3 The members of the Board of Directors and Supervisory Board are freed from
the responsibility as meant in paragraph 2 if the mistakes proved to haven’t been due them.
Article 33 The Board of Directors shall submit regular reports to the Supervisory Board, with
copies to tha Finance Minister and the Minister.
CHAPTER V THE SUPERVISORY BOARD
Article 34 1
In every PERUM a Supervisory Board shall be set up. 2
The Supervisory Board with good faith and full responsibility shall perform their duties in the interests and objectives of PERUM.
Article 35 The Supervisory Board is in charge of exerting supervision over PERUM’s
management by the Board of Directors including the implementation of the Work Plan and Corporate Budget, the provisions in the Regulation on PERUM’s
Establishment, the policies stipulated by the Finance Minister and the guidelines prepared by the Minister in the context of elaborating those policies, the
provisions of the legialations in force, and giving advices to the Board of Directors in the implementation of PERUM’s management.
Article 36 1
The Supervisory Board in performing their duties shall :
a. give opinion and suggestions to the Minister and Finance Minister
regarding the Work Plan and Corporate Budget proposed by the Board of Directors.
b. follow PERUM’s development, give opinion and suggestions to the
Minister and Finance Minister corncerning every problem deemed necessary for PERUM’s management.
c. report immediately to the Minister and Finance Minister if there is a
phenomenon of the decline of PERUM’s performance. d.
carry out other supervisory duties stipulated in the Regulation on PERUM’s Establishment.
e. give advices to the Board of Directors in implementing PERUM’s
management. 2
The Supervisory Board shall report the implementation of their duties as meant in paragraph 1 to the Minister and Finance Minister periodically and at any
time if deemed necessary. 3
The forms, contents and procedures for submitting the reports are stipulated by the Finance Minister.
Article 37 Those capable of being appointed as members of Supervisory Board are
individuals who shall : a.
have dedication, know the problems of corporate management, and have enough time to perform their duties; and
b. be qualified to take legal actions and have never been declared bankrupt or
who once becames members of Board of Directors, Commissioners or Supervisory Board, who were declared guilty, and who caused a corporation or
PERUM to have been declared bankrupt.
Article 38 PERUM’ Supervisory Board shall consist of officials from the technical
Department concerned, Finance Department and other Departmentsinstitutions whose activities are relevant to PERUM, or other officials proposed by the
Minister.
Article 39 1
Members of the Supervisory Board shall be appointed and released by the Finance Minister by virtue of the Minister’s recommendation.
2 Members of the Supervisory Board shall be appointed for terms of office
similar to the members of the Board of Directors, and can be re-appointed. 3
The appointment of members of Supervisory shall not be simultaneous with the members of the Board of Directors.
Article 40 The number of members of the Supervisory Board shall be adjusted to PERUM’s
need, at least 2 two persons, and one of them shall be appointed as chairman of the Supervisory Board.
Article 41 1
the Finance Minister after learning from the Minister’s opinion, can discharge a member of the Supervisory Board before termination of his terms of office, if
based on facts, the member of the Board of Directors : a.
does not perform his duties well; b.
does not implement the provisions contained in the legislations andor the provisions stipulated in the Regulation on the Establishment of PERUM;
c. is involved in an actions inflicting PERUM; or
d. is sentenced into imprisonment because of committing crime andor
mistakes in relation to the management of corporation. 2
the decision on the discharge as meant in paragraph 1 shall be made after the person concerned is given opportunity is defend himself.
3 With the decision as meant in paragraph 2, his position as a member of the
Supervisory Board terminates. Article 42
1 In performing their duties and obligations, PERUM’s Supervisory Board have
the following authorities : a.
to examine the books, letters, and other documents, to examine the cash for verifying purposes and to examine PERUM’s assets;
b. to enter the yard, building and office used by PERUM;
c. to ask for explanations from the Board of Directors regarding all problems
relating to PERUM’s management; d.
to ask the Board of Directors andor other officials with the knowing of the board of Directors to attend meetings of PERUM’s Supervisory Board;
e. to attend the Board of Directors’ meetings and to give opinions on the
matters under discussion. f.
by virtue of the Articles of Association, to give approval of assistance to the Board of Directors in taking certain legal measures.
g. by virtue of the Articles of Association or the Resolution of Joint
Discussion Meeting, to take PERUM’s managerial measures in case the board of Directors are not available.
h. to temporarily discharge the Board of Directors by mentioning the reasons.
i. to do other things deemed necessary as arranged in PERUM’s Articles of
Association. 2
The procedures of temporarily releasing the Board of Directors as indicated in paragraph 1, letter h, shall be arranged further by the Finance Minister.
Article 44 To help smoothen the implementation of the Supervisory Board, the Finance
Minister can appoint a secretary to the Supervisory Board at PERUM’s expense. Article 45
All the expenses required in the context of implementing of the Supervisory Board’s duties, shall be borne by PERUM and shall be stated clearly in the Work
Plan and Corporate Budget.
CHAPTER VI INTERNAL SUPERVISORY UNIT
