A company with financial auditor may, pursuant to the provisions of Ministry of Justice Order, prepare consolidated financial statements (meaning statements prescribed by Ministry of Justice Order as necessary and appropriate in order to indicate the status of the assets and profits and losses of a group of enterprises comprised of relevant company with financial auditor and its subsidiary companies; the same applies hereinafter) for each business year.
Consolidated financial statements may be prepared as an electronic or magnetic record.
An entity that is a large company as at the last day of a business year and must submit an annual securities report to the Prime Minister pursuant to the provisions of Article 24, paragraph (1) of the Financial Instruments and Exchange Act must prepare consolidated financial statements for relevant business year.
Consolidated financial statements must be audited by the company auditors (or, audit and supervisory committee for a company with audit and supervisory committee, and for a company with nominating committee, etc., by the audit committee) and financial auditors pursuant to the provisions of Ministry of Justice Order.
連結計算書類は、法務省令で定めるところにより、監査役（監査等委員会設置会社にあっては監査等委員会、指名委員会等設置会社にあっては監査委員会）及び会計監査人の監査を受けなければならない。
If a company with financial auditor is a company with board of directors, the consolidated financial statements audited as provided for in the preceding paragraph must be approved by the board of directors.
If a company with financial auditor is a company with board of directors, directors must, when giving notice to call annual shareholders meetings, provide to shareholders, pursuant to the provisions of Ministry of Justice Order, consolidated financial statements that have been approved as provided for in the preceding paragraph.
At companies with financial auditor set forth in the following items, directors must submit or provide the consolidated financial statements provided for in each relevant item to the annual shareholders meetings. In these cases, the contents of the consolidated financial statements provided for in each relevant item and the results of the audit under paragraph (4) must be reported to the annual shareholders meeting:
a company with financial auditor which is a company with board of directors:consolidated financial statements approved as provided for in paragraph (5);
a company with financial auditor other than that set forth in the preceding item:consolidated financial statements audited as provided for in paragraph (4).
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Consolidated financial statements must be audited by the company auditors (or, audit and supervisory committee for a company with audit and supervisory committee, and for a company with nominating…
連結計算書類は、法務省令で定めるところにより、監査役（監査等委員会設置会社にあっては監査等委員会、指名委員会等設置会社にあっては監査委員会）及び会計監査人の監査を受けなければならない。
Open this provisionIf a company with financial auditor is a company with board of directors, the consolidated financial statements audited as provided for in the preceding paragraph must be approved by the board of…
会計監査人設置会社が取締役会設置会社である場合には、前項の監査を受けた連結計算書類は、取締役会の承認を受けなければならない。
Open this provisiona company with financial auditor which is a company with board of directors:consolidated financial statements approved as provided for in paragraph (5);
取締役会設置会社である会計監査人設置会社 第五項の承認を受けた連結計算書類
Open this provisionsubsidiary company
「子会社」
A stock company in which a company holds a majority of the votes, or any other corporation whose management a company controls, as set out by Ministry of Justice Order (法務省令).
Defined inArticle 2, paragraph (1), item (iii)· applies throughout the law
large company
「大会社」
A stock company whose balance sheet for its most recent business year shows stated capital of 500 million yen or more, or total liabilities of 20 billion yen or more.
Defined inArticle 2, paragraph (1), item (vi)· 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 financial auditor
「会計監査人設置会社」
A stock company that has a financial auditor, an outside certified public accountant or audit firm that audits its accounts, or that this Act requires to have one.
Defined inArticle 2, paragraph (1), item (xi)· 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
electronic or magnetic record
「電磁的記録」
A record made in electronic, magnetic or any other form people cannot perceive directly, of a kind that Ministry of Justice Order (法務省令) specifies as used in computer processing.
Defined inArticle 26, paragraph (2)
consolidated financial statementsmachine translation
「連結計算書類」
Financial statements, of kinds set by Ministry of Justice Order (法務省令), showing the assets and profit and loss of the group made up of a company with financial auditor and its subsidiaries.
Defined inArticle 444, paragraph (1)
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.
company auditor
監査役
An officer of a stock company, elected by the shareholders meeting (Companies Act, Article 329, paragraph (1)), whose job is to audit how the directors carry out their duties and to write an audit report on it (Article 381, paragraph (1)). Not an outside accountant — that is the financial auditor (会計監査人) — and not a director: a company auditor may not also be a director or employee of the company or its subsidiaries (Article 335, paragraph (2)). The term normally runs to the annual shareholders meeting for the last business year ending within four years of election (Article 336, paragraph (1)).
Written by AI using Companies Act, Arts. 329, 335, 336, 381 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.
Prime Minister
内閣総理大臣
The head of the Cabinet. Designated by the Diet from among its own members, and appointed by the Emperor on that designation (Articles 67 and 6). The Prime Minister appoints and may dismiss the other Ministers of State at will, and a majority of them must be members of the Diet (Article 68). No Minister of State can be subjected to legal action while in office without the Prime Minister's consent (Article 75).
Written by AI using Constitution, Arts. 6, 67, 68, 75 and Wikipedia: Prime Minister of Japan 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.