A company (limited to a stock company or a limited liability company) may effect an absorption-type company split. In these cases, the relevant company must conclude an absorption-type company split agreement with the company which succeeds to all or part of the rights and obligations held by relevant company in connection with its business by transfer from relevant company (hereinafter referred to as the "company succeeding in the absorption-type split" in this Part).

If a company effects an absorption-type company split, and the company succeeding in the absorption-type split is a stock company, it must prescribe the following matters in the absorption-type company split agreement:

A stock company succeeding in an absorption-type split succeeds to the rights and obligations of the company splitting in the absorption-type split, in accordance with the provisions of the absorption-type company split agreement, on the effective day.

Notwithstanding the provisions of the preceding paragraph, if a creditor of the company splitting in the absorption-type split who is able to state an objection pursuant to the provisions of Article 789, paragraph (1), item (ii) (including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2); the same applies in the following paragraph) and who has not received the separate notice set forth in Article 789, paragraph (2) (excluding item (iii) and including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2); the same applies in the following paragraph) (in the cases prescribed in Article 789, paragraph (3) (including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2)), limited to one who is a creditor of the obligation caused by a tort; the same applies in the following paragraph), may request the company splitting in the absorption-type split to perform the obligations to the extent of the value of property held by the company splitting in the absorption-type split on the effective day, even if relevant creditor is not allowed, under the absorption-type company split agreement, to request the company splitting in the absorption-type split to perform the obligations after the absorption-type company split.

Notwithstanding the provisions of paragraph (1), if a creditor of the company splitting in the absorption-type split who is able to state an objection pursuant to the provisions of Article 789, paragraph (1), item (ii) of and who has not received the separate notice set forth in paragraph (2) of that Article, may request the stock company succeeding in the absorption-type split to perform the obligations to the extent of the value of property to which it has succeeded, even if relevant creditor is not allowed, under the absorption-type company split agreement, to request the stock company succeeding in the absorption-type split to perform the obligations after the absorption-type company split.

Notwithstanding the provisions of paragraph (1), if a company splitting in the absorption-type split implemented the absorption-type company split with the knowledge that it would harm creditors (hereinafter in this Article referred to as "remaining creditors") of the obligation that would not be succeeded to a stock company succeeding in the absorption-type split, the remaining creditors may request the performance of the obligation from the stock company succeeding in the absorption-type split to the extent of the value of property to which it has succeeded; provided, however, that this does not apply if the stock company succeeding in the absorption-type split did not know that it would harm remaining creditors when the absorption-type split became effective.

The provisions of the preceding paragraph do not apply to cases where there are provisions on the matters set forth in item (viii) of the preceding Article.

If a stock company succeeding in the absorption-type split is liable to perform the obligation set forth in paragraph (4) pursuant to the provisions of the same paragraph, the liabilities are extinguished in relation to a remaining creditor who does not demand the performance or does not give an advance notice of the demand within two years from when the remaining creditor comes to know that the company splitting in the absorption-type split implemented the absorption-type company split with the knowledge that it would harm remaining creditors, when that period elapses. The same applies when ten years elapses from the effective day.

When an order of commencement of bankruptcy proceedings, order of commencement of rehabilitation proceedings, or order of commencement of reorganization proceedings is made with regard to a company splitting in the absorption-type split, remaining creditors may not exercise the right to make a request pursuant to the provisions of paragraph (4) from a stock company succeeding in the absorption-type split.

In the cases set forth in the following items, the company splitting in an absorption-type split becomes the persons specified in each of those items, in accordance with the provisions of the absorption-type company split agreement, on the effective day:

In the case prescribed in item (v) of the preceding Article, the share options under absorption-type company split agreement are extinguished and holders of the share options under absorption-type company split agreement become holders of the share options of the stock company succeeding in the absorption-type split set forth in item (v), (b) of that Article, in accordance with the provisions on the matters set forth in item (vi) of that Article, on the effective day.

The provisions of the preceding paragraphs do not apply if procedures under the provisions of Article 789 (excluding paragraph (1), item (iii) and paragraph (2), item (iii), and including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2)) or Article 799 are not completed yet or where the absorption-type company split is cancelled.

If a company effects an absorption-type company split, if the company succeeding in the absorption-type split is a membership company, it must prescribe the following matters in the absorption-type company split agreement:

A membership company succeeding in an absorption-type split succeeds to the rights and obligations of the company splitting in the absorption-type split, in accordance with the provisions of the absorption-type company split agreement, on the effective day.

Notwithstanding the provisions of the preceding paragraph, if a creditor of the company splitting in an absorption-type split who is able to state an objection pursuant to the provisions of Article 789, paragraph (1), item (ii) (including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2); the same applies in the following paragraph) and who has not received the separate notice set forth in Article 789, paragraph (2) (excluding item (iii) and including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2); the same applies in the following paragraph) (in the cases prescribed in Article 789, paragraph (3) (including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2)), limited to one who is a creditor of the obligation caused by a tort; the same applies in the following paragraph), may request the company splitting in the absorption-type split to perform the obligations to the extent of the value of property held by the company splitting in the absorption-type split on the effective day, even if that creditor is not allowed, under the Absorption-type company split agreement, to request the company splitting in the absorption-type split to perform the obligations after the Absorption-type company split.

Notwithstanding the provisions of paragraph (1), if a creditor of the company splitting in the absorption-type split who is able to state an objection pursuant to the provisions of Article 789, paragraph (1), item (ii) and who has not received the separate notice set forth in paragraph (2) of that Article, may request the membership company succeeding in the absorption-type split to perform the obligations to the extent of the value of property to which it has succeeded, even if that creditor is not allowed, under the absorption-type company split agreement, to request the membership company succeeding in the absorption-type split to perform the obligations after the absorption-type company split.

Notwithstanding the provisions of paragraph (1), if a company splitting in the absorption-type split implemented an absorption-type company split with the knowledge that it would harm creditors (hereinafter referred to as "remaining creditors") of the obligation that would not be succeeded to a membership company succeeding in the absorption-type split, the remaining creditors may request the performance of the obligation from the membership company succeeding in the absorption-type split to the extent of the value of property to which it has succeeded; provided, however, that this does not apply if the membership company succeeding in the absorption-type split did not know that it would harm remaining creditors when the absorption-type company split became effective.

The provisions of the preceding paragraph do not apply to cases where there are provisions on the matters set forth in item (vii) of the preceding Article.

If a membership company succeeding in the absorption-type split is liable to perform the obligation set forth in paragraph (4) pursuant to the provisions of the same paragraph, the liabilities are extinguished in relation to a remaining creditor who does not demand the performance or does not give advance notice of the demand within two years from when the remaining creditor comes to know that the company splitting in the absorption-type split implemented the absorption-type company split with the knowledge that it would harm remaining creditors, when that period elapses. The same applies to when ten years elapses from the effective day.

When an order of commencement of bankruptcy proceedings, order of commencement of rehabilitation proceedings, or order of commencement of reorganization proceedings is made with regard to a company splitting in the absorption-type split, remaining creditors may not exercise the right to make a request pursuant to the provisions of paragraph (4) from a membership company succeeding in the absorption-type split.

In the case prescribed in item (iv) of the preceding Article, the company splitting in the absorption-type split, in accordance with the provisions on the matters set forth in that item, becomes a member of the membership company succeeding in the absorption-type split on the effective day. In these cases, the membership company succeeding in the absorption-type split is deemed to have effected changes to the articles of incorporation relating to the member set forth in that item on the effective day.

If there are provisions on the matter set forth in item (v), (a) of the preceding Article, the company splitting in the absorption-type split, in accordance with the provisions of the absorption-type company split agreement, becomes holders of bonds referred to in (a) of that item on the effective day.

The provisions of the preceding paragraphs do not apply if procedures under the provisions of Article 789 (excluding paragraph (1), item (iii) and paragraph (2), item (iii), and including the case where it is applied mutatis mutandis pursuant to Article 793, paragraph (2)) or Article 799 (excluding paragraph (2), item (iii)) as applied mutatis mutandis pursuant to Article 802, paragraph (2) are not completed yet or where the absorption-type merger is cancelled.

One or multiple stock companies or limited liability companies may effect an incorporation-type company split. In these cases, those companies must prepare an incorporation-type company split plan.

If two or more stock companies or limited liability companies jointly effect an incorporation-type company split, those two or more stock companies or limited liability companies must prepare an incorporation-type company split plan jointly.

If one or multiple stock companies or limited liability companies effect an incorporation-type company split, if the company that is incorporated in the incorporation-type company split (hereinafter referred to as the "company incorporated in the incorporation-type split" in this Part) is a stock company, those companies must prescribe the following matters in the incorporation-type company split plan:

If a stock company incorporated in the incorporation-type split is a company with audit and supervisory committee, the matters set forth in item (iii) of the preceding paragraph must be determined by distinguishing directors at incorporation who are audit and supervisory committee members at incorporation and other directors at incorporation.

A stock company incorporated in the incorporation-type split succeeds to the rights and obligations of the company splitting in the incorporation-type split, in accordance with the provisions of the incorporation-type company split plan, on the day of its formation.

Notwithstanding the provisions of the preceding paragraph, if a creditor of the company splitting in the incorporation-type split who is able to state an objection pursuant to the provisions of Article 811, paragraph (1), item (ii) (including the case where it is applied mutatis mutandis pursuant to Article 813, paragraph (2); the same applies in the following paragraph) and who has not received the separate notice set forth in Article 810, paragraph (2) (excluding item (iii) and including the case where it is applied mutatis mutandis pursuant to Article 813, paragraph (2); the same applies in the following paragraph) (in the cases prescribed in Article 810, paragraph (3) (including the case where it is applied mutatis mutandis pursuant to Article 813, paragraph (2)), limited to one who is a creditor of the obligation caused by a tort; the same applies in the following paragraph), may request the company splitting in the incorporation-type split to perform the obligations to the extent of the value of property held by the company splitting in the incorporation-type split on the day of formation of the stock company incorporated in the incorporation-type split, even if that creditor is not allowed, under the incorporation-type company split plan, to request the company splitting in the incorporation-type split plan to perform the obligations after the incorporation-type company split.

Notwithstanding the provisions of paragraph (1), if a creditor of the company splitting in the incorporation-type split who is able to state an objection pursuant to the provisions of Article 810, paragraph (1), item (ii) and who has not received the separate notice set forth in paragraph (2) of that Article, may request the stock company incorporated in the incorporation-type split to perform the obligations to the extent of the value of property to which it has succeeded, even if that creditor is not allowed, under the incorporation-type company split plan, to request the stock company incorporated in the incorporation-type split to perform the obligations after the incorporation-type company split.

Notwithstanding the provisions of paragraph (1), if a company splitting in the incorporation-type split implemented the incorporation-type company split with the knowledge that it would harm creditors (hereinafter in this Article referred to as "remaining creditors") of the obligation that will not be succeeded to a stock company incorporated in the incorporation-type split, the remaining creditors may request performance of the obligation from the stock company incorporated in the incorporation-type split to the extent of the value of property to which it has succeeded.

The provisions of the preceding paragraph do not apply to cases where there are provisions on the matters set forth in paragraph (1), item (xii) of the preceding Article.

If a stock company incorporated in the incorporation-type split is liable to perform the obligation set forth in paragraph (4), the liabilities are extinguished in relation to remaining creditors who do not demand the performance or do not give advance notice of their demand within two years from when they come to know that the company splitting in the incorporation-type split implemented the incorporation-type split with the knowledge that it would harm remaining creditors, when that period elapses. The same applies when ten years elapses from the day of the formation of the stock company incorporated in the incorporation-type split.

When an order of commencement of bankruptcy proceedings, order of commencement of rehabilitation proceedings, or order of commencement of reorganization proceedings is made with regard to a company splitting in the incorporation-type split, remaining creditors may not exercise the right to make a request pursuant to the provisions of paragraph (4) from a stock company incorporated in the incorporation-type split.

In the case prescribed in paragraph (1) of the preceding Article, the company splitting in the incorporation-type split becomes a shareholder of shares set forth in item (vi) of the same paragraph, in accordance with the provisions of the incorporation-type company split plan, on the day of formation of the stock company incorporated in the incorporation-type split.

In the cases set forth in the following items, the company splitting in the incorporation-type split becomes the person specified in each of those items, in accordance with the provisions on the incorporation-type company split plan, on the day of formation of the stock company incorporated in the incorporation-type split:

With regard to the application of the provisions of the preceding two paragraphs if two or more stock companies or limited liability companies are to jointly effect an incorporation-type company split, the phrase "provisions of the incorporation-type company split plan" in paragraph (8) is deemed to be replaced with "provisions on the matters set forth in item (vii) of the same paragraph", and the phrase "provisions of the incorporation-type company split plan" in the preceding paragraph is deemed to be replaced with "provisions on the matters set forth in paragraph (1), item (ix) of the preceding Article".

In the case prescribed in paragraph (1), item (x) of the preceding Article, the share options in the incorporation-type split plan are extinguished and holders of the share options in the incorporation-type split plan become holders of the share options of the stock company incorporated in the incorporation-type split set forth in item (x), (b) of that paragraph, in accordance with the provisions on the matters set forth in item (xi) of that paragraph, on the day of formation of the stock company incorporated in the incorporation-type split.

If one or multiple stock companies or limited liability companies effect an incorporation-type company split, if the company incorporated in the incorporation-type split is a membership company, those companies must prescribe the following matters in the incorporation-type company split plan:

If the membership company incorporated in the incorporation-type split is a general partnership company, it must provide that all of the members are members with unlimited liability in prescribing the matter set forth in item (iii), (b) of the preceding paragraph.

If the membership company incorporated in the incorporation-type split is a limited partnership company, it must provide that some of the members are members with unlimited liability and other members are members with limited liability in prescribing the matter set forth in paragraph (1), item (iii), (b).

If the membership company incorporated in the incorporation-type split is a limited liability company, it must provide that all of the members are members with limited liability in prescribing the matter set forth in paragraph (1), item (iii), (b).

A membership company incorporated in the incorporation-type split succeeds to the rights and obligations of the company splitting in the incorporation-type split, in accordance with the provisions of the incorporation-type company split plan, on the day of its formation.

Notwithstanding the provisions of the preceding paragraph, if a creditor of the company splitting in the incorporation-type split who is able to state an objection pursuant to the provisions of Article 810, paragraph (1), item (ii) (including the case where it is applied mutatis mutandis pursuant to Article 813, paragraph (2); the same applies in the following paragraph) and who has not received the separate notice set forth in Article 810, paragraph (2) (excluding item (iii) and including the case where it is applied mutatis mutandis pursuant to Article 813, paragraph (2); the same applies in the following paragraph) (in the cases prescribed in Article 810, paragraph (3) (including the case where it is applied mutatis mutandis pursuant to Article 813, paragraph (2)), limited to one who is a creditor of the obligation caused by a tort; the same applies in the following paragraph), may request the company splitting in the incorporation-type split to perform the obligations to the extent of the value of property held by the company splitting in the incorporation-type split on the day of formation of the membership company incorporated in the incorporation-type split, even if the creditor is not allowed, under the incorporation-type company split plan, to request the company splitting in the incorporation-type split to perform the obligations after the incorporation-type company split.

Notwithstanding the provisions of paragraph (1), if a creditor of the company splitting in the incorporation-type split who is able to state an objection pursuant to the provisions of Article 810, paragraph (1), item (ii) and who has not received the separate notice set forth in paragraph (2) of that Article, may request the membership company incorporated in the incorporation-type split to perform the obligations to the extent of the value of property to which it has succeeded, even if the creditor is not allowed, under the incorporation-type company split plan, to request the membership company incorporated in the incorporation-type split to perform the obligations after the incorporation-type company split.

Notwithstanding the provisions of paragraph (1), if a company splitting in the incorporation-type split implemented the incorporation-type company split with the knowledge that it would harm creditors (hereinafter in this Article referred to as "remaining creditors") of the obligation that will not be succeeded to a membership company incorporated in the incorporation-type split, the remaining creditors may request performance of the obligation from the membership company incorporated in the incorporation-type split to the extent of the value of property to which it has succeeded.

The provisions of the preceding paragraph do not apply to cases where there are provisions on the matters set forth in paragraph (1), item (xiii) of the preceding Article.

If a membership company incorporated in the incorporation-type split is liable to perform the obligation set forth in paragraph (4), the liabilities are extinguished in relation to remaining creditors who do not demand the performance or do not give an advance notice of their demand within two years from when they come to know that the company splitting in the incorporation-type split implemented the incorporation-type company split with the knowledge that it would harm remaining creditors, when that period elapses. The same applies to when ten years elapses from the day of formation of the stock company incorporated in the incorporation-type split is incorporated.

When an order of commencement of bankruptcy proceedings, order of commencement of rehabilitation proceedings, or order of commencement of reorganization proceedings is made with regard to a company splitting in the incorporation-type split, remaining creditors may not exercise the right to make a request pursuant to the provisions of paragraph (4) from a membership company incorporated in the incorporation-type split.

In the case prescribed in paragraph (1) of the preceding Article, the company splitting in the incorporation-type split becomes a member of the membership company incorporated in the incorporation-type split, in accordance with the provisions on the matter set forth in item (iii) of that paragraph, on the day of formation of the membership company incorporated in the incorporation-type split.

If there are provisions on the matter set forth in paragraph (1), item (vi) of the preceding Article, a company splitting in the incorporation-type split, in accordance with the provisions of the incorporation-type company split plan, becomes a holder of bonds referred to in that item on the day of formation of the membership company incorporated in the incorporation-type split.

With regard to the application of the provisions of the preceding paragraph if two or more stock companies or limited liability companies are to jointly effect an incorporation-type company split, the phrase "in accordance with the provisions of the incorporation-type company split plan, become a holder of bonds referred to in that item" in that paragraph is deemed to be replaced with "in accordance with the provisions on the matter set forth in item (vii) of that paragraph, become holders of bonds referred to in item (vi) of that paragraph".