March 2, 2009

We thank you very much for your support to VCCI.
This is to inform you that VCCI is going to be reborn as a juridical corporate body (General incorporated foundation) “VCCI Council” from April 1, 2009.

As you know well, VCCI has been resolutely engaged in the scheme of industry-self regulation by equipment suppliers to control ITE-emitted radio disturbance to radio receivers and televisions since its inception on December 19, 1985. Control targets include personal computers, facsimile equipment and any other equipment categorized as ITE of which communication equipment and electronic office equipment are a part.

Since in order to maintain cleaner radio environment in Japan it is necessary to enroll as many suppliers doing business in Japan of any national origin as possible in the self control scheme, VCCI has strived to increase its membership on a worldwide basis. However, as VCCI is a voluntary organization without any juridical grounds, we have some difficulty in part of our activities such as making contracts and holding assets.

Meanwhile new Japanese laws prescribing matters concerning corporate bodies were promulgated on June 2, 2006 (“No. 48-1Act on General Incorporated Associations and General Incorporated Foundations” and other associated laws). Since those laws give an option to establish a corporate body merely by registration without sanction by the government, we decided to take advantage of this deregulation and change VCCI to a juridical corporate body as soon after the laws’ effective date December 2008. The way of transformation we took was that first we create a new corporate body and then transfer activities of VCCI to the new corporate body because there is no provision in those laws that prescribes transformation of a voluntary organization into a corporate body. We carefully planned the incorporation in such a way that all of current activities of VCCI can be moved to the new corporate body both in form and in substance without omission. The new law system allows the choice of either incorporated association or incorporated foundation in establishing a corporate body. Our choice was the foundation because it will allow us to continue our current activities with little or no change to achieve our goal “to protect the interest of consumers.” Incidentally, if we take the association route we are required to convert VCCI members to employees of the new VCCI, which will be impractical because overseas members take up more than half of our membership.
Another choice in front of us was which of the two we should take, “general incorporated foundation” which needs no governmental sanction or “public interest incorporated foundation” which needs governmental sanction. Our choice at least for startup was the general incorporated foundation (not-for-profit type) that is considered more compatible with our organization.
Above is some background information as to why your VCCI is going to be reborn as a juridical foundation “VCCI Council.”
Please be reminded that transfer of members to the new VCCI Council will be completed automatically on April 1, 2009 without any action on the part of members and without any extra charge.

Lastly, with this incorporation as a momentum we are determined to take a firm stride toward the further growth of VCCI.
We would appreciate your continued support as before.