If any factory don’t affiliate to the relevant industrial trade associations or the industrial associations in due time stipulated in the articles of association, it should make up membership dues since the second month of its establishment when it affiliate to the industrial board association or industrial association.
Industrial group holds the responsibility of reporting those factories that don’t join the relevant industrial groups even six months after due time to competent authorities to notify those factories to affiliate to the relevant industrial group in a limited period.
Those factories that don’t affiliate to the relevant industrial trade associations or industrial associations should be reported to competent authorities for punishment of compelled shutout after resolutions made in meetings of the board of directors.
Industrial groups should report those factories that don’t affiliate to the relevant industrial groups in due time in accordance with the Act to competent authorities to press them to join in the relevant industrial groups in a limited period, those that still don’t join in the relevant industrial groups six months after due time are to be punished as per prescriptions of Article 63.

Those that don’t pay membership fee in accordance with articles of association are to be punished as per the following procedures:
A. Persuasion for those of three months late fee.
B. Warning for those of six months late fee and don’t pay membership fee even after persuasion.
C. Suspension the membership of those of nine months late fee who have been warned but haven’t paid, the suspended factories can’t attend any meetings of the industrial groups and can’t enjoy all the rights of members.

After one year of shutout, if a factory still can’t resume its business, the relevant industrial trade associations or industrial associations should report it to competent authorities for check and investigation, and cancel its membership.

If directors and supervisors of industrial groups break the articles of association or commit jobbery when executing their duties, and one tenth of the member representatives put forward the phenomena, and the phenomena of breaking the Industrial Group Act or committing jobbery are testified by two thirds of the representatives present at general meeting where two thirds of the member representatives are in attendance, the Act-breaking or jobbery-committing directors and supervisors should be punished by competent authorities as per the relevant Acts.

In any case that an industrial group violates decrees, oversteps the scope its powers or hampers a commonweal affair, the competent authorities should punish it as per the following steps:
A. Warning
B. Nullify its resolutions adopted in general meetings..
C. Suspend partial or all of its tasks.
D. Withdraw its directors and supervisors.
E. Reorganization.
F. Dissolution.
After the dissolution of industrial group, another new industrial group has to be organized immediately.
Authorities of lower level should report the punishment of the above subparagraphs from D to F to upper competent authorities for approval; the relevant local competent authorities may execute the punishment of the above subparagraphs from A to C.

Any industrial group is not allowed to run lucrative business.

Any industrial group is not in a position to persuade its members to donate money without resolutions made at general meeting and approval from competent authorities.