Laws Information

法規資訊
Title: Credit Union Act
Am Date: 2015-02-04
Legislative History: Amended Feb. 4, 2015

Transaction

Amended

Article 7-1
The League may undertake the business of credit guarantee for the credit unions for the purpose of helping members that are underprivileged and lacking in collateral surety, by providing access to necessary funds to improve quality of life and livelihood production, while the government shall provide assistance and incentives as necessary.
Article 9
The missions of a credit union are as follows:
1. Accepting members’ share subscriptions;
2. Providing charge accounts for its members;
3. Providing loans for its members;
4. Participating in various cooperative fund businesses under the initiatives of the League;
5. Providing payment services of utility, natural gas, tuition, telephone, tax, fine, and other payables and receivables for its members;
6. Participating in the League’s financing activities;
7. Participating in community projects that help to develop community industries;
8. Participating in society enterprise businesses in the form of cooperatives under the initiatives of the League;
9. Subscribing national bonds or financial products;
10. Undertaking tasks commissioned by the government or public welfare organizations;
11. Other businesses approved by the central competent authority.
No agreement in capital guarantee, interest guarantee, or fixed revenue concerning the subscriptions paid by union members to a credit union is allowed.
The schemes for credit unions’ subscriptions of financial products mentioned in Subparagraph 9, Paragraph 1 shall be determined by the League and submitted to the central competent authority for acknowledgment.
The sales and goods or services not provided by members concerning the missions mentioned in Subparagraphs 7, 8, and 10 in Paragraph 1 executed by a credit union shall be subject to income tax and business tax stipulated in the Income Tax Act and Value-added and Non-value-added Business Tax Act, and Article 8 shall not apply. However, business tax does not apply to an undertaking commissioned by the government.

Article 19
A credit union is required to establish a board of supervisors, and the board shall be jointly responsible for the credit union.

Article 22
The directors and supervisors shall perform duties in accordance with the laws, articles of association, and resolutions made in the Annual General Meeting.
The directors or supervisors shall be held liable to the credit union for the damage inflicted to the credit union and caused by the resolutions made by the board of directors or supervisors, unless otherwise a director or supervisor has objected to the said resolution and the said objection is evidenced by respective meeting minutes.
A director or supervisor shall be held liable for the damage inflicted to the credit union and caused by the said director’s or supervisor’s negligence or violation of the rules.

Article 27
The League’s missions are as follows:
1. Counseling on the credit unions’ establishment of articles of association;
2. Conducting mutual assistance education and training programs;
3. Evaluating the establishment of credit unions and protecting their rights;
4. Supervising, auditing, and guiding credit unions;
5. Undertaking insurance programs of credit unions;
6. Managing the statutory reserve funds deposited by credit unions;
7. Undertaking financing for credit unions and operating the surplus funds deposited by credit unions;
8. Assisting credit unions with their subscriptions of national bonds;
9. Undertaking cooperative businesses like children’s nurseries and elderly care for the credit union members;
10. Participating in society enterprises in the form of cooperative businesses and undertaking public welfare businesses;
11. Other approved tasks.
Subparagraph 7 in the preceding paragraph may be applicable to the League’s fund raising and use concerning the execution of its missions, and the financing and operating of the surplus funds stipulated in the same Subparagraph and other compliance requirements shall be determined by the League and submitted to the central competent authority for acknowledgment.
The League’s undertaking of mission 10 in Paragraph 1 shall be submitted to the central competent authority for acknowledgment.
The missions executed by the League shall be subject to the supervision and guidance of the central competent authority, but the central competent authority may coordinate with other business-specific competent authorities concerning the said missions to provide assistance.
Article 21
(Deleted)