Article 12. Prohibition on Competition by Managers

(Compare Article 41 of the former Commercial Code)

1. Unless he has the consent of the corporation, a manager may not engage in the activities listed hereunder:

(1) Engage in his own business,

(2) Have transactions for his own account or for a third party in the same type of business as the business owner,

(3) Become an employee of another corporation or merchant (excluding the corporation. The same in Article 24. (Transfer of Business Between Merchants)).

(4) Serve as a director, executive officer or an employee who manages the business of another corporation.

2. When a manager has violated the terms of the previous paragraph, engaging in activities of item 2, the profits obtained by the manager or third party based on the said activities shall be presumed to be the amount of damages of that have been made to the corporation.

Disclaimer: This translation is for general reference purposes only and is provided on an “as is” basis with no warranties made whatsoever. Attorney Roderick H. Seeman (licensed in the USA) shall not be responsible for any consequences resulting from the use of this translation. Reliance must be placed on the original Japanese text of the laws. In the text of the translation article headings are added in parenthesis are not in the Japanese language original and are added only for the purposes of enhanced comprehension.

Click here to see a copy of Attorney Seeman’s Japanese stockbroker’s license that he passed on the first attempt in Japanese (becoming the first qualifying Westerner). The exam is now available in English due to claims that it was too difficult in Japanese.

Computerized translations of financial statements from securities reports on 4000++ Japanese corporations?

www.JapanCompany.info