Thursday, October 8, 2009

Directors of Japanese Company

The Companies Act of Japan has significantly changed, but many companies are not making full use of its benefits.

In former Company Law, a kabushiki kaisha (joint-stock corporation, most frequently used legal entity in Japan) needs at least three directors and one auditor. Currently, there is no restriction on the number of director, and to have the auditor or not is left to the company's discretion.

If you appointed directors and auditors for form's sake in the past, you can reduce the number of directors and auditors under the new Companies Act.