Article 53. Liability of Incorporators, etc for Compensatory Damages

(Compare Article 193 of the former Commercial Code)

1. When an incorporator, establishment director or establishment statutory auditor has neglected his duties in relation to the establishment of the kabushiki kaisha, he shall be jointly and severally liable to the said kabushiki kaisha for compensatory damages.

2. When the incorporator, establishment director or establishment auditor has acted in bad faith or gross negligence, the incorporator, establishment director or establishment statutory auditor shall be jointly and separately liable to third parties for compensatory damages.

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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