BROADCAST LAW

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Chapter II The Japan Broadcasting Corporation (NHK)

(Purpose)
Article 7.

The purpose of NHK is to conduct its domestic broadcasting with abundant and high quality broadcast programs for the public welfare and in such a manner that these broadcasting may be received all over Japan, also to conduct business necessary for the development of broadcasts and reception and at the same time conduct international broadcasting and NHK's international broadcast programming operations.

(Legal Personality)
Article 8.

NHK shall be a juridical person established under the provisions of this Law for the accomplishment of the purpose mentioned in the preceding article.

(Business)
Article 9.
(1)

NHK shall conduct the following business for the accomplishment of the purpose mentioned in Article 7:

i)

To conduct domestic broadcasting by means of the following broadcasts:

a)

AM Broadcasting;

b)

FM Broadcasting;

c)

Television Broadcasting;

d)

Multiplex Broadcasting which comes under the following:

1.

FM Character Multiplex Broadcasting (Multiplex Broadcasting which transmits characters, patterns or signals with a channel multiplexed on radio waves of FM Broadcasting.);

2.

Television Character Multiplex Broadcasting (Multiplex Broadcasting which transmits characters, patterns or signals with a channel multiplexed on radio waves of Television Broadcasting.).

ii)

To conduct research and investigation necessary for the improvement and development of broadcasting and the reception thereof;

iii)

To conduct international broadcasting and NHK's international broadcast programming operations.

(2)

NHK may, in addition to the business mentioned in the preceding paragraph, conduct the following business for the accomplishment of the purpose mentioned in Article 7:

i)

To conduct, if it is deemed necessary, an international relay broadcasting related to a foreign broadcaster in accordance with the stipulations of an agreement with NHK entrusting the foreign broadcaster to transmit in foreign countries broadcast programs related to the international broadcasting in item iii) of the preceding paragraph;

ii)

To conduct business incidental to the business stated in the preceding paragraph;

iii)

Provision of broadcast programs and data necessary to edit programs to overseas broadcasting stations or overseas cable broadcasting stations (referring to overseas broadcasters engaged in cable broadcasting [referring to cable telecommunications transmissions to be received directly by the public]; hereinafter the same);

iv)

To lease broadcast equipment to those who intend to conduct multiplex broadcasting;

v)

To conduct, on request, research and investigation contributory to the improvement and development of broadcasting and the reception thereof, the design of broadcast equipment and other technical assistance, or the training of personnel to be engaged in broadcasting;

vi)

In addition to the above, to conduct services especially necessary for the improvement and development of broadcasting and the reception thereof.

(3)

NHK may conduct, in addition to the business mentioned in the preceding two paragraphs, the following business provided they will not hinder a smooth execution of the former:

i)

To offer for the use of general public or to lease the facilities or equipment (including the land acquired as the results of the termination or cancellation of a trust made on the land owned by NHK);

ii)

To conduct, through entrustment, the business of producing broadcast programs or other business with the use of equipment or techniques owned by NHK for conducting the business mentioned in the preceding two paragraphs when it is regarded as appropriate for NHK to do.

(4)

In conducting the business mentioned in the preceding three paragraphs, NHK shall not aim at profits.

(5)

NHK shall so arrange as to make either of the AM Broadcasting or the FM Broadcasting, and the Television Broadcasting be received all over the country.

(6)

NHK shall, if any opinion is offered from any person having any relation with broadcasting or from persons of learning and experience, pay regard to such opinion in conducting the business mentioned in paragraph (1), item ii), provided that such opinion is contributory to the improvement and development of broadcasting and the reception thereof, and that it will not hinder the conduct of business mentioned in the same paragraph and paragraph (2); the fruits derived from the business mentioned in the same item must be offered for the use of the public as far as possible.

(7)

The agreement mentioned in paragraph (2), item i) shall contain the service area, broadcast time related to the international relay broadcasting and other matters related to the broadcasting facilities as provided by the Ordinance of the Ministry of Posts and Telecommunications. NHK shall obtain prior approval of the Minister of Posts and Telecommunications, when it seeks to conclude or amend the said agreement.

(8)

NHK shall obtain prior approval of the Minister of Posts and Telecommunications, when it intends to conduct the business mentioned in paragraph (2), item vi) or paragraph (3).

(9)

NHK shall not take any action, whatever the pretext may be, to regulate or interfere with the business of the manufacturers of, dealers in or repairers of radio devices, such as to certify broadcast radio receiving devices or vacuum tubes or component parts thereof, or to designate authorized repairers of broadcast radio receivers.

(Investment in the National Space Development Agency of Japan, etc.)
Article 9-2.

NHK may, if there is any necessity for performing business mentioned in paragraph (1) or (2) of the preceding article, invest in the National Space Development Agency of Japan, the Telecommunication 's Advancement Organization of Japan, a cable television licensee prescribed in the provisions of Article 2 paragraph (3), of the Cable Television Broadcast Law (Law No. 114 in 1972) and those enterprises which carry on business closely related to the business mentioned in paragraph (1) or (2) of the preceding article and specified in the Cabinet Order in accordance with the budget of revenues and expenditures, business project and financial program, with the approval of the Minister of Posts and Telecommunications.

(Entrust of Business)
Article 9-3.
(1)

NHK may entrust to other person a part of the business stipulated in Article 9 paragraph (1), or the business it conducts in accordance with the provisions of Article 33 paragraph (1), or Article 34 paragraph (1) (referred to as ''the business, etc. stipulated in Article 9 paragraph (1)'' in the following paragraph), provided the other person conducts the business in conformity with the standards stipulated by NHK.

(2)

The standards referred to in the preceding paragraph shall ensure that the business activities be conducted efficiently through the entrustment of the business in accordance with the stipulations of the said paragraph and that the standards shall not hamper a smooth execution of the business activities, etc. stipulated in Article 9 paragraph (1).

(3)

NHK, upon concluding the standards as referred to in paragraph (1), shall report such standards to the Minister of Posts and Telecommunications without delay. The same shall apply to when NHK amends such standards.

(Implementation of NHK's Entrusted International Broadcast programming Operations)
Article 9-4.
(1)

NHK, when it intends to entrust broadcasters licensed to operate a radio station that carries out entrusted international broadcasting under the stipulations of the Radio Law to implement international broadcasting operations entrusted by NHK, shall obtain approval from the Minister of Posts and Telecommunications under the conditions as set forth by Article 52-13 paragraph (1), items i), ii) and v) (limited to the section relating to d)-i).

(2)

Article 52-13 paragraphs (2) and (3), and Article 52-14 shall apply respectively mutatis mutandis to the approval and the application for it set forth in the previous paragraph. Provisions of Article 52-15 paragraph (1); Article 52-17; Article 52-19; and Articles 52-21 through 52-26 shall apply mutatis mutandis to NHK which have obtained the approval set forth in the previous paragraph in this article. In this case, the phrase ''approval under paragraph (1) of Article 52-13'' appearing in Article 52-15 paragraph (1), Article 52-21, Article 52-22, and Article 52-24 paragraph (2) item ii) shall read as ''approval under Article 9-4 paragraph (1)''; the phrase ''entrusted domestic broadcasting or entrusted domestic and overseas broadcasting'' in Article 52-17 paragraph (2) shall read as ''NHK's international broadcast programming operations''; the phrase ''entrusted broadcast programming operations'' in Articles 52-21 and 52-24 shall read as ''NHK's international broadcast programming operations granted approval under Article 9-4 paragraph (1)''; the phrase ''upon receiving a notice of abolition of business according to the stipulations of Article 52-20'' in Article 52-26 shall read as ''upon approval to abolish NHK's international broadcast programming operations as stated in Article 9-4 paragraph (1) in accordance with the stipulations of Article 43 paragraph (1), which is applicable under Article 43 paragraph (3)''.

Article 9-5.

When NHK has entrusted an overseas radio station operator that carries out international broadcasting entrusted by NHK, and has started its international broadcast programming operations, NHK shall, without delay, notice to the Minister of Posts and Telecommunications the entrusted Broadcast service Area and the entrusted matters to be broadcast (referring to the matters NHK entrusts the broadcaster to carry out; hereinafter the same) and other matters as stipulated in the Ordinance of the Ministry of Posts and Telecommunications. A notice shall also be made when there have been any revisions to the above.

Article 9-6.

When the provisions in the previous chapter are applied to NHK conducting NHK's international broadcast programming operations, the phrase ''broadcast'' in Article 4 paragraph (1) shall be read as ''emtrust broadcasting; the phrase ''broadcast matter'' in the same paragraph shall be read as ''matter entrusted to broadcast''; the phrase ''shall'' in the same paragraph shall be read as ''shall entrust to''; the term ''broadcasting'' in paragraph (2) of the same article shall be read as ''entrusted broadcasting''; and the phrase ''shall not'' in Article 6 shall be read as ''shall not entrust.''

(Head Office)
Article 10.
(1)

The head office of NHK shall be located in Tokyo.

(2)

NHK may have branch offices at necessary places.

(Articles of Corporation)
Article 11.
(1)

NHK shall prescribe the following matters by the Articles of Corporation:

i)

Purpose;

ii)

Title;

iii)

Locations of offices;

iv)

Matters pertaining to assets and accounting;

v)

Matters pertaining to the Board of Governors, Board of Directors and officers of NHK;

vi)

Matters pertaining to the business and to the execution thereof;

vii)

Matters pertaining to the issue of broadcast bonds;

viii)

Method of public notification.

(2)

The Articles of Corporation may be amended with the prior approval of the Minister of Posts and Telecommunications.

(Registration)
Article 12.
(1)

NHK shall, in accordance with the procedures as to be provided for by Cabinet Order, register such matters as the change of location of head office, establishment of branch office, and other matters prescribed by Cabinet Order.

(2)

Matters requiring registration in accordance with provision of the preceding paragraph cannot stand against a third party until they are registered.

(Establishment of Board of Governors and its Powers)
Article 13.
(1)

A Board of Governors shall be established in NHK.

(2)

The Board of Governors shall have powers and responsibilities to decide the management policy and other important matters relative to the operation of the business of NHK.

Article 14.

The following matters shall require the decision of Board of Governors; however, this shall not necessarily apply to such matters as deemed minor by it:

i)

Budget of revenues and expenditures, business project and financial program;

ii)

Settlement of accounts;

iii)

Establishment plan of broadcasting stations and the establishment, suspension and abolition of broadcasting stations;

iv)

The starting, suspension and abolishment of NHK's international broadcast programming operations;

v)

The Standards of Broadcast Programs set forth in Article 3-3 paragraph (1) and the basic plan for the compilation of broadcast programs;

vi)

Alteration of the articles;

vii)

Terms of the receiver's contract mentioned in Article 32, and standards for the exemption of the receiver's fee;

viii)

Issuance of broadcast bonds and borrowing of loans;

ix)

Land trust;

x)

Standards as provided for in Article 9-3 paragraph (1);

xi)

Rules relating to the administration of the business and the performance of the service;

xii)

Remuneration, retiring allowance and social expenses of officers (including all other similar items regardless of their names);

xiii)

Such other matters deemed of special necessity by the Board of Governors.

(Organization of Board of Governors)
Article 15.
(1)

The Board of Governors shall be composed of twelve governors.

(2)

The Board of Governors shall have one chairperson who shall be chosen by election among the governors.

(3)

The chairperson shall preside over the business of the Board of Governors.

(4)

The Board of Governors shall appoint in advance a person from among the governors to stand in for the chairperson in the case the chairperson is prevented from discharging his/her duties.

(Appointment of Governors)
Article 16.
(1)

The governors shall be appointed by the Prime Minister with the consent of both Houses of the Diet from among persons capable of making fair judgments concerning the public welfare and having wide experience and knowledge. In this case, consideration shall be given to their appointment so as to acquire fair representation in the fields of education, culture, science, industry and other areas.

(2)

In the appointment mentioned in the preceding paragraph, as for eight of the governors, each one shall be appointed respectively from among the persons dwelling in each of the districts set forth in the Annexed Table; and as for the remaining four, they shall be appointed throughout these districts.

(3)

In case the consent of both Houses of the Diet cannot be obtained for the appointment of a governor, in the case where the term of office of a governor expired or where a vacancy has occurred, because the Diet is not in session or the House of Representatives is dissolved, the Prime Minister may, notwithstanding the provision of paragraph (1), appoint a governor without the consent of both Houses. In such a case the ex post facto approval of both Houses shall be obtained at the first session convened after such appointment.

(4)

A person coming under any one of the following items shall not be appointed as governor:

i)

A person who has been sentenced to imprisonment or heavier penalty;

ii)

A person who has been subjected to disciplinary dismissal as a national public service personnel member and with respect to whom two years have not elapsed from the date of this person's dismissal;

iii)

National public servant (excluding members of committees, councils, etc. or a person in a part time position corresponding thereto);

iv)

Staff member of political party (including one who was as such within one year before the date of appointment);

v)

Manufacturer of, or dealer in, broadcast transmitters or broadcast radio receivers or, in the case such a person is a juridical person, officer thereof (including any person, whatever the title may be, having official or governing power equivalent to or more than that of officer; the same hereinafter in this article) or a person possessing not less than one tenth of the rights of voting of such juridical person (including any person who was as such within one year before the date of appointment);

vi)

Broadcaster (except Facility-supplying Broadcaster), press agency, news agency, or commercial distributor of news or information, or in the case such an enterpriser is a juridical person, officer or employee thereof, or a person possessing not less than one tenth of rights of voting of such juridical person;

vii)

Officer of an organization of the enterprises mentioned in the preceding two items.

(5)

In appointing governors, it shall be avoided that five or more governors come to belong to one and the same political party.

(Terms of Office)
Article 17.
(1)

The term of office of a governor shall be three years. However, the governor to fill a vacancy shall hold that office for the remainder of the term of office of the governor's predecessor.

(2)

Governors may be re-appointed.

(3)

Notwithstanding the provisions of paragraph (1), governors shall, even after their term of office has expired, remain in office until new governors are appointed.

(Retirement)
Article 18.

A governor shall, ipso facto, lose the governor's office in case the consent of both Houses of the Diet under the second clause of Article 16 paragraph (3), is not obtained.

(Dismissal)
Article 19.

The Prime Minister shall dismiss a governor when he comes to fall under one of the items of Article 16 paragraph (4).

Article 20.
(1)

The Prime Minister may, with the consent of both Houses of the Diet, dismiss a governor in case the latter is deemed unable to perform the governor's duties owing to the governor's mental or physical deficiencies or to have acted contrary to the governor's official obligations or is guilty of such malfeasance as to render himself/herself unfit to be a governor. In this case, the governor to be dismissed shall be given by each House of the Diet a chance for vindication of his/her case in accordance with what are provided by the respective Houses.

(2)

In case five or more of the governors have come to belong to one and the same political party, the Prime Minister shall, with the consent of both Houses of the Diet, dismiss a governor or governors so as to make the number of persons belonging to one and the same political party four.

Article 21.

Excepting the cases mentioned in the preceding two articles, governors shall not be dismissed against their will.

(Compensation of governor)
Article 22.

Governors may receive appropriate compensation according to the number of days of duty, besides travelling expenses and other actual expenses incurred by them for the execution of their duties.

(Procedures for decision, etc.)
Article 23.
(1)

The Board of Governors shall not open its meeting to make decisions unless the chairperson or the person to act for the governor mentioned in Article 15 paragraph (4) and six or more governors are present.

(2)

Except as prescribed otherwise, the issues of the meeting of the Board of Governors shall be decided by the majority of votes of governors present; in case of a tie, the chairperson shall decide.

(3)

The president and auditors may be present at the meeting mentioned in paragraph (1) to state his opinion.

(Officers)
Article 24.

NHK shall, in addition to the governors of the Board of Governors, have, as officers, one president, one vice-president, seven to ten directors and not more than three auditors.

(Board of Directors)
Article 25.
(1)

The Board of Directors shall be composed of the president, vice- president and directors.

(2)

The Board of Directors shall, in accordance with the provisions of the Articles of Corporation, deliberate on matters related to the execution of important business of NHK.

(President, etc.)
Article 26.
(1)

The president shall represent NHK and preside over the business thereof as to be determined by the Board of Governors.

(2)

The vice-president shall, as to be determined by the president, represent NHK and assist the president in administering the business of NHK, act for the president when the president is prevented from discharging the duties, and discharge the duties of the president when the post of the president is vacant.

(3)

Directors shall, as to be determined by the president, represent NHK and assist the president and vice-president in administering the business of NHK, act for the president and vice-president when both of them are prevented from discharging their duties, and discharge their duties when the posts of both the president and vice-president are vacant.

(4)

Auditors shall audit the business conducted by the president, vice- president and directors.

(5)

Auditors may, when deemed necessary in executing their duties, request for the submission of a business report from a joint stock company the majority of whose total issued stocks is possessed by NHK or a limited responsibility company the majority of whose shares is possessed by NHK (hereinafter referred to as ''the Affiliated Company'').

(6)

If NHK and an affiliated company or an affiliated company possess the majority of the total issued stocks of other joint stock company, the latter shall be regarded as another affiliated company in the application of the stipulations of this law. The same shall apply to a limited responsibility company the majority of whose shares is possessed by NHK and an affiliated company or an affiliated company.

(7)

Auditors may, should an affiliated company fail to promptly submit to them a report in compliance with their request made as provided in paragraph (5), or should the verification of such a report be deemed necessary, examine the state of the business and the assets of the affiliated company concerning the matters for which the report was requested.

(8)

Affiliated company may, with justifiable reason, refuse to submit a report as provided for in paragraph (5) or examination as provided for in the preceding paragraph.

(9)

Auditors shall report to the Board of Governors the result of the audit conducted in accordance with the provisions of paragraph (4)

Article 27.
(1)

The president shall be appointed by the Board of Governors.

(2)

The appointment under the preceding paragraph shall require the decision of the Board of Governors by the majority of votes of not less than nine governors.

(3)

The vice-president and directors shall be appointed by the president with the consent of the Board of Governors.

(4)

Auditors shall be appointed by the Board of Governors.

(5)

The provision of Article 16 paragraph (4) shall apply mutatis mutandis to the appointment of the president, vice president, directors and auditors. In this case, in item vi) of the same paragraph, ''broadcaster (except facility-supplying broadcaster), press agency'' shall read as '' press agency''; and ''a person possessing not less than one tenth of the rights of voting of such juridical person'' shall read as ''a person possessing not less than one tenth of the rights of voting of such juridical person (including any person who was as such within one year before the date of appointment)''; in item vii) of the same paragraph, '' officer'' shall read as ''officer (including any person who was as such within one year before the date of appointment)''.

Article 28.
(1)

The term of office of the president and vice-president shall be three years and directors and auditors two years.

(2)

The president, vice-president, directors and auditors may be re- appointed.

(3)

Notwithstanding the provision of paragraph (1), the president shall, even after the term of office is expired, continue to hold the office until a new president is appointed.

Article 28-2.

The Board of Governors or the president shall, in case the officers who were respectively appointed in accordance with the provisions of paragraphs 1 to 4 inclusive of Article 27 have come under one of the items of paragraph (4) of Article 16 which are applied mutatis mutandis in paragraph (5) of Article 27, dismiss them, excepting the case where such officers have come under item vi) or vii) of the same paragraph because they have become the officers of the enterprises mentioned in item vi) of the same paragraph or organizations thereof of which NHK is a member.

Article 29.
(1)

The Board of Governors may dismiss the president or auditor, in case the latter is deemed unable to perform the duties or to have acted contrary to the official duties or is guilty of such malfeasance as to render himself/herself unfit to be the president or auditor.

(2)

The president may, with the consent of the Board of Governors, dismiss the vice-president or director, in case the latter is deemed unable to perform the duties or to have acted contrary to the official duties or is guilty of such malfeasance as to render himself/herself unfit to be the vice-president or director.

(Prohibition of Concurrent Occupation of President, etc.)
Article 30.
(1)

The president, vice-president and directors shall not become an officer of any body aimed at pecuniary interests nor engage himself/herself in any profit making enterprise.

(2)

The president, vice president and directors shall not make any investment in any broadcast enterprise (except facility-supplying broadcast enterprise).

(Mutatis Mutandis Application of Civil Code)
Article 31.

The provisions of Article 44 (Faculty of Juridical Person of Illegal Acts), Article 50 (Address of Juridical Person), Article 54 (Limitation of Representing Right), Article 56 (Temporary Director) and Article 57 (Special Proxy) of the Civil Code, and Article 35 paragraph (1) (Jurisdiction of Appointment of Temporary Director, etc.) of the Law of Procedures in Non-Contentious Matters (Law No. 14 in 1898) shall apply mutatis mutandis to NHK.

(Receiver's Contract and Receiver's Fee)
Article 32.
(1)

Any person who is equipped with a receiving equipment capable of receiving the broadcasting provided by NHK shall conclude a contract with NHK with regard to the reception of its broadcasting. However, this shall not apply to those who are equipped with receiving equipment not intended for the reception of broadcasting or only with receiving equipment for the reception of radio broadcasting or multiplex broadcasting (Broadcasting of voice and other sound transmissions and not coming under the television broadcasting and multiplex broadcasting classifications).

(2)

NHK shall, unless in accordance with the standard approved by the Minister of Posts and Telecommunications in advance, not exempt the receiver's fee from any person who concluded a contract in accordance with the main clause of the preceding paragraph.

(3)

NHK shall obtain the prior approval of the Minister of Posts and Telecommunications for the terms of the contract mentioned in paragraph (1) The same shall apply to the intended change thereof.

(Order for Conduct of International Broadcasting, etc.)
Article 33.
(1)

The Minister of Posts and Telecommunications may order NHK to conduct international broadcasting by designating Broadcast Service Area, broadcasting matters and other relevant matters, or may order NHK to carry out international broadcast programming operations by designating NHK's Service Area in which the broadcaster will operate, to be broadcast and other relevant matters.

(2)

NHK may conduct, if it deemed necessary, an international relay broadcasting related to a foreign broadcaster in accordance with the stipulations of an agreement with him in the event of entrusting the foreign broadcaster to transmit in foreign countries the broadcast programs of the international broadcasting in the preceding paragraph.

(3)

The provisions of Article 9 paragraph (7) shall apply to the provisions mentioned in the preceding paragraph. In this case ''or amend'' in paragraph (7) of the said Article shall read as ''amend or abolish''.

(Research activities)
Article 34.
(1)

The Minister of Posts and Telecommunications may, when it is deemed necessary for the improvement and development of broadcasting and the reception thereof, order NHK to conduct research in such matters as to be designated by the Minister.

(2)

The result of any research performed according to the provisions of the preceding paragraph shall be utilized so as to contribute to the public interest such as the development of broadcasting enterprise.

(Expenses for International Broadcasting, etc.)
Article 35.
(1)

Expenses required for the services performed by NHK in accordance with the provisions of the preceding two Articles shall be borne by the State.

(2)

The orders mentioned in the preceding two Articles shall be given within the limits that the amount borne by the State in accordance with the provision of the preceding paragraph shall not exceed the budgetary appropriations approved by the Diet.

(Business Year)
Article 36.

The business year of NHK shall begin in April every year and end in March of the following year.

(Budget of Revenues and Expenditures, Business Projects and Financial Program)
Article 37.
(1)

NHK shall prepare the budget of revenues and expenditures, business projects and financial program for every business year and present them to the Minister of Posts and Telecommunications. The same procedures shall be followed for the alteration thereof.

(2)

Upon receipt of the budget of revenues and expenditures, business projects and financial program mentioned in the preceding paragraph, the Minister of Posts and Telecommunications shall review them and transmit them with the Minister's comments through the Cabinet to the Diet for approval.

(3)

In case any recommendation to make any change in the items of the budget of revenues and expenditures, business projects and financial program mentioned in the preceding paragraph is made in accordance with the provision of the same paragraph, the appropriate committee of the Diet will obtain the view of NHK.

(4)

The monthly amount of receiver's fee to be collected from a person who concluded a contract in accordance with the main clause of Article 32 paragraph (1) shall be determined by the approval by the Diet for the budget of revenues and expenditures mentioned in paragraph (1)

Article 37-2.
(1)

NHK may, in case the approval of the Diet for the budget of revenues and expenditures, business projects and financial program for every business year cannot be obtained before the first day of the business year concerned because the Diet is not in session or for some other unavoidable reasons, prepare the budget of revenues and expenditures, business projects and financial program for a period not exceeding three months within limits necessary for the routine operation of its business and for the work of installation or repairing of facilities (to be limited to the continuance of such work being carried out in accordance with the business project of the previous business year approved by the Diet and carry them out with the approval of the Minister of Posts and Telecommunications. In this case, the monthly amount of the receiver's fee prescribed in paragraph (4) of the preceding article shall, notwithstanding the provision of the same paragraph, be the monthly amount of the receiver's fee for the month to which the last day of the previous business year belongs.

(2)

The budget of revenues and expenditures, business projects and financial program under the provision of the preceding paragraph shall be null and void when the budget of revenues and expenditures, business projects and financial program for the proper business year are approved by the Diet; the revenue, expenditure, implementation of business, and accommodation and repayment of funds made in accordance with the budget of revenues and expenditures, business projects and financial program under the provision of the same paragraph shall be deemed as have been made in accordance with the budget of revenues and expenditures, business projects and financial program for the proper business year.

(3)

The Minister of Posts and Telecommunications shall, if having made the approval mentioned in paragraph (1), make the ex post facto report to the Diet.

(Presentation of Business Report, etc.)
Article 38.
(1)

NHK shall prepare its business report for every business year and present it with the statement of auditors' views attached thereto to the Minister of Posts and Telecommunications within two months from the end of the business year.

(2)

Upon receipt of the business report mentioned in the preceding paragraph, the Minister of Posts and Telecommunications shall report to the Diet through the Cabinet with the Minister's views and the statement of auditors' views mentioned in the said paragraph attached thereto.

(3)

NHK shall, when it has submitted the business report in accordance with the provisions of paragraph (1), retain copies of the report in the individual offices without delay, and offer the report for public perusal for a period stipulated in the Ordinance of the Ministry of Posts and Telecommunications.

(Limitation in Expenses, etc.)
Article 39.
(1)

The income of NHK shall not be expended for other purposes than the performance of business listed in Article 9 paragraph (1) through paragraph (3).

(2)

NHK shall separate the accounting related to the business mentioned in Article 9 paragraph (3) from the rest of accounting and keep it under a special account.

(Presentation of Balance Sheet, etc.)
Article 40.
(1)

NHK shall prepare the inventory, balance sheet, and profit and loss statement of every business year together with the written explanation thereof and present them with the statement of auditors' views attached thereto to the Minister of Posts and Telecommunications within two months from the end of the business year.

(2)

The Minister of Posts and Telecommunications shall, upon receipt of the documents mentioned in the preceding paragraph, present them to the Cabinet.

(3)

The Cabinet shall submit the documents mentioned in the preceding paragraph to the Diet after the audit of the Board of Audit.

(4)

NHK shall, when it has submitted the report in accordance with the provisions of paragraph (1), notify the balance sheet, and profit and loss statement in the official gazette, retain copies of the report in the individual offices without delay, and offer the report for public perusal for a period stipulated in the Ordinance of the Ministry of Posts and Telecommunications.

(Audit of the Board of Audit)
Article 41.

The Board of Audit shall audit NHK.

(Broadcast Bond)
Article 42.
(1)

NHK may, with the prior approval of the Minister of Finance, issue broadcast bonds to raise the funds for the construction or improvement of broadcast equipment.

(2)

The total amount of broadcast bonds to be issued mentioned in the preceding paragraph shall not exceed the amount of three times the cost of the net property of NHK mentioned in the balance sheet of the latest business year which has undergone the audit of the Board of Audit.

(3)

NHK may temporarily issue broadcast bonds in excess of the amount stipulated in the preceding paragraph in order to convert outstanding broadcast bonds. In this case, NHK shall redeem bonds equivalent to the amount of the new issue within six months of the payment day for the broadcasting bonds to be issued (this means the date of the first payment if paid in installments).

(4)

In case NHK has issued broadcast bonds in accordance with the provisions of paragraph (1), it shall, as the reserve found for redemption, lay aside the sum equivalent to one tenth of the unredeemed amount of bonds issued as of the end of every business year.

(5)

NHK may appropriate the fund prescribed in the preceding paragraph only for the redemption of the broadcast bond.

(6)

The creditors of the broadcast bonds of NHK shall be entitled to be paid for the credits prior to any other creditors on the properties of NHK.

(7)

The order of priority mentioned in the preceding paragraph shall be next to the ordinary preferential right mentioned in the Civil Code.

(8)

As regards necessary matters relating to the broadcast bond, in addition to these prescribed in the preceding seven paragraphs in this Article, provisions relating to the debenture in the Commercial Code (Law No. 48 in 1899) and the Law of Procedures in Non-Contentious Matters shall apply mutatis mutandis in accordance with the provisions of Cabinet Order.

(Suspension and Abolition of Broadcasting etc.)
Article 43.
(1)

NHK shall not abolish any of its broadcasting stations or suspend the broadcasting thereof for more than twelve hours without the prior approval of the Minister of Posts and Telecommunications. However, this shall not apply to the cases caused by vis major.

(2)

In case NHK has suspended its broadcasting, it shall, excepting the case where the prior approval mentioned in the preceding paragraph is given, report to that effect to the Minister of Posts and Telecommunications without delay.

(3)

The provision in the preceding two paragraphs shall apply mutatis mutandis, to the suspension and abolition of NHK's international broadcast programming operations. In this case, the phrase ''for more than twelve hours'' in paragraph (1) shall read as ''for more than twenty-four hours''.

(Compiling of the Broadcasting Program, etc.)
Article 44.
(1)

NHK shall, in compiling and broadcasting the broadcast programs of the domestic broadcasting, follow, in addition to the provisions of Article 3-2 paragraph (1), what is laid down in the following item:

i)

Shall exert all possible effort to satisfy the wishes of the people as well as to contribute to the elevation of the level of civilization by broadcasting abundant broadcast programs;

ii)

Shall produce local programs in addition to national programs;

iii)

Shall strive to be conductive to the upbringing and popularization of a new civilization as well as to the preservation of the past excellent civilizations of our country.

(2)

NHK shall, in order to know the wishes of the people, conduct scientific listening polls at regular intervals and make public the result thereof.

(3)

The provisions in Article 3-2 paragraph (2) shall apply mutatis mutandis to the compilation of broadcast programs for AM broadcasting and FM broadcasting by NHK.

(4)

NHK shall, in compiling and broadcasting the broadcast programs of the international broadcasting in compiling and entrusting for broadcasting the broadcast programs of the international broadcasting entrusted by NHK or in compiling the broadcast programs to be offered to foreign broadcaster or foreign cable broadcaster, exert all its effort to contribute to the promotion of international friendship and to the development of economic interchange with foreign countries, by cultivating and popularizing the correct recognition of our country by introducing our civilization, industry and other state of things; at the same time, it shall endeavor to provide appropriate entertainment to our nationals in foreign countries.

(Consultative Committees on Broadcast Program)
Article 44-2.
(1)

NHK shall have the Central Consultative Committee on Broadcast Programs (to be referred to as ''the Central Committee'', hereinafter) and Regional Consultative Committees on Regional Broadcast Programs (to be referred to as ''the Regional Committees'' hereinafter) related to domestic broadcasting as the Consultative Organization described in Article 3-4 paragraph (1), and the International Consultative Committee on International Broadcasting and International broadcasting entrusted by NHK (hereinafter referred to as ''the international broadcasting etc.'' in this article) (hereinafter referred to as ''International Consultative Committee'').

(2)

Regional Committees shall be established in each of the districts prescribed by the Cabinet Order.

(3)

The Central Committee and Regional Committees shall consist of more than fifteen and seven members, respectively. The International Committee shall consists of more than ten members.

(4)

The members of the Central Committee and the International Committee shall be nominated by the President from among persons of learning and experience with the consent of the Board of Governors.

(5)

The members of Regional Committees shall be nominated by the President from among persons of learning and experience dwelling in the district as mentioned in paragraph (2) concerning Regional Committees.

(6)

In response to inquiries by NHK in accordance with the provisions of Article 3-4 paragraph (2), the Central Committee shall examine matters related to domestic broadcasting as described in paragraph (3) of the said article and those related to broadcast programs for nationwide broadcasting; Regional Committees shall examine matters related to broadcast programs for regional broadcasting as described in paragraph (2); and the International Committee shall examine matters related to international broadcasting etc. as described in Article 3-4 paragraph (3) and those related to broadcast programs of international broadcasting etc.

(7)

When NHK intends to establish or amend the plan relating to the compilation and broadcasting of broadcast programs intended for the districts described in paragraph (2), it must consult Regional Committees.

(8)

In accordance with the provisions of Article 3-4 paragraph (2), the Central Committee and Regional Committees may express their views to NHK on matters related to broadcast programs of domestic broadcasting; and the International Committee on matters related to broadcast programs of international broadcasting etc.

(Campaign Broadcasting)
Article 45.

In case NHK allows any candidate for an elective office to broadcast his/her political views or make a campaign speech, it must, on application, let others under the same conditions.

(Prohibition of Advertisement Broadcasting etc.)
Article 46.
(1)

NHK shall not broadcast advertisements of others' business activities.

(2)

The provision of the preceding paragraph shall, in case when necessary for compiling of broadcast programs and when regarded as not for advertisement related to anyone's commercial business, not preclude the broadcasting of the name or title of an author or trader.

(3)

The provisions in the preceding two paragraphs shall apply mutatis mutandis to NHK carrying out NHK's international broadcast programming operations. In this case, the term ''broadcast'' in paragraph (1) shall read as ''entrust broadcasting'', and the phrase ''the broadcasting of the name or title of the author or trader'' in the preceding paragraph shall read as ''entrusting of the broadcasting of the name or title of the author or trader''.

(Limitation on Transfer of Broadcast Equipment, etc.)
Article 47.
(1)

NHK shall not, without the prior approval by the Minister of Posts and Telecommunications, transfer, lease, offer as a security, nor entrust the operation of, nor, whatever the method may be, subject to the control of any other person, the whole or part of its broadcast equipment.

(2)

In case the Minister of Posts and Telecommunications intends to give approval in accordance with the provision of the preceding paragraph, the consent of both Houses of the Diet shall be obtained. However, this does not apply to the case when NHK conducts the service described in Article 9 paragraph (2), item iv) or paragraph (3), item i).

Article 48 and 49 (Suppressed)

(Dissolution)
Article 50.
(1)

Matters related to dissolution of NHK shall be prescribed by law separately.

(2)

If NHK is dissolved, the remaining properties of NHK shall be reverted to the state.