Q. Can directors be personally liable for damages?
A.
Directors can be personally liable for damages caused by negligence, and can be sued by shareholders or third parties.
Read more ▶
Directors owe duty of care (Art. 330/Civil Code 644) and loyalty (Art. 355). Breach causing company loss leads to liability (Art. 423), enforceable via shareholder derivative suits (Art. 847). Third-party liability applies for willful or grossly negligent conduct (Art. 429).
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
Related Questions
Q. How much does it cost to establish a company in Japan?
Q. Is a shareholders' agreement legally binding in Japan?
Q. How enforceable are non-compete clauses after leaving a company?
Q. Can you terminate a business contract before it expires?
Q. How much does trademark registration cost and how long does it take?
Related Articles
Starting a Business in Japan: KK vs LLC Comparison
Comparing stock corporations (KK) and limited liability companies (GK/LLC) for business formation in Japan.
Director Liability in Japan: Duties, Obligations, and Risks
Guide to director duties and liability in Japanese corporate law, including fiduciary duties and shareholder derivative suits.
Free Tools
Related Legal Terms
Consult a Legal Professional
Find a lawyer through your local bar association
JFBA Legal Consultation Guide