single prefecture or federations whose activity lies within one prefecture, and the prefectural governor with respect to other cooperatives (art. 98, ACL). With respect to consumer cooperatives whose activity, either by area or by occupation, exceeds the boundaries of one prefecture, the term “administrative authorities” shall refer to the Minister of Health, Labor and Welfare, while it shall refer to the prefectural governor with respect to other cooperatives (art. 97, CCL).
- 16.
The latter includes civil servant cooperatives, university cooperatives and school-teacher cooperatives.
- 17.
More than 90 % of cooperative turnover is concentrated in consortia and mega cooperatives.
- 18.
The proper reasons are related to the reasons for expulsion in art. 22.
- 19.
The CCL sets a threshold of 25 % of the total number of the shares (art. 16, sec. 3, CCL).
- 20.
Provisions on non-share agricultural cooperatives are found in the ACL. There are 952 cooperatives that operate the management of the commons (pasture, etc.). After 1911, the dominant form of US cooperative law became the non-stock cooperative law, which emphasized service at cost and the fraternal nature of membership.
- 21.
For agricultural cooperatives undertaking banking and insurance business or consumer cooperatives undertaking insurance business, the requirements are increased to one fifth and not less than the total amount of shares.
- 22.
There is no legal provision for the indivisible reserve fund except for health and social care activities although most of cooperatives have such a provision in their by-laws.
- 23.
Associate members of agricultural cooperatives have no voting right.
- 24.
A proxy may not represent more than four (ACL) or nine (CCL) members for voting purposes excluding his/her own vote.
- 25.
The constant number of delegates shall be more than one fifth of total members or 500 in agricultural cooperatives while corresponding number in consumer cooperatives are one tenth or 100.
- 26.
Article 28 of the CCL provides that a non-member can be elected as a director “under special circumstances”, but there is no provision prescribing this matter.
- 27.
Noji Kumiai Hojin is a corporation for construction of joint production facilities, joint farming or farm management to be founded by farmers, agricultural cooperatives, etc. (art. 72-8, ACL). It can be converted to a joint stock company (art. 73-2, ACL). Shinkin banks, labor banks and credit cooperatives can be converted to ordinary banks in accordance with the Act Pertaining to Mergers and Conversion of Financial Institutions (n. 86 of 1 June 1968).
- 28.
Appendix 3 of the CTA covers all cooperatives incorporated by cooperative laws mentioned.
- 29.
JA National Auditing Organization was founded in 2002 to integrate all auditing functions of central unions.
- 30.
The multi-stakeholder cooperatives involve plural stakeholders including producers–workers, consumers–users, volunteers, etc. The Italian social cooperatives exhibit a model of this.
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Kurimoto, A. (2013). Japan. In: Cracogna, D., Fici, A., Henrÿ, H. (eds) International Handbook of Cooperative Law. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30129-2_23
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