Notwithstanding the provisions of Article 424, a stock company may provide in the articles of incorporation that the stock company may enter into agreements with directors (excluding those are executive directors, etc.), accounting advisors, company auditors or financial auditors (hereinafter in this Article and Article 911, paragraph (3), item (xxv) referred to as "non-executive directors, etc.") to the effect that, if relevant non-executive directors, etc. have acted in good faith and without gross negligence in performing their duties, the liability of the non-executive directors, etc. under Article 423, paragraph (1) is limited to either an amount specified by the stock company in advance within the limit of the amount provided for in the articles of incorporation, or the minimum liability amount, whichever is higher.
第四百二十四条の規定にかかわらず、株式会社は、取締役（業務執行取締役等であるものを除く。）、会計参与、監査役又は会計監査人（以下この条及び第九百十一条第三項第二十五号において「非業務執行取締役等」という。）の第四百二十三条第一項の責任について、当該非業務執行取締役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、定款で定めた額の範囲内であらかじめ株式会社が定めた額と最低責任限度額とのいずれか高い額を限度とする旨の契約を非業務執行取締役等と締結することができる旨を定款で定めることができる。
If non-executive directors, etc. who have entered into agreements under the preceding paragraph assume the office of executive directors, etc. of the stock company, relevant agreements become ineffective from then on.
The provisions of Article 425, paragraph (3) apply mutatis mutandis to cases where a proposal to amend the articles of incorporation to create provisions of the articles of incorporation under the provisions of paragraph (1) (limited to the provisions of the articles of incorporation to the effect that agreements may be entered into with directors (excluding those who are audit and supervisory committee members or audit committee members) prescribed in that paragraph) is submitted to a shareholders meeting.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 that Article is deemed to be replaced with "directors".
If a stock company that entered into agreements under paragraph (1) has come to know that it has suffered damages as a result of non-executive directors, etc. who were the counterparties to relevant agreements neglecting their duties, the stock company must disclose the following matters at the first shareholders meeting (if the stock company has an ultimate, wholly owning parent company, etc., and the damages are related to specific liabilities, shareholders meeting of the stock company and the ultimate, wholly owning parent company, etc.) called thereafter:
matters set forth in Article 425, paragraph (2), items (i) and (ii);
第四百二十五条第二項第一号及び第二号に掲げる事項
the contents of relevant agreements and reasons for entering into relevant agreements; and
当該契約の内容及び当該契約を締結した理由
the amount for which it was arranged that relevant non-executive directors, etc. would be exempted from liability for damages in Article 423, paragraph (1).
第四百二十三条第一項の損害のうち、当該非業務執行取締役等が賠償する責任を負わないとされた額
The provisions of Article 425, paragraphs (4) and (5) apply mutatis mutandis to cases where it has been arranged pursuant to agreements under paragraph (1) that non-executive directors, etc. are not liable for damages in excess of the limit provided for in that paragraph.
第四百二十五条第四項及び第五項の規定は、非業務執行取締役等が第一項の契約によって同項に規定する限度を超える部分について損害を賠償する責任を負わないとされた場合について準用する。