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Chapter II Establishment of the Institute
Article 4
The EPPI shall be established by MLM enterprises designated by the Fair Trade Commission (hereinafter referred to as FTC) by submitting quadruplicate copies of each of the following documents for FTC’s approval:
1. An application stating that the objectives of establishment, name, the location of main office, total assets, operation items and other required information;
2. The original copy of the charter for endowment for the EPPI;
3. A detailed list of endowment including proof of deposits by financial institutions or other relevant documents for cash payments, or certificates of ownership for the endowed land and buildings for other assets;
4. A roster of directors, with photocopies of National Identification Cards and a diagram of any kinship relations between the directors and supervisors;
5. Consent statements to serve as directors;
6. A detailed list of Specimen seals or signatures of the EPPI and directors;
7. Minutes of the founding meeting of board of directors;
8. A roster of supervisors, with photocopies of National Identification Cards, consent statements to serve as supervisors and specimen seals or signatures;
9. Consent letters from the donors to transfer the ownership of the endowed assets to the possession of the EPPI;
10. The operation plan and capital utilization statement.
The board of directors of the EPPI shall register with the court as a legal person within 30 days after receiving the establishment approval from the FTC, and submit a photocopy of the certificate as a legal person to the FTC for reference within 30 days after registration, as well as apply to the local tax collection authorities for a tax code number after registration and submit the result to the FTC for reference.
Article 5
If there is any amendment to the registration, the EPPI shall fill out the application form for amendment and submit it along with related documents to the FTC for approval within 15 days, and thereafter filed with the court for amendment registration.
Article 6
Once the establishment of the EPPI is approved, the donors shall transfer all the endowed assets to the EPPI within 90 days after completion of registration with the court, to register in the name of the EPPI or deposit in a designated account at a financial institution, and thereafter submit the related documents to the FTC for reference.
For the abovementioned endowment that takes the form of cash payments shall be deposited in an account in the name of the EPPI’s preparatory office at a financial institution before approval of application.
Article 7
The act of endowment for the EPPI shall carry the following information:
1. The name of the EPPI, objectives of endowment and location of the main office; if there's a branch office, information on such an office.;
2. The types, amounts, and custody and management of endowed assets;
3. Operation items and their administration;
4. The number of directors, supervisors and members of the Mediation Committee, their qualifications, method of their installation, term of office, dismissal, by-election(assignment)of vacancies during the term, and re-election(assignment)at the end of the term;
5. The organization, method of adopting resolutions and powers of the board of directors;
6. Adoption of accounting system, calculation of fiscal year and timelines for compilation and presentation of budget and final accounting account;
7. The organization of administrative units;
8. Distribution of remaining assets after dissolution;
9. Completion date of the charter for endowment;
10. Other information required according to the regulations of the FTC.
Article 8
The EPPI shall report the following matters and any amendments thereto, to the FTC for approval:
1. Charter for endowment;
2. The procedures for acquisition and disposal of fixed assets;
3. The internal control system;
4. Other matters that should be reported to the FTC for approval, pursuant to the law or the regulations of the FTC.