Note 3-48

48 Some of the conditions for agricultural production corporations are: 1） the joint stock company should hold less than one-fourth of the controlling share; 2） the majority of the board members should be steadily engaged in agriculture; 3） the majority of those board members who are steadily engaged in agriculture should in principle be engaged in agricultural activities more than 60 days a year. Pursuant to the amended Law for the Promotion of Improved Farm Management enacted in September 2003, the restrictions on the controlling share holding ratio of joint stock companies in agricultural production corporations were alleviated, and the ratio was reduced to less than one-half.