bondholders meetings for each class of bonds are constituted by bondholders.

At bondholders meetings, matters provided for in this Act and matters in relation to the interests of the bondholders may be resolved.

Bondholders meetings may, where necessary, be convened at any time.

Bondholders meetings are convened by the bond-issuing company or bond administrator, except if a bondholders meeting is convened pursuant to the provisions of the following paragraph or paragraph (3) of the following Article.

In the cases set forth below, the assistant bond administrator may convene a bondholders meeting.

Bondholders who hold not less than one tenth of the total amount of bonds of a certain Class (excluding bonds that have been redeemed) may demand that the bond-issuing company, bond administrator, or assistant bond administrator convene a bondholders meeting, by disclosing the matters that form the purpose of the bondholders meeting and the reasons for the convocation.

The sum of the amount of bonds in the class in question which are held by the bond-issuing company itself is not included in the calculation of the total amount of the bonds prescribed in the preceding paragraph.

In the following cases, the bondholders who made the demand under the provisions of paragraph (1) may convene a bondholders meeting with the permission of the court:

Bondholders of bearer bonds who intend to make a demand pursuant to the provisions of paragraph (1) or to effect the convocation pursuant to the provisions of the preceding paragraph must present their bond certificates to the bond-issuing company, bond administrator or assistant bond administrator.

A person who convenes a bondholders meeting (hereinafter in this Chapter referred to as "convener") must specify the following matters when convening a bondholders meeting:

In order to convene a bondholders meeting, the convener must give written notice thereof to known bondholders and the bond-issuing company, as well as to the bond administrator or assistant bond administrator if appointed, no later than two weeks prior to the day of the bondholders meeting.

In lieu of sending the written notice referred to in the preceding paragraph, the convener may send a notice by electronic or magnetic means with the consent of bondholders, pursuant to the provisions of Cabinet Order. In these cases, relevant convener is deemed to have sent the written notice under that paragraph.

The notice referred to in the preceding two paragraphs must state or record the matters set forth in each item of the preceding Article.

If a bond-issuing company issues bearer bond certificates, in order to convene a bondholders meeting, the convener must give public notice to the effect that a bondholders meeting will be convened and of the matters set forth in each item of the preceding Article no later than three weeks prior to the day of the bondholders meeting.

The public notice pursuant to the provisions of the preceding paragraph must be given in accordance with the means of public notice used by the bond-issuing company;provided, however, that, if the convener is a person other than the bond-issuing company, and that method is electronic public notice, that public notice must be effected by publication in Official Gazette.

When giving notice referred to in paragraph (1) of the preceding Article, the convener must deliver documents containing reference materials for exercising voting rights (hereinafter in this Article referred to as "reference documents for bondholders meetings") and the documents to be used by bondholders to exercise voting rights (hereinafter in this Chapter referred to as "voting form") to known bondholders, pursuant to the provisions of Ministry of Justice Order.

If the convener issues notice by electronic or magnetic means as referred to in paragraph (2) of the preceding Article to bondholders who have given consent referred to in the same paragraph, in lieu of delivering the reference documents for bondholders meetings and voting forms under the provisions of the preceding paragraph, the convener may use electronic or magnetic means to provide the information that is required to be detailed in those documents;provided, however, that if there is a request from a bondholder, the convener must deliver these documents to relevant bondholder.

If public notice is given pursuant to the provisions of paragraph (4) of the preceding Article, if there is a request by a holder of bearer bonds no later than one week prior to the day of the bondholders meeting, the convener must immediately deliver the reference documents for bondholders meetings and voting forms to relevant bondholder.

In lieu of delivering the reference documents for bondholders meetings and voting form under the provisions of the preceding paragraph, a convener may use electronic or magnetic means to provide the information that is required to be detailed in these documents, with the consent of the bondholders and pursuant to the provisions of Cabinet Order. In these cases, relevant convener is deemed to have delivered those documents under the provisions of that paragraph.

If the particulars referred set forth in Article 719, item (iii) have been specified, when using electronic or magnetic means to notify bondholders that have given the consent referred to in Article 720, paragraph (2), the convener must use that electronic or magnetic means to provide the bondholders with the information that is required to be detailed in the voting form, pursuant to the provisions of Ministry of Justice Order.

If the matters set forth in Article 719, item (iii) are specified, if there is a request from a bondholder who did not give consent under Article 720, paragraph (2) no later than one week prior to the day of the bondholders meeting to be provided with the information that is required to be detailed in the voting form by electronic or magnetic means, the convener must use electronic or magnetic means to immediately provide the bondholder with that information, pursuant to the provisions of Ministry of Justice Order.

Bondholders have voting rights at bondholders meetings in proportion to the total amounts of bonds of the relevant classes they hold (excluding amounts already redeemed).

Notwithstanding the provisions of the preceding paragraph, a bond-issuing company does not have voting rights with respect to its own bonds that it holds.

Holders of bearer bonds who intend to exercise voting rights must present their bond certificates to the convener no later than one week prior to the day of a bondholders meeting.

In order to pass a matter to be resolved at a bondholders meeting, the consent of persons who hold more than half of the total amount of voting rights of voting rights holders (meaning the bondholders who can exercise voting rights; hereinafter the same applies in this Chapter) present at the meeting must be obtained.

Notwithstanding the provisions of the preceding paragraph, in order to pass the following matters at a bondholders meeting, the consent of persons who hold not less than one fifth of the total amount of voting rights of voting rights holders, being not less than two thirds of the total amount of voting rights of voting rights holders present at the meeting, must be obtained:

At bondholders meetings, matters other than those set forth in Article 719, item (ii) may not be resolved.

Bondholders may exercise voting rights by proxy. In these cases, relevant bondholders or proxies must submit to the convener a document certifying the power of representation.

The grant of the power of representation under the preceding paragraph must be made for each bondholders meeting.

Bondholders or proxies referred to in paragraph (1) may, in lieu of submitting a document certifying the power of representation, use electronic or magnetic means to provide the information that is required to be detailed in relevant document, with the approval of the convener and pursuant to the provisions of Cabinet Order. In these cases, relevant bondholders or proxies are deemed to have submitted relevant document.

If the bondholders are persons who gave consent under Article 720, paragraph (2), the convener may not refuse to grant approval under the preceding paragraph without reasonable grounds.

Bondholders who do not attend a bondholders meeting may exercise voting rights in writing.

The exercise of voting rights in writing is effected by entering the necessary matters on the voting form and submitting it to the convener by the time prescribed by Ministry of Justice Order.

The amount of voting rights exercised in writing under the provisions of the preceding paragraph is included in the amount of the voting rights of the bondholders present at the meeting.

The exercise of voting rights by electronic or magnetic means is effected by using electronic or magnetic means to provide the convener with the information that is required to be entered in the voting form no later than the time prescribed by Ministry of Justice Order, with the approval of the convener and pursuant to the provisions of Cabinet Order.

If the bondholders are persons who have given consent under Article 720, paragraph (2), the convener may not refuse to grant approval under the preceding paragraph without justifiable grounds.

The amount of the voting rights exercised by electronic or magnetic means under the provisions of paragraph (1) is included in the amount of the voting rights of the bondholders present at the meeting.

Bondholders may exercise the voting rights they hold without maintaining consistency. In these cases, the bondholders must notify the convener to that effect and of the reasons for the same no later than three days prior to the day of the bondholders meeting.

If a bondholder in the preceding paragraph is not a person who holds bonds on behalf of others, the convener may reject the inconsistent exercise of the voting rights held by relevant bondholder under the provisions of that paragraph.

A bond-issuing company, bond administrator or assistant bond administrator may state an opinion by having a representative or agent attend the bondholders meeting, or in writing;provided, however, that for bond administrators or assistant bond administrators, this does not apply if that bondholders meeting is convened for the appointment of a special agent under Article 707 (including cases applicable mutatis mutandis under Article 714-7).

Bondholders or conveners may, when they regard it as necessary, demand that the bond-issuing company's representative or agent attend a meeting. For attendance at a bondholders meeting, if a resolution must be passed to the effect that the demand will be made.

If a resolution for the postponement or continuation is passed at the bondholders meeting, the provisions of Articles 719 and 720 do not apply.

Minutes must be prepared with respect to the business of the bondholders meeting, pursuant to the provisions of Ministry of Justice Order.

A bond-issuing company must keep the minutes referred to in the preceding paragraph at its head office for a period of ten years from the day of a bondholders meeting.

The bond administrator, assistant bond administrator and bondholders may make the following requests at any time during the business hours of the bond-issuing company:

When a resolution is passed at a bondholders meeting, the convener must file a petition with the court for the approval of relevant resolution within one week of the day of relevant resolution.

The court cannot approve a resolution at a bondholders meeting in cases falling under any of the following:

A resolution at a bondholders meeting does not become effective unless the approval of the court is obtained.

A resolution at a bondholders meeting is effective against all bondholders who hold bonds of the relevant class.

If a ruling has been given approving or rejecting a resolution at a bondholders meeting, the bond-issuing company must give public notice to that effect without delay.

If a bond-issuing company, bond administrator, assistant bond administrator or bondholder submits a proposal with respect to any matter that is the purpose of a bondholders meeting (in the case of an assistant bond administrator, concerning the consent of the bondholders meeting provided in Article 711, paragraph (1) applied mutatis mutandis pursuant to Article 714-7), if all persons who may vote with respect to the matter manifest their intention to agree to relevant proposal in writing or using an electronic or magnetic record, it is deemed that a resolution to approve relevant proposal has been passed at the bondholders meeting.

The bond-issuing company must keep the document or electronic or magnetic record referred to in the preceding paragraph at its head office for a period of ten years from the day when the resolution at the bondholders meeting is deemed to have been passed pursuant to the provisions of the preceding paragraph.

The bond administrator, assistant bond administrator and bondholders may make the following requests at any time during the business hours of the bond-issuing company:

If a resolution at the bondholders meeting is deemed to have been approved pursuant to the provisions of paragraph (1), the provisions of Article 732 through the preceding Article (excluding Article 734, paragraph (2)) does not apply.

By a resolution at a bondholders meeting, one or more representative bondholders from among bondholders who hold bonds representing not less than one thousandth of the total amount of bonds of the relevant class (excluding amounts already redeemed) may be appointed, and decisions on the matters on which resolutions are to be passed at bondholders meetings may be entrusted to the representative bondholders.

The provisions of Article 718, paragraph (2) apply mutatis mutandis to the total amount of the bonds provided for in the preceding paragraph.

If there are two or more representative bondholders, unless otherwise provided for at a bondholders meeting, the decisions on the matters provided for in paragraph (1) are made by a majority of those representative bondholders.

Resolutions at bondholders meetings are executed in accordance with the categories of the cases set forth in the following items by the person specified in each of those items;provided, however, that this does not apply if the person who executes resolutions at bondholders meetings is separately prescribed by a resolution at a bondholders meeting.

The provisions under Article 705, paragraphs (1) through (3), and under Articles 708 and 709 apply mutatis mutandis to cases where a representative bondholder or person responsible for the execution of resolutions at bondholders meetings prescribed under the provisions of the proviso to the preceding paragraph (hereinafter in this Chapter referred to as "resolution administrator") executes the resolutions at bondholders meetings.

By a resolution at a bondholders meeting, at any time, the representative bondholders or resolution administrators may be dismissed, or the matters entrusted to them may be changed.

If a bond-issuing company fails to pay interest on bonds, or fails to periodically partially redeem bonds if it must carry out that redemption, pursuant to a resolution at a bondholders meeting, the person executing the resolution may give written notice to the bond-issuing company to the effect that it must make payment within a defined period of time, and to the effect that, if payment is not made within relevant period of time, the bond-issuing company will forfeit the benefit of time as to the total amount of relevant bonds;provided, however, that relevant period may not be less than two months.

A person who executes a resolution under the preceding paragraph may, in lieu of the written notice under the provisions of that paragraph, provide the matters to be notified under the provisions of that paragraph by electronic or magnetic means, with the approval of the bond-issuing company, pursuant to the provisions of Cabinet Order. In these cases, the person who executes relevant resolution is deemed to have given relevant written notice.

If a bond-issuing company fails to make the payment in paragraph (1) within the period in that paragraph, it will forfeit the benefit of time with respect to the total amount of relevant bonds.

In order for a bondholder to raise an objection under the provisions of Article 449, Article 627, Article 635, Article 670, Article 779 (including cases where applied mutatis mutandis under Article 781, paragraph (2)), Article 789 (including cases where applied mutatis mutandis under Article 793, paragraph (2)), Article 799 (including cases where applied mutatis mutandis under Article 802, paragraph (2)), Article 810 (including cases where applied mutatis mutandis in Article 813, paragraph (2)) or Article 816-8, the objection must be raised by a resolution at a bondholders meeting. In these cases, the court may, in response to a petition by interested parties, extend the period during which objections can be raised on behalf of bondholders.

Notwithstanding the provisions of the preceding paragraph, a bond administrator may raise objections on behalf of bondholders;provided, however, that this does not apply if there are provisions to the contrary in a contract relating to entrustment under the provisions of Article 702.

For the purpose of the application of the provisions of Article 449, paragraph (2), Article 627, paragraph (2), Article 635, paragraph (2), Article 670, paragraph (2), Article 779, paragraph (2) (including cases where applied mutatis mutandis under Article 781, paragraph (2); hereinafter the same applies in this paragraph), Article 789, paragraph (2) (including cases where applied mutatis mutandis under Article 793, paragraph (2); hereinafter the same applies in this paragraph), Article 799, paragraph (2) (including cases where applied mutatis mutandis under Article 802, paragraph (2); hereinafter the same applies in this paragraph), Article 810, paragraph (2) (including cases where applied mutatis mutandis under Article 813, paragraph (2); hereinafter the same applies in this paragraph), and Article 816-8, paragraph (2) to a bond-issuing company, the term "known creditors" in Article 449, paragraph (2), Article 627, paragraph (2), Article 635, paragraph (2), Article 670, paragraph (2), Article 779, paragraph (2), Article 799, paragraph (2), and Article 816-8, paragraph (2) is deemed to be replaced with "known creditors (if there is a bond administrator or assistant bond administrator, including relevant bond administrator or assistant bond administrator)" and the phrase "known creditors (limited to those who can raise objections under the provisions of that paragraph)" in Article 789, paragraph (2) and Article 810, paragraph (2) is deemed to be replaced with "known creditors (limited to those who can raise objections under the provisions of that paragraph, and, if there is a bond administrator or assistant bond administrator, including relevant bond administrator or assistant bond administrator)".

With the permission of the court, a bond-issuing company may be made to bear the cost of the remuneration to be paid to the bond administrator, assistant bond administrator, representative bondholders or resolution administrator, the costs necessary for handling the administration of the bond-issuing company, and the interest that accrues from and including the day of disbursement of the remuneration and costs, as well as amounts of compensation for losses suffered by those persons for handling the administration of the bond-issuing company in the absence of negligence, unless this is provided for in the contract with the bond-issuing company.

The petition for permission referred to in the preceding paragraph is made by the bond administrators, assistant bond administrators, representative bondholders or resolution administrator.

With respect to the remuneration, costs and interest as well as amounts of compensation in paragraph (1), the bond administrators, assistant bond administrators, representative bondholders or resolution administrator have the right to obtain reimbursement, before the bondholders, from the proceeds of payments received under Article 705, paragraph (1) (including cases where that paragraph is applied mutatis mutandis under Article 737, paragraph (2)) or Article 714-4, paragraph (2), item (i).

The costs of bondholders meetings are borne by the bond-issuing company.

The costs of the petition in Article 732 are borne by the bond-issuing company;provided, however, that the court may in response to the petition by the bond-issuing company or other interested parties or ex officio, separately prescribe a person from among the convener and other interested parties to bear some or all of the costs.