Article 426Provisions of Articles of Incorporation on Exemption by Directors
第四百二十六条（取締役等による免除に関する定款の定め）
Notwithstanding the provisions of Article 424, companies with company auditor (limited to cases where there are two or more directors), companies with audit and supervisory committee, or companies with nominating committee, etc. may provide in the articles of incorporation that, if the relevant officers, etc. have acted in good faith and without gross negligence in performing their duties, and it is found particularly necessary taking into account the relevant circumstances including, but not limited to, the details of the facts that caused the liability and the status of execution of duties by relevant officers, etc., exemption may be given with respect to the liability under Article 423, paragraph (1) by the consent of a majority of the directors (excluding the directors subject to relevant liability) (or, for companies with board of directors, by a resolution at the board of directors meeting) to the extent of the amount which exemption may be given pursuant to the provisions of paragraph (1) of the preceding Article.
第四百二十四条の規定にかかわらず、監査役設置会社（取締役が二人以上ある場合に限る。）、監査等委員会設置会社又は指名委員会等設置会社は、第四百二十三条第一項の責任について、当該役員等が職務を行うにつき善意でかつ重大な過失がない場合において、責任の原因となった事実の内容、当該役員等の職務の執行の状況その他の事情を勘案して特に必要と認めるときは、前条第一項の規定により免除することができる額を限度として取締役（当該責任を負う取締役を除く。）の過半数の同意（取締役会設置会社にあっては、取締役会の決議）によって免除することができる旨を定款で定めることができる。
The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to cases where a proposal to amend the articles of incorporation to create provisions of the articles of incorporation pursuant to the provisions of the preceding paragraph (limited to provisions of the articles of incorporation to the effect that directors (excluding those who are audit and supervisory committee members or audit committee members) and executive officers may be exempted from the liability) is submitted to a shareholders meeting, to cases where the consent of directors with respect to exemption from liability under the provisions of the articles of incorporation pursuant to the provisions of that paragraph (limited to exemption from liability of directors (excluding those who are audit and supervisory committee members or audit committee members) and executive officers) is to be obtained, and to the cases where a proposal regarding the exemption from liability is submitted to the board of directors. In this case, the phrase "directors (if such a company has an ultimate, wholly owning parent company, etc., and the liabilities to be exempted pursuant to the provisions of paragraph (1) are specific liabilities, the directors of those companies and the ultimate, wholly owning parent company, etc.)" in paragraph (3) of the same Article is deemed to be replaced with "directors".
前条第三項の規定は、定款を変更して前項の規定による定款の定め（取締役（監査等委員又は監査委員であるものを除く。）及び執行役の責任を免除することができる旨の定めに限る。）を設ける議案を株主総会に提出する場合、同項の規定による定款の定めに基づく責任の免除（取締役（監査等委員又は監査委員であるものを除く。）及び執行役の責任の免除に限る。）についての取締役の同意を得る場合及び当該責任の免除に関する議案を取締役会に提出する場合について準用する。この場合において、同条第三項中「取締役（これらの会社に最終完全親会社等がある場合において、第一項の規定により免除しようとする責任が特定責任であるときにあっては、当該会社及び当該最終完全親会社等の取締役）」とあるのは、「取締役」と読み替えるものとする。
If consent (or, for a company with board of directors, a resolution at the board of directors meeting) to the effect that officers, etc. are exempted from the liability under the provisions of the articles of incorporation pursuant to the provisions of paragraph (1) has been given, the directors must, without delay, give public notice, or give notice to shareholders, to the effect that any objections to the matters set forth in each item of paragraph (2) of the preceding Article or to the exemption from liability ought to be stated within a specified period of time; provided, however, that that period may not be shorter than one month.
For the purpose of the application of the provisions of the preceding paragraph to a stock company that is not a public company, "give public notice, or give notice to shareholders" in that paragraph is deemed to be replaced with "give notice to shareholders".
If a stock company has an ultimate, wholly owning parent company, etc., when public notice or notice pursuant to the provisions of paragraph (3) (limited to those related to the exemption of specific liabilities) is made, the directors of the ultimate, wholly owning parent company, etc. must make public notice or notify shareholders without delay of the matters set forth in the items of paragraph (2) of the preceding Article and to the effect that any objections to exempt liabilities should be stated within the specified period; provided, however, that that period may not be shorter than one month.
For the purpose of the application of the provisions of the preceding paragraph to an ultimate, wholly owning parent company, etc. that is not a public company, the phrase "make public notice or notify shareholders" in the same paragraph is deemed to be replaced with "notify shareholders".
If shareholders having not less than three hundredths (or, if lesser proportion is prescribed in the articles of incorporation, the proportion) of the votes of all shareholders (excluding shareholders who are officers, etc. subject to the liability referred to in paragraph (3)) state objections during the period provided for in that paragraph (if a stock company has an ultimate, wholly owning parent company, etc., when the liabilities to be exempted according to the provisions of the articles of incorporation pursuant to the provisions of paragraph (1), if shareholders having not less than three-hundredths (or, if a lesser proportion is prescribed in the articles of incorporation, the proportion) of voting rights of all shareholders (excluding shareholders who are officers, etc. subject to the liability referred to in paragraph (3)) of the stock company or shareholders having not less than three-hundredths (or, if lesser proportion is prescribed in the articles of incorporation, the proportion) of voting rights of all shareholders (excluding shareholders who are officers, etc. subject to the liability referred to in paragraph (3)) of the ultimate, wholly owning parent company, etc. state objections set forth in paragraph (3) or (5) during the period set forth in the same paragraph respectively), the stock company may not effect the exemption pursuant to the provisions of the articles of incorporation under the provisions of paragraph (1).
総株主（第三項の責任を負う役員等であるものを除く。）の議決権の百分の三（これを下回る割合を定款で定めた場合にあっては、その割合）以上の議決権を有する株主が同項の期間内に同項の異議を述べたとき（株式会社に最終完全親会社等がある場合において、第一項の規定による定款の定めに基づき免除しようとする責任が特定責任であるときにあっては、当該株式会社の総株主（第三項の責任を負う役員等であるものを除く。）の議決権の百分の三（これを下回る割合を定款で定めた場合にあっては、その割合）以上の議決権を有する株主又は当該最終完全親会社等の総株主（第三項の責任を負う役員等であるものを除く。）の議決権の百分の三（これを下回る割合を定款で定めた場合にあっては、その割合）以上の議決権を有する株主が第三項又は第五項の期間内に当該各項の異議を述べたとき）は、株式会社は、第一項の規定による定款の定めに基づく免除をしてはならない。
The provisions of paragraph (4) and paragraph (5) of the preceding Article apply mutatis mutandis to cases where exemption from liability is given pursuant to the provisions of the articles of incorporation under the provisions of paragraph (1).
Read this with the articles around it
(Liability of Officers to Stock Companies for Damages)
If a director, accounting advisor, company auditor, executive officer or financial auditor (hereinafter in this Chapter referred to as "officers, etc.") neglects their duties…
取締役、会計参与、監査役、執行役又は会計監査人（以下この章において「役員等」という。）は、その任務を怠ったときは、株式会社に対し、これによって生じた損害を賠償する責任を負う。
Open this provision(Exemption from Liability for Damages to Stock Companies)
An exemption from liability under paragraph (1) of the preceding Article may not be given without the consent of all shareholders.
前条第一項の責任は、総株主の同意がなければ、免除することができない。
Open this provision(Partial Exemption from Liability)
Notwithstanding the provisions of the preceding paragraph, if the relevant officers, etc. have acted in good faith and without gross negligence in performing their duties…
前条の規定にかかわらず、第四百二十三条第一項の責任は、当該役員等が職務を行うにつき善意でかつ重大な過失がないときは、賠償の責任を負う額から次に掲げる額の合計額（第四百二十七条第一項において「最低責任限度額」という。）を控除して得た額を限度として…
Open this provision(Partial Exemption from Liability)
In cases under the preceding paragraph, the directors (if a stock company has an ultimate, wholly owning parent company, etc., and the liabilities to be exempted pursuant to the provisions of the…
前項の場合には、取締役（株式会社に最終完全親会社等がある場合において、同項の規定により免除しようとする責任が特定責任であるときにあっては、当該株式会社及び当該最終完全親会社等の取締役）は、同項の株主総会において次に掲げる事項を開示しなければならない。
Open this provision(Partial Exemption from Liability)
At a company with company auditor, company with audit and supervisory committee, or company with nominating committee, etc. in order to submit proposals regarding the exemption from liability under…
監査役設置会社、監査等委員会設置会社又は指名委員会等設置会社においては、取締役（これらの会社に最終完全親会社等がある場合において、第一項の規定により免除しようとする責任が特定責任であるときにあっては、当該会社及び当該最終完全親会社等の取締役）は…
Open this provision(Partial Exemption from Liability)
If a resolution under paragraph (1) is passed, and the stock company gives any property benefits prescribed by Ministry of Justice Order including, but not limited to…
第一項の決議があった場合において、株式会社が当該決議後に同項の役員等に対し退職慰労金その他の法務省令で定める財産上の利益を与えるときは、株主総会の承認を受けなければならない。当該役員等が同項第二号の新株予約権を当該決議後に行使し、又は譲渡するときも同様とする。
Open this provision(Partial Exemption from Liability)
If a resolution under paragraph (1) is passed, and the officers, etc. possess share option certificates that certify the share options under the preceding paragraph, the officers…
第一項の決議があった場合において、当該役員等が前項の新株予約権を表示する新株予約権証券を所持するときは、当該役員等は、遅滞なく、当該新株予約権証券を株式会社に対し預託しなければならない。この場合において、当該役員等は、同項の譲渡について同項の承認を受けた後でなければ、当該新株予約権証券の返還を求めることができない。
Open this provision(Provisions of Articles of Incorporation on Exemption by Directors)
Notwithstanding the provisions of Article 424, companies with company auditor (limited to cases where there are two or more directors), companies with audit and supervisory committee…
第四百二十四条の規定にかかわらず、監査役設置会社（取締役が二人以上ある場合に限る。）、監査等委員会設置会社又は指名委員会等設置会社は、第四百二十三条第一項の責任について、当該役員等が職務を行うにつき善意でかつ重大な過失がない場合において、責任の原因となった事実の内容…
Open this provision(Provisions of Articles of Incorporation on Exemption by Directors)
If consent (or, for a company with board of directors, a resolution at the board of directors meeting) to the effect that officers, etc. are exempted from the liability under the provisions of the…
第一項の規定による定款の定めに基づいて役員等の責任を免除する旨の同意（取締役会設置会社にあっては、取締役会の決議）を行ったときは、取締役は、遅滞なく、前条第二項各号に掲げる事項及び責任を免除することに異議がある場合には一定の期間内に当該異議を述べるべき旨を公告し、又は株主に通知しなければならない。
Open this provision(Provisions of Articles of Incorporation on Exemption by Directors)
If a stock company has an ultimate, wholly owning parent company, etc., when public notice or notice pursuant to the provisions of paragraph (3)…
株式会社に最終完全親会社等がある場合において、第三項の規定による公告又は通知（特定責任の免除に係るものに限る。）がされたときは、当該最終完全親会社等の取締役は、遅滞なく、前条第二項各号に掲げる事項及び責任を免除することに異議がある場合には一定の期間内に当該異議を述べるべき旨を公告し、又は株主に通知しなければならない。
Open this provisioncompany
「会社」
Any of the four kinds of company this Act governs: a stock company (株式会社), a general partnership company (合名会社), a limited partnership company (合資会社) or a limited liability company (合同会社).
Defined inArticle 2, paragraph (1), item (i)· applies throughout the law
public company
「公開会社」
A stock company whose articles of incorporation do not require the company's approval for transfers of at least some of its shares; it need not be listed on a stock exchange.
Defined inArticle 2, paragraph (1), item (v)· applies throughout the law
company with board of directors
「取締役会設置会社」
A stock company that has a board of directors, or that this Act requires to have one.
Defined inArticle 2, paragraph (1), item (vii)· applies throughout the law
company with company auditor
「監査役設置会社」
A stock company that has a company auditor whose audit its articles of incorporation do not limit to accounting matters, or that this Act requires to have a company auditor.
Defined inArticle 2, paragraph (1), item (ix)· applies throughout the law
company with audit and supervisory committee
「監査等委員会設置会社」
A stock company that has an audit and supervisory committee, made up of directors.
Defined inArticle 2, paragraph (1), item (xi-2)· applies throughout the law
company with nominating committee, etc.machine translation
「指名委員会等設置会社」
A stock company with a nominating committee, an audit committee and a remuneration committee, each made up of directors.
Defined inArticle 2, paragraph (1), item (xii)· applies throughout the law
audit and supervisory committee membermachine translation
「監査等委員」
A member of the audit and supervisory committee of a company with audit and supervisory committee.
Defined inArticle 38, paragraph (2)
audit committee member
「監査委員」
A member of the audit committee of a company with nominating committee, etc., who may not at the same time be an executive officer or executive director of the company or its subsidiaries.
Short name set inArticle 400, paragraph (4)
officers, etc.
「役員等」
The directors, accounting advisors, company auditors, executive officers and financial auditor of a stock company, who are liable to it for damages if they neglect their duties.
Short name set inArticle 423, paragraph (1)· applies only in this chapter
ultimate, wholly owning parent company, etc.machine translation
「最終完全親会社等」
The company at the top of a chain of full ownership over a stock company: a wholly owning parent company, etc. of that stock company that itself has no wholly owning parent company, etc. (Article 847-3, paragraph (1)).
Defined inArticle 425, paragraph (1)· applies only in this section
specific liability
「特定責任」
The liability of a stock company's incorporators, directors or company auditors at incorporation, officers, etc. or liquidators where, on the day the facts behind it arose, the book value of that company's shares held by its ultimate wholly owning parent company, etc. and that parent's wholly owned subsidiaries, etc. exceeded one fifth of the parent's total assets as calculated under a Ministry of Justice Order (法務省令), or any lower proportion set by articles of incorporation (定款).
Defined inArticle 425, paragraph (1)· applies only in this section
articles of incorporation
定款
A company's own basic rules, written by its founders when it is formed: at least its purpose, its trade name, where its head office is, the value of the property contributed at incorporation and who the founders are (Companies Act, Article 27). A stock company's must be certified by a notary before it takes effect (Article 30, paragraph (1)), and can later be changed by a resolution of the shareholders meeting (Article 466). Many rules in the Act apply "unless the articles of incorporation provide otherwise", so a company's articles decide a great deal of how the Act applies to it.
Written by AI using Companies Act, Arts. 26, 27, 30, 466, 575 as a reference.
board of directors
取締役会
The body made up of all of a stock company's directors (Companies Act, Article 362, paragraph (1)). It decides how the company's business is carried out, supervises the directors, and appoints and removes the representative directors (代表取締役) (Article 362, paragraphs (2) and (3)) — except in a company with a nominating committee and the other committees (指名委員会等設置会社), where it appoints representative executive officers (代表執行役) instead (Articles 416 and 420). Some decisions, such as disposing of important assets or borrowing a large amount, it normally may not hand to the directors (Article 362, paragraph (4)). A company with an audit and supervisory committee (監査等委員会設置会社) can hand more of them to directors (Article 399-13, paragraphs (5) and (6)), and a company with the committees hands them to executive officers (執行役) rather than directors (Article 416, paragraphs (3) and (4)). A company chooses in its articles of incorporation whether to have one (Article 326, paragraph (2)), but a public company (公開会社), among others, must (Article 327, paragraph (1)): a public company is one whose articles of incorporation let at least some of its shares change hands without the company's approval (Article 2, item (v)). A company with a board must have at least three directors (Article 331, paragraph (5)).
Written by AI using Companies Act, Arts. 2, 326, 327, 331, 362, 399-13, 416, 420 as a reference.
director
取締役
An officer of a stock company, elected by the shareholders meeting (Companies Act, Article 329, paragraph (1)). Every stock company has at least one (Article 326, paragraph (1)). Where there is no board of directors, the directors run the company's business unless the articles of incorporation say otherwise (Article 348, paragraph (1)), and each of them represents it unless the company has chosen representative directors (代表取締役) or others to do that (Article 349, paragraphs (1) and (3)). Where there is a board (取締役会, board of directors), the directors are its members, and the board decides the business and normally chooses the representative directors from among them (Article 362). The term normally runs to the annual shareholders meeting for the last business year ending within two years of election (Article 332, paragraph (1)).
Written by AI using Companies Act, Arts. 326, 329, 332, 348, 349, 362 as a reference.
shareholders meeting
株主総会
The meeting of a stock company's shareholders, and the body through which they decide the company's basic matters. It elects the directors and company auditors (Companies Act, Article 329, paragraph (1)) and changes the articles of incorporation (Article 466). In a company without a board of directors it may decide any matter about the company; in one with a board, only what the Act or the articles of incorporation leave to it (Article 295). An annual shareholders meeting must be called after the end of every business year, and another may be called whenever needed (Article 296). A resolution normally passes by a majority of the votes present, with holders of a majority of the votes entitled to vote attending (Article 309, paragraph (1)).
Written by AI using Companies Act, Arts. 295, 296, 309, 329, 466 as a reference.