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CORRECTIONAL MUTUAL AID ASSOCIATION ACT

Act No. 13455, Aug. 11, 2015

 Article 1 (Purpose)
The purpose of this Act is to contribute to the stability of life and to the enhancement of welfare for correctional officers by founding a correctional mutual-aid association and by establishing an efficient mutual-aid system for such correctional officers.
 Article 2 (Corporate Entity and Registration)
(1) The correctional mutual-aid association (hereinafter referred to as “Mutual-aid Association”) shall be a corporation.
(2) The Mutual-aid Association shall be organized by registering for its incorporation in the location of its main office.
 Article 3 (Offices)
(1) The main office of the Mutual-aid Association shall be located in Seoul Special Metropolitan City: Provided, That if necessary, it may be located in another city other than Seoul Special Metropolitan City, as prescribed by the articles of incorporation.
(2) The Mutual-aid Association may establish branch offices, as prescribed by the articles of incorporation.
 Article 4 (Articles of Incorporation)
(1) The articles of incorporation for the Mutual-aid Association shall include the following:
1. Objectives;
2. Name;
3. Matters regarding the main office and branch offices;
4. Matters regarding eligibility, admission and secession of members;
5. Matters regarding rights and obligations of members;
6. Matters regarding the board of representatives and an operating committee;
7. Matters regarding executives and employees;
8. Matters regarding its organizational structure and institution;
9. Matters regarding its affairs and performing operations;
10. Matters regarding capital and allotments of members;
11. Matter regarding budget and settlement, and accounting;
12. Matters regarding benefits of members;
13. Other matters regarding operation of the mutual-aid association.
(2) The modification of the articles of incorporation shall be granted with the approval of the Minister of Justice in consultation of the board of representatives.
 Article 5 (Eligibility of Members)
(1) A person eligible to be a member of the mutual-aid association shall be the following:
1. A public official in charge of correctional operations, who is determined by the articles of incorporation;
2. An officer or employee of the mutual-aid association;
3. Other persons determined by the articles of incorporation.
(2) A person who intends to become a member shall become eligible as at the date he/she pays the first allotment (membership fee), following submission of an application for admission.
 Article 6 (Rights and Obligations of Members)
(1) Each member shall be entitled to receive benefits and rents, and to use welfare facilities, and shall be obligated to pay contributions and to cooperate in the operation of the mutual-aid association, as prescribed by the articles of incorporation.
(2) When a member losses his/her eligibility due to retirement, etc. or withdraws from the mutual-aid association at his/her discretion, he/she may claim the refund of contributions, etc. paid, as prescribed by the articles of incorporation.
 Article 7 (Organization)
(1) The mutual-aid association shall have a board of representations and an operating committee as its decision-making organ; a executive director and directors as an executive organ; and auditors as an audit institution.
(2) The mutual-aid association shall have business appliances and employees, necessary to handle its affairs, as prescribed by the articles of incorporation.
 Article 8 (Representatives)
(1) Representatives shall be elected from among the members, as prescribed by the articles of incorporation.
(2) The number of representatives shall be determined by the articles of incorporation, up to 70 persons.
(3) The term of office of a representative shall be three years.
 Article 9 (Board of Representatives)
(1) The board of representatives consists of representatives elected under Article 8.
(2) The board of representatives shall pass the following resolutions:
1. Modification of the articles of incorporation;
2. Election of an executive director, directors and auditors;
3. Deliberation on the master plan of business and budget;
4. Approval of financial statements;
5. Matters recognized by the operating committee as necessary for the board of representatives to deliberate upon;
6. Other matters provided for in the articles of incorporation.
(3) Meetings of the board of representatives shall be classified into ordinary sessions and extraordinary sessions.
(4) The executive director shall convoke an ordinary session of the board of representatives once annually, as prescribed in the articles of incorporation.
(5) The executive director shall convoke an extraordinary session, where deemed necessary: Provided, That he/she shall call an extraordinary session within 14 days in any of the following cases:
1. When at least 1/3 of the registered representatives call for convocation of a meeting;
2. When an auditor requests a convocation after finding illegal matters or matters not properly fulfilled concerning accounting or execution of operation of the mutual-aid association.
(6) Matters necessary for operation of the board of representatives shall be determined by the articles of incorporation.
 Article 10 (Operating Committee)
(1) An operating committee shall consist of the following members:
1. Executive director;
2. Six representatives elected in the board of representatives.
(2) The operating committee shall determine the following:
1. Formulation, amendment, or repeal of provisions;
2. Detailed plans concerning business operation;
3. Disposal of fundamental assets and approval to incur debts;
4. Basic policies concerning operation and management of the mutual-aid association;
5. Matters delegated by the board of representatives;
6. Matters to be submitted to the board of representatives;
7. Other important matters related to the execution of business.
(3) Matters necessary for operation of the committee shall be determined by the articles of incorporation.
 Article 11 (Fixed number of Executives)
The fixed number of executives of the mutual-aid association shall be determined by the articles of incorporation, within the following scope:
1. One executive director;
2. Four directors;
3. Two auditors.
 Article 12 (Elections and Terms of Office, etc. of Executives)
(1) The executive director and directors shall be elected by the board of representatives, but shall be approved by the Minister of Justice.
(2) The term of office of the chief director, directors and auditors shall be three years.
(3) Where the position of a chief director or director becomes vacant, the term of office of his/her successor shall be the remaining term of the predecessor.
 Article 13 (Duties of Executives)
(1) The executive director shall represent the mutual-aid association, serve as the chairperson of the board of representatives and the operating committee, and the operation and affairs of the mutual-aid association.
(2) Directors shall share and take charge of affairs of the mutual-aid association, as prescribed by the articles of incorporation; and if the chief director fails to perform his/her duties due to extenuating circumstances, they shall act for the chief director, as prescribed by the articles of incorporation.
(3) Auditors shall inspect the accounting of the mutual-aid association and matters for execution of business.
 Article 14 (Appointment and Dismissal of Employees)
The employees of the mutual-aid association shall be appointed and dismissed by the executive director.
 Article 15 (Business)
(1) For the fulfillment of its objectives, the mutual-aid shall engage in the following business:
1. Payment of benefits for members;
2. Establishment and operation of welfare facilities for members;
3. Business of raising funds;
4. Other welfare businesses for members.
(2) The mutual-aid association may engage in profit-making business within the scope necessary for the fulfillment of its objectives.
 Article 16 (Capital)
(1) The capital of the mutual-aid association shall be comprised of contributions of members and State subsidies.
(2) The subsidies referred to in paragraph (1) shall be paid only if it is necessary to protect and foster the mutual-aid association.
 Article 17 (Fiscal Years)
The fiscal year of the mutual-aid association shall be from January 1 to December 31.
 Article 18 (Budget and Settlement)
(1) The mutual-aid association shall compile its budget of the total revenues and total expenditures for the following fiscal year, and it shall be obtained approval from the Minister of Justice, following the resolution passed by the board of representatives one month prior to the commencement of the next fiscal year.
(2) The mutual-aid association shall submit reports to the Minister of Justice with the approval of the board of representatives, following preparation of an annual report, inventory of assets, balance sheet, and statement of profit or loss within three months after the end of each fiscal year.
 Article 19 (Accumulation of Reserves)
The mutual-aid association shall recognize reserves to cover the payable benefits in future by type of mutual-aid businesses in every accounting period and process the accounting by separate accumulation, as prescribed by the articles of incorporation.
 Article 20 (Handling of Profits)
(1) The mutual-aid association shall accumulate the profits following settlement at the end of each fiscal year.
(2) No reserves prescribed in paragraph (1) shall be used except where the amount of losses are covered or the business prescribed in Article 15 (1) are implemented.
 Article 21 (Corrective Orders)
The Minister of Justice may order the mutual-aid association to rectify operation and business affairs, and to take other necessary measures where the accounting or execution of operation of the mutual-aid association violates a relevant statute, the articles of incorporation, or other provisions of the mutual-aid association, or its operation is significantly inappropriate.
 Article 22 (Limitation on Representative Authority)
The executive director and the relevant director shall not represent the mutual-aid association in any matter where any conflict of interest exists between the executive director or such director and the mutual-aid association.
 Article 23 (Extinctive Prescription)
Rights of members to claim refund of contributions and benefits shall be extinguished by completion of prescription if it is not exercised within five years from the date the ground for refund arose.
 Article 24 (Prohibition of Political Activities)
(1) The mutual-aid association shall not engage in any political activities.
(2) No executive of the mutual-aid association shall become any member of any political party.
(3) Where an executive of the mutual-aid association violates paragraph (2), he/she shall be dismissed forthwith.
 Article 25 (Prohibition of Use of Similar Name)
No mutual-aid association may use the name “correctional mutual-aid association” or similar, unless it is the mutual-aid association subject to this Act.
 Article 26 (Application mutatis mutandis of the Civil Act)
The provisions concerning incorporated associations in the Civil Act shall apply mutatis mutandis to the mutual-aid association, except for matters expressly provided for otherwise in this Act.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Correctional Association of Incorporated Foundation)
(1) Any correctional association incorporated as a foundation under the provisions of the Civil Act as at the time this Act enters into force shall be deemed the mutual-aid association incorporated under this Act.
(2) The register of the correctional association incorporated as a foundation under the provisions of the Civil Act as at the time this Act enters into force shall be deemed the register of the mutual-aid association incorporated under this Act.
Article 3 (Transitional Measures concerning Articles of Incorporation)
The articles of incorporation of the correctional association incorporated as a foundation existing as at the time this Act enters into force shall be deemed the articles of incorporation prescribed in Article 4: Provided, That it shall be subject to approval from the Minister of Justice after preparing the articles of incorporation compliant with Article 4, within two months after this Act enters into force.
Article 4 (Transitional Measures concerning Board of Representatives and Operating Committee)
(1) The representatives and operating members subject to this Act shall be elected within three months from the date this Act enters into force.
(2) The duties of the board of representatives and the operating committee shall be performed by the board of directors of the correctional association of incorporated foundation. until new representatives and operating members are elected pursuant to paragraph (1).
Article 5 (Transitional Measures concerning Status of Permanent Directors, Audits and Employees)
(1) The permanent directors, auditors and employees of the correctional association incorporated as a foundation, in place as at the time this Act enters into force shall be deemed the directors, auditors and employees of the mutual-aid association.
(2) The term of office of directors and audits of paragraph (1) shall be the term prescribed in the former articles of incorporation, notwithstanding Article 12.
Article 6 (Transitional Measures concerning Properties of Correctional Association of Incorporated Foundation)
The basic properties of the correctional association of incorporated foundation at the time this Act enters into force shall become the capital of the mutual-aid association.