National Federation of Small Business Associations Natilnal Federation of Small Business Associations
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Summary of Current Cooperative Systems

  Common Facility Cooperatives (Small Common Facility Cooperatives) Business Cooperatives Mutual Fire Insurance Cooperatives Credit Cooperatives Commerce/Industry Trade Association Joint Business Cooperatives Shopping District Development Cooperatives
Objective To rationalize the management of members, and to assure the opportuniti-es of economic activities To assure the work and to rationalize the management To compensate the loss incurred by fire To make loans and accept deposits To improve and develop the eligible business To improve the productivity and promote the common benefits by rationalization of business scale To promote the environ-mental rearrangement in shopping district
Charactor Body of the associated people Body of the associated people Body of the associated people Body of the associated people Body of the associated people Body of the associated people Body of the associated people
Business To establish joint facilities, to make loan and to promote the welfare and others for members Operation prescribed in the by-law (commerce, manu-facturing, mining, transport-ing and service industry) Mutual insurance for fire between members To make loans to members,and to accept the demand and time deposits from members Guidance, research,and others Operations included in the objective of the cooperative; related operations and supp-lementary matters thereof Environmental rearrange-ment and cooperative business affairs relating to the shopping district
Foundation Governmental approval Governmental approval Governmental approval Governmental approval Governmental approval Governmental approval Governmental approval
Requisites for Foundation Participation of more than four entrepreneurs Participation of more than four entrepreneurs Participation of more than 1,000 entrepreneurs and total investment of over 10 million yen Participation of over 300 persons and capital of over 10 million yen(In Tokyo and other large cities designated by the Minister of Finance with population of over 500,000, it is required of total investment of over 20 million yen) Participation of over a half of those engaged in the eligible business in a district which stretches over more than one prefecture Participation of more than four entrepreneurs Over 30 entrepreneurs engaged in commerce or service trade should run business adjacently in a district within the boundary of a prefecture
Qualification for Membership Entrepreneurs of the small business in the district Limited to an individual Entrepreneurs of the small-scale enterprises carrying on the business in the district Entrepreneurs of the small business or inhabitants and workers in the district Entrepreneurs of the small business running the eligible business in the district and when so prescribed in the by-law less than one-third of the total membership of those other than small business entrepreneurs Entrepreneurs of small business and when so prescribed in the by-law, less than a quarter of the total membership of those other than small business entrepreneurs Those engaged in commerce or service trade in the district. When so prescribed in the by-law included are those other than the above.
Liability Limited liability Limited liability Limited liability Limited liability Limited liability Limited liability Limited liability
Minimum Number of Organizers More than four More than four More than four More than four More than four More than four More than four
Admission Free Free Free Free Free Permission by GeneraI Assembly is required Free
Secession Free Free Free Free Free By transference of holding Free
Ratio of Members None The membership should exceed more than half of the total employees None None None None None
Ratio of Members Engaged in the Cooperative Business None More than 2/3 of the mem-bers should be engaged in cooperative business None None None None None
Investment Limits per Member 25/100 25/100 25/100 25/100 25/100 50/100 (Total investment val-ue of the nonA]member is re-quired to be less than 50/100) 25/100
Voting Right Equal (Each has one vote.) Equal (Each has one vote.) Equal (Each has one vote.) Equal (Each has one vote.) Equal (Each has one vote.) Equal (when prescribed in the by-law of cooperatives,voting rights proporti-onal to investments are also possilble.) Equal (Each has one vote.)
Utilization Limits to Non-Members Up to 20/100 None Up to 20/100 (Include reratives of members) As to the acceptance of the deposits,up to 20/100 of the total sum of deposits . Application as to only cooperative economic activities,up to 20/100 None Up to 20/100
Divident Utilization allotments or dividend up to10% of share holding Allotment of participating work or dividend up to 10% of share holding Utilization allotments or dividend up to10% of share holding Utilization allotments or dividend up to10% of share holding Utilization allotments or dividend up to10% of share holding Unless otherwise prescribed in the by-low of cooperatives,dividend to share holding Utilization allotments or dividend up to10% of share holding
Re-Organization Re-Organization Change into Joint Business Cooperatives Change into corporation Change into Joint Business Cooperatives - Change into commercial bank Change into common Facility Cooperatives Change into corporation -
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