Article 17. Prohibition on Competition by Commercial Agent

(Compare Article 48 of the former Commercial Code)

1. A commercial agent may not, without the approval of the corporation carry out the following activities:

(1) On his own account, or on behalf of a third party engage in transactions in the same line of business as the corporation,

(2) Serve as a director, executive officer, or corporate member managing the business of another corporation engaged in the same line of business.

2. When a commercial agent has violated the terms of the previous paragraph, engaging in activities of item 1, the profits obtained by the commercial agent or third party based on the said activities shall be presumed to be the amount of damages 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.

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