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Insurance Business Act - Act No. 74 of 2007

Insurance Business Act

(Act No. 105 of June 7, 1995)

Part I: General Provisions (Article 1 - Article 2-2) Part II: Insurance Company, etc.
Chapter I: General Rules (Article 3 - Article 8-2)
Chapter II: Stock Company and Mutual Company Carrying on Insurance
Business
Section 1: Special Provisions on Stock Company Carrying on Insurance
Business (Article 9 - Article 17-7) Section 2: Mutual Company
Subsection 1: General Rules (Article 18 - Article 21)
Subsection 2: Incorporation (Article 22 - Article 30-15)
Subsection 3: Rights and Obligations of Members (Article 31 - Article 36) Subsection 4: Organs
Division 1: General Meeting of Members (Article 37 - Article 41) Division 2: General Meeting (Article 42 - Article 50)
Division 3: Establishment, etc. of Organs Other than General Meeting of
Members and General Meeting (Article 51 - Article 53-12)
Division 4: Directors and Board of Directors (Article 53-13 - Article 53-
16)
Division 5: Accounting Advisors (Article 53-17)
Division 6: Company Auditors and Board of Company Auditors (Article
53-18 - Article 53-21)
Division 7: Accounting Auditors (Article 53-22 and Article 53-23)
Division 8: Committees and Executive Officers (Article 53-24 - Article 53-
32)
Division 9: Liability for Damages of Officers, etc. (Article 53-33 - Article
53-37)
Subsection 5: Accounting, etc for Mutual Company
Division 1: Accounting Principles (Article 54)
Division 2: Financial Statements, etc. (Article 54-2 - Article 54-10)
Division 3: Payment of Interest on Funds, Redemption of Funds and
Distribution of Surplus (Article 55 - Article 55-4)
Division 4: Reserve for Redemption of Funds and Deficiency Reserve
(Article 56 - Article 59)
Subsection 6: Solicitation of Additional Funds (Article 60 and Article 60-2) Subsection 7: Solicitation of Subscribers for Bonds Issued by Mutual
Company (Article 61 - Article 61-10)
Subsection 8: Amendment in the Articles of Incorporation (Article 62) Subsection 9: Assignment, etc. of Business. (Article 62-2)
Subsection 10: Miscellaneous Provisions (Article 63 - Article 67-2) Section 3: Entity Conversion
Subsection 1: Entity Conversion from Stock Company to Mutual Company
(Article 68 - Article 84-2)
Subsection 2: Entity Conversion from Mutual Company to Stock Company
(Article 85 - Article 96-16)
Chapter III: Business (Article 97 - Article 105)
Chapter IV: Subsidiary Company, etc. (Article 106 - Article 108) Chapter V: Accounting (Article 109 - Article 122-2)
Chapter VI: Supervision (Article 123 - Article 134)
Chapter VII: Comprehensive Transfer of Insurance Contracts, Transfer or
Acquisition of Business, and Entrustment of Business and Property
Section 1: Comprehensive Transfer of Insurance Contracts (Article 135 - Article 141)
Section 2: Transfer or Acquisition of Business (Article 142 and Article 143) Section 3: Entrustment of Business and Property Management (Article 144 -
Article 151)
Chapter VIII: Dissolution, Merger, Company Split and Liquidation
Section 1: Dissolution (Article 152 - Article 158) Section 2: Merger
Subsection 1: General Rules (Article 159)
Subsection 2: Merger Agreement (Article 160 - Article 165) Subsection 3: Procedure of Merger
Division 1: Procedure for Extinct Stock Company (Article 165-2 - Article
165-8)
Division 2: Procedure for Surviving Stock Company in Absorption-Type
Merger (Article 165-9 - Article 165-13)
Division 3: Procedure for Formed Stock Company in Consolidation-Type
Merger (Article 165-14)
Division 4: Procedure for Extinct Mutual Company (Article 165-15 - Article 165-18)
Division 5: Procedure for Surviving Mutual Company in Absorption-Type
Merger (Article 165-19 - Article 165-21)
Division 6: Procedure for Formed Mutual Company in Consolidation- Type Merger (Article 165-22)
Division 7: Special Provisions for Merger of Stock Companies (Article
165-23 and Article 165-24)
Division 8: Public Notice, etc. after Merger (Article 166)
Subsection 4: Effectuation, etc. of Merger (Article 167 - Article 173)
Section 3: Company Split (Article 173-2 - Article 173-8) Section 4: Liquidation (Article 174 - Article 184)
Chapter IX: Foreign Insurer
Section 1: General Rules (Article 185 - Article 193)
Section 2: Business, Accounting, etc. (Article 194 - Article 199) Section 3: Supervision (Article 200 - Article 207)
Section 4: Abolition, etc. of Insurance Business (Article 208 - Article 213) Section 5: Miscellaneous Provisions (Article 214 - Article 218)
Section 6: Special Provisions for Specified Juridical Persons (Article 219 -
Article 240)
Chapter X: Special Measures, etc. for Protection of Policyholders, etc.
Section 1: Modification of Contract Conditions (Article 240-2 - Article 240-13) Section 2: Disposition, etc. of Prime Minister Related to Business and
Property Management, etc.
Subsection 1: Suspension of Business, Order for Consultation on Merger, etc., and Business and Property Management (Article 241)
Subsection 2: Business and Property Management (Article 242 - Article
249-3)
Subsection 3: Modification of Contract Conditions in Merger, etc. (Article
250 - Article 255-5)
Section 3: Order, etc. for Implementation of Procedure of Merger, etc. (Article
256 - Article 258)
Section 4: Financial Assistance, etc. Provided by Policyholders Protection
Corporation
Subsection 1: Policyholders Protection Corporation
Division 1: General Rules (Article 259 - Article 265)
Division 2: Membership (Article 265-2 - Article 265-5)
Division 3: Establishment (Article 265-6 - Article 265-11) Division 4: Management (Article 265-12 - Article 265-22)
Division 5: General Meeting (Article 265-23 - Article 265-27-5)
Division 6: Business (Article 265-28 - Article 265-31)
Division 7: Contribution (Article 265-32 - Article 265-35)
Division 8: Finance and Accounting (Article 265-36 - Article 265-44) Division 9: Supervision (Article 265-45 - Article 265-47)
Division 10: Miscellaneous Provision (Article 265-48) Subsection 2: Financial Assistance, etc.
Division 1: Application, etc. for Financial Assistance (Article 266 - Article 270-3)
Division 2: Succession of Insurance Contracts (Article 270-3-2 - Article
270-3-14)
Division 3: Assumption of Insurance Contracts (Article 270-4 - Article
270-6-5)
Division 4: Financial Assistance for Insurance Claim Payments to be
Compensated (Article 270-6-6 and Article 270-6-7)
Subsection 3: Purchase of Insurance Claims, etc. (Article 270-6-8 - Article
270-6-10)
Subsection 4: Miscellaneous Provision (Article 270-7 - Article 270-9) Section 5: Miscellaneous Provision (Article 271 - Article 271-2-3)
Chapter XI: Shareholder
Section 1: General Rules (Article 271-3 - Article 271-9)
Section 2: Special Measures Pertaining to Major Shareholder of Insurance
Company
Subsection 1: General Rules (Article 271-10 and Article 271-11) Subsection 2: Supervision (Article 271-12 - Article 271-16)
Subsection 3: Miscellaneous Provision (Article 271-17)
Section 3: Special Provisions Pertaining to Insurance Holding Company
Subsection 1: General Rules (Article 271-18 - Article 271-20)
Subsection 2: Business and Subsidiary Company (Article 271-21 and
Article 271-22)
Subsection 3: Accounting (Article 271-23 - Article 271-26) Subsection 4: Supervision (Article 271-27 - Article 271-30) Subsection 5: Miscellaneous Provision (Article 271-31)
Section 4: Miscellaneous Provisions (Article 271-32 and Article 271-33)
Chapter XII: Special Provisions for Small Amount and Short Term Insurance
Provider
Section 1: General Rules (Article 272 - Article 272-10) Section 2: Business, etc. (Article 272-11 - Article 272-14) Section 3: Accounting (Article 272-15 - Article 272-18) Section 4: Supervision (Article 272-19 - Article 272-28)
Section 5: Comprehensive Transfer, etc. of Insurance Contracts (Article 272-
29 and Article 272-30) Section 6: Shareholder
Subsection 1: Small Amount and Short Term Major Shareholder of
Insurance Company (Article 272-31 - Article 272-34)
Subsection 2: Small Amount and Short Term Insurance Holding Company
(Article 272-35 - Article 272-40)
Subsection 3: Miscellaneous Provisions (Article 272-41 - Article 272-43) Chapter XIII: Miscellaneous Provisions (Article 273 - Article 274-2)
Part III: Insurance Solicitation
Chapter I: General Rules (Article 275)
Chapter II: Insurance Solicitor and Entrusting Insurance Company, etc.
Section 1: Insurance Solicitor (Article 276 - Article 282)
Section 2: Entrusting Insurance Company, etc. (Article 283 - Article 285) Chapter III: Insurance Broker (Article 286 - Article 293)
Chapter IV: Business (Article 294 - Article 301-2) Chapter V: Supervision (Article 302 - Article 308)
Part IV: Miscellaneous Provisions (Article 309 - Article 314) Part V: Penal Provisions (Article 315 - Article 338)
Supplementary Provisions
Part I General Provisions
(Purpose)
Article 1 The purpose of this Act is, in view of the public nature of the insurance business, to protect policyholders, etc. by ensuring sound and appropriate
management of persons carrying on insurance business and fairness of
insurance solicitation, and thereby to contribute to the stability of the lives of the citizens and to the sound development of the national economy.
(Definitions)
Article 2 (1) The term "Insurance Business" as used in this Act means the business of underwriting the risks listed in the items of Article 3, paragraph (4) or the items of Article 3, paragraph (5) through insurance where insurance premiums are received under contracts to pay a fixed amount of insurance claims in connection with the life or death of individuals or through insurance where insurance premiums are received under contracts to compensate for
damage caused by a certain fortuitous accident, or through any other class of
insurance (except what is listed in the following items). (i) Those provided in other Acts.
(ii) The following businesses:
(a) Business transacted by the local government with its residents as the other Party;
(b) Business transacted by a company, etc. (referring to a company (including a foreign company; hereinafter the same shall apply in this item) or any other business operator (excluding any of the business operators specified
by a Cabinet Order)) or an organization comprised of its officers or
employees (including former officers or employees; hereinafter the same shall apply in this item) with its officers or employees, or their relatives (limited to those specified by a Cabinet Order; hereinafter the same shall apply in this item) as the other Party;
(c) Business transacted by a labor union with its union members (including
former union members) or their relatives as the other Party;
(d) Business transacted by a company with another company that belongs to
its group (meaning the group of a company and its Subsidiary Companies)
as the other Party;
(e) Business transacted by a school (meaning schools prescribed in Article 1 of the School Education Act (Act No. 26 of 1947)) or an organization
comprised of its students with students or school children as the other
Party;
(f) Business transacted by a territorial organization (meaning territorial organizations prescribed in Article 260-2, paragraph (1) of the Local
Autonomy Act (Act No. 67 of 1947) and fall under the requirements listed
in the items of paragraph (2) of that Article) with its members as the other
Party; and
(g) Business specified by a Cabinet Order as those equivalent to those listed from (a) to (f) inclusive.
(iii) Business transacted with persons as the other Party whose number does not exceed the number specified by a Cabinet Order (except those specified by a Cabinet Order).
(2) The term "Insurance Company" as used in this Act means a person who operates Insurance Business under the license of the Prime Minister
prescribed in Article 3, paragraph (1).
(3) The term "Life Insurance Company" as used in this Act means an Insurance Company which has obtained the life insurance business license set forth in Article 3, paragraph (4).
(4) The term "Non-Life Insurance Company" as used in this Act means an
Insurance Company which has obtained the non-life insurance business license set forth in Article 3, paragraph (5).
(5) The term "Mutual Company" as used in this Act means an association which was established pursuant to this Act and whose members are its policyholders for the purpose of transacting Insurance Business.
(6) The term "Foreign Insurer" as used in this Act means a person carrying on
Insurance Business in a foreign state in accordance with the laws and regulations of the foreign state (excluding Insurance Companies).
(7) The term "Foreign Insurance Company, etc." as used in this Act means a Foreign Insurer which has obtained the license from the Prime Minister set forth in Article 185, paragraph (1).
(8) The term "Foreign Life Insurance Company, etc." as used in this Act means a Foreign Insurance Company, etc. which has obtained the foreign life insurance business license set forth in Article 185, paragraph (4).
(9) The term "Foreign Non-Life Insurance Company, etc." as used in this Act means a Foreign Insurance Company, etc. which has obtained the foreign non- life insurance business license set forth in Article 185, paragraph (5).
(10) The term "Foreign Mutual Company" as used in this Act means a foreign
juridical person akin to a Mutual Company, or a similar foreign juridical
person, which was established in accordance with the laws and regulations of the foreign state.
(11) The term "Voting Rights of All Shareholders, etc." as used in this Act means voting rights of all shareholders or investors (in the case of a Stock Company,
excluding voting rights relating to shares which do not allow exercising voting
rights for any of the matters which may be resolved at a shareholders' meeting, but including voting rights relating to shares of which holders are deemed to have voting rights pursuant to the provision of Article 879, paragraph (3)
(Jurisdiction Over Special Liquidation Cases) of the Companies Act (Act No. 86
of 2005); the same shall apply hereinafter in this Article, the following Article, Article 106, Article 107, Article 127, Article 260, Part II, Chapters XI and XII and Article 333).
(12) The term "Subsidiary Company" as used in this Act means a company of
which voting rights exceeding fifty hundredths of the Voting Rights of all the Shareholders, etc. are held by another company. In such case, if the company and one or more of its Subsidiary Companies own, or one or more of the
Subsidiary Companies of such company own, more than fifty hundredths of the
Voting Rights Held by All Shareholders, etc. of another company, such another company shall be deemed to be the Subsidiary Company of the company first set forth above.
(13) The term "Major Shareholder Threshold" as used in this Act means twenty
hundredths (fifteen hundredths in the case where the voting rights of the company are held by a person who satisfies the requirements specified by a Cabinet Office Ordinance for the existence of the presumed fact that is
expected to have a material effect on decisions of financial and business
policies of the company) of the Voting Rights Held by All Shareholders, etc. (14) The term "Major Shareholder of Insurance Company" as used in this Act
means a person who holds voting rights of an Insurance Company which
amounts to the Major Shareholder Threshold or more (including a person who holds such number of voting rights in the name of another person (or under a fictitious name); the same shall apply hereinafter), and is established under
the authorization set forth in Article 271-10, paragraph (1) or has obtained the
authorization prescribed in Article 271-10, paragraph (1) or the proviso to
Article 271-10, paragraph (2).
(15) In the case prescribed in paragraph (12) and the preceding paragraph, the voting rights held by a company or a person who holds voting rights shall not include any voting rights pertaining to shares or equity interests held in the
form of trust property pertaining to a monetary or securities trust (limited to
cases where the settlor or the beneficiary may exercise the voting rights or may instruct the company or the holder of the voting rights on the exercise of such
voting rights) or any of the voting rights specified by a Cabinet Office
Ordinance, but shall include voting rights of the Shares or equity interests
which are held as trust property and of which the other company or the person
holding voting rights of the Insurance Company may, as a settlor or beneficiary, make exercise or may give instructions on the exercise(excluding those
specified by a Cabinet Office Ordinance) and any voting rights of the shares
which cannot be asserted against the issuer pursuant to the provisions of
Article 147, paragraph (1) or Article 148, paragraph (1) of the Act on Transfer of Bonds, Shares, etc. (Act No. 75 of 2001).
(16) The term "Insurance Holding Company" as used in this Act means a Holding
Company (meaning a holding company prescribed in Article 9, paragraph (5),
item (i) (Holding Company) of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947); the same shall apply
hereinafter) which has a Insurance Company as its Subsidiary Company and is established under the authorization set forth in Article 271-18, paragraph (1)
or obtains authorization prescribed in Article 271-18, paragraph (1) or the proviso to paragraph (3).
(17) The term "Small Amount and Short Term Insurance Business" as used in
this Act means the Insurance Business of underwriting insurance limited to
that whose insurance period is within the period specified by a Cabinet Order within the limit of two years, and whose insurance amount is not more than
the amount specified by a Cabinet Order within an amount not exceeding ten million yen (except those specified by a Cabinet Order).
(18) The term "Small Amount and Short Term Insurance Provider" as used in
this Act means a person who has obtained the registration set forth in Article
272, paragraph (1) and carries on Small Amount and Short Term Insurance
Business.
(19) The term "Life Insurance Solicitor" as used in this Act means the officers
(excluding officers with authority of representation and company auditors and members of audit committees (hereinafter referred to as "Audit Committee Members"); hereinafter the same shall apply in this Article) or employees of a Life Insurance Company (including Foreign Life Insurance Companies, etc.; hereinafter the same shall apply in this paragraph) or their employees or a
person who has been entrusted by a Life Insurance Company (including an
association or foundation that is not a juridical person and has provisions on representative persons or administrators) or their officers or employees that act as an agent or intermediary for conclusion of an insurance contract on behalf of the Life Insurance Company.
(20) The term "Non-Life Insurance Solicitor" as used in this Act means the
officers or employees of a Non-Life Insurance Company (including Foreign Non- Life Insurance Companies, etc.; the same shall apply in the following
paragraph), non-life insurance agents or their officers or employees.
(21) The term "Non-Life Insurance Agent" as used in this Act means a person
who acts as an agent or intermediary for conclusion of an insurance contract on behalf of a Non-Life Insurance Company upon entrustment by the Non-Life
Insurance Company (including an association or foundation that is not a juridical person and has provisions on representative persons or
administrators), and is not an officer or employee of the Non-Life Insurance
Company.
(22) The term "Small Amount and Short Term Insurance Solicitor" as used in this Act means the officers or employees of Small Amount and Short Term
Insurance Providers, or a person who has been entrusted by Small Amount and Short Term Insurance Providers (including an association or foundation that is not a juridical person and has provisions on representative persons or
administrators) or their officers or employees that act as an agent or
intermediary for conclusion of an insurance contract on behalf of the Small
Amount and Short Term Insurance Providers.
(23) The term "Insurance Solicitor" as used in this Act means a Life Insurance Solicitor, a Non-Life Insurance Solicitor, or a Small Amount and Short Term Insurance Solicitor.
(24) The term "Entrusting Insurance Company, etc." as used in this Act means the Insurance Company (including foreign insurance companies, etc.) or the
Small Amount and Short Term Insurance Providers, which shall be the insurer of the insurance contract solicited by Life Insurance Solicitors, Non-Life
Insurance Solicitors, or Small Amount and Short Term Insurance Solicitors.
(25) The term "Insurance Broker" as used in this Act means a person who acts as an intermediary for conclusion of an insurance contract and engages in
activities other than acting as an intermediary for conclusion of an insurance
contract on behalf of the Entrusting Insurance Company, etc. carried out by
Life Insurance Solicitors, Non-Life Insurance Solicitors, and Small Amount and Short Term Insurance Solicitors (including an association or foundation that is not a juridical person and has provisions on representative persons or
administrators).
(26) The term "Insurance Solicitation" as used in this Act means the act of acting as an agent or intermediary for conclusion of an insurance contract.
(27) The term "Method of Public Notice" as used in this Act means the Method of
Public Notice prescribed in Article 2, item (xxxiii) (Definitions) of the
Companies Act with regard to stock companies and foreign insurance
companies, etc. which are foreign companies, and the method of making public notices by mutual companies and foreign insurance companies, etc. (excluding foreign companies; hereinafter the same shall apply in this paragraph) with
regard to mutual companies and foreign insurance companies, etc. (except
cases where provisions of this Act or other Acts prescribe that a method listed in the official gazette shall be used).
Article 2-2 (1) Any person listed in the following items shall be deemed to be a holder of the Insurance Company's voting rights, etc. (meaning Insurance Companies or Small Amount and Short Term Insurance Providers; the same shall apply hereinafter) amounting to the number specified by the items, and
the provisions of Part II, Chapter XI, Sections 1 and 2, Chapters XII and XIII, and Parts IV and V shall apply to such person:
(i) An organization that is not a juridical person (limited to an organization specified by a Cabinet Office Ordinance as those equivalent to a juridical
person): the number of the Insurance Company's, etc. voting rights which are
held in the name of the organization;
(ii) A company required to prepare its financial statements and other
documents on a consolidated basis pursuant to the provisions of a Cabinet
Office Ordinance (referred to as "Company Subject to Standards for
Consolidation" in the following item), for which the companies and other juridical persons to be consolidated (including organizations that are not
juridical persons listed in the preceding item; and hereinafter referred to as
"Companies, etc." in this paragraph) include an Insurance Company, etc.,
and which is not consolidated in any other company's financial statements or other documents: the number calculated pursuant to the provisions of a
Cabinet Office Ordinance as representing the company's substantial influence on the Insurance Company, etc.;
(iii) Where a Company, etc. (excluding that which is consolidated in the
financial statements and other documents of a company falling under the type of company listed in the preceding item, limited to that which holds
voting rights of an Insurance Company, etc.) which is not a Company Subject to Standards for Consolidation belongs to a Group of Companies, etc.
(referring to a group of that Company, etc. or a group of another Company,
etc. specified by a Cabinet Office Ordinance as a Company, etc. with which the Company, etc. first set forth in this item has a close relationship
including through the holding of majority voting rights; hereinafter the same
shall apply in this paragraph), and where the total number of voting rights held in an Insurance Company, etc. by all of the Companies etc. belonging to the Group of Companies, etc (hereinafter referred to as the "Number of
Voting Rights Held by the Group of Companies, etc." in this item and the
next item) is equal to or more than the Major Shareholder Threshold of the
Insurance Company, etc. (such Group of Companies, etc. are hereinafter
referred to as "Specified Group of Companies, etc." in this item and the next item), a Company, etc. in the Specified Group of Companies, etc. whose
majority voting rights are held by no other Company, etc.: the Number of
Voting Rights Held by the Group of Companies, etc. in the Specified Group of
Companies, etc.;
(iv) Where no Company, etc. in a Specified Group of Companies, etc. falls under the type of Company, etc. listed in the preceding item, a Company, etc. whose assets in the balance sheet are the largest among the Companies, etc.
belonging to the Specified Group of Companies, etc.: the Number of Voting
Rights Held by the Group of Companies, etc. in the Specified Group of
Companies, etc.
(v) An individual who, by virtue of holding majority voting rights in Companies, etc. that hold voting rights in an Insurance Company, etc. (including any of
the persons listed from item (ii) to the preceding item inclusive; hereinafter
the same shall apply in this item), is deemed to hold at least twenty
hundredths of all shareholders' voting rights in the Insurance Company, etc., in terms of the number of voting rights held in the Insurance Company, etc.
by such Companies, etc. (for those falling under any of the categories listed in the preceding items, the number specified in the relevant item), taken together (counting in any voting rights held by said individual in the
Insurance Company, etc.; the number thus calculated is hereinafter referred
to as the "Grand Total Number of Voting Rights" in this item): the Grand
Total Number of Voting Rights for the individual.
(vi) A person who holds voting rights in an Insurance Company, etc. (including a person falling under any of the categories listed in the preceding items;
hereinafter the same shall apply in this item) who is deemed to hold at least
twenty hundredths of all shareholders' voting rights in the Insurance
Company, etc., in terms of the number of voting rights held by said person in the Insurance Company, etc. (for a person falling under any of the categories listed in the preceding items, the number specified in the relevant item) and
the number of voting rights held in the same Insurance Company, etc. by his/her Joint Holder(s) (referring to any other holder(s) of voting rights in the Insurance Company, etc. (including those falling under any of the categories listed in the preceding times) who has (have) agreed with said person on
concerted action in acquiring or transferring the shares pertaining to the
voting rights, or in exercising the voting and other rights as shareholders of that Insurance Company, etc. (excluding, where the person who holds the voting rights is a company falling under the category listed in item (ii), any Company, etc. to be consolidated in the financial statements and other
documents of said company; excluding, where the person who holds the
voting rights is a Company, etc. falling under the category prescribed in item (iii) or (iv), any other Company, etc. in the Group of Companies, etc. to which said Company, etc. belongs; and excluding, where the person who holds the
voting rights is an individual falling under the category listed in the
preceding item, any Company, etc. in which the individual has majority voting rights; but including any person who has a special relationship as specified by a Cabinet Order with the person who holds the voting rights))
(for a Joint Holder falling under any of the categories listed in the preceding items, the number prescribed in the relevant item), taken together (the total number thus calculated is hereinafter referred to as the "Number of Voting
Rights Jointly Held" in this item): the Number of Voting Rights Jointly Held. (vii) A person specified by a Cabinet Office Ordinance as being equivalent to a
person listed in any of the preceding items: the number calculated pursuant to the provisions of a Cabinet Office Ordinance as representing the person's substantive influence on the Insurance Companies, etc.
(2) In the case referred to in the items of the preceding paragraph, the provision
of paragraph (15) of the preceding Article, shall apply mutatis mutandis to voting rights to be deemed as held by a person listed in any of items of that paragraph and voting rights held by the holder of the voting rights.
Part II Insurance Company, etc.
Chapter I General Rules
(License)
Article 3 (1) No Insurance Business shall be operated without having obtained a license from the Prime Minister.
(2) The license set forth in the preceding paragraph consists of two types: the life
insurance business license and the non-life insurance business license.
(3) The same person cannot obtain both the life insurance business license and the non-life insurance business license.
(4) The life insurance business license shall be a license pertaining to the business of underwriting the classes of insurance listed in item (i) or, in addition, underwriting the classes of insurance listed in item (ii) or (iii).
(i) Insurance where insurance premiums are received under contracts to pay a
fixed amount of insurance claims in connection with the survival or death of
individuals (including the physical state of the individual whom a doctor has diagnosed that the life expectancy is no more than a certain period;
hereinafter the same shall apply in this paragraph and the following
paragraph) (excluding insurance pertaining to only death in the following sub-item (c) below).
(ii) Insurance where insurance premiums are received under contracts to pay a fixed amount of insurance claims in connection with the following reasons or to compensate for damage to the individual caused by such reasons:
(a) An individual contracted a disease;
(b) State of an individual caused by an injury or disease; (c) Death of an individual directly caused by injury;
(d) Cases specified by a Cabinet Office Ordinance as those similar to what is listed in (a) or (b) (except death of an individual); and
(e) Treatment (including those specified by a Cabinet Office Ordinance as acts similar to treatment) concerning those listed in (a), (b), or (d).
(iii) Under the classes of insurance listed in item (i) of the following paragraph, reinsurance pertaining to the classes of insurance listed in the preceding two items.
(5) The non-life insurance business license shall be a license pertaining to the
business of underwriting the classes of insurance listed in item (i) or, in addition, underwriting the classes of insurance listed in item (ii) or (iii). (i) Insurance by means of which insurance premiums are received under
contracts to compensate for damage caused by a certain fortuitous accident
(excluding the classes of insurance listed in the following item).
(ii) Classes of insurance listed in item (ii) of the preceding paragraph. (iii) Among the classes of insurance listed in item (i) of the preceding
paragraph, insurance related to the death of an individual between the time
he/she leaves his/her residence for overseas travel and the time he/she
returns to his/her residence (hereinafter referred to in this item as "Overseas
Travel Period") or the death of an individual directly caused by disease contracted during the Overseas Travel Period.
(6) The surety by the surety bond business (referring to, among the businesses to guarantee the performance of contractual obligations or legal and regulatory
obligations, and receive the consideration, those carried out by setting the amount of consideration, establishing a reserve, and distributing the risks by reinsurance, based on actuarial science, or by using any other methods
inherent to insurance) shall be deemed as the underwriting of the classes of
insurance listed in item (i) of the preceding paragraph, and the consideration
pertaining to the surety shall be deemed as the insurance premium pertaining to the classes of insurance set forth in that item.
(Application Procedures for a License)
Article 4 (1) A person who intends to obtain a license set forth in paragraph (1)
of the preceding Article shall submit to the Prime Minister a written application for the license stating the following matters:
(i) Trade name or company name;
(ii) Amount of capital or total amount of funds;
(iii) Name of director and company auditor (director and executive officer in the case of a company with committees (meaning Stock Company or Mutual
Company with a nominating committee, audit committee, and compensation
committee (hereinafter referred to as "Committees" except for Chapter X);
the same shall apply hereinafter)). (iv) Types of license desired; and
(v) Location of head office or principal office.
(2) The following documents and other documents specified by a Cabinet Office
Ordinance shall be attached to the written application for a license set forth in the preceding paragraph:
(i) Articles of incorporation;
(ii) Statement of business procedures; (iii) General policy conditions; and
(iv) Statement of calculation procedures for insurance premiums and policy reserves.
(3) In the case referred to in the preceding paragraph, if the articles of
incorporation of item (i) of the paragraph are created as an electromagnetic record (referring to a record that is created by an electronic method, magnetic method or any other method which does not allow recognition by human
sensory perception and is specified by a Cabinet Office Ordinance as suitable for use in information processing conducted by a computer; the same shall
apply hereinafter), the electromagnetic record may be attached in place of the documents.
(4) The documents listed in paragraph (2), items (ii) to (iv) inclusive shall state
the matters specified by a Cabinet Office Ordinance.
(Examination Requirement for a License)
Article 5 (1) When an application for license set forth in Article 3, paragraph (1) is filed, the Prime Minister shall examine whether the following requirements are satisfied:
(i) The person who has filed an application for license of Insurance Company
business (hereinafter referred to as "Applicant" in this paragraph) shall have financial basis to conduct the business of an Insurance Company soundly and efficiently and shall have good prospects for income and expenditure
pertaining to the business; and
(ii) In light of such matters as personnel structure, etc., the Applicant shall have: the knowledge and experience necessary to be able to carry out the business of an Insurance Company appropriately, fairly and efficiently; and sufficient social credibility.
(iii) The matters stated in the documents listed in paragraph (2), items (ii) and
(iii) of the preceding Article shall conform to the following requirement: (a) The contents of the insurance contract have no risk of lacking in the
protection of policyholders, those insured, beneficiaries of insurance claims, and other relevant persons (hereinafter referred to as "Policyholders, etc.");
(b) No specific persons will be subject to unfair discriminatory treatment under the contents of the insurance contract;
(c) The contents of an insurance contract pause no risk of encouraging or inducing acts harmful to public policy and good morals;
(d) The rights and obligations of Policyholders, etc. and other contents of the insurance contract are specified clearly and simply for the Policyholders,
etc.; and
(e) Other requirement specified by a Cabinet Office Ordinance.
(iv) The matters stated in the documents listed in paragraph (2), item (iv) of the preceding Article shall conform to the following requirements:
(a) The calculation procedures for insurance premiums and policy reserves are reasonable and proper based on actuarial science;
(b) No specific persons will be subject to unfair discriminatory treatment with regard to insurance premiums; and
(c) Other requirement specified by a Cabinet Office Ordinance.
(2) The Prime Minister may, when and to the extent that he/she finds it
necessary for the public interest in light of requirements for examination prescribed in the preceding paragraph, impose conditions on the license referred to in Article 3, paragraph (1) or change them.
(Organ)
Article 5-2 An Insurance Company shall be a Stock Company or a Mutual
Company which have set up the following organs: (i) Board of directors;
(ii) Board of company auditors or committee; and
(iii) Accounting auditor.
(Amount of Capital or Total Amount of Funds)
Article 6 (1) The amount of capital or total amount of funds (including the reserve for redemption of funds set forth in Article 56) of an Insurance
Company shall be equal to or more than the amount specified by a Cabinet
Order.
(2) The amount specified by a Cabinet Order under the preceding paragraph shall not be less than one billion yen.
(Trade Name or Name)
Article 7 (1) An Insurance Company shall, in the trade name or name, use terms specified by a Cabinet Office Ordinance for indicating that it is a Life
Insurance Company or a Non-Life Insurance Company.
(2) No person other than an Insurance Company shall use, in its trade name or
name, any term which would indicate that the person is an Insurance Company.
(Prohibition of Name Lending)
Article 7-2 An Insurance Company shall not have another person engaging in
Insurance Business in the name of the Insurance Company.
(Prohibition, etc. of the Concurrent Holding of Positions by Directors, etc.)
Article 8 (1) A director, executive officer, accounting advisor or a member who shall carry out its duties and company auditor of an Insurance Company shall
not concurrently serve as the director, executive officer, accounting advisor or a
member who shall carry out its duties or company auditor (including director, auditor or any other equivalent person) or employee of a bank (meaning a bank prescribed in Article 2, paragraph (1) (Definitions, etc.) of the Banking Act (Act No. 59 of 1981); the same shall apply hereinafter) or any other financial
institution specified by a Cabinet Order, or a Financial Instruments Business
Operator prescribed in Article 2, paragraph (9) (Definitions) of the Financial
Instruments and Exchange Act (Act No. 25 of 1948) (limited to an operator that engages in a securities-related business (referring to any of the securities-
related businesses prescribed in Article 28, paragraph (8) (Definitions) of the
same Act); the same shall apply hereinafter), if such institution or operator is deemed as a specified person concerned (referring to a person that has a
special relationship as specified by a Cabinet Order with the Insurance
Company, such as a Subsidiary Company of the Insurance Company or a
Subsidiary Company of the Insurance Holding Company of which the
Insurance Company is a Subsidiary Company (excluding said Insurance
Company).
(2) Except the cases when the provisions of the preceding paragraph are applied, directors engaging in the ordinary business of an Insurance Company (in the
case of a company with committees, executive officer) shall not engage in the
ordinary business of any other company, except for the cases authorized by the
Prime Minister.
(3) When an application for authorization referred to in the preceding paragraph is filed, the Prime Minister shall not grant the authorization unless he/she
finds that matters pertaining to the application are not likely to interfere with
the sound and appropriate management of the Insurance Company.
(Eligibility of Directors, etc.)
Article 8-2 (1) Directors engaging in the ordinary business of an Insurance Company (in the case of a company with committees, executive officer) shall have the knowledge and experience to carry out business management of an Insurance Company appropriately, fairly and efficiently and have sufficient social credibility.
(2) No person who has become subject to the ruling of the commencement of
bankruptcy proceedings and has not had restored his/her rights, or a person who is treated the same as such a person under the laws and regulations of a foreign state, shall be appointed as a director, executive officer or auditor of an Insurance Company.
Chapter II Stock Company and Mutual Company Carrying on Insurance
Business
Section 1 Special Provisions on Stock Company Carrying on Insurance
Business
(Method of Public Notice)
Article 9 (1) A Stock Company carrying on Insurance Business (hereinafter referred to as "Stock Company" in this Section) shall specify any of the
following methods as the Method of Public Notice in its articles of
incorporation:
(i) Publication in a daily newspaper that publishes matters on current events;
or
(ii) Electronic Public Notice (for a Stock Company and a Foreign Insurance Company, etc. which is a foreign company, referring to the Electronic Public Notice provided for in Article 2, item (xxxiv) (Definitions) of the Companies Act, and for a Mutual Company and a Foreign Insurance Company, etc.
(other than a foreign company), any of those Method of Public Notice meeting the definition provided in that item which allow many and unspecified
persons to access the information to be published by electromagnetic means
(referring to the electromagnetic means defined in that item); the same shall apply hereinafter).
(2) The provisions of Article 940, paragraph (1) (excluding item (ii)) and
paragraph (3) (Period of Public Notice, etc. for Electronic Public Notice) of Companies Act shall apply mutatis mutandis to the cases where a Stock Company gives public notice under this Act in the form of electronic public notice. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Offer for Shares for Subscription, etc.)
Article 10 A Stock Company shall, when it gives a notice pursuant to the
provision of Article 59, paragraph (1) (Subscription for Shares Solicited at
Incorporation), Article 203, paragraph (1) (Applications for Shares for
Subscription) or Article 242, paragraph (1) (Application for Share Options for
Subscription) of the Companies Act, notify the matters listed in the items of
Article 59, paragraph (1), the items of Article 203, paragraph (1) or the items of
Article 242, paragraph (1), respectively, as well as any provision in its articles of incorporation set forth in the second sentence of Article 113 (including the
cases where it is applied mutatis mutandis pursuant to Article 272-18).
(Reference Date)
Article 11 For the purpose of applying to a Stock Company the provision of
Article 124, paragraph (2) (Record Date) of the Companies Act, the term "three months" in that paragraph shall be deemed to be replaced with "three months
(or four months for the right to exercise a voting right in an annual
shareholder meeting and any other right specified by a Cabinet Office
Ordinance."
(Qualifications, etc. of directors, etc.)
Article 12 (1) For the purpose of applying the provisions of Article 331,
paragraph (1), item (iii) (Qualifications of Directors) of the Companies Act
(including the cases where it is applied mutatis mutandis pursuant to Article
335, paragraph (1) (Qualifications of Company Auditors) and Article 402,
paragraph (4) (Election of Executive Officers) of that Act) to a Stock Company, the term "this Act" in that item shall be deemed to be replaced with "the
Insurance Business Act, this Act."
(2) The provisions of the proviso to Article 331, paragraph (2) (including the
cases where it is applied mutatis mutandis pursuant to Article 335, paragraph
(1) of the Companies Act), Article 332, paragraph (2) (Directors' Terms of
Office) (including the cases where it is applied mutatis mutandis pursuant to
Article 334, paragraph (1) (Accounting advisors' terms of office), Article 336,
paragraph (2) (Company Auditors' Terms of Office), Article 389, paragraph (1) (Limitation of Scope of Audit by Provisions of Articles of Incorporation), and the proviso to Article 402, paragraph (5) of the Companies Act shall not apply to a Stock Company.
(Reference Documents for Shareholders Meeting and Voting Forms, etc.)
Article 13 For the purpose of applying the provisions of Article 301, paragraph
(1) (Giving of Reference Documents for Shareholders Meeting and Voting Forms), Article 432, paragraph (1) (Preparation and Retention of Account Books), Article 435, paragraphs (1) and (2) (Preparation and Retention of Financial Statements, etc.), Article 436, paragraphs (1) and (2) (Audit of
Financial Statements, etc.), Article 439 (Special Provision on Companies with
Accounting Auditors), and Article 440, paragraph (1) (Public Notice of
Financial Statements) of the Companies Act to a Stock Company, the term
"Ordinance of the Ministry of Justice" in said provisions shall be deemed to be replaced with "Cabinet Office Ordinance."
(Exclusion from Application, etc. of the Provision Regarding Request for
Inspection, etc. of Account Books)
Article 14 (1) The provision of Article 433 (Request to Inspect Account Books) of the Companies Act shall not apply to account books of a Stock Company and
materials relating thereto.
(2) For the purpose of applying the provision of Article 442, paragraph (3)
(Keeping and Inspection of Financial Statements, etc.) of the Companies Act to a Stock Company, the term "and creditors" in that paragraph shall be deemed
to be replaced with ", Policyholders, beneficiaries of insurance claims, and other creditors and insurers."
(Reserves)
Article 15 Notwithstanding the provision of Article 445, paragraph (4) (Amounts of Capital and Amounts of Reserves) of the Companies Act, in the case where a Stock Company pays dividends of surplus, it shall record the amount
equivalent to one-fifth of the amount of the deduction from surplus as a result of the payments of such dividends of surplus as capital Reserves or retained
earnings Reserves (hereinafter referred to as "Reserves"), pursuant to the provisions of a Cabinet Office Ordinance.
(Keeping and Inspection, etc. of Documents, etc. Pertaining to Reduction of
Capital, etc.)
Article 16 (1) A Stock Company shall keep at each of its business offices a
document or electromagnetic record that describes or records any proposal
regarding the reduction (excluding the cases where the whole of the amount by which the Reserves are reduced is appropriated to the capital) of the capital or Reserves (hereinafter referred to as "capital, etc." in this Section) as well as any other matter specified by a Cabinet Office Ordinance, for a period ranging
from two weeks before the date of the shareholders meeting pertaining to the
resolution on the reduction (or, the date of the board of directors meeting
where Article 447, paragraph (3) (Reductions in Amount of Capital) or Article
448, paragraph (3) (Reductions in Amount of Reserves) of the Companies Act Applies) to six months from the Effective Date of the reduction of the capital, etc.; provided, however, that this shall not apply to the cases where only the amount of the Reserves is reduced and all of the following are met:
(i) An annual shareholders meeting has decided on the matters listed in the
items of Article 448, paragraph (1) inclusive of the Companies Act; and
(ii) The amount set forth in Article 448, paragraph (1), item (i) of the
Companies Act does not exceed the amount calculated in the manner
specified by a Cabinet Office Ordinance as the amount of the deficit as at the
date of the annual shareholders meeting referred to in the preceding item (or, in the cases provided for in the first sentence of Article 439 (Special
Provision on Companies with Accounting Auditors) of that Act, the date of authorization under Article 436, paragraph (3) (Audit of Financial
Statements, etc.).
(2) Shareholders, Policyholders and other creditors of a Stock Company may make the following requests at any time during the operating hours of the company; provided, however, that they pay the fees determined by the Stock Company when making a request falling under item (ii) or (iv):
(i) A request to inspect the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request to inspect anything that displays the matter recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request that the matters recorded on the electromagnetic record set forth
in the preceding paragraph be provided by electromagnetic means (referring to any of the methods using an electronic data processing system or any
other information and communication technology and specified by a Cabinet Office Ordinance; the same shall apply hereinafter) designated by the Stock Company, or request for any document that contains such matters.
(3) For the purpose of applying the provision of paragraph (1), item (i) to the
cases where the articles of incorporation include a provision set forth in Article
459, paragraph (1) (Provisions of Articles of Incorporation that Board of
Directors Determines Dividends of Surplus) of the Companies Act, the term
"annual shareholders meeting" in that item shall be deemed to be replaced
with "annual shareholders meeting or the board of directors under Article 436, paragraph (3) of the Companies Act."
(Objection of Creditors)
Article 17 (1) Where a Stock Company reduces the amount of its capital, etc.
(excluding the cases where the whole of the amount by which the Reserves are reduced is appropriated to the capital), Policyholders or other creditors of such Stock Company may raise their objections to the reduction in the amount of the capital, etc. to the Stock Company; provided, however, that this shall not apply to the cases where only the amount of the Reserves is reduced and all items of
paragraph (1) of the preceding Article are met.
(2) Where Policyholders or other creditors of a Stock Company may raise their objections pursuant to the provision of the preceding paragraph, said Stock Company shall give public notice of the following matters below in the official
gazette and by the Method of Public Notice stipulated in the company's articles
of incorporation; provided, however, that the period under item (iii) may not be less than one month:
(i) The details of such reduction in the amount of the capital, etc.;
(ii) The matters specified by a Cabinet Office Ordinance regarding the financial statements of such Stock Company;
(iii) That Policyholders or other creditors may raise their objections within a
certain period of time; and
(iv) In addition to what is listed in the preceding three items, any matter specified by a Cabinet Office Ordinance.
(3) Where Policyholders or other creditors do not raise any objections within the period under item (iii) of the preceding paragraph, such Policyholders or other
creditors shall be deemed to have approved such reduction in the amount of the
capital, etc.
(4) Where Policyholders or other creditors raise objections within the period
under paragraph (2), item (iii), the Stock Company in paragraph (1) shall make payment or provide equivalent security to such policyholders or other creditors, or entrust equivalent property to a trust company, etc. (referring to a trust
company as defined in Article 2, paragraph (2) (Definitions) of the Trust
Business Act (Act No. 154 of 2004); the same shall apply hereinafter) or financial institution carrying on trust business (referring to a financial
institution approved under Article 1, paragraph (1) (Authorization of Trust
Business) of the Act on Provision, etc. of Trust Business by Financial
Institutions (Act No. 43 of 1943)); the same shall apply hereinafter) for the purpose of ensuring that such Policyholders or other creditors receive the
payment; provided, however, that this shall not apply to the cases where the reduction of the capital, etc. poses no risk of harming the interest of such Policyholders or other creditors.
(5) The provision of the preceding paragraph shall not apply to the Policyholders
or to any rights held by other persons pertaining to insurance contracts
(excluding insurance claims that have already arisen at the time of public
notice under paragraph (2) due to the occurrence of insured events or for other reasons, and any other right specified by a Cabinet Order (referred to as
"Insurance Claims, etc." hereinafter in this Section, as well as in Section 3 and
Chapter VIII, Sections 2 and 3)).
(6) Any resolution pertaining to the reduction of the capital, etc. under Article
447, paragraph (1) (Reductions in Amount of Capital) or Article 448, paragraph (1) (Reductions in Amount of Reserves) of the Companies Act shall be invalid if the number of Policyholders who have raised their objections within the period set forth in paragraph (2), item (iii) (excluding the holders of policies under
which Insurance Claims, etc. had already arisen at the time of public notice
under that paragraph (but limited to those policies that would be terminated
with the payment of the Insurance Claims, etc.); hereinafter the same shall apply in this paragraph, as well as in paragraph (4) of the following Article)
exceeds one fifth of the total number of Policyholders, and the amount specified by a Cabinet Office Ordinance as the credits (excluding Insurance Claims, etc.) belonging to the insurance contracts of the Policyholders who have stated such objections exceeds one fifth of the total amount of credits belonging to the
Policyholders.
(7) In addition to what is provided for in the preceding paragraphs, any
necessary matter for the application of those provisions shall be specified by a
Cabinet Order.
(Effectuation)
Article 17-2 (1) The reduction of the amounts listed in the following items takes effect on the dates specified by the items, respectively; provided, however, that this shall not apply to the cases where the procedure under the preceding
Article has not been completed, or when and if a resolution pertaining to the
reduction of the capital, etc. under Article 447, paragraph (1) (Reductions in
Amount of Capital) or Article 448, paragraph (1) (Reductions in Amount of
Reserves) of the Companies Act becomes null or void pursuant to the provision of Article 17, paragraph (6):
(i) Reduction of the capital: the date specified in Article 447, paragraph (1),
item (iii) of the Companies Act; and
(ii) Reduction of Reserves: the date specified in Article 448, paragraph (1), item
(iii) of the Companies Act.
(2) A Stock Company may change the dates specified in items (i) and (ii) of the preceding paragraph at any time before the relevant dates.
(3) Notwithstanding the provision of paragraph (1), any reduction of the capital
of a Stock Company shall not be effective unless it is approved by the Prime
Minister.
(4) Any reduction of the capital, etc. pursuant to the provision of the preceding
Article (or, pursuant to the provisions of that Article and the preceding
paragraph for any reduction of the capital) shall also be effective against the Policyholders who have stated their objections under that Article, paragraph (6) and other persons who hold any right (other than Insurance Claims, etc.) pertaining to insurance contracts involving the Policyholders.
(Special Provision for Registration)
Article 17-3 (1) The following documents shall be attached to a written
application for registration of change due to a reduction of the capital of a
Stock Company, in addition to the documents specified in Articles 18, Article
19 (Documents Attached to Written Application) and Article 46 (General Rules
on Attached Documents) of the Commercial Registration Act (Act No. 125 of
1963):
(i) A document certifying that the public notice under Article 17, paragraph (2)
has been given;
(ii) Where any Policyholder or other creditor has stated objection under Article
17, paragraph (4), a document certifying that the company has made
payment or provided equivalent security to such Policyholder or other
creditor, or has entrusted equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the
payment, or that the reduction of the capital poses no risk of harming the interest of such Policyholder or other creditor; and
(iii) A document certifying that the number of Policyholders who stated their
objections under Article 17, paragraph (6) has not exceeded one fifth of the total number of Policyholders as indicated in that paragraph, or a document certifying that the amount specified by a Cabinet Office Ordinance as
belonging to such Policyholders as indicated in that paragraph has not
exceeded one fifth of the total amount as indicated in that paragraph. (2) The provision of Article 70 (Registration of Change Due to Reduction of
Capital) of the Commercial Registration Act shall not apply to a registration of change due to a reduction of the capital of a Stock Company.
(Keeping and Inspection, etc. of Documents, etc. Concerning Reduction of
Capital, etc.)
Article 17-4 (1) A Stock Company shall keep at each of its business offices a document or electromagnetic record that describes or records the matters specified by a Cabinet Office Ordinance as related to the progress of the
procedure provided for in Article 17 or to any other reduction of the capital, etc.
for six months from the Effective Date of the reduction of the capital, etc. (2) Shareholders, Policyholders and other creditors of a Stock Company may
make the following requests at any time during the operating hours of the
company; provided, however, that they pay the fees determined by the Stock
Company when making a request falling under item (ii) or (iv):
(i) A request to inspect the document set forth in the preceding paragraph; (ii) A request for a transcript or extract of the document set forth in the
preceding paragraph;
(iii) A request to inspect anything that displays the matter recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request that the matters recorded on the electromagnetic record set forth
in the preceding paragraph be provided by electromagnetic means designated by the Stock Company, or a request for any document that contains such
matters.
(Exclusion from Application, etc.)
Article 17-5 (1) The provision of Article 449 (Objection of Creditors) of the
Companies Act shall not apply to the reduction of the capital, etc. of a stock company.
(2) For the purpose of applying to a Stock Company the provision of Article 740,
paragraph (1) (Special Provisions on Objection Procedures for Creditors) of the
Companies Act, the following text shall be inserted after the term "Article 810"
in that paragraph:" , or Article 17, Article 70, Article 165-7 (including the cases where it is applied mutatis mutandis pursuant to Article 165-12 of the
Insurance Business Act), Article 165-24 or Article 173-4 of the Insurance
Business Act."
(Restriction, etc. on Dividends of Surplus to Shareholders, etc.)
Article 17-6 (1) Where any amount is credited to assets in the balance sheet pursuant to the provision of the first sentence of Article 113 (including the
cases where it is applied mutatis mutandis pursuant to Article 272-18), a Stock
Company shall not carry out any of the following activities unless such amount has been fully amortized.
(i) Purchase of any share of the Stock Company at a request made under
Article 138, item (i), (c) or item (ii), (c) (Method for Requests for
Authorization of Transfer) of the Companies Act;
(ii) Acquisition of any share of the Stock Company based on a decision under
Article 156, paragraph (1) (Determination of Matters Regarding Acquisition of Shares) of the Companies Act (but limited to acquisition of any share of
the Stock Company where Article 163 (Acquisition of Shares from
Subsidiaries) or Article 165, paragraph (1) (Acquisition of Shares by Market
Transactions) of that Act applies);
(iii) Acquisition of any share of the Stock Company based on a decision under
Article 157, paragraph (1) (Determination of Acquisition Price) of the
Companies Act;
(iv) Acquisition of any share of the Stock Company under Article 173,
paragraph (1) (Effectuation) of the Companies Act (excluding the cases where no money or other property is delivered);
(v) Purchase of any share of the Stock Company at a request made under
Article 176, paragraph (1) (Demand for Sale) of the Companies Act;
(vi) Purchase of any share of the Stock Company under Article 197, paragraph
(3) (Auction of Shares) of the Companies Act;
(vii) Purchase of any share of the Stock Company under Article 234, paragraph
(4) (Treatment of Fractions) of the Companies Act (including the cases where
it is applied mutatis mutandis pursuant to Article 235, paragraph (2) (Treatment of Fractions) of that Act); and
(viii) Dividend of surplus.
(2) The provision of Article 463, paragraph (2) (Restrictions on Remedy Over
Against Shareholders) of the Companies Act shall apply mutatis mutandis to
the cases where a Stock Company, in violation of the provision of the preceding paragraph, has carried out any of the activities listed in the items of that
Article. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) For the purpose of applying to a Stock Company the provision of Article 446, item (vii) (Amounts of Surplus) of the Companies Act, the term "Ordinance of
the Ministry of Justice" in that item shall be deemed to be replaced with
"Cabinet Office Ordinance."
(4) For the purpose of applying to a Stock Company the provision of Article 461, paragraph (2), item (vi) (Restriction on Dividends) of the Companies Act, the term "the sum of the amounts recorded in each account title specified by a
Ordinance of the Ministry of Justice" shall be deemed to be replaced with "the amount of entity conversion surplus under Article 91, paragraph (1) of the
Insurance Business Act, the amount of merger surplus under Article 91,
paragraph (1) of that Act, as applied mutatis mutandis with relevant changes in interpretation pursuant to Article 164, paragraph (4) and Article 165,
paragraph (6) of that Act, or the sum of the amounts recorded in each account title specified by a Cabinet Office Ordinance."
(Matters to be Recorded in Registering Incorporation)
Article 17-7 (1) In registering the incorporation of a Stock Company, the matters listed in the items of Article 911, paragraph (3) (Registering the Incorporation
of a Stock Company) of the Companies Act shall be recorded, along with any provision in its articles of incorporation in the second sentence of Article 113 (including the cases where it is applied mutatis mutandis pursuant to Article
272-18).
(2) Where any change has occurred in the matters prescribed in the preceding paragraph, the Stock Company shall complete registration of such change
within two weeks at the location of its head office.
Section 2 Mutual Company
Subsection 1 General Rules
(Juridical Personality)
Article 18 A Mutual Company shall be a juridical person.
(Address)
Article 19 The address of a Mutual Company shall be at the location of its principal office.
(Name)
Article 20 A Mutual Company shall use the term "Sogo-Kaisha" (which means
"Mutual Company") in its name.
(Application mutatis mutandis of Companies Act)
Article 21 (1) The provision of Article 8 (No Use of Name, etc. Which is Likely to be Mistaken for a Company) of the Companies Act shall apply mutatis
mutandis to the use of a misleading trade name or any other name that might
evoke a Mutual Company; the provision of Article 9 (Liability of Company
Permitting Others to Use its Trade Name) of that Act shall apply mutatis
mutandis to a Mutual Company; the provisions of Part I, Chapter III, Section 1 (Employees of a Company) of that Act shall apply mutatis mutandis to the
employees of a Mutual Company; the provisions of Section 2 of said Chapter (excluding Article 18) (Commercial Agents of the Companies) shall apply mutatis mutandis to a person acting as an agent or intermediary in
transactions for a Mutual Company; and the provisions of Chapter IV of said
Part (excluding Article 24) (Non Competition after Assignment of Business) shall apply mutatis mutandis to the cases where a Mutual Company either assigns its business, or takes over any business or operation, respectively. In this case, the term "Company (including a Foreign Company, hereinafter the same shall apply in this Part)" in Article 10 (Manager) of that Act shall be
deemed to be replaced with "Mutual Company;" any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(2) The provisions of Part II, Chapter I (excluding Article 501 to 503 inclusive and Article 523) (General Provisions) of the Commercial Code (Act No. 48 of
1899) shall apply mutatis mutandis to the activities carried out by a Mutual
Company; the provisions of Chapter II of said Part (Buying or Selling) shall apply mutatis mutandis to the buying or selling carried out by a Mutual
Company with a merchant or another Mutual Company (including any Foreign
Mutual Company); the provisions of Chapter III of said Part (Current Account) shall apply mutatis mutandis to the contracts pertaining to set-offs carried out by a Mutual Company y with its usual counter Parties; the provisions of
Chapter V of said Part (excluding Article 545) (Brokerage Business) shall apply
mutatis mutandis to the acting as an intermediary by a Mutual Company with regard to commercial transactions between third Parties; and the provisions of Chapter VI of said Part (excluding Article 558) (Commission Agent Business) and Article 593 (Deposit)) of said Code shall apply mutatis mutandis to a
Mutual Company, respectively. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) For the purpose of applying mutatis mutandis the provisions of the
Companies Act to the provisions of this Part (excluding the preceding Section, paragraph (1), Article 67-2 and Article 217, paragraph (3)) and Part V
(excluding Article 332-2), the term "electromagnetic record" in the provisions of
that Act (including other provisions of that Act as applied mutatis mutandis pursuant to the relevant provisions) shall be deemed to be replaced with
"electromagnetic record (referring to the electromagnetic record prescribed in
Article 4, paragraph (3) of the Insurance Business Act);" the term
"electromagnetic means" in that Act shall be deemed to be replaced with
"electromagnetic means (referring to the electromagnetic means defined in Article 16, paragraph (2), item (iv) of the Insurance Business Act);"and the term "Ordinance of the Ministry of Justice" in that Act shall be deemed to be replaced with "Cabinet Office Ordinance," respectively.
(4) For the purpose of applying mutatis mutandis the provisions of the
Companies Act to the provisions of this Section (excluding paragraph (1),
Divisions 1 and 2 of Subsection 4, and Article 67-2) and Chapter VIII, Section 4, the terms "Stock Company" and "Company with Board of Directors" in the
provisions of that Act (including other provisions of that Act as applied mutatis mutandis pursuant to the relevant provisions) shall be deemed to be replaced
with "Mutual Company;" the term "shareholder" in that Act shall be deemed to be replaced with "member;" the term "Subsidiary Company" in that Act shall
be deemed to be replaced with "de facto Subsidiary Company (referring to de
facto Subsidiary Company as defined in Article 33-2, paragraph (1) of the
Insurance Business Act);" the term "head office" in that Act shall be deemed to be replaced with "principal office;" the term "branch office" in that Act shall be deemed to be replaced with "secondary office;" the term "operating hours" in
that Act shall be deemed to be replaced with "business hours;" the term
"shareholders meeting" in that Act shall be deemed to be replaced with
"general meeting of members (or, general meeting where the company has such meeting);" and the term "annual shareholders meeting" in that Act shall be
deemed to be replaced with "annual general meeting of members (or, annual
general meeting where the company has such meeting)," respectively, unless provided otherwise.
Subsection 2 Incorporation
(Articles of Incorporation)
Article 22 (1) In order to incorporate a Mutual Company, the incorporators shall prepare its articles of incorporation, and all incorporators shall sign or affix
the names and seals to it.
(2) The articles of incorporation set forth in the preceding paragraph may be
prepared in the form of electromagnetic record. In this case, actions specified by a Cabinet Office Ordinance shall be taken in lieu of the signing or the
affixing of the names and seals, with respect to the data recorded on such electromagnetic record.
(Matters to be Described or Recorded in Articles of Incorporation)
Article 23 (1) The articles of incorporation of a Mutual Company shall describe or record the following matters:
(i) Purpose(s); (ii) Name;
(iii) Location of the principal office;
(iv) Total amount of funds (including the reserve for redemption of funds under
Article 56);
(v) Provisions on the rights of fund contributors; (vi) Method of redemption of funds;
(vii) Method of distributing dividends of surplus;
(viii) Method of Public Notice; and
(ix) Name and address of the incorporator.
(2) The Method of Public Notice listed in item (viii) of the preceding paragraph shall be either:
(i) Publication in a daily newspaper that publishes matters on current events;
or
(ii) Electronic public notice.
(3) A provision in the articles of incorporation to the effect that electronic public notice shall be the Method of Public Notice shall suffice for a Mutual Company to designate the method listed in item (ii) of the preceding paragraph as its Method of Public Notice in its articles of incorporation. In this case, the
company may designate the method listed in item (i) of the preceding
paragraph as the Method of Public Notice in case the electronic means is not
available for public notice due to an accident or for any other compelling reason. (4) The provision of Article 30 (Certification of Articles of Incorporation) of the
Companies Act shall apply mutatis mutandis to certification of the articles of incorporation set forth in paragraph (1) of the preceding Article. In this case,
the term "Article 33, paragraph (7) or (9), or Article 37, paragraph (1) or (2)" in
Article 30, paragraph (2) of that Act shall be deemed to be replaced with
"Article 33, paragraph (7) or (9) as applied mutatis mutandis pursuant to
Article 24, paragraph (2) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Article 24 (1) In order for a Mutual Company is to be incorporated, the following matters shall not become effective unless they are described or recorded in the articles of incorporation referred to in Article 22, paragraph (1):
(i) Property that is agreed to be assigned to the Mutual Company after the establishment thereof, the value thereof, and the name of the assignor;
(ii) Compensation or any other special benefit which the incorporators are to
obtain by establishing the Mutual Company, and the names of such incorporators; and
(iii) Expenses regarding the incorporation that are borne by the Mutual
Company (excluding the fees for the certification of the articles of
incorporation and the other expenses specified by a Cabinet Office Ordinance as posing no risk of harming the interest of the Mutual Company).
(2) The provisions of Article 33 (Election of Inspector of Matters Described or
Recorded in the Articles of Incorporation), Article 868, paragraph (1)
(Jurisdiction of Non-Contentious Cases), Article 870 (limited to the segment pertaining to items (ii) and (v)) (Hearing of Statements), Article 871
(Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874
(limited to the segment pertaining to item (i)) (Restrictions on Appeal), Article
875 (Exclusion from Application of Provisions of Act on Procedure of Non- contentious Cases) and Article 876 (Supreme Court Rules) of the Companies
Act shall apply mutatis mutandis to investigation by an inspector on any of the matters listed in the items of the preceding paragraph where the Article of
incorporation of a Mutual Company include any description or record on the
matter. In this case, the term "rescind his/her manifestation of intention relating to subscription for the relevant Shares Issued at Incorporation" in Article 33, paragraph (8) of that Act shall be deemed to be replaced with
"resign from his/her office;" the term "Article 28, items (i) and (ii)" in
paragraph (10), item (i) and the term "Article 28, item (i) or (ii)" in items (ii)
and (iii) of that Article shall be deemed to be replaced with "Article 24,
paragraph (1), item (i) of the Insurance Business Act," the term "items (i) and (ii) of that Article" in Article 33, paragraph (10), item (i) of that Act shall be deemed to be replaced with "that item," and the terms "Article 38, paragraph (1)"and "paragraph (2), item (ii) of the same Article" in Article 33, paragraph (11), item (iii) of that Act shall be deemed to be replaced with "Article 30-10,
paragraph (1) of the Insurance Business Act" and "that paragraph,"
respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Article 25 In addition to the matters listed in the items of Article 23, paragraph
(1) and the items of paragraph (1) of the preceding Article, the articles of
incorporation of a Mutual Company may describe or record any matters,
including those which, pursuant to the provisions of this Act, shall not take
effect unless prescribed in the articles of incorporation, so long as they do not violate the provisions of this Act.
(Keeping and Inspection, etc. of Articles of Incorporation)
Article 26 (1) The incorporators (or the Mutual Company after the establishment of such Mutual Company) shall keep the articles of incorporation at the place
designated by the incorporators (or each office of the Mutual Company after
the establishment of such Mutual Company).
(2) The incorporators (after the establishment of the Mutual Company, the members and creditors of such Mutual Company) may make the following requests at any time during the hours designated by the incorporators (after the establishment of such Mutual Company, during its business hours);
provided, however, that they pay the fees determined by the incorporators
(after the establishment of the Mutual Company, such Mutual Company) when making a request falling under item (ii) or (iv):
(i) Where the articles of incorporation are prepared in writing, a request to
inspect it;
(ii) A request for a transcript or extract of the articles of incorporation referred to in the preceding item;
(iii) Where the articles of incorporation are prepared in the form of
electromagnetic record, a request to inspect anything that displays the
matter recorded in such electromagnetic record in a manner specified by a
Cabinet Office Ordinance; or
(iv) A request that the matters recorded on the electromagnetic record set forth in the preceding item be provided by the electromagnetic means designated
by the incorporators (after the establishment of the Mutual Company, such
Mutual Company), or a request for any document that contains such matters. (3) Where the articles of incorporation are prepared in the form of
electromagnetic record, for the purpose of applying the provision of paragraph
(1) to a Mutual Company that adopts the measures specified by a Cabinet
Office Ordinance as the measures that enable its secondary offices to respond to the requests listed in items (iii) and (iv) of the preceding paragraph, the
term "each office" shall be deemed to be replaced with "principal office."
(Solicitation of Funds at Incorporation of Mutual Company)
Article 27 The incorporators shall solicit contribution to the total amount of funds in incorporating a Mutual Company pursuant to the provision of this Subsection.
(Offer of Contribution to Funds)
Article 28 (1) The incorporators shall notify the following matters to those who intend to offer contribution to funds in response to the solicitation under the
preceding Article:
(i) Date of the articles of incorporation and the name of the notary who certified them;
(ii) Matters listed in the items of Article 23, paragraph (1) and the items of
Article 24, paragraph (1);
(iii) Location of the bank(s), etc. (referring to any bank or trust company, or
any other institution specified by a Cabinet Office Ordinance as equivalent to a bank or trust company; hereinafter the same shall apply in this Part)
where the payment of contribution to the funds is handled; and
(iv) In addition to what is listed in the preceding three items, any other matter specified by a Cabinet Office Ordinance.
(2) A person who offers to contribute to funds in response to the solicitation
under the preceding Article shall submit to the incorporators a document indicating the following matters:
(i) Name and address of the person who makes the offer; and
(ii) Planned amount of contribution to the funds.
(3) A person who makes an offer under the preceding paragraph may, in lieu of submitting the document prescribed in that paragraph, and pursuant to the
provisions of a Cabinet Order, provide the matters to be indicated in such
document by electromagnetic means, with the consent of the incorporators. In
this case, the person who has made the offer shall be deemed to have submitted the document prescribed in that paragraph.
(4) The incorporators shall immediately notify a person who has made an offer
under paragraph (2) (hereinafter referred to as "Offeror" in this Subsection) of any change in the matters listed in the items of paragraph (1) and the matter
affected by the change.
(5) It shall be sufficient for a notice or demand to an Offeror to be sent by the incorporators to the address specified under paragraph (2), item (i) (where the Offeror notifies the incorporators of a different place or contact address for the receipt of notices or demands, to such place or contact address).
(6) The notice or demand in the preceding paragraph shall be deemed to have
arrived at the time when such notice or demand should normally have arrived.
(Allocation of Funds)
Article 29 (1) The incorporators shall select among the Offerors the persons who should contribute to the funds and determine the amount of contribution to be allocated to each of them. In this case, the incorporators may reduce the
amount of contribution to the funds to be made by such Offerors from the
amount prescribed in paragraph (2), item (ii) of the preceding Article.
(2) The incorporators shall, without delay following any decision under the
preceding paragraph, notify the Offerors of the amount of contribution to the funds to be made by each of them.
(Special Provision on Offer and Allocation of Contribution to Funds Solicited at
Incorporation)
Article 30 The provisions of the preceding two Articles shall not apply to the cases where a person who intends to contribute to the funds solicited at
incorporation concludes a contract stipulating the contribution of the total amount of such funds.
(Subscription for Funds)
Article 30-2 The persons listed in the following items shall be subscribers for funds solicited at incorporation for the amount specified in the items:
(i) Offerors: the amount of contribution to the funds allocated by the incorporators; and
(ii) A person who, under the contract set forth in the previous Article, has
subscribed for the total amount of funds solicited at incorporation: the amount of funds subscribed for.
(Payment into Funds)
Article 30-3 (1) Each subscriber for the funds solicited at incorporation shall, without delay following the receipt of the notice under Article 29, paragraph (2),pay the full amount of money pertaining to their contribution to the funds solicited at incorporation, at the place of payment listed in Article 28,
paragraph (1), item (iii).
(2) The incorporators shall notify any subscriber for the funds solicited at incorporation who has not made the payment set forth in the preceding
paragraph to the effect that such payment shall be made by a date designated
by them.
(3) The notice under the preceding paragraph shall be given no later than two weeks before the date prescribed in the preceding paragraph.
(4) No assignment of the right to become a subscriber for the funds of a Mutual Company at its incorporation by making the payment pursuant to the provision of paragraph (1) may be duly asserted against the Mutual Company thus
established.
(5) A subscriber for the funds solicited at incorporation who has received the
notice under paragraph (2) shall, unless he/she makes the payment by the date prescribed in that paragraph, lose his/her right to become a contributor to the funds of a Mutual Company at incorporation by making such payment.
(Certificate of Deposit of Paid Money)
Article 30-4 (1) The incorporators may request the bank, etc. that handled the
payment pursuant to the provision of paragraph (1) of the preceding Article to issue a certificate of deposit of the money equivalent to the amount paid in
pursuant to the provision of that paragraph.
(2) The bank, etc. that issued the certificate referred to in the preceding
paragraph may not assert against the Mutual Company after its establishment any misstatement in such certificate or the existence of restrictions regarding the return of money paid in pursuant to the provision of paragraph (1) of the
preceding Article.
(Restrictions, etc. on Nullification or Recession of Subscription)
Article 30-5 (1) Subscribers for the funds solicited at incorporation may make
the requests listed in the items of Article 26, paragraph (2) at any time during the hours designated by the incorporators; provided, however, that they pay
the fees determined by the incorporators when making a request falling under item (ii) or (iv) of that paragraph.
(2) The proviso to Article 93 (Concealment of True Intention) and the provision of
Article 94, paragraph (1) (Fictitious Manifestation of Intention) of the Civil
Code (Act No. 89 of 1896) shall not apply to the manifestation of intention
relating to the offer for, and allocation of, contribution to the funds solicited at incorporation, and a contract under Article 30.
(3) After the establishment of the Mutual Company, a subscriber for the funds
solicited at incorporation may neither assert the nullity of his/her contribution to the funds solicited at incorporation on the grounds of mistake, nor cancel his/her contribution to the funds solicited at incorporation on the grounds of
fraud or duress.
(Solicitation of Members)
Article 30-6 (1) The incorporators shall, pursuant to the provisions of this
Subsection, solicit members in incorporating a Mutual Company.
(2) One hundred or more members shall be required for incorporating a Mutual
Company.
(Application for membership)
Article 30-7 (1) The incorporators shall notify the following matters to those who are willing to apply for membership in response to the solicitation under
paragraph (1) of the preceding Article:
(i) Date of the articles of incorporation and the name(s) of the notary (or notaries) who certified them;
(ii) Matters listed in the items of Article 23, paragraph (1) and the items of
Article 24, paragraph (1);
(iii) Names and addresses of the fund contributors (including the fund subscribers), and the amount of contribution (including the amount to be contributed) by each of the contributors;
(iv) Number of the members to be solicited at incorporation;
(v) Any provision in the articles of incorporation under the second sentence of
Article 113 (including the cases where it is applied mutatis mutandis pursuant to Article 272-18); and
(vi) In addition to what is listed in the preceding five items, any other matter specified by a Cabinet Office Ordinance.
(2) A person who applies for membership in response to the solicitation under
paragraph (1) of the preceding Article shall prepare and submit to the incorporators two pieces of the signed document describing the following matters:
(i) Name and address of the person who applies for membership; and
(ii) Kind of insurance to which belongs the insurance contract that the person is willing to conclude with the Mutual Company.
(3) A person who makes an application under the preceding paragraph may, in
lieu of submitting the document prescribed in that paragraph, and pursuant to the provisions of a Cabinet Order, provide the matters to be indicated in such
document by electromagnetic means, with the consent of the incorporators. In this case, the person who has made the application shall be deemed to have
submitted the document prescribed in that paragraph.
(4) The provision of Article 30-5, paragraph (2) shall apply mutatis mutandis to the manifestation of intention pertaining to an application for membership
prior to the establishment of a Mutual Company. In this case, any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Organizational Meeting)
Article 30-8 (1) When all payments of contribution for the total amount of funds have been completed and the number of persons who submitted to the
incorporators the document set forth in paragraph (2) of the preceding Article
has reached the number set forth in paragraph (1), item (iv) of the same Article
(referred to as "The Completion of Payments, etc." in the following paragraph), the incorporators shall, without delay, convene a meeting of prospective
members of the Mutual Company (hereinafter referred to as "Organizational
Meeting" in this Section).
(2) After the Completion of Payments, etc., the incorporators may convene an
Organizational Meeting whenever they find it necessary.
(3) The Organizational Meeting may adopt resolutions only on the matters
provided for in this Section, the discontinuation of the incorporation of the Mutual Company, the conclusion of the Organizational Meeting, and other matters regarding the incorporation of the Mutual Company.
(4) Each prospective member shall be entitled to one vote at the Organizational
Meeting.
(5) Resolutions of the Organizational Meeting shall be adopted by a majority of three quarters of the votes, provided that at least half of the prospective members are present.
(6) The provisions of Article 67 (Determinations to Call Organizational Meetings),
Article 68 (excluding items in paragraph (2)) (Notices of Calling of
Organizational Meetings), Articles 70 and Article 71 (Giving of Organizational
Meeting Reference Documents and Voting Forms), Article 73, paragraph (4) (Resolutions of Organizational Meetings), Article 74 to 76 inclusive (Proxy
Voting, Voting in Writing, Voting by Electromagnetic Means), Article 78 to 80
inclusive (Accountability of Incorporators, Authority of Chairperson, Resolution for Postponement or Adjournment), and Article 81 (excluding
paragraph (4)) (Minutes) of the Companies Act shall apply mutatis mutandis to
the Organizational Meeting of a Mutual Company; and the provisions of Article
830 (Action for Declaratory Judgment on Nonexistence or Nullity of Resolution of Shareholders Meeting, etc.), Article 831 (Lawsuit for Rescission of
Resolution of Shareholders Meeting, etc.), Article 834 (limited to the segment pertaining to items (xvi) and (xvii)) (Defendant), Article 835, paragraph (1)
(Jurisdiction of Claim), Article 836, paragraphs (1) and (3) (Order to Furnish
Security), Article 837 (Compulsory Consolidation of Oral Arguments, etc.), Article 838 (Scope of Effect of Judgment in Favor of Claim), Article 846
(Liability for Damages in Case of Defeat of Plaintiff), and Article 937,
paragraph (1) (limited to the segment pertaining to item (i), (g)) (Commission of Registration by Judicial Decision) of that Act shall apply mutatis mutandis to an action for a declaratory judgment on nonexistence or nullity of, or
rescission of a resolution of a Mutual Company's Organizational Meeting,
respectively. In this case, the terms "Shareholders at Incorporation" in those
provisions (excluding Article 67, paragraph (2) and Article 831, paragraph (1) of that Act), and "Shareholders at Incorporation (excluding Shareholders at Incorporation who may not exercise votes on all matters which may be resolved at Organizational Meetings. The same shall apply in the following Article to
Article 71 inclusive.)" in Article 67, paragraph (2) of that Act shall be deemed
to be replaced with "prospective members;" the term "two weeks (or one week if the Stock Company to be incorporated is not a Public Company, except in cases where the matters listed in paragraph (1), item (iii) or (iv) of the preceding
Article are decided, (or if a shorter period of time is provided for in the articles
of incorporation in cases where the Stock Company to be incorporated is a
Stock Company other than a Company with Board of Directors, such shorter
period of time))" in Article 68, paragraph (1) of that Act shall be deemed to be replaced with "two weeks;" the term "shall be in writing in the following cases" in Article 68, paragraph (2) shall be deemed to be replaced with "shall be in
writing;" the term "Article 27, item (v), or Article 59, paragraph (3), item (i)" in
Article 68, paragraph (5) shall be deemed to be replaced with "Article 30-7,
paragraph (2), item (i) of the Insurance Business Act;" the term "shareholders, etc. (or, shareholders, etc., shareholders at incorporation, directors at
incorporation or company auditors at incorporation where the shareholder meeting, etc. set forth in the relevant item is an Organizational Meeting or
class Organizational Meeting" in Article 831, paragraph (1) shall be deemed to
be replaced with "members, directors, auditors or liquidators (or, members, directors, executive officers or liquidators in a company with Committees), or prospective members, directors at incorporation (referring to the directors at
incorporation set forth in Article 30-10, paragraph (1) of the Insurance
Business Act; hereinafter the same shall apply in this paragraph) or company auditors at incorporation (referring to the company auditors at incorporation
set forth in paragraph (1) of that Article; hereinafter the same shall apply in this paragraph) of a Mutual Company;" and the term" directors, company
auditors or liquidators (including a person who has the rights and obligations
of a director, company auditor or liquidator pursuant to the provision of Article
346, paragraph (1) (including the cases where it is applied mutatis mutandis
pursuant to Article 479, paragraph (4)) where the resolution is a resolution of the shareholders meeting or class meeting, and including directors at
incorporation or company auditors at incorporation where the resolution is a resolution of the Organizational Meeting or class Organizational Meeting" in
the same paragraph of the Companies Act shall be deemed to be replaced with
"directors, company auditors, liquidators, directors at incorporation or
company auditors at incorporation;", and any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Reporting of Matters Regarding Incorporation)
Article 30-9 (1) The incorporators shall report matters regarding the incorporation of a Mutual Company to the Organizational Meeting.
(2) In the cases listed in the following items, the incorporators shall submit or
provide to the Organizational Meeting the document or electromagnetic record that describes or records the matters specified in the items:
(i) Where the articles of incorporation provide for the matters listed in the
items of Article 24, paragraph (1) (excluding the matters specified in the
items of Article 33, paragraph (10) of the Companies Act in the cases listed
in such items as applied mutatis mutandis pursuant to Article 24, paragraph (2)): the content of the report set forth in Article 33, paragraph (4) as applied mutatis mutandis pursuant to Article 24, paragraph (2) which is to be
submitted by the inspector under Article 33, paragraph (2) as applied mutatis mutandis pursuant to Article 24, paragraph (2); and
(ii) In the case listed in Article 33, paragraph (10), item (iii) of the Companies
Act as applied mutatis mutandis pursuant to Article 24, paragraph (2): the content of the verification provided in Article 33, paragraph (10), item (iii) of that Act as applied mutatis mutandis pursuant to Article 24, paragraph (2).
(Election, etc. of Directors at Incorporation, etc.)
Article 30-10 (1) The election of the directors at incorporation (referring to the persons who become directors at the incorporation of a Mutual Company; the same shall apply hereinafter), accounting advisors at incorporation (referring to the persons who become accounting advisors at the incorporation of a
Mutual Company; the same shall apply hereinafter), auditors at incorporation
(referring to the persons who become company auditors at the incorporation of a Mutual Company; the same shall apply hereinafter) and accounting auditors at incorporation (referring to the persons who become accounting auditors at
the incorporation of a Mutual Company; the same shall apply hereinafter) shall be made by a resolution of the Organizational Meeting.
(2) Three or more persons shall be elected as directors at incorporation.
(3) Three or more persons shall be elected as auditors at incorporation where the
Mutual Company to be incorporated is a company with a board of company
auditors (referring to a Stock Company or Mutual Company which has a board of company auditors; the same shall apply hereinafter).
(4) A person who is precluded from being a director, accounting advisor, company
auditor or accounting auditor of the Mutual Company after its establishment,
pursuant to the provision of Article 8-2, paragraph (2), Article 53-2, paragraph
(1) (including the cases where it is applied mutatis mutandis pursuant to
Article 53-5, paragraph (1)), Article 333, paragraph (1) or (3) of the Companies
Act as applied mutatis mutandis pursuant to Article 53-4, or Article 337, paragraph (1) or (3) of that Act as applied mutatis mutandis pursuant to
Article 53-7 may not be elected as director at incorporation, accounting advisor at incorporation, auditor at incorporation or accounting auditor at
incorporation, respectively.
(5) Directors at incorporation, accounting advisors at incorporation, auditors at
incorporation or accounting auditors at incorporation who are elected pursuant to the provision of paragraph (1) may be dismissed by a resolution of the
Organizational Meeting at any time prior to the establishment of the Mutual
Company.
(6) The provision of Article 47 (Appointment, etc. of Representative Directors at Incorporation) of the Companies Act shall apply mutatis mutandis to the appointment and removal of the representative director at incorporation
(referring to the person who becomes representative director at the
incorporation of a Mutual Company; the same shall apply hereinafter) of a
Mutual Company (other than a company with Committees); and the provision
of Article 48 (Appointment of Committee Members at Incorporation) of that Act shall apply mutatis mutandis to the appointment of committee members at incorporation (referring to the persons who become committee members at the
incorporation of a Mutual Company; the same shall apply hereinafter) of a
Mutual Company (limited to a company with Committees), the election of its executive officers at incorporation (referring to the persons who become
executive officers at the incorporation of a Mutual Company; the same shall apply hereinafter) and the appointment of its representative executive officer
at incorporation (referring to the person who becomes representative executive
officer at the incorporation of a Mutual Company; the same shall apply
hereinafter), and the removal and dismissal of those persons, respectively. In this case, any other necessary technical change in interpretation shall be
specified by a Cabinet Order.
(Investigation by Directors at Incorporation, etc.)
Article 30-11 (1) The directors at incorporation (referring to the directors at
incorporation and auditors at incorporation where the Mutual Company to be incorporated is a company with auditors (referring to a Stock Company or Mutual Company that has company auditors; the same shall apply
hereinafter)) shall investigate the following matters without delay after their election:
(i) That, with respect to the properties contributed in kind, etc. in the cases
listed in Article 33, paragraph (10), item (i) or (ii) of the Companies Act as
applied mutatis mutandis pursuant to Article 24, paragraph (2) (if listed in
Article 33, paragraph (10), item (ii) as applied mutatis mutandis pursuant to
Article 24, paragraph (2), limited to the securities under such item), the
value indicated or recorded in the articles of incorporation is reasonable;
(ii) That the verification provided for in Article 33, paragraph (10), item (iii) of the Companies Act as applied mutatis mutandis pursuant to Article 24,
paragraph (2) is appropriate;
(iii) That the funds solicited at the incorporation of the Mutual Company have been fully subscribed for;
(iv) That the payments pursuant to the provision of Article 30-3, paragraph (1)
have been completed;
(v) That the number of prospective members is no less than one hundred (100);
and
(vi) That, in addition to the matters listed in the preceding five items, the procedures for the incorporation of the Mutual Company do not violate
applicable laws and regulations or the articles of incorporation.
(2) The provisions of Article 93, paragraphs (2) and (3) (Investigation by
Directors at Incorporation), and Article 94 (Special Provisions in Case
Directors at Incorporation are Incorporators) of the Companies Act shall apply mutatis mutandis to the investigation under the preceding paragraph. In this
case, any other necessary technical change in interpretation shall be specified
by a Cabinet Order.
(Amendment, etc. in the Articles of Incorporation at Incorporation)
Article 30-12 (1) The incorporators may not effect any amendment in the articles of incorporation once the notice under Article 29, paragraph (2) is given,
notwithstanding the provision of Article 33, paragraph (9) of the Companies
Act as applied mutatis mutandis pursuant to Article 24, paragraph (2).
(2) Notwithstanding the provision of Article 30, paragraph (2) of the Companies
Act as applied mutatis mutandis pursuant to Article 23, paragraph (4), the
articles of incorporation may be amended by a resolution of the Organizational
Meeting.
(3) Where the Organizational Meeting has adopted a resolution to amend the
articles of incorporation in a manner that modifies any of the matters listed in the items of Article 24, paragraph (1), the incorporators may resign from their offices, provided that they do so within two weeks of the adoption of the
resolution.
(Timing of Establishment)
Article 30-13 (1) A Mutual Company shall be established by making a registration of incorporation at the location of its principal office.
(2) A person who has submitted the document set forth in Article 30-7, paragraph
(2) shall, without delay following the establishment of the Mutual Company
and after the Mutual Company has received the license prescribed in Article 3, paragraph (1) or made a registration under Article 272, paragraph (1), apply
for an insurance contract with the Mutual Company.
(Application mutatis mutandis of the Companies Act)
Article 30-14 The provisions of Part II, Chapter I, Section 8 (excluding Article 52, paragraph (2), item (ii)) (Liability of Incorporators) and Article 103, paragraph (2) (Liabilities of Incorporators) of the Companies Act shall apply mutatis
mutandis to the liabilities of incorporators, directors at incorporation or
auditors at incorporation of a Mutual Company. In this case, the term "(in this
paragraph and in item (ii) excluding those who contributed in kind under
Article 28, item (i) or the assignor of the properties under item (ii) of the same
Article)" in Article 52, paragraph (2) (Liability for Insufficiency of Value of
Properties Contributed) of that Act shall be deemed to be replaced with
"(excluding the assignor of the properties under Article 24, paragraph (1), item
(i) of the Insurance Business Act)"; the term "Article 28, item (i) or (ii)" in
Article 52, paragraph (2), item (i) shall be deemed to be replaced with "Article
24, paragraph (1), item (i) of the Insurance Business Act;" the term "Article 33, paragraph (10), item (iii)" in Article 52, paragraph (3) shall be deemed to be
replaced with "Article 33, paragraph (10), item (iii) as applied mutatis
mutandis pursuant to Article 24, paragraph (2) of the Insurance Business Act;" and in Article 103, paragraph (2) of that Act, the term "In cases where the
solicitation under Article 57, paragraph (1) is carried out," shall be deemed to be deleted, and the terms "such solicitation" and "the preceding paragraph"
shall be deemed to be replaced with "solicitation under Article 27 or Article 30-
6, paragraph (1) of the Insurance Business Act" and "Article 52, paragraph (2) (excluding item (ii))," respectively; any technical change in interpretation shall be specified by a Cabinet Order.
(Claim Seeking Nullification of Incorporation)
Article 30-15 The provisions of Article 828, paragraph (1) (limited to the segment pertaining to item (i)) and paragraph (2) (limited to the segment pertaining to item (i) (Claim Seeking Nullification of Acts Related to
Organization of Company), Article 834 (limited to the segment pertaining to
item (i)) (Defendant), Article 835, paragraph (1) (Jurisdiction of claim), Article
836, paragraphs (1) and (3) (Order to Furnish Security), Articles 837 to 839 inclusive (Compulsory Consolidation of Oral Arguments, Scope of Effect of
Judgment in Favor of Claim, Effect of Judgment of Nullity or Recession),
Article 846 (Liability for Damages in Case of Defeat of Plaintiff), and Article
937, paragraph (1) (limited to the segment pertaining to item (i), (a))
(Commission of Registration by Judicial Decision) of the Companies Act shall
apply mutatis mutandis to a claim seeking nullification of the incorporation of a Mutual Company. In this case, the term "shareholders, etc. (referring to
shareholders, directors or liquidators (or, shareholders, directors, auditors or liquidators in a company with auditors, or shareholders, directors, executive officers or liquidators in a company with Committees); hereinafter the same shall apply in this Section)" in Article 828, paragraph (2), item (i) of that Act
shall be deemed to be replaced with "members, directors, company auditors or liquidators (or members, directors, executive officers, or liquidators in a
company with Committees)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Subsection 3 Rights and Obligations of Members
(Obligations of Members)
Article 31 The obligations of a member shall be limited to the amount of his/her insurance premium payments.
(Notice and Demand)
Article 32 (1) It shall be sufficient for a notice or demand to an Applicant for
membership, or member of a Mutual Company to be sent to the place or contact address notified by the Applicant or member to the incorporators or Mutual Company; provided, however, that this shall not apply to a notice or demand on any matter pertaining to the insurance relationship.
(2) The notice or demand in the main clause of the preceding paragraph shall be deemed to have arrived at the time when such notice or demand should
normally have arrived.
(3) The provisions of the main clause of paragraph (1) and the preceding
paragraph shall apply mutatis mutandis to the cases where a document is
delivered to the members in giving a notice under Article 299, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 41,
paragraph (1) or where the matters to be described in such document are
provided by electromagnetic means. In this case, the term "to have arrived" in the preceding paragraph shall be deemed to be replaced with "to have been effected by delivery of such document or provision of such matters by
electromagnetic means"; and any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Members List)
Article 32-2 (1) A Mutual Company shall, pursuant to the provisions of a
Cabinet Office Ordinance, prepare a members list and describe therein or
record thereon the matters specified by a Cabinet Office Ordinance as matters required for such members list.
(2) A Mutual Company shall keep its members list at its principal office.
(3) A member or creditor may make the following requests at any time during the business hours of the Mutual Company. In this case, however, the member or
creditor shall disclose the reason for his/her request:
(i) Where the members list is prepared in writing, a request to investigate or copy the written document; or
(ii) Where the members list is prepared in the form of electromagnetic record, a
request to investigate or copy anything that displays the matters recorded on such electromagnetic record in a manner specified by a Cabinet Office
Ordinance.
(4) A Mutual Company may not reject any request made under the preceding paragraph unless:
(i) The member or creditor making such request (hereinafter referred to as
"Requestor" in this paragraph) does so with any other intent than to inspect matters regarding the protection or exercise his/her rights;
(ii) The Requestor makes a request with the intent to preclude the Mutual Company from carrying out its business activities or to harm the common interest of the members;
(iii) The Requestor carries on, or engages in, any business that is substantially
in a competitive relationship with the business of the Mutual Company;
(iv) The Requestor makes a request with the intent to inform a third Party of any fact obtained by investigating or copying the members list for material gain; or
(v) The Requestor has, within the past two years, informed a third Party of any
fact obtained by investigating or copying the members list for material gain.
(Reference Date)
Article 33 (1) For the purpose of identifying the persons who shall exercise their rights as members, a Mutual Company may deem the persons who enjoy its
membership on a certain date within four months prior to the date of
exercising such rights as the members who shall exercise said rights.
(2) A Mutual Company that has fixed the "certain date" set forth in the preceding paragraph shall give public notice of such date no later than two weeks before
the date; provided, however, that this shall not apply to the cases where said date is fixed by the articles of incorporation.
(3) The rights set forth in paragraph (1) shall not include any right provided for
otherwise in this Act or the rights specified by a Cabinet Order such as the right to distribution of surplus.
(Giving Benefits on Exercise of Member's Rights or General Representative's
Rights)
Article 33-2 (1) A Mutual Company shall not give property benefits to a person regarding the exercise of his/her member's rights or general representative's rights (limited to benefits given on the account of the Mutual Company or its de facto Subsidiary Company (referring to a juridical person whose
management is deemed to be controlled by the Mutual Company pursuant to
the provisions of a Cabinet Office Ordinance, such as a Stock Company in which the Mutual Company holds a majority of the voting rights of all
shareholders; the same shall apply hereinafter).
(2) The provisions of Article 120, paragraphs (2) to (5) inclusive (Giving Benefits
on Exercise of Shareholder's Right) of the Companies Act shall apply mutatis mutandis to the case set forth in the preceding paragraph; and the provisions
of Part VII, Chapter II, Section 2 (excluding Article 847, paragraph (2), Article
849, paragraph (5), and Article 851, paragraph (1), item (i) and paragraph (2)) (Lawsuit for Responsibility, etc. in Stock Company) of that Act shall apply
mutatis mutandis to a lawsuit for the return of benefits under Article 120,
paragraph (3) of that Act as applied mutatis mutandis pursuant to this
paragraph, respectively. In this case, the term "paragraph (1)" in Article 120,
paragraphs (3) and (4) of that Act shall be deemed to be replaced with "Article
33-2, paragraph (1) of the Insurance Business Act"; the term "all shareholders" in Article 120, paragraph (5) shall be deemed to be replaced with "all
members"; the term "shareholder who has been holding shares (other than a
holder of share less than one unit who may not exercise his/her rights pursuant to the provision of the articles of incorporation under Article 189, paragraph
(2))" in Article 847, paragraph (1) (Lawsuit for Responsibility, etc.) of that Act
shall be deemed to be replaced with "person who has been a member"; and the term "shareholder" in Article 847, paragraphs (3) to (5) inclusive and (7) shall be deemed to be replaced with "member"; and any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(Grounds for Withdrawal)
Article 34 (1) A member shall withdraw on any of the following grounds: (i) Termination of insurance relationship; or
(ii) Occurrence of an event specified in the articles of incorporation.
(2) In case of a member's death (excluding the cases where the death falls under the items of the preceding paragraph) or a member's extinction due to merger, the heir or any other general successor to the member shall assume the rights and obligations of the member.
(3) Where two or more general successors (referring to general successors by inheritance and limited to those who have not effected the payment of
insurance premiums in whole or in part; hereinafter the same shall apply in this paragraph) exist to the deceased or extinct member set forth in the
previous paragraph, the general successors shall assume the obligation of
effecting the insurance premium payments jointly and severally.
(4) When two or more general successors (limited to general successors by
inheritance; hereinafter the same shall apply in this paragraph), exist for the deceased or extinct member, the general successors may not exercise the member's rights that they have assumed, unless they appoint one person who exercises such rights.
(Claim for Refund)
Article 35 A withdrawn member may, pursuant to the terms of the articles of
incorporation or insurance contract, claim refund of the money associated with his/her rights; provided, however, that this shall not apply to the cases where
the withdrawn member is replaced by another person.
(Prescription)
Article 36 The claim for refund set forth in the preceding Article shall lapse by prescription, unless exercised within two years.
Subsection 4 Organs
Division 1 General Meeting of Members
(Voting Right)
Article 37 Each member shall be entitled to one vote in the general meeting of members.
(Authority of General Meeting of Members)
Article 37-2 The general meeting of members may resolve only the matters provided for in this Act and the matters provided for in the articles of
incorporation.
(Resolution of General Meeting of Members)
Article 37-3 (1) Unless otherwise provided for in this Act or the articles of
incorporation, a resolution of the general meeting of members shall be adopted by a majority of the votes held by the attending members in a session where half or more of the members are present.
(2) The general meeting of members may not adopt a resolution on any other
matter than matters listed in Article 298, paragraph (1), item (ii) of the
Companies Act as applied mutatis mutandis pursuant to Article 41, paragraph
(1); provided, however, that this shall not apply to a request for the
appointment of a person set forth in Article 316, paragraph (1) or (2) of that
Act as applied mutatis mutandis pursuant to Article 41, paragraph (1), or for the attendance of the accounting auditors set forth in Article 398, paragraph (2) of that Act as applied mutatis mutandis pursuant to Article 53-23.
(Right to Demand Convocation of General Meeting of Members)
Article 38 (1) Members having consecutively for the preceding six months or more (or, in cases where shorter period is prescribed in the articles of
incorporation, such period) not less than three thousandths (or in cases where
lesser proportion is prescribed in the articles of incorporation, such proportion)
of the total membership, or three thousand (or in cases where smaller number
is prescribed in the articles of incorporation) or more members of a Mutual Company (or, in mutual Small Amount and Short Term Insurance Providers specified by a Cabinet Order (hereinafter referred to as "Specified Mutual
Company"), members equal to or exceeding the number specified by a Cabinet
Order), who have been members of the Mutual Company, may demand the directors by showing the matters which shall be the purpose of the
shareholders meeting (limited to matters on which the general meeting of members may adopt a resolution; hereinafter the same shall apply in this
Division) and the reason of the calling, that they call the shareholders meeting.
(2) In the following cases, the members who made the demand pursuant to the provisions of the preceding paragraph may call the general meeting of
members with the permission of the court.
(i) In cases where the calling procedure is not effected without delay after the demand pursuant to the provisions of the preceding paragraph; or
(ii) In cases where the notice for the calling of the general meeting of members
which designates, as the date of the general meeting of members, a date falling within the period of eight weeks (or in cases where any period less
than that is provided for in the articles of incorporation, such period) from
the day of a demand pursuant to the provision of the preceding paragraph, is not given.
(3) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 869 (Showing of Prima Facie Evidence), Article 871
(Supplementary Note of Reasons), Article 874 (limited to the segment
pertaining to item (iv)) (Restrictions on Appeal), Article 875 (Exclusion from
Application of Provisions of Act on Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to the previous paragraph. In this case, any other necessary
technical change in interpretation shall be specified by a Cabinet Order.
(Right to Submit Proposal)
Article 39 (1) Members having consecutively for the preceding six months or more (or, in cases where shorter period is prescribed in the articles of
incorporation, such period) no less than one thousandth (or in cases where
lesser proportion is prescribed in the articles of incorporation, such proportion)
of the total membership, or one thousand (or in case where smaller number is prescribed by the articles of incorporation) or more members of a Mutual
Company (or, in a Specified Mutual Company, members equal to or exceeding the number prescribed by a Cabinet Order), who have been members of the
Mutual Company, may demand the directors to include certain items (limited
to matters on which the general meeting of members may adopt a resolution) in the agenda for the general meeting of members. In this case, the demand shall
be submitted no later than eight weeks (or any shorter period prescribed by the articles of incorporation) prior to the date of the general meeting of members.
(2) A member may submit a proposal at the general meeting of members with respect to any agenda item for the meeting; provided, however, that this shall not apply to the cases where the proposal is in violation of any applicable law or regulation or the articles of incorporation, or where three years have not
elapsed since the day on which an essentially identical proposal was not
approved by at least one tenth (1/10) of the membership (or any smaller
proportion prescribed by the articles of incorporation) in the general meeting of members.
(3) Members representing at least one thousandth (or any smaller proportion prescribed by the articles of incorporation) of the total membership, or one
thousand (or any smaller number prescribed by the articles of incorporation) or more members of a Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set
forth in paragraph (1)), who have been members of the Mutual Company
without interruption for the preceding six months (or any shorter period
prescribed by the articles of incorporation), may demand the directors that, no later than eight weeks (or any shorter period prescribed by the articles of
incorporation) prior to the date of the general meeting of members, members be notified of the outline of any proposal to be submitted by said member with
respect to an agenda item of the meeting (or, where a notice is to be given under Article 299, paragraph (2) (excluding the items (i) and (ii)) or (3) of the Companies Act as applied mutatis mutandis pursuant to Article 41, paragraph (1), such outline be described in, or recorded on, that notice); provided, however, that this shall not apply to the cases where the proposal is in violation of any
applicable law or regulation or the articles of incorporation, or where three
years have not elapsed since the day on which an essentially identical proposal was not approved by at least one tenth of the membership (or any smaller
proportion prescribed by the articles of incorporation) in the general meeting of
members.
(Right to Demand Election of Inspector of General Meeting of Members) Article 40 (1) A Mutual Company or members representing at least one
thousandth (or any smaller proportion prescribed by the articles of
incorporation) of the total membership, or one thousand (or any smaller number prescribed by the articles of incorporation) or more members of a Mutual Company (or, in a Specified Mutual Company, members equal to or
exceeding the number specified by a Cabinet Order set forth in paragraph (1) of
the preceding Article), who have been members of the Mutual Company without interruption for the preceding six months (or any shorter period
prescribed by the articles of incorporation), may file a petition with the court, prior to the session of the general meeting of members, for the election of an
inspector who shall be retained to investigate the convocation procedures and method of resolution relating to such meeting.
(2) The provisions of Article 306, paragraphs (3) to (7) inclusive (Election of
Inspector on Calling Procedures of Shareholders Meeting) and Article 307
(Determination by The Court of the Calling of Shareholders Meeting) of the
Companies Act shall apply mutatis mutandis to the preceding paragraph. In
this case, the term "preceding two paragraphs" in Article 306, paragraph (3) of that Act shall be deemed to be replaced with "Article 40, paragraph (1) of the
Insurance Business Act"; the term "Stock Company" in Article 306, paragraphs
(4) and (7) shall be deemed to be replaced with "Mutual Company"; the term
"shareholders meeting" in Article 307 of that Act shall be deemed to be
replaced with "general meeting of members"; and the term "shareholders" in
Article 307, paragraph (1), item (ii) of that Act shall be deemed to be replaced with "members"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 870 (limited to the segment pertaining to item (ii)) (Hearing of
Statements), Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling),
Article 874 (limited to the segment pertaining to item (i)) (Restrictions on
Appeal), Article 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of the Companies Act shall apply mutatis mutandis to the preceding two paragraphs. In this case, any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Application mutatis mutandis of Companies Act)
Article 41 (1) The provisions of Article 296 (Calling of Shareholders Meeting),
Article 298 (excluding the proviso to paragraphs (2) and (3)) (Determination to
Call Shareholders Meeting), Article 299 (excluding items of paragraph (2)) (Notice of Calling of Shareholders' Meetings), Article 300 to 302 inclusive
(Omission of Calling Procedures, Giving of Reference Documents for
Shareholders Meeting and Voting Forms), Article 310 to 312 inclusive (Proxy
Voting, Voting in Writing, Voting by Electromagnetic Method), Article 314 to
317 inclusive (Accountability of Directors, etc., Authority of Chairperson,
Investigation of Materials Submitted to the Shareholders Meeting, Resolution for Postponement or Adjournment), Article 318 (excluding paragraph (5))
(Minutes), Article 319 (excluding paragraph (4)) (Omission of Resolution of
Shareholders Meetings) and Article 320 (Omission of Reports to Shareholders
Meetings) of the Companies Act shall apply mutatis mutandis to the general meeting of members of a Mutual Company. In this case, the terms "Stock Company" and "company with board of directors" in those provisions shall be
deemed to be replaced with "Mutual Company"; the term "head office" in those provisions shall be deemed to be replaced with "principal office"; the term
"operating hours" in those provisions shall be deemed to be replaced with
"business hours"; the term "Annual shareholders meeting" in Article 296,
paragraph (1) of that Act shall be deemed to be replaced with "Annual general meeting of members"; the term "paragraph (4) of the following Article" in
Article 296, paragraph (3), and the term "paragraph (4) of the preceding
Article" in Article 298, paragraphs (1) and (4) of that Act shall be deemed to be replaced with "Article 38, paragraph (2) and Article 50, paragraph (2) of the
Insurance Business Act"; the term "(excluding shareholders who may not
exercise their votes on all matters which may be resolved at a shareholders meetings. The same shall apply in the following Article to Article 302
inclusive)" in Article 298, paragraph (2) shall be deemed to be deleted; the term "two weeks (or one week if the Stock Company is not a Public Company, except in cases where the matters listed in paragraph (1), item (iii) or (iv) of the
preceding Article are decided, (or if a shorter period of time is provided for in
the articles of incorporation in cases where the Stock Company is a Stock
Company other than the Company with Board of Directors, such shorter period of time))" in Article 299, paragraph (1) of that Act shall be deemed to be
replaced with "two weeks"; the term "in the following cases" in Article 299,
paragraph (2) shall be deemed to be deleted; the term "Reference Document for
Shareholders Meeting" in Articles 301 and 302 of that Act shall be deemed to be replaced with "reference document for general meeting of members"; the term "shareholders (excluding the shareholders who may not exercise their
votes on all matters which may be resolved at the shareholders meeting under
the preceding paragraph. The same shall apply hereinafter in paragraph (4) of the following Article and in Article 312, paragraph (5))" in Article 310,
paragraph (7) of that Act shall be deemed to be replaced with "members"; the term "Article 297" in Article 316, paragraph (2) of that Act shall be deemed to be replaced with "Article 38 of the Insurance Business Act"; the term "branch
offices" in Article 318, paragraph (3) of that Act shall be deemed to be replaced
with "secondary offices"; and the term "all shareholders (limited to those who may exercise their votes with respect to such matter)" in Article 319,
paragraph (1) of that Act shall be deemed to be replaced with "all members"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(2) The provisions of Article 830 (Action for Declaratory Judgment on
Nonexistence or Nullity of Resolution of Shareholders Meeting, etc.), Article
831 (Lawsuit for Rescission of Resolution of Shareholders Meeting, etc.), Article 834 (limited to the segment pertaining to items (xvi) and (xvii))
(Defendant), Article 835, paragraph (1) (Jurisdiction of Claim), Articles 836, paragraphs (1) and (3) (Order to Furnish Security), Article 837 (Compulsory Consolidation of Oral Arguments), Article 838 (Scope of Effect of Judgment in Favor of Claim), Article 846 (Liability for Damages in Case of Defeat of
Plaintiff), and Article 937, paragraph (1) (limited to the segment pertaining to
item (i), (g)) (Commission of Registration by Judicial Decision) of the
Companies Act shall apply mutatis mutandis to an action for declaratory
judgment on nonexistence or nullity, or a lawsuit for rescission, of a resolution of the general meeting of members of a Mutual Company. In this case, the term "shareholders, etc. (or shareholders, etc., shareholders at incorporation,
directors at incorporation or company auditors at incorporation, where the
shareholders meeting, etc. set forth in the relevant item is the Organizational Meeting or class organizational meeting)" in Article 831, paragraph (1) of that Act shall be deemed to be replaced with "members, directors, company auditors or liquidators of a Mutual Company (or, in a company with Committees,
members, directors, executive officers or liquidators)"; and the term "directors,
company auditors or liquidators (including a person who assumes the rights and obligations of a director, company auditor or liquidator pursuant to the
provision of Article 346, paragraph (1) (including the cases where it is applied
mutatis mutandis pursuant to Article 479, paragraph (4)), where the relevant resolution is that of the shareholders meeting or class meeting, or including
directors at incorporation or company auditors at incorporation, where the
relevant resolution is that of the Organizational Meeting or class
organizational meeting)" in Article 831, paragraph (1) of that Act shall be deemed to be replaced with "directors, company auditors or liquidators
(including a person who assumes the rights and obligations of a director, company auditor or liquidator pursuant to the provision of Article 53-12,
paragraph (1) of the Insurance Business Act (including the cases where it is
applied mutatis mutandis pursuant to Article 180-5, paragraph (4) of that Act)"; any other necessary technical replacement of terms shall be specified by a Cabinet Order.
Division 2 General Meeting
(Establishment of General Meeting and General Representative's Term of
Office, etc.)
Article 42 (1) A Mutual Company may, pursuant to the provisions of its articles of incorporation, establish an organ composed of the general representatives
elected from among its members (hereinafter referred to as "General Meeting"),
in lieu of the general meeting of members.
(2) The articles of incorporation set forth in the preceding paragraph shall specify the matters prescribed by a Cabinet Office Ordinance, such as the number, term of office, and method of election of general representatives.
(3) The term of office of a general representative shall not exceed four years.
(Voting Right of General Representative)
Article 43 Each general representative shall be entitled to one vote in the
General Meeting.
(Authority of General Meeting)
Article 43-2 (1) The General Meeting may resolve only the matters provided for in this Act and the matters provided for in the articles of incorporation.
(2) Any provision in the articles of incorporation to the effect that the directors, executive officers, board of directors or any other organ than the General
Meeting of members or General Meeting may decide on a matter which
requires a resolution of the General Meeting of members (or General Meeting, where the company has such meeting) pursuant to the provisions of this Act
shall be null and void.
(Method of Adopting, etc. Resolution of General Meeting)
Article 44 (1) Unless otherwise provided for in this Act or the articles of incorporation, a resolution of the General Meeting shall be adopted by a
majority of the votes held by the attending general representatives in a session
where half or more of the general representatives are present; provided,
however, the number of the general representatives required to attend the
General Meeting shall not be less than one-third of the total number of general representatives, notwithstanding the provision of the articles of incorporation.
(2) The General Meeting may not adopt a resolution on any other matter than
matters listed in Article 298, paragraph (1), item (ii) of the Companies Act as applied mutatis mutandis pursuant to Article 49, paragraph (1); provided,
however, that this shall not apply to electing the person set forth in Article 316, paragraph (1) or (2) of that Act as applied mutatis mutandis pursuant to
Article 49, paragraph (1), or to requiring the attendance of accounting auditors under Article 398, paragraph (2) of that Act as applied mutatis mutandis
pursuant to Article 53-23.
(Proxy Voting)
Article 44-2 (1) A general representative may exercise his/her voting right by
proxy, where the articles of incorporation include any provision to that effect. In this case, such general representative shall designate only one proxy, and
the general representative or proxy shall submit to the Mutual Company a document certifying the authority of proxy.
(2) Any proxy under the preceding paragraph shall be a general representative. (3) The provision of Article 310 (excluding paragraphs (1) and (5)) (Proxy Voting)
of the Companies Act shall apply mutatis mutandis to paragraph (1). In this
case, the term "preceding paragraph" in paragraph (2) of that Article and the term "paragraph (1)" in paragraph (3) of that Article shall be deemed to be
replaced with "Article 44-2, paragraph (1) of the Insurance Business Act"; the term "Stock Company" in Article 310, paragraphs (3), (4), (6) and (7) shall be deemed to be replaced with "Mutual Company"; the term "Article 299,
paragraph (3)" in Article 310, paragraph (4) shall be deemed to be replaced with "Article 299, paragraph (3) as applied mutatis mutandis pursuant to
Article 49, paragraph (1) of the Insurance Business Act"; and the term
"shareholders (excluding the shareholders who may not exercise their votes on all matters which may be resolved at the shareholders meeting under the
preceding paragraph. The same shall apply in paragraph (4) of the following
Article and in Article 312, paragraph (5))" in Article 310, paragraph (7) shall be deemed to be replaced with "members"; any other necessary technical change
in interpretation shall be specified by a Cabinet Order.
(Right to Demand Convocation of General Meeting)
Article 45 (1) Members representing at least three thousandths (or any smaller
proportion prescribed by the articles of incorporation) of the total membership, or three thousand (or any smaller number prescribed by the articles of
incorporation) or more members of a Mutual Company (or, in a Specified
Mutual Company, members equal to or exceeding the number specified by a
Cabinet Order set forth in Article 38, paragraph (1)), who have been members of the Mutual Company without interruption for the preceding six months (or any shorter period prescribed by the articles of incorporation), or nine (or any smaller number prescribed by the articles of incorporation) or more general
representatives may demand the directors to convene a General Meeting by
indicating the proposed agenda for the meeting (limited to matters on which
the General Meeting may adopt a resolution; hereinafter the same shall apply in this Division) and the reason for the convocation.
(2) In the following cases, a member or a general representative who made a
demand pursuant to the provision of the preceding paragraph may convene the
General Meeting with the permission of the court.
(i) Where the convening procedure is not effected without delay after a demand pursuant to the provisions of the preceding paragraph; or
(ii) Where a notice for the convocation of the General Meeting which designates, as the date of the General Meeting, a date falling within the period of eight
weeks (or any shorter period prescribed by the articles of incorporation) from the day of a demand pursuant to the provision of the preceding paragraph, is not given.
(3) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 869 (Showing of Prima Facie Evidence), Article 871
(Supplementary Note of Reasons), Article 874 (limited to the segment
pertaining to item (iv)) (Restrictions on Appeal), Article 875 (Exclusion from
Application of Provisions of Act on Procedures for Non-Contentious Cases) and
Article 876 (Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to the preceding paragraph. In this case, any other necessary
technical change in interpretation shall be specified by a Cabinet Order.
(Right to Submit Proposal)
Article 46 (1) Members representing at least one thousandth (or any smaller
proportion prescribed by the articles of incorporation) of the total membership, or one thousand (or any smaller number prescribed by the articles of
incorporation) or more members of a Mutual Company (or, in a Specified
Mutual Company, members equal to or exceeding the number specified by a
Cabinet Order set forth in Article 39, paragraph (1)), who have been members of the Mutual Company without interruption for the preceding six months (or
any shorter period prescribed by the articles of incorporation), or three (or any
smaller number prescribed by the articles of incorporation) or more general
representatives may demand the directors to include certain items (limited to matters on which the General Meeting may adopt a resolution) in the agenda
for the General Meeting. In this case, the demand shall be submitted no later than eight weeks (or any shorter period prescribed by the articles of
incorporation) prior to the date of the General Meeting.
(2) General representatives may submit a proposal at the General Meeting with respect to any agenda item for the meeting; provided, however, that this shall not apply to the cases where the proposal is in violation of any applicable law or regulation or the articles of incorporation, or where three years have not
elapsed since the day on which an essentially identical proposal was not
approved by at least one tenth of the general representatives (or any smaller
proportion prescribed by the articles of incorporation) in the General Meeting. (3) Members representing at least one thousandth (or any smaller proportion
prescribed by the articles of incorporation) of the total membership, or one
thousand (or any smaller number prescribed by the articles of incorporation) or more members of a Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set
forth in Article 39, paragraph (1)), who have been members of the Mutual
Company without interruption for the preceding six months (or any shorter
period prescribed by the articles of incorporation), or three (or any smaller number prescribed by the articles of incorporation) or more general
representatives may demand the directors that, no later than eight weeks (or
any shorter period prescribed by the articles of incorporation) prior to the date of the General Meeting, members be notified of the outline of any proposal to
be submitted with respect to an agenda item of the meeting (or, where a notice
is to be given under Article 299, paragraph (2) (excluding the items) or (3) of the Companies Act as applied mutatis mutandis pursuant to Article 49,
paragraph (1), such outline be described in, or recorded on, that notice);
provided, however, that this shall not apply to the cases where the proposal is
in violation of any applicable law or regulation or the articles of incorporation, or where three years have not elapsed since the day on which an essentially identical proposal was not approved by at least one tenth of the general
representatives (or any smaller proportion prescribed by the articles of incorporation) in the General Meeting.
(Right to Demand Election of Inspector of General Meeting)
Article 47 (1) A Mutual Company, members representing at least one thousandth (or any smaller proportion prescribed by the articles of
incorporation) of the total membership, or one thousand (or any smaller number prescribed by the articles of incorporation) or more members of a Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set forth in Article 39,
paragraph (1)), who have been members of the Mutual Company without
interruption for the preceding six months (or any shorter period prescribed by the articles of incorporation), or three (or any smaller number prescribed by
the articles of incorporation) or more general representatives may file a
petition with the court, prior to the session of the General Meeting, for the election of an inspector who shall be retained to investigate the convocation procedures and method of resolution relating to such meeting.
(2) The provisions of Article 306, paragraphs (3) to (7) inclusive (Election of
Inspector on Calling Procedures of Shareholders Meeting) and Article 307
(Determination by the Court of the Calling of Shareholders Meeting) of the
Companies Act shall apply mutatis mutandis to the preceding paragraph. In
this case, the term "preceding two paragraphs" in Article 306, paragraph (3) of that Act shall be deemed to be replaced with "Article 40, paragraph (1) of the
Insurance Business Act"; the term "Stock Company" in Article 306, paragraphs
(4) and (7) shall be deemed to be replaced with "Mutual Company"; the term
"shareholders meeting" in Article 307 of that Act shall be deemed to be
replaced with "General Meeting"; and the term "shareholders" in paragraph (1), item (ii) of that Article shall be deemed to be replaced with "general
representatives"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 870 (limited to the segment pertaining to item (ii)) (Hearing of
Statements), Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling),
Article 874 (limited to the segment pertaining to item (i)) (Restrictions on
Appeal), Article 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of the Companies Act shall apply mutatis mutandis to the preceding two paragraphs. In this case, any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Giving, etc. of Reference Documents and Voting Forms for General Meeting) Article 48 (1) The directors (or, where members or general representatives
convene the General Meeting pursuant to the provision of Article 45,
paragraph (2), such members or general representatives; hereinafter the same shall apply in this Article) shall, when dispatching a notice under Article 299, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to
paragraph (1) of the following Article with relevant changes in interpretation,
give the general representatives documents stating matters of reference for the exercise of votes pursuant to the provisions of a Cabinet Office Ordinance.
(2) If the directors dispatch notices by electromagnetic means referred to in
Article 299, paragraph (3) of the Companies Act as applied mutatis mutandis pursuant to paragraph (1) of the following Article with relevant changes in
interpretation to the general representatives who have given consent under the same paragraph, the directors may provide, in lieu of the giving of documents
pursuant to the provision of the preceding paragraph, the matters to be
described in such document by electromagnetic means; provided, however, that, if requested by any general representative, they shall give these documents to
such general representative.
(3) Where the matters listed in Article 298, paragraph (1), item (iii) of the
Companies Act as applied mutatis mutandis pursuant to paragraph (1) of the following Article with relevant changes in interpretation are decided, the
directors shall, when giving a notice under Article 299, paragraph (1) of that
Act as applied mutatis mutandis pursuant to paragraph (1) of the following
Article, provide the general representatives with documents to be used by the general representatives to exercise their voting rights (hereinafter referred to as "Voting Forms" in this Article) pursuant to the provisions of a Cabinet
Office Ordinance.
(4) If the directors give a notice by electromagnetic means referred to in Article
299, paragraph (3) of the Companies Act as applied mutatis mutandis pursuant to paragraph (1) of the following Article with relevant changes in
interpretation to the general representatives who have given consent under the same paragraph, the directors may provide, in lieu of the giving of Voting
Forms pursuant to the provision of the preceding paragraph, the matters to be described in such documents by electromagnetic means; provided, however,
that, if requested by any general representative, the directors shall give their voting form to such general representative.
(5) Where the matters listed in Article 298, paragraph (1), item (iv) of the
Companies Act as applied mutatis mutandis pursuant to paragraph (1) of the following Article with relevant changes in interpretation are decided, the
directors shall, when giving a notice to the general representatives who have
given consent under Article 299, paragraph (3) of the Companies Act by
electromagnetic means referred to in the same paragraph, provide the general representatives with the matters to be indicated in the Voting Forms by such
electromagnetic means pursuant to the provisions of a Cabinet Office
Ordinance.
(6) In the cases prescribed in the preceding paragraph, if any general
representative who has not given consent under Article 299, paragraph (3) of the Companies Act as applied mutatis mutandis pursuant to paragraph (1) of
the following Article with relevant changes in interpretation requests, no later
than one week prior to the date of the General Meeting, for the provision of the matters to be described in the Voting Form by electromagnetic means, the
directors shall, immediately, provide such matters to such general
representative by electromagnetic means pursuant to the provisions of a
Cabinet Office Ordinance.
(Application mutatis mutandis of Companies Act)
Article 49 (1) The provisions of Article 296 (Calling of Shareholders Meeting), Article 298 (excluding paragraphs (2) and (3)) (Determination to Call
Shareholders Meeting), Article 299 (excluding paragraph (2), items (i) and (ii)) (Notice of Calling of Shareholders' Meetings), Article 300 (Omission of Calling Procedures), Article 311 (Voting in Writing), Article 312 (Voting by
Electromagnetic Method), Article 314 to 317 inclusive (Accountability of
Directors, etc., Authority of Chairperson, Investigation of Materials Submitted to the Shareholders Meeting, Resolution for Postponement or Adjournment)
and Article 318 (excluding paragraph (5)) (Minutes) of the Companies Act shall apply mutatis mutandis to the General Meeting of a Mutual Company. In this
case, the terms "Stock Company" and "company with board of directors" in
those provisions shall be deemed to be replaced with "Mutual Company"; the term "head office" in those provisions shall be deemed to be replaced with
"principal office"; the term "operating hours" in those provisions shall be
deemed to be replaced with "business hours"; the term "shareholder" in those
provisions (excluding Article 298, paragraph (1) (excluding items), Article 298, paragraph (4), Article 311, paragraph (4), Article 312, paragraph (5), Article
314 and Article 318, paragraph (4)) shall be deemed to be replaced with
"general representative"; the term "Annual shareholders meeting" in Article
296, paragraph (1) of that Act shall be deemed to be replaced with "Annual general meeting"; the term "paragraph (4) of the following Article" in Article
296, paragraph (3) shall be deemed to be replaced with "Article 45, paragraph
(2) of the Insurance Business Act"; the terms "paragraph (4) of the preceding Article" and "shareholder" in Article 298, paragraph (1) (excluding the items) and Article 298, paragraph (4) of that Act shall be deemed to be replaced with "Article 45, paragraph (2) of the Insurance Business Act" and "member or general representative," respectively; the term "two weeks (or one week if the Stock Company is not a Public Company, except in cases where the matters
listed in paragraph (1), items (iii) and (iv) of the preceding Article are decided,
(or if a shorter period of time is provided for in the articles of incorporation in cases where the Stock Company is a Stock Company other than the Company with Board of Directors, such shorter period of time))" in Article 299,
paragraph (1) of that Act shall be deemed to be replaced with "two weeks"; the term "in the following cases" in Article 299, paragraph (2) shall be deemed to
be deleted; the term "shareholders" in Article 311, paragraph (4) and Article
312, paragraph (5) of that Act shall be deemed to be replaced with "members"; the terms "by the shareholders" and "common interest of the shareholders" in Article 314 of that Act shall be deemed to be replaced with "by the general
representatives" and "common interest of the general representatives,"
respectively; the term "Article 297" in Article 316, paragraph (2) of that Act
shall be deemed to be replaced with "Article 45 of the Insurance Business Act";
the term "branch offices" in Article 318, paragraph (3) of that Act shall be
deemed to be replaced with "secondary offices"; and the term "shareholders" in
Article 318, paragraph (4) of that Act shall be deemed to be replaced with
"members"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(2) The provisions of Article 830 (Lawsuit for Declaratory Judgment on
Nonexistence or Nullity of Resolution of Shareholders Meeting, etc.), Article
831 (Lawsuit for Rescission of Resolution of Shareholders Meeting, etc.), Article 834 (limited to the segment pertaining to items (xvi) and (xvii))
(Defendant), Article 835, paragraph (1) (Jurisdiction of Claim), Article 836,
paragraphs (1) and (3) (Order to Furnish Security), Article 837 (Compulsory
Consolidation of Oral Arguments, etc.), Article 838 (Scope of Effect of
Judgment in Favor of Claim), Article 846 (Liability for Damages in Case of
Defeat of Plaintiff), and Article 937, paragraph (1) (limited to the segment
pertaining to item (i), (g)) (Commission of Registration by Judicial Decision) of the Companies Act shall apply mutatis mutandis to an action for declaratory
judgment on nonexistence or nullity, or a lawsuit for rescission, of a resolution of the General Meeting of a Mutual Company. In this case, the term
"shareholders, etc. (or, shareholders, etc., shareholders at incorporation,
directors at incorporation or company auditors at incorporation, where the
shareholders meeting, etc. set forth in the relevant item is the Organizational Meeting or class organizational meeting)" in Article 831, paragraph (1) of that Act shall be deemed to be replaced with "members, directors, company auditors or liquidators of a Mutual Company (or, in a company with Committees,
members, directors, executive officers or liquidators)"; and the term "directors,
company auditors or liquidators (including a person who assumes the rights and obligations of a director, company auditor or liquidator pursuant to the
provision of Article 346, paragraph (1) (including the cases where it is applied
mutatis mutandis pursuant to Article 479, paragraph (4)), where the relevant resolution is that of the shareholders meeting or class meeting, or including
directors at incorporation or company auditors at incorporation, where the
relevant resolution is that of the Organizational Meeting or class
organizational meeting)" in the same Article shall be deemed to be replaced with "directors, company auditors or liquidators (including a person who
assumes the rights and obligations of a director, executive officer or liquidator pursuant to the provision of Article 53-12, paragraph (1) of the Insurance
Business Act (including the cases where it is applied mutatis mutandis
pursuant to Article 180-5, paragraph (4) of that Act)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Right to Demand Convocation of General Meeting of Members)
Article 50 (1) Even where a Mutual Company has established a General Meeting pursuant to the provision of Article 42, paragraph (1), members representing at least five thousandths (or any smaller proportion prescribed by the articles of
incorporation) of the total membership (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order), who have been members of the Mutual Company without interruption for the
preceding six months (or any shorter period prescribed by the articles of incorporation), may demand the directors to convene the General Meeting of members with the purpose of abolishing the General Meeting or modifying any matter prescribed by the articles of incorporation pursuant to the provision of
paragraph (2) in that Article, by indicating the proposed agenda for the
meeting and the reason for the convocation.
(2) In the following cases, the members who made a demand pursuant to the
provision of the preceding paragraph may convene the General Meeting of members with the permission of the court.
(i) Where the convening procedure is not effected without delay after a demand pursuant to the provisions of the preceding paragraph; or
(ii) Where a notice for the convocation of the General Meeting of members which designates, as the date of the General Meeting of members, a date
falling within the period of eight weeks (or any shorter period provided for in the articles of incorporation) from the day of a demand pursuant to the
provision of the preceding paragraph, is not given.
(3) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 869 (Showing of Prima Facie Evidence), Article 871
(Supplementary Note of Reasons), Article 874 (limited to the segment
pertaining to item (iv)) (Restrictions on Appeal), Article 875 (Exclusion from
Application of Provisions of Act on Procedures for Non-Contentious Cases) and
Article 876 (Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to the preceding paragraph. In this case, any other necessary
technical change in interpretation shall be specified by a Cabinet Order. (4) Where a resolution modifying any matter prescribed by the articles of
incorporation pursuant to the provision of Article 42, paragraph (2) is adopted by the General Meeting of members convened pursuant to the provision of the preceding three paragraphs, the General Meeting may not adopt a resolution
amending the articles of incorporation regarding the matter thus modified,
unless three years have elapsed since the day on which the amendment of the articles of incorporation came into effect regarding such matter.
Division 3 Establishment of Organs Other than General Meeting of
Members and General Meeting, etc.
(Organs)
Article 51 (1) A Mutual Company shall set up the following organs: (i) Board of directors; and
(ii) Company auditors or Committees.
(2) A Mutual Company may set up accounting advisors, a board of company auditors or accounting auditors pursuant to the provisions of the articles of incorporation.
(3) A Mutual Company that is an Insurance Company and a Mutual Company
listed in Article 272-4, paragraph (1), item (i), (b) (other than a company with
Committees) shall set up a board of company auditors and an accounting auditor.
(4) A company with Committees shall not set up any company auditor. (5) A company with Committees shall set up accounting auditors.
(Election)
Article 52 (1) Officers (referring to directors, accounting advisors and company auditors; hereinafter the same shall apply in this Division) and accounting
auditors shall be elected by a resolution of the General Meeting of members (or
General Meeting, where the company has such meeting; hereinafter the same shall apply in this Subsection).
(2) In adopting a resolution under the preceding paragraph, substitute officers may be elected as prescribed by a Cabinet Office Ordinance by way of
precaution against the cases where there are no officers in office or where there is a vacancy which results in a shortfall in the number of officers prescribed by
this Act or the articles of incorporation.
(Relationship between Mutual Company and Officers, etc.)
Article 53 The relationship held by a Mutual Company with its officers and accounting auditors shall be governed by the provisions on mandate.
(Qualifications, etc. of Directors)
Article 53-2 (1) Any of the following persons may not act as a director: (i) A juridical person;
(ii) An adult ward, a person under curatorship, or a person who is similarly
treated under foreign laws and regulations;
(iii) A person who has been sentenced to a penalty for having violated the
provisions of this Act, the Companies Act or the Act on General Incorporated Association and General Incorporated Foundation (Act No. 48 of 2006), or for having committed: a crime under Article 197 (Crime of False Statement in Securities Registration Report, etc.), Article 197-2, items (i) to (x) inclusive
or (xiii) (Crime of Solicitation of Securities by Unregistered Agents. etc.),
Article 198, item (viii) (Crime of Violating Prohibition Order or Order for
Suspension by Court), Article 199 (Crime of Refusal of Reporting, etc.),
Article 200, items (i) to (xii) inclusive or item (xxi) (Crime of Non-Submission of Correction Report, etc.), Article 203, paragraph (3) (Bribery of Officer or
Staff of Financial Instruments Business Operators, etc.) or Article 205, items
(i) to (vi) inclusive, item (xvi) or (xx) (Crime of Non-Submission of Written
Notice, etc. on Specified Solicitation, etc.) of the Financial Instruments and
Exchange Act; a crime under Article 549 (Crime of Fraudulent
Reorganization), Article 550 (Crime of Giving Security, etc. to Specific
Creditor, etc.), Article 552 to 555 inclusive (Crime of Refusal to Report or Undergo Investigation, etc., Crime of Destruction of Materials Regarding Conditions of Business and Property, etc., Crime of Obstruction of Duties Against Trustee in Bankruptcy, etc.) or Article 557 (Bribery) of the Act on
Special Measures, etc. concerning Reorganization Proceedings for Financial Institutions, etc. (Act No. 95 of 1996); a crime under Article 255 (Crime of Fraudulent Rehabilitation), Article 256 (Crime of Giving Security to Specific Creditor, etc.), Article 258 to 260 inclusive (Crime of Refusal to Report or
Undergo Investigation, etc., Crime of Destruction of Materials Regarding
Conditions of Business and Property, etc., Crime of Obstruction of Duties
Against Supervising Commissioner, etc.) or Article 262 (Bribery) of the Civil Rehabilitation Act (Act No. 225 of 1999); a crime under Article 65 (Crime of Refusal of Reporting or Investigation, etc.), Article 66 (Crime of Obstruction
of Duties Against Recognition Trustee, etc.), Article 68 (Bribery) or Article 69
(Crime of Disposition or Export of Property without Permission) of the Act on
Recognition and Assistance for Foreign Insolvency Procedures (Act No. 129 of
2000); a crime under Article 265 (Crime of Fraudulent Bankruptcy), Article
266 (Crime of Giving Security to Specific Creditor, etc.), Article 268 to 272 inclusive (Crime of Refusal of Explanation or Investigation, etc., Crime of Refusing to Disclose Important Property, etc., Crime of Destruction of
Materials Regarding Conditions of Business and Property, etc., Crime of
Refusal of Explanation in Hearing, etc., Crime of Obstruction of Duties
Against Bankruptcy Trustee, etc.), or Article 274 (Bribery) of the Bankruptcy Act (Act No. 75 of 2004), for whom two years have not elapsed since the day on which the execution of the sentence was completed or the sentence ceased to be applied; or
(iv) A person who was sentenced to imprisonment or severer punishment for
violating the provisions of laws and regulations other than those provided for in the preceding item, and who has not completed the execution of the
sentence or to whom the sentence still applies (excluding persons for whom the execution of the sentence is suspended).
(2) A director of a company with Committees may not concurrently act as a manager or any other employee of such company with Committees.
(3) A Mutual Company shall have three or more directors.
(Directors' Terms of Office)
Article 53-3 (1) Directors' terms of office shall continue until the conclusion of
the annual general meeting of members (or annual general meeting, where the company has such meeting; hereinafter the same shall apply in this
Subsection) for the last business year which ends within two years from the
time of their election; provided, however, that this shall not preclude the
shortening of the their terms of office by the articles of incorporation or by a resolution of the General Meeting of members.
(2) For the purpose of applying the provision of the preceding paragraph to the directors of a company with Committees, the term "two years" in that
paragraph shall be deemed to be replaced with "one year."
(3) The provision of Article 332, paragraph (4) (excluding item (iii)) (Directors' terms of office) of the Companies Act shall apply mutatis mutandis to the
terms of office of the directors of a Mutual Company. In this case, the term
"preceding three paragraphs" in that paragraph shall be deemed to be replaced with "Article 53-3, paragraphs (1) and (2) of the Insurance Business Act"; any
other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(Qualifications, etc. of Accounting Advisors)
Article 53-4 The provisions of Articles 333 (Qualifications of Accounting
Advisors) and Article 334 (excluding Article 332, paragraph (2) and Article 332, paragraph (4), item (iii) of the Companies Act as applied mutatis mutandis
pursuant to Article 334, paragraph (1)) (Accounting Advisors' Terms of Office) of the Companies Act shall apply mutatis mutandis to the accounting advisors of a Mutual Company. In this case, any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Qualifications, etc. of Company Auditors)
Article 53-5 (1) The provision of Article 53-2, paragraph (1) shall apply mutatis mutandis to the company auditors of a Mutual Company. In this case, any
other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(2) A company auditor of a Mutual Company may concurrently act neither as a director, or manager or any other employee of that Mutual Company or its de
facto Subsidiary Company, nor as an executive officer or accounting advisor (or, where the accounting advisor is a juridical person, any member of that
juridical person who is supposed to carry out relevant duties) of such de facto
Subsidiary Company.
(3) A company with a board of company auditors shall have three or more
company auditors, of whom half or more shall be outside company auditors (referring to those company auditors of a Mutual Company who have never been a director, executive officer or accounting advisor (or, if the accounting advisor is a juridical person, any member of that juridical person who is
supposed to carry out relevant duties), or manager or any other employee of
the Mutual Company or its de facto Subsidiary Company; the same shall apply hereinafter).
(Company Auditors' Terms of Office)
Article 53-6 (1) Company auditors' terms of office shall continue until the
conclusion of the annual general meeting of members for the last business year
which ends within four years from the time of their election.
(2) The provisions of Article 336, paragraphs (3) and (4) (limited to the segment pertaining to item (ii) (Company Auditors' Terms of Office) of the Companies Act shall apply mutatis mutandis to the company auditors of a Mutual
Company. In this case, the term "paragraph (1)" in paragraph (3) of that
Article shall be deemed to be replaced with "Article 53-6, paragraph (1) of the
Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Qualifications, etc. of Accounting Auditors)
Article 53-7 The provisions of Article 337 (Qualifications of Accounting Auditors)
and Article 338, paragraphs (1) and (2) (Accounting Auditors' Terms of Office) of the Companies Act shall apply mutatis mutandis to the accounting auditors of a Mutual Company; and the provision of Article 338, paragraph (3) of that
Act shall apply mutatis mutandis to the accounting auditors of a Mutual
Company other than that set forth in Article 53-14, paragraph (5), respectively. In this case, the term "Article 435, paragraph (2)" in Article 337, paragraph (3), item (i) of that Act shall be deemed to be replaced with "Article 54-3,
paragraph (2) of the Insurance Business Act"; any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(Dismissal)
Article 53-8 (1) Officers and accounting auditors of a Mutual Company may be dismissed at any time by a resolution of the General Meeting of members.
(2) A person dismissed pursuant to the provision of the preceding paragraph shall be entitled to demand from the Mutual Company compensation for
damages arising from the dismissal, except in cases where there are justifiable
reasons for such dismissal.
(Dismissal of Accounting Auditors by Company Auditors, etc.)
Article 53-9 (1) The company auditor may dismiss an accounting auditor if that accounting auditor:
(i) has breached his/her professional obligations or neglected his/her duties.
(ii) has engaged in misconduct inappropriate for an accounting auditor; or
(iii) has difficulty in, or is unable to cope with the execution of his/her duties due to a mental or physical disorder.
(2) Any dismissal pursuant to the provision of the preceding paragraph shall be
effected by the unanimous consent of all company auditors, where the company has two or more company auditors.
(3) If an accounting auditor is dismissed pursuant to the provision of paragraph
(1), the company auditor (or, where the company has two or more company
auditors, a company auditor appointed from among themselves) shall report
such fact and the reason for dismissal to the first General Meeting of members convened after the dismissal.
(4) For the purpose of applying the provisions of the preceding three paragraphs to a company with a board of company auditors, the term "company auditor" in paragraph (1) shall be deemed to be replaced with "board of company auditors"; the term "company auditors, where the company has two or more company
auditors" in paragraph (2) shall be deemed to be replaced with "company
auditors"; and the term "company auditor (or, where the company has two or
more company auditors, a company auditor appointed from among themselves)" in the preceding paragraph shall be deemed to be replaced with "company
auditor appointed by the board of company auditors."
(5) For the purpose of applying the provisions of paragraphs (1) to (3) inclusive to a company with Committees, the term "company auditor" in paragraph (1)
shall be deemed to be replaced with "audit committee"; the term "company
auditors, where the company has two or more company auditors" in paragraph (2) shall be deemed to be replaced with "Audit Committee Members"; and the term "company auditor (or, where the company has two or more company
auditors, a company auditor appointed from among themselves)" in paragraph
(3) shall be deemed to be replaced with "audit committee member appointed by the committee."
(Method of Adopting Resolution for Election, etc. of Officers)
Article 53-10 Notwithstanding the provisions of Articles 37, paragraph (1) and
Article 44, paragraph (1), resolutions of the General Meeting of members for the election or dismissal of officers shall be adopted by a majority (or any
larger proportion prescribed by the articles of incorporation) of the votes held
by the attending members (or, where the company has a General Meeting, general representatives) in a session where half (or any other proportion larger than one third prescribed by the articles of incorporation) or more of the
members (or general representatives) are present.
(Application mutatis mutandis of Companies Act)
Article 53-11 The provision of Article 343 (Consent of Company Auditors to
Election of Company Auditors) of the Companies Act shall apply mutatis
mutandis to the election of the company auditors of a Mutual Company; the provision of Article 344 (Consent of Company Auditors to the Election of
Accounting Auditors) of that Act shall apply mutatis mutandis to the election of the accounting auditors of a Mutual Company; and the provision of Article
345 (Statement of Opinions on Election of Accounting Advisors, etc.) of that Act shall apply mutatis mutandis to the statement of opinions regarding the
election or dismissal, or resignation of the accounting advisors, company
auditors or accounting auditors of a Mutual Company. In this case, the term "Article 341" in Article 343, paragraph (4) of that Act shall be deemed to be replaced with "Article 53-10 of the Insurance Business Act"; and the term
"Article 298, paragraph (1), item (i)" in Article 345, paragraph (3) of that Act shall be deemed to be replaced with "Article 298, paragraph (1), item (i) as
applied mutatis mutandis pursuant to Article 41, paragraph (1) or Article 49, paragraph (1) of the Insurance Business Act"; any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(Measures when Vacancies Arise among Officers, etc.)
Article 53-12 (1) If and when a Mutual Company has no officers or any vacancy which results in a shortfall in the number of officers prescribed by this Act or
the articles of incorporation, an officer who retired from office due to expiration of his/her term of office or resignation shall retain the rights and obligations of an officer until a newly elected officer (including a person who is to temporarily carry out the duties of an officer under the following paragraph) assumes
his/her office.
(2) In the case prescribed in the preceding paragraph, the court may, when it finds necessary, appoint a person to temporarily carry out the duties of an
officer, in response to a petition filed by any interested person.
(3) The court may, when it has appointed a person to temporarily carry out the duties of an officer under the preceding paragraph, specify the amount of the remuneration to be paid by the Mutual Company to said person.
(4) If and when a Mutual Company has no accounting auditors or any vacancy
which results in a shortfall in the number of accounting auditors prescribed by the articles of incorporation, and an accounting auditor is not elected without
delay, the company auditor shall appoint a person to temporarily carry out the duties of an accounting auditor.
(5) The provision of Article 337 of the Companies Act as applied mutatis
mutandis pursuant to Article 53-7 and the provision of Article 53-9 shall apply mutatis mutandis to the person who is to temporarily carry out the duties of an accounting auditor under the preceding paragraph. In this case, any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(6) For the purpose of applying the provision of paragraph (4) to a company with a board of company auditors, the term "company auditor" in that paragraph shall be deemed to be replaced with "board of company auditors."
(7) For the purpose of applying the provision of paragraph (4) to a company with
Committees, the term "company auditor" in that paragraph shall be deemed to be replaced with "audit committee."
(8) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 870 (limited to the segment pertaining to item (ii)) (Hearing of
Statements), Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling),
Article 874 (limited to the segment pertaining to item (i)) (Restrictions on
Appeal), Article 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases), Article 876 (Supreme Court Rules) and
Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (a) and (c)) (Commission of Registration by Judicial Decision) of the Companies Act shall apply mutatis mutandis to paragraphs (2) and (3). In this case, any other necessary technical change in interpretation shall be specified by a
Cabinet Order.
Division 4 Directors and Board of Directors
(Authority of Directors)
Article 53-13 (1) The following directors execute the business of the Mutual
Company:
(i) A representative director; and
(ii) A director other than a representative director, who is appointed by resolution of the board of directors as the director who is to execute the business of the Mutual Company.
(2) The directors listed in the items of the preceding paragraph shall report the status of the execution of his/her duties to the board of directors at least once in every three months.
(Authority, etc. of Board of Directors)
Article 53-14 (1) Board of directors shall be composed of all directors. (2) Board of directors shall carry out the following duties:
(i) Deciding the execution of the business of the Mutual Company;
(ii) Supervising the execution of duties by directors; and
(iii) Appointing and removing representative directors.
(3) Board of directors shall appoint the representative director from among the directors.
(4) Board of directors may not delegate the decision on the execution of important business such as the following matters to directors.:
(i) The appropriation of and acceptance of assignment of important assets; (ii) Borrowing in a significant large amounts;
(iii) The election and dismissal of an important employee including a manager;
(iv) The establishment, modification or abolition of secondary offices and other important structures;
(v) The matters specified by a Cabinet Office Ordinance as important matters regarding the solicitation of persons who subscribe for bonds (referring to the bonds as defined in that Article), such as the matter listed in Article 61, item (i);
(vi) Revision of a system necessary to ensure that the execution of duties by
directors complies with laws and regulations and the articles of incorporation, and of any other system specified by a Cabinet Office Ordinance as a system
necessary to ensure proper activities of a Mutual Company; or
(vii) Exemption from liability under Article 53-33, paragraph (1) pursuant to the provisions of the articles of incorporation under Article 426, paragraph
(1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-
36 with relevant changes in interpretation.
(5) In a Mutual Company that is an Insurance Company and a Mutual Company listed in Article 272-4, paragraph (1), item (i), (b), the board of directors shall decide on the matters listed in item (vi) of the preceding paragraph.
(Application mutatis mutandis of Companies Act)
Article 53-15 The provisions of Article 350 (Liability for Damages Caused by Acts of Directors), Article 352 (Authority of Persons Who Perform Duties on Behalf of Directors), Article 354 to 357 inclusive (Apparent Representative
Directors, Duty of Loyalty, Restrictions on Competition and Conflict of Interest
Transactions, Director's Duty to Report), Article 358 (excluding paragraph (1), item (ii)) (Election of Inspector of Execution of Operation), Article 359
(Decision by Court to Call Shareholders Meeting), Article 360, paragraph (1)
(Enjoinment of Acts of Directors by Shareholders), Article 361 (Remuneration
for Directors) and Article 365, paragraph (2) (Restrictions on Competition and Transactions with Companies with a Board of Directors) of the Companies Act shall apply mutatis mutandis to the directors of a Mutual Company; the
provisions of Article 349, paragraphs (4) and (5) (Representatives of
Companies), and Article 351 (Measures When Vacancy Arises in Office of Representative Director) of that Act shall apply mutatis mutandis to the representative director of a Mutual Company; the provisions of Article 868,
paragraph (1) (Jurisdiction of Non-Contentious Cases), Article 869 (Showing of
Prima Facie Evidence), Article 870 (limited to the segment pertaining to item
(ii)) (Hearing of Statements), Article 871 (Supplementary Note of Reasons),
Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874 (limited to the segment pertaining to items (i) and (iv)) (Restrictions on Appeal), Article 875 (Exclusion from Application of
Provisions of Act on Procedures for Non-Contentious Cases) and Article 876
(Supreme Court Rules) of that Act shall apply mutatis mutandis to the
directors or representative director of a Mutual Company; and the provision of
Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (a)
and (c)) (Commission of Registration by Judicial Decision) of that Act shall
apply mutatis mutandis to the representative director of a Mutual Company. In this case, the term "shareholders meeting" in Article 356, paragraph (1) of that Act shall be deemed to be replaced with "board of directors"; the term
"shareholders" in Article 358, paragraph (1) of that Act shall be deemed to be
replaced with "members or general representatives"; the term "Shareholders who hold not less than three hundredths of the votes (or, in cases where a
lesser proportion is prescribed in the articles of incorporation, such proportion)
of all shareholders (excluding shareholders who may not exercise their votes on all matters which may be resolved at shareholders meetings)" in Article 358,
paragraph (1), item (i) of that Act shall be deemed to be replaced with
"Members representing at least three thousandths (or any smaller proportion prescribed by the articles of incorporation) of the total membership, or three
thousand (or any smaller number prescribed by the articles of incorporation) or
more members of a Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set forth in Article 38, paragraph (1) of the Insurance Business Act), who have
been members of the Mutual Company without interruption for the preceding
six months (or any shorter period prescribed by the articles of incorporation) (or, where the company has a General Meeting, those persons, or nine (or any other smaller number prescribed by the articles of incorporation) or more
general representatives)"; the term "shareholders" in Article 358, paragraph (7) shall be deemed to be replaced with "members or general representatives"; the term "shareholders" in Article 359, paragraph (1), item (ii) of that Act shall be
deemed to be replaced with "members (or, where the company has a General Meeting, general representatives)"; and the terms "shareholders having the shares" and "substantial detriment" in Article 360, paragraph (1) of that Act shall be deemed to be replaced with "persons who have been members" and "irreparable damages," respectively; any other necessary technical change in interpretation shall be prescribed by a Cabinet Order.
(Operation of Board of Directors)
Article 53-16 The provisions of Part II, Chapter IV, Section 5, Subsection 2
(excluding Article 367, and Article 371, paragraphs (3) and (5)) (Operations) of the Companies Act shall apply mutatis mutandis to the operation of the board
of directors of a Mutual Company; and the provisions of Article 868, paragraph
(1) (Jurisdiction of Non-Contentious Cases), Article 869 (Showing of Prima
Facie Evidence), Article 870 (limited to the segment pertaining to item (i))
(Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv))
(Immediate Appeal Against Ruling), the main clause of Article 873 (Stay of Execution of Original Sentence), Article 875 (Exclusion from Application of Provisions of Act on Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules) of that Act shall apply mutatis mutandis to an
application for permission under Article 371, paragraph (2) or (4) of that Act as applied mutatis mutandis pursuant to this Article with relevant changes in
interpretation. In this case, the terms "shareholder" and "at any time during
the business hours of a Stock Company" in Article 371, paragraph (2) (Minutes)
of that Act shall be deemed to be replaced with "member (or, where the company has a General Meeting, general representative)" and "with the permission of the court," respectively; the term "Parent Company or
Subsidiary" in Article 371, paragraph (6) shall be deemed to be replaced with
"de facto Subsidiary Company as defined in Article 33-2, paragraph (1) of the Insurance Business Act"; the term "Article 363, paragraph (2)" in Article 372, paragraphs (2) and (3) (Omission of Report to Board of Directors) of that Act shall be deemed to be replaced with "Article 53-13, paragraph (2) of the
Insurance Business Act"; the term "Article 417, paragraph (4)" in Article 372, paragraph (3) shall be deemed to be replaced with "Article 417, paragraph (4) as applied mutatis mutandis pursuant to Article 53-30, paragraph (5) of the
Insurance Business Act"; and the term "Article 362, paragraph (4), items (i)
and (ii)" in Article 373, paragraphs (1) and (2) (Resolution of board of directors
by special directors) of that Act shall be deemed to be replaced with "Article 53-
14, paragraph (4), items (i) and (ii) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet
Order.
Division 5 Accounting Advisors
(Authority, etc. of Accounting Advisors)
Article 53-17 The provisions of Part II, Chapter IV, Section 6 (excluding Article
378, paragraph (1), item (ii) and Article 378, paragraph (3)) (Accounting
Advisors) of the Companies Act shall apply mutatis mutandis to the accounting advisors of a Mutual Company. In this case, the terms "Article 435, paragraph (2)," "supplementary schedules thereof, the Temporary Financial Statements
(referring to the Temporary Financial Statements provided for in Article 441, paragraph (1), hereinafter the same shall apply in this Chapter)" and "Article
444, paragraph (1)" in Article 374, paragraph (1) (Authority of Accounting
Advisors) of that Act shall be deemed to be replaced with "Article 54-3,
paragraph (2) of the Insurance Business Act," "annex detailed statement
thereto" and "Article 54-10, paragraph (1) of the Insurance Business Act," respectively; the term "Article 333, paragraph (3), item (ii) or (iii)" in Article
374, paragraph (5) shall be deemed to be replaced with "Article 333, paragraph (3), item (ii) or (iii) as applied mutatis mutandis pursuant to Article 53-4 of the Insurance Business Act"; the term "Article 436, paragraph (3), Article 441,
paragraph (3) or Article 444, paragraph (5)" in Article 376, paragraph (1)
(Attendance at board of directors meetings) of that Act shall be deemed to be replaced with "Article 54-4, paragraph (3) or Article 54-10, paragraph (5) of the Insurance Business Act"; the term "Article 368, paragraph (2)" in Article 376,
paragraph (3) of that Act shall be deemed to be replaced with "Article 368,
paragraph (2) as applied mutatis mutandis pursuant to Article 53-16 of the
Insurance Business Act"; and the term "Article 319, paragraph (1)" in Article
378, paragraph (1), item (i) (Keeping and Inspection of Financial Statements by
Accounting Advisors) of that Act shall be deemed to be replaced with "Article
319, paragraph (1) as applied mutatis mutandis pursuant to Article 41,
paragraph (1) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Division 6 Company Auditors and Board of Company Auditors
(Authority of Company Auditors)
Article 53-18 (1) The company auditors shall audit the execution of duties by directors (or, in a company with accounting advisors (referring to a Stock Company or Mutual Company which has accounting advisors; the same shall apply hereinafter), directors and accounting advisors). In this case, the
company auditors shall prepare audit reports pursuant to the provisions of a
Cabinet Office Ordinance.
(2) The company auditors may at any time request a business report from the directors and accounting advisors, and managers and other employees, or investigate the status of the activities and property of the Mutual Company.
(3) The company auditors may, if it is necessary for the purpose of carrying out
their duties, request a business report from a de facto Subsidiary Company of
the Mutual Company, or investigate the status of the activities and property of such de facto Subsidiary Company.
(4) The de facto Subsidiary Company set forth in the preceding paragraph may
refuse to submit reports or undergo investigation as set forth in that paragraph if it has justifiable grounds.
(Authority of Board of Company Auditors)
Article 53-19 (1) The board of company auditors shall be composed of all company auditors.
(2) The board of company auditors shall carry out the following duties; provided, however, that a decision under item (iii) may not preclude company auditors
from exercising their authority: (i) Preparing audit reports;
(ii) Appointing and removing full-time company auditors; and
(iii) Deciding on the matters regarding the execution of the duties of company auditors, such as audit policy and method of investigating the status of the business and property of the company with board of company auditors.
(3) The board of company auditors shall appoint full-time company auditors from
among the company auditors.
(4) The company auditors shall report the status of the execution of their duties to the board of company auditors whenever the latter so requests.
(Application mutatis mutandis of Companies Act)
Article 53-20 The provisions of Article 382 to 388 inclusive (Duty to Report to
Directors, Duty to Attend Board of Directors Meetings, Duty to Report to
Shareholders Meetings, Enjoinment of Acts of Directors by Company Auditors, Representation of Company in Actions between Company with Auditors and
Directors, Remunerations for Company Auditors, Requests for Indemnification of Expenses) of the Companies Act shall apply mutatis mutandis to the
company auditors of a Mutual Company. In this case, the term "Article 373,
paragraph (1)" in Article 383, paragraph (1) of that Act shall be deemed to be replaced with "Article 373, paragraph (1) as applied mutatis mutandis
pursuant to Article 53-16 of the Insurance Business Act"; the term "proviso to Article 366, paragraph (1)" in Article 383, paragraph (2) shall be deemed to be replaced with "proviso to Article 366, paragraph (1) as applied mutatis
mutandis pursuant to Article 53-16 of the Insurance Business Act"; the term
"Article 373, paragraph (2)" in Article 383, paragraph (4) shall be deemed to be replaced with "Article 373, paragraph (2) as applied mutatis mutandis
pursuant to Article 53-16 of the Insurance Business Act"; the term "Article 349, paragraph (4), Article 353 and Article 364" in Article 386, paragraph (1) of that Act and the term "Article 349, paragraph (4)" in Article 386, paragraph (2)
shall be deemed to be replaced with "Article 349, paragraph (4) as applied
mutatis mutandis pursuant to Article 53-15 of the Insurance Business Act"; the term "Article 847, paragraph (1)" in Article 386, paragraph (2), item (i) of that
Act shall be deemed to be replaced with "Article 847, paragraph (1) as applied mutatis mutandis pursuant to Article 53-37 of the Insurance Business Act"; and the terms "Article 849, paragraph (3)" and "Article 850, paragraph (2)" in Article 386, paragraph (2), item (ii) of that Act shall be deemed to be replaced with "Article 849, paragraph (3) as applied mutatis mutandis pursuant to
Article 53-37 of the Insurance Business Act" and "Article 850, paragraph (2) as
applied mutatis mutandis pursuant to Article 53-37 of the Insurance Business
Act," respectively; any other necessary technical change in interpretation shall
be specified by a Cabinet Order.
(Operation of Board of Company Auditors)
Article 53-21 The provisions of Part II, Chapter IV, Section 8, Subsection 2 (Operations) of the Companies Act shall apply mutatis mutandis to the
operation of the board of company auditors of a Mutual Company; and the
provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 869 (Showing of Prima Facie Evidence), Article 870 (limited to
the segment pertaining to item (i)) (Hearing of Statements), the main clause of
Article 871 (Supplementary Note of Reasons), Article 872 (limited to the
segment pertaining to item (iv)) (Immediate Appeal Against Ruling), the main clause of Article 873 (Stay of Execution of Original Sentence), Article 875
(Exclusion from Application of Provisions of Act on Procedures for Non-
Contentious Cases) and Article 876 (Supreme Court Rules) of that Act shall apply mutatis mutandis to the application for permission under Article 394, paragraph (2) of that Act (including the cases where it is applied mutatis mutandis pursuant to Article 394, paragraph (3); hereinafter the same shall
apply in this Article) as applied mutatis mutandis pursuant to this Article. In
this case, the term "shareholder" in Article 394, paragraph (2) (Minutes) of
that Act shall be deemed to be replaced with "member (or, where the company has a General Meeting, general representative)"; the term "and to the cases
where it is necessary for the purpose of exercising the rights of a Member of the Parent Company" in Article 394, paragraph (3) shall be deemed to be
deleted; and the term "Parent Company or Subsidiary" in Article 394,
paragraph (4) shall be deemed to be replaced with "de facto Subsidiary
Company as defined in Article 33-2, paragraph (1) of the Insurance Business
Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Division 7 Accounting Auditors
(Authority, etc. of Accounting Auditors)
Article 53-22 (1) The accounting auditors shall audit the financial statements
(referring to the financial statements as defined in Article 54-3, paragraph (2);
hereinafter the same shall apply in this Subsection), annexed detailed
statements thereto and consolidated financial statements (referring to the
consolidated financial statements as defined in Article 54-10, paragraph (1)) of
the Mutual Company pursuant to the provisions of the following Subsection. In this case, the accounting auditors shall prepare accounting audit reports
pursuant to the provisions of a Cabinet Office Ordinance.
(2) The accounting auditors may at any time inspect and copy the following
materials or request reports on accounting from the directors and accounting advisors and managers or other employees:
(i) Any account book (referring to the accounting book as defined in Article 54-2, paragraph (1); hereinafter the same shall apply in this Subsection) or related material prepared in writing; and
(ii) Where account books or related materials are prepared in the form of
electromagnetic record, anything that displays the data recorded on such
electromagnetic record in a manner specified by a Cabinet Office Ordinance. (3) The accounting auditors may, if it is necessary for the purpose of carrying out
their duties, request a report on accounting from a de facto Subsidiary
Company of the company with accounting auditors, or investigate the status of the business and property of the company with accounting auditors or such de
facto Subsidiary Company.
(4) The de facto Subsidiary Company set forth in the preceding paragraph may refuse to submit a report or undergo investigation as set forth in that
paragraph, if it has justifiable grounds.
(5) The accounting auditors shall not employ a person falling under any of the following items in carrying out their duties:
(i) A person listed in Article 337, paragraph (3), item (i) or (ii) of the
Companies Act as applied mutatis mutandis pursuant to Article 53-7;
(ii) A person who is a director, executive officer, accounting advisor or company auditor, or manager or any other employee of the company with accounting
auditors or its de facto Subsidiary Company; or
(iii) A person who is in continuous receipt of remuneration from the company
with accounting auditors or its de facto Subsidiary Company for any business other than those carried out as a certified public accountant or audit firm.
(6) For the purpose of applying the provision of paragraph (2) to a Mutual
Company that is a company with Committees, the term "directors" in that
paragraph shall be deemed to be replaced with "directors, executive officers."
(Application mutatis mutandis of Companies Act)
Article 53-23 The provisions of Article 397 to 399 inclusive (Report to Company
Auditors, Statement of Opinions at Annual Shareholders Meeting, Involvement of Company Auditors in Decision on Remunerations for Accounting Auditors) of the Companies Act shall apply mutatis mutandis to the accounting auditors of
a Mutual Company. In this case, the term "Article 396, paragraph (1)" in
Article 398, paragraph (1) of that Act shall be deemed to be replaced with
"Article 53-22, paragraph (1) of the Insurance Business Act"; any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
Division 8 Committees and Executive Officers
(Appointment, etc. of Committee Members)
Article 53-24 (1) Each Committee shall be composed of three or more committee members.
(2) The members of each Committee shall be appointed from among the directors
by a resolution of the board of directors.
(3) The majority of the membership of each Committee shall be outside directors
(referring to those directors of a Mutual Company who are neither an executive director (referring to a director of a Mutual Company listed in Article 53-13,
paragraph (1), item (i) or (ii) or any other director who has executed the business of the Mutual Company; the same shall apply hereinafter) or
executive officer, nor a manager or any other employee of the Mutual Company or its de facto Subsidiary Company, and have never acted as an executive
director or executive officer, or as a manager or any other employee of the
Mutual Company or its de facto Subsidiary Company; the same shall apply hereinafter).
(4) An audit committee member may not concurrently act as an executive officer
or executive director of the company with Committees or its de facto Subsidiary
Company, or as an accounting advisor (or, where the accounting advisor is a
juridical person, any member of that juridical person who is supposed to carry out relevant duties) or manager or any other employee of a de facto Subsidiary Company of the company with Committees.
(Removal, etc. of Committee Members)
Article 53-25 (1) A committee member may be removed at any time by a resolution of the board of directors.
(2) The provisions of Article 401, paragraphs (2) to (4) inclusive (Removal of
Committee Members), Article 868, paragraph (1) (Jurisdiction of Non-
Contentious Cases), Article 870 (limited to the segment pertaining to item (ii)) (Hearing of Statements), Article 871 (Supplementary Note of Reasons), Article
872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874 (limited to the segment pertaining to item (i)) (Restrictions on Appeal), Article 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases), Article 876 (Supreme Court Rules) and
Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (a)
and (c)) (Commission of Registration by Judicial Decision) of the Companies
Act shall apply mutatis mutandis to the committee members of a company with
Committees. In this case, the term "paragraph (1) of the preceding Article" in
Article 401, paragraph (2) of that Act shall be deemed to be replaced with
"Article 53-24, paragraph (1) of the Insurance Business Act"; any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Election, etc. of Executive Officers)
Article 53-26 (1) A company with Committees shall have one or more executive officers.
(2) An executive officer shall be elected by a resolution of the board of directors. (3) The relationship between a company with Committees and its executive
officers shall be governed by the provisions on mandate.
(4) The provision of Article 53-2, paragraph (1) shall apply mutatis mutandis to an executive officer.
(5) An executive officer may act concurrently as a director.
(6) An executive officer's term of office shall continue until the conclusion of the first board of directors meeting convened after the conclusion of the annual general meeting of members for the last business year ending within one year from the time of their election; provided, however, that this shall not preclude the shortening of his/her term of office by the articles of incorporation.
(7) The provision of Article 402, paragraph (8) (Election of Executive Officers) of
the Companies Act shall apply mutatis mutandis to the terms of office of the executive officers of a Mutual Company. In this case, the term "the preceding
paragraph" in that paragraph shall be deemed to be replaced with "Article 53-
26, paragraph (6) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Dismissal, etc. of Executive Officers)
Article 53-27 (1) An executive officer may be dismissed at any time by a resolution of the board of directors.
(2) An executive officer dismissed pursuant to the provision of the preceding
paragraph may demand from the company with Committees compensation for damages arising from the dismissal, unless the company has justifiable
grounds for his/her dismissal.
(3) The provisions of Article 401, paragraphs (2) to (4) inclusive of the Companies
Act as applied mutatis mutandis pursuant to Article 53-25, paragraph (2), and the provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 870 (limited to the segment pertaining to item (ii)) (Hearing of
Statements), Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling),
Article 874 (limited to the segment pertaining to item (i)) (Restrictions on
Appeal), Article 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases), Article 876 (Supreme Court Rules) and
Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (a)
and (c)) (Commission of Registration by Judicial Decision) of that Act shall apply mutatis mutandis to the cases where a Mutual Company has no
executive officer or any vacancy in the number of executive officers prescribed by the articles of incorporation. In this case, any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(Authority, etc. of Committees)
Article 53-28 (1) The nominating Committee shall determine the contents of proposals to be submitted to the General Meeting of members regarding the
election and dismissal of directors (or, in a company with accounting advisors, directors and accounting advisors).
(2) The audit Committee shall carry out the following duties:
(i) Auditing the execution of duties by executive officers, etc. (referring to
executive officers and directors, or, in a company with accounting advisors, executive officers, directors and accounting advisors; hereinafter the same shall apply in this Division) and preparing audit reports; and
(ii) Determining the contents of proposals to be submitted to the General Meeting of members regarding the election and dismissal of accounting auditors, and the non-reappointment of accounting auditors.
(3) Notwithstanding the provision of Article 361, paragraph (1) of the Companies
Act as applied mutatis mutandis pursuant to Article 53-15, and the provisions of Article 379, paragraphs (1) and (2) of that Act as applied mutatis mutandis pursuant to Article 53-17, the compensation committee shall determine the
contents of remunerations, etc. (referring to the property considerations
received from the Mutual Company in exchange for execution of duties, such as remunerations and bonuses; hereinafter the same shall apply in this
paragraph) for individual executive officers, etc. Where an executive officer
acts concurrently as a manager or any other employee of the company with Committees, the same shall apply to the contents of remunerations, etc. for such manager or other employee.
(4) A company with Committees may not refuse any of the following requests
made to it by a committee member with respect to the execution of his/her duties (limited to a request regarding the execution of the duties of the
committee to which he/she belongs; hereinafter the same shall apply in this paragraph), unless the company proves that the expenses or obligations
pertaining to the request are not necessary for the execution of the duties of
such committee member:
(i) A request for advance payment of expenses;
(ii) A request for reimbursement of paid expenses and any interest incurred thereon from the date of payment; or
(iii) A request for payment of any obligation incurred (or, where the obligation
is not yet due, furnishing of reasonable security) to the creditor.
(5) The provisions of Article 405 to 409 inclusive (Investigations by Audit Committees, Duty to Report to Board of Directors, Enjoinment of Acts of Executive Officers, etc. by Audit Committee Members, Representation of Company in Actions between Company with Committees and Executive
Officers or Directors, Methods for Decisions on Remuneration by Compensation
Committee) of the Companies Act shall apply mutatis mutandis to the
Committees or committee members of a company with Committees. In this case, the term "provisions of Article 349, paragraph (4) applied mutatis mutandis
under Article 420, paragraph (3), and the provisions of Article 353 and Article
364" in Article 408, paragraph (1) of that Act shall be deemed to be replaced with "provision of Article 349, paragraph (4) as applied mutatis mutandis
pursuant to Article 420, paragraph (3) as applied mutatis mutandis pursuant to Article 53-32 of the Insurance Business Act"; the term "Article 349,
paragraph (4) applied mutatis mutandis under Article 420, paragraph (3)" in
Article 408, paragraph (3) shall be deemed to be replaced with "Article 349,
paragraph (4) as applied mutatis mutandis pursuant to Article 420, paragraph
(3) as applied mutatis mutandis pursuant to Article 53-32 of the Insurance
Business Act"; the term "Article 847, paragraph (1)" in Article 408, paragraph
(3), item (i) of that Act shall be deemed to be replaced with "Article 847,
paragraph (1) as applied mutatis mutandis pursuant to Article 53-37 of the
Insurance Business Act"; the terms "Article 849, paragraph (3)" and "Article
850, paragraph (2)" in Article 408, paragraph (3), item (ii) of that Act shall be deemed to be replaced with "Article 849, paragraph (3) as applied mutatis
mutandis pursuant to Article 53-37 of the Insurance Business Act" and "Article
850, paragraph (2) as applied mutatis mutandis pursuant to Article 53-37 of the Insurance Business Act," respectively; and the term "Article 404,
paragraph (3)" in Article 409, paragraph (2) of that Act shall be deemed to be replaced with "Article 53-28, paragraph (3) of the Insurance Business Act;" any other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(6) The provisions of Part II, Chapter IV, Section 10, Subsection 3 (Operation of
Committees) of the Companies Act shall apply mutatis mutandis to the
operation of the Committees of a company with Committees; and the provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious Cases), Article
869 (Showing of Prima Facie Evidence), Article 870 (limited to the segment
pertaining to item (i)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment
pertaining to item (iv)) (Immediate Appeal Against Ruling), the main clause of
Article 873 (Stay of Execution of Original Sentence), Article 875 (Exclusion
from Application of Provisions of Act on Procedures for Non-Contentious Cases)
and Article 876 (Supreme Court Rules) of that Act shall apply mutatis
mutandis to the application for permission under Article 413, paragraph (3) of
that Act (including the cases where it is applied mutatis mutandis pursuant to Article 413, paragraph (4); hereinafter the same shall apply in this paragraph) as applied mutatis mutandis pursuant to this Article. In this case, the term
"shareholder" in Article 413, paragraph (3) (Minutes) shall be deemed to be
replaced with "member (or, where the company has a General Meeting, general representative"; the term "and where it is necessary for the purpose of
exercising the rights of a Member of the Parent Company" in Article 413,
paragraph (4) shall be deemed to be deleted;" and the term "or its Parent
Company or Subsidiary" in Article 413, paragraph (5) of that Act shall be
deemed to be replaced with "or its de facto Subsidiary Company as defined in
Article 33-2, paragraph (1) of the Insurance Business Act; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Authority of Directors of Companies with Committees)
Article 53-29 The directors of a company with Committees may not execute the business of the company with Committees unless otherwise provided for in this Act or any order pursuant to this Act.
(Authority of Board of Directors of Company with Committees)
Article 53-30 (1) Notwithstanding the provision of Article 53-14, the board of
directors of a company with Committees shall carry out the following duties: (i) Making decisions on the following matters and any other decision on the
execution of the business of the company with Committees: (a) Basic management policy;
(b) Matters specified by a Cabinet Office Ordinance as requirements for the
execution of the duties of the audit committee;
(c) In a Mutual Company with two or more executive officers, matters regarding the interrelationship between executive officers, such as allocation of duties and line of control among executive officers;
(d) The directors to receive requests for the convocation of a board of
directors meeting under Article 417, paragraph (2) of the Companies Act as applied mutatis mutandis pursuant to paragraph (5); and
(e) Establishment of a system to ensure that the execution of duties by
executive officers conforms to the applicable laws and regulations and the articles of incorporation, as well as any other system required by a Cabinet Office Ordinance to ensure the properness of the Mutual Company's
business: and
(ii) Supervising the execution of duties by executive officers, etc.
(2) The board of directors of a company with Committees shall decide on the
matters listed in item (i), (a) to (e) inclusive of the preceding paragraph.
(3) The board of directors of a company with Committees may not delegate to a director the execution of duties listed in paragraph (1), item (i) or (ii).
(4) The board of directors of a company with Committees may, by adopting a resolution, delegate to an executive officer decisions on the execution of the company's business; provided, however, that this shall not apply to the
following matters:
(i) Decisions on the matters listed in the items of Article 298, paragraph (1) of the Companies Act as applied mutatis mutandis to Article 41, paragraph (1) or Article 49, paragraph (1);
(ii) Decisions on the contents of proposals to be submitted to the General
Meeting of members (excluding those regarding the election and dismissal of directors, accounting advisors and accounting auditors, and the non-
reappointment of accounting auditors);
(iii) Authorization under Article 356, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-15 (including the cases
where it is applied mutatis mutandis pursuant to the first sentence of Article
419, paragraph (2) of that Act as applied mutatis mutandis pursuant to
Article 53-32);
(iv) Designation of the directors to convene a board of directors meetings under the proviso to Article 366, paragraph (1) of the Companies Act as applied
mutatis mutandis pursuant to Article 53-16;
(v) Appointment of committee members under Article 53-24, paragraph (2) and removal of committee members under Article 53-25, paragraph (1);
(vi) Election of executive officers under Article 53-26, paragraph (2) and dismissal of executive officers under Article 53-27, paragraph (1);
(vii) Designation of persons to represent the company with Committees under
Article 408, paragraph (1), item (i) of the Companies Act as applied mutatis mutandis pursuant to Article 53-28, paragraph (5);
(viii) Appointment of the representative executive officer under the first
sentence of Article 420, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-32 and removal of the
representative executive officer under Article 420, paragraph (2) of that Act
as applied mutatis mutandis pursuant to Article 53-32;
(ix) Exemption from liability under Article 53-33, paragraph (1) pursuant to
the provisions of the articles of incorporation under Article 426, paragraph
(1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-
36 with relevant changes in interpretation;
(x) Authorization under Article 54-4, paragraph (3) and Article 54-10, paragraph (5);
(xi) Decisions on the contents of any contract pertaining to the acts listed in
the items of Article 62-2, paragraph (1);
(xii) Decisions on the contents of any entity conversion plan; and
(xiii) Decisions on the contents of any merger agreement.
(5) The provision of Article 417 (Operations of Board of Directors of Company With Committees) of the Companies Act shall apply mutatis mutandis to the operation of the board of directors of a company with Committees. In this case, the term "paragraph (1), item (i)-2 of the preceding Article" in paragraph (2) of that Article shall be deemed to be replaced with "Article 53-30, paragraph (1),
item (i), (d) of the Insurance Business Act"; any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(Authority of Executive Officers)
Article 53-31 The executive officers shall carry out the following duties:
(i) Making decisions on the execution of the operations of the company with
Committees as delegated by a resolution of the board of directors under paragraph (4) of the preceding Article; and
(ii) Executing the business of the company with Committees.
(Application mutatis mutandis of Companies Act)
Article 53-32 The provisions of Article 419 (excluding the second sentence of paragraph (2)) (Executive Officer's Duty to Report to Audit Committee Members), Article 421 (Apparent Representative Executive Officers) and
Article 422, paragraph (1) (Enjoinment of Acts of Executive Officers by
Shareholders) of the Companies Act shall apply mutatis mutandis to the
executive officers of a company with Committees; the provision of Article 420 (Representative Executive Officers) shall apply mutatis mutandis to the
representative executive officer of a company with Committees; the provisions
of Article 868, paragraph (1) (Jurisdiction of Non-Contentious Cases), Article
869 (Showing of Prima Facie Evidence), Article 870 (limited to the segment pertaining to item (ii)) (Hearing of Statements), Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874 (limited to the segment
pertaining to items (i) and (iv)) (Restrictions on Appeal), Article 875 (Exclusion
from Application of Provisions of Act on Procedures for Non-Contentious Cases)
and Article 876 (Supreme Court Rules) of that Act shall apply mutatis
mutandis to the executive officers or representative executive officer of a company with Committees; and the provision of Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (a) and (c)) (Commission of
Registration by Judicial Decision) of that Act shall apply mutatis mutandis to
the representative executive officer of a company with Committees. In this case, the term "Article 355, Article 356 and Article 365, paragraph (2)" in the first
sentence of Article 419, paragraph (2) of that Act shall be deemed to be replaced with "Article 355, Article 356 and Article 365, paragraph (2) as
applied mutatis mutandis pursuant to Article 53-15 of the Insurance Business Act"; the term "Article 357" in Article 419, paragraph (3) shall be deemed to be replaced with "Article 357 as applied mutatis mutandis pursuant to Article 53-
15 of the Insurance Business Act"; the terms "Article 349, paragraphs (4) and
(5)," "Article 352" and "Article 401, paragraphs (2) to (4) inclusive" in Article
420, paragraph (3) of that Act shall be deemed to be replaced with "Article 349, paragraphs (4) and (5) as applied mutatis mutandis pursuant to Article 53-15
of the Insurance Business Act," "Article 352 as applied mutatis mutandis
pursuant to Article 53-15 of that Act" and "Article 401, paragraphs (2) to (4)
inclusive as applied mutatis mutandis pursuant to Article 53-25 of the
Insurance Business Act," respectively; and the term "shareholders having the shares" in Article 422, paragraph (1) of that Act shall be deemed to be replaced with "persons who have been members"; any other necessary technical change
in interpretation shall be specified by a Cabinet Order.
Division 9 Liability for Damages of Officers, etc. (Liability of Damages of Officers, etc. to Mutual Company)
Article 53-33 (1) Directors, executive officers, accounting advisors, company auditors or accounting auditors (hereinafter referred to as "Officers, etc." in this Division) who have neglected their duties shall be liable to the Mutual Company for any damage resulting from such neglect.
(2) Where a director or executive officer has engaged in the transaction set forth
in Article 356, paragraph (1), item (i) (Restrictions on Competition and Conflict of Interest Transactions) of the Companies Act in violation of the provision of
Article 356, paragraph (1) of that Act as applied mutatis mutandis pursuant to
Article 53-15 (including the cases where it is applied mutatis mutandis
pursuant to the first sentence of Article 419, paragraph (2) of that Act as applied mutatis mutandis pursuant to the preceding Article; hereinafter the same shall apply in this paragraph), the amount of the profits obtained by the director, executive officer or a third Party as a result of such transaction shall be presumed to be the amount of the damage set forth in the preceding
paragraph.
(3) Where a Mutual Company incurs any damage as a result of the transaction
set forth in Article 356, paragraph (1), item (ii) or (iii) of the Companies Act as applied mutatis mutandis pursuant to Article 53-15 (including the cases where it is applied mutatis mutandis pursuant to the first sentence of Article 419,
paragraph (2) of that Act as applied mutatis mutandis pursuant to the
preceding Article), the following directors or executive officers shall be
presumed to have neglected their duties:
(i) The directors or executive officers set forth in Article 356, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-15 (including the cases where it is applied mutatis mutandis pursuant to the first sentence of Article 419, paragraph (2) of that Act as applied mutatis mutandis pursuant to the preceding Article);
(ii) The directors or executive officers who have decided that the Mutual
Company carry out such transaction; or
(iii) The directors who have agreed to the board of directors' resolution approving such transaction (in a company with Committees, limited to the cases where such transaction is carried out between the company with
Committees and the directors or gives rise to a conflict of interest between
the company with Committees and the directors).
(Exemption from Liability for Damages to Mutual Company)
Article 53-34 Officers, etc. may not be exempted from the liability under
paragraph (1) of the preceding Article without the consent of all members.
(Liability for Damages of Officers, etc. to Third Parties)
Article 53-35 (1) Officers, etc. shall be liable for any damage incurred by a third
Party as a result of their bad faith or gross negligence in carrying out their duties.
(2) The provision of the preceding paragraph shall also apply where the persons listed in the following items have carried out the acts provided for in the
relevant items; provided, however, that this shall not apply to the cases where such persons prove that they did not fail to exercise due care in carrying out
their duties:
(i) Directors and executive officers: the following acts:
(a) False notice with respect to important matters which shall be notified in soliciting funds or subscribers for company bonds (referring to the company bonds as defined in Article 61), or false statement or record with respect to a material used in explaining the business or any other matter of the
Mutual Company for the purpose of such solicitation;
(b) False statement or record with respect to an important matter to be
described in, or recorded on financial statements and business reports, and annexed detailed statements thereto;
(c) False registration; and
(d) False public notice (including the measures provided for in Article 54-7, paragraph (3));
(ii) Accounting advisors: false statement or record with respect to an important matter to be described in, or recorded on financial statements and annexed
detailed statements thereto, and accounting advisors' reports:
(iii) Auditors and Audit Committee Members: false statement or record with respect to an important matter to be described in, or recorded on audit
reports: and
(iv) Accounting auditors: false statement or record with respect to an important matter to be described in, or recorded on accounting audit reports.
(Application mutatis mutandis of Companies Act)
Article 53-36 The provisions of Article 425 (excluding paragraph (1), item (ii), the second sentence of paragraphs (4) and (5)) (Partial Exemption from
Liability), Article 426 (excluding paragraph (4)) (Provisions of Articles of
Incorporation on Exemption by Directors), Article 427 (Contracts for
Limitation of Liability), Article 428 (Special Provision on Transactions Carried
Out by Director for Himself/Herself) and Article 430 (Joint and Several
Liabilities of Officers, etc.) of the Companies Act shall apply mutatis mutandis to the liability for damages of the Officers, etc. of a Mutual Company. In this
case, the terms "Article 423, paragraph (1)" and "Article 424" in those
provisions shall be deemed to be replaced with "Article 53-33, paragraph (1) of
the Insurance Business Act" and "Article 53-34 of the Insurance Business Act," respectively; the term "resolution" in Article 425, paragraph (1) of that Act
shall be deemed to be replaced with "the resolution set forth in Article 62,
paragraph (2) of the Insurance Business Act"; the term "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
Committee Members) and executive officers) is to be obtained, and to the cases where a proposal regarding such exemption from liability" in Article 426,
paragraph (2) of that Act shall be deemed to be replaced with "a proposal
regarding the exemption of liability pursuant to the provisions of the articles of incorporation under that paragraph (limited to the exemption from liability of directors (excluding those who are Audit Committee Members) and executive
officers)"; the term "shareholders having not less than three hundredths (or, in cases where lesser proportion is prescribed in the articles of incorporation,
such proportion) of the votes of all shareholders (excluding Officers, etc. subject to the liability referred to in paragraph (3))" in Article 426, paragraph (5) shall be deemed to be replaced with "members representing at least three
thousandths (or any smaller proportion prescribed by the articles of
incorporation) of the total membership (excluding the number of members who are Officers, etc. subject to the liability referred to in paragraph (3)) of a
Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set forth in Article 38,
paragraph (1) of the Insurance Business Act)"; and the term "Article 425, paragraphs (4) and (5)" in Article 427, paragraph (5) of that Act shall be
deemed to be replaced with "the first sentence of Article 425, paragraph (4)";
any other necessary technical change in interpretation shall be prescribed by a
Cabinet Order.
(Lawsuit for Accountability, etc. in Mutual Company)
Article 53-37 The provisions of Part VII, Chapter II, Section 2 (excluding Article
847, paragraph (2), Article 849, paragraph (5), Article 851, paragraph (1), item
(i) and Article 851, paragraph (2)) (Lawsuit for Accountability, etc. in Stock
Company) of the Companies Act shall apply mutatis mutandis to a lawsuit for accountability in a Mutual Company; and the provisions of Section 3 of said
Chapter (excluding Article 854, paragraph (1), item (i), (a) and Article 854, paragraphs (2) to (4) inclusive) (Lawsuit for Dismissal of Officer in Stock
Company) and Article 937, paragraph (1) (limited to the segment pertaining to
item (i), (j)) (Commission of Registration by Judicial Decision) of that Act shall apply mutatis mutandis to a lawsuit for dismissal of an officer in a Mutual Company. In this case, the terms "shareholders having the shares (excluding
the holders of shares less than one unit who may not exercise their rights
pursuant to the provisions of the articles of incorporation under Article 189, paragraph (2)" and "Article 423, paragraph (1)" in Article 847, paragraph (1) (Lawsuit for Accountability, etc.) of that Act shall be deemed to be replaced with "persons who have been members" and "Article 53-33, paragraph (1) of
Insurance Business Act," respectively; the term "shareholder" in Article 847,
paragraphs (3) to (5) inclusive and (7) shall be deemed to be replaced with
"member"; and the provision of Article 854, paragraph (1), item (i) of that Act shall be deemed to be replaced with "members representing at least three
thousandths (or any smaller proportion prescribed by the articles of
incorporation) of the total membership, or three thousand (or any smaller number prescribed by the articles of incorporation) or more members of a Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set forth in Article 38,
paragraph (1) of the Insurance Business Act), who have been members of the
Mutual Company without interruption for the preceding six months (or any shorter period prescribed by the articles of incorporation) (or, where the
company has a General Meeting, those members or nine (or any smaller
number prescribed by the articles of incorporation) or more general
representatives"; any other necessary technical change in interpretation shall be prescribed by a Cabinet Order.
Subsection 5 Accounting, etc. for Mutual Company
Division 1 Accounting Principles
Article 54 Accounting for a Mutual Company shall be subject to such business accounting practices that are generally accepted as fair and adequate.
Division 2 Financial Statements, etc.
(Preparation and Retention, etc. of Accounting Books)
Article 54-2 (1) A Mutual Company must prepare accurate account books in a timely manner pursuant to the provisions of a Cabinet Office Ordinance.
(2) A Mutual Company shall retain its account books and important materials
regarding its business for ten years from the time of the closing of the account books.
(3) The court may, on application or by its own authority, order a Party in a lawsuit to submit the accounting books in whole or in Part.
(Preparation and Retention of Financial Statements, etc.)
Article 54-3 (1) A Mutual Company shall prepare a balance sheet as at the date of its establishment pursuant to the provisions of a Cabinet Office Ordinance.
(2) A Mutual Company shall, pursuant to the provisions of a Cabinet Office
Ordinance, prepare financial statements (referring to the balance sheet, profit and loss statement, proposal on appropriation of surplus or disposal of losses and any other statement specified by a Cabinet Office Ordinance as necessary and appropriate in order to indicate the status of the Mutual Company's
property and profits or losses; hereinafter the same shall apply in this
Division) and a business report for each business year, and annexed detailed statements thereto.
(3) The financial statements and business report, and annexed detailed
statements thereto may be prepared in the form of electromagnetic record.
(4) A Mutual Company shall retain its financial statements and annexed detailed statements thereto for ten years from the time of preparation of the financial
statements.
(Audit, etc. of Financial Statements, etc.)
Article 54-4 (1) In a Mutual Company (other than a company with accounting auditors), the financial statements and business report, and annexed detailed statements thereto under paragraph (2) of the preceding Article, shall be
audited by the company auditors pursuant to the provisions of a Cabinet Office
Ordinance.
(2) In a company with accounting auditors, the documents listed in the following items shall be audited by the persons listed in the relevant items pursuant to
the provisions of a Cabinet Office Ordinance:
(i) The financial statements and annexed detailed statements thereto set forth in paragraph (2) of the preceding Article: the company auditors (or, in a
company with Committees, the audit committee) and accounting auditors;
and
(ii) The business report and annexed detailed statements thereto set forth in paragraph (2) of the preceding Article: the company auditors (or, in a
company with Committees, the audit committee).
(3) The financial statements and business report, and annexed detailed
statements thereto audited under the preceding two paragraphs shall be approved by the board of directors.
(Provision of Financial Statements, etc. to Members)
Article 54-5 In giving a notice of convocation of the annual general meeting of members (or, where the company has a General Meeting, annual general
meeting; hereinafter the same shall apply in this Subsection), the directors shall, pursuant to the provisions of a Cabinet Office Ordinance, provide the members (or, in a Mutual Company with a General Meeting, general
representatives; hereinafter the same shall apply in this Subsection) with the
financial statements and business report (including any audit report or
accounting audit report) that have been approved under paragraph (3) of the preceding Article.
(Submission, etc. of Financial Statements, etc. to Annual General Meeting of
Members)
Article 54-6 (1) The directors shall submit or provide the financial statements and business report approved under Article 54-4, paragraph (3) to the annual general meeting of members.
(2) The financial statements submitted or provided pursuant to the provision of the preceding paragraph shall be approved by the annual general meeting of members.
(3) The directors shall report the contents of the business report submitted or provided pursuant to the provision of paragraph (1) to the annual general
meeting of members.
(4) In a company with accounting auditors, for the purpose of applying the
provisions of the preceding two paragraphs to the cases where the financial statements approved under Article 54-4, paragraph (3) satisfy the
requirements specified by a Cabinet Office Ordinance for accurate indication of the status of a Mutual Company's property and profits or losses in compliance
with the applicable laws and regulations and the articles of incorporation, the term "financial statements" in paragraph (2) shall be deemed to be replaced
with "proposal on appropriation of surplus or disposal of losses"; and the term
"business report" in the preceding paragraph shall be deemed to be replaced
with "financial statements (excluding the proposal on appropriation of surplus or disposal of losses) and business report."
(Public Notice of Financial Statements)
Article 54-7 (1) A Mutual Company shall, pursuant to the provisions of a
Cabinet Office Ordinance, give public notice of its balance sheet (or, in a Mutual Company set forth in Article 53-14, paragraph (5), its balance sheet and profit and loss statement) without delay after the conclusion of the annual general meeting of members.
(2) Notwithstanding the provision of the preceding paragraph, it shall be
sufficient for a Mutual Company which adopts, as its Method of Public Notice, publication in a daily newspaper that publishes matters on current events, to
give public notice of the gist of the balance sheet set forth in that paragraph.
(3) Pursuant to the provisions of a Cabinet Office Ordinance, the Mutual
Company set forth in the preceding paragraph may, without delay after the conclusion of the annual general meeting of members, take measures to make the information contained in the balance sheet provided for in paragraph (1) constantly available to many and unspecified persons by electromagnetic means for a period of five years from the date on which the annual general meeting of members was concluded. The provisions of the preceding two
paragraphs shall not apply in this case.
(4) The provisions of the preceding three paragraphs shall not apply to a Mutual
Company which shall submit its securities report to the Prime Minister
pursuant to the provision of Article 24, paragraph (1) (Submission of Securities
Report) of the Financial Instruments and Exchange Act.
(Keeping and Inspection, etc. of Financial Statements, etc.)
Article 54-8 (1) A Mutual Company shall keep its financial statements and business report for each business year, and annexed detailed statements
thereto (including the audit report or accounting audit report; hereinafter
referred to as "Financial Statements, etc." in this Article) at its principal office for a period of five years from the day which is two weeks before the date of the annual general meeting of members (or, in the case of Article 319, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 41,
paragraph (1), the date of the proposal set forth in that paragraph).
(2) A Mutual Company shall keep the copies of its Financial Statements, etc. for each business year at its secondary offices for a period of three years from the day which is two weeks before the date of the annual general meeting of
members (or, in the case of Article 319, paragraph (1) of the Companies Act as
applied mutatis mutandis pursuant to Article 41, paragraph (1), the date of the proposal set forth in that paragraph); provided, however, that this shall not
apply to the cases where the Financial Statements, etc. are prepared in the
form of electromagnetic record, if the Mutual Company adopts the measures specified by a Cabinet Office Ordinance in order to enable its secondary offices to meet the requests listed in items (iii) and (iv) of the following paragraph.
(3) The creditors and insured of a Mutual Company, such as Policyholders and
beneficiaries of insurance claims may make the following requests at any time during the business hours of the Mutual Company; provided, however, that
they pay the fees determined by the Mutual Company in making a request falling under item (ii) or (iv):
(i) Where the Financial Statements, etc. are prepared in writing, a request for
inspection of such documents or copies of such documents;
(ii) A request for a transcript or extract of the documents referred to in the preceding item;
(iii) Where the Financial Statements, etc. are prepared in the form of
electromagnetic record, a request for inspection of anything that displays the matters recorded on the electromagnetic record in a manner specified by a
Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding item by the electromagnetic means
determined by the Mutual Company, or for any document that describes such matters.
(Order to Submit Financial Statements, etc.)
Article 54-9 The court may, on application or by its own authority, order a Party in a lawsuit to submit in whole or in Part the financial statements and
annexed detailed statements thereto.
(Consolidated Financial Statements)
Article 54-10 (1) A company with accounting auditors may, pursuant to the provisions of a Cabinet Office Ordinance, prepare consolidated financial
statements (referring to those statements specified by a Cabinet Office
Ordinance as necessary and appropriate in order to indicate the status of the property and profits or losses of a corporate group comprised of the company with accounting auditors and its de facto Subsidiary Companies; hereinafter the same shall apply in this Article) for each business year.
(2) Consolidated financial statements may be prepared in the form of electromagnetic record.
(3) An entity that is a Mutual Company set forth in Article 53-14, paragraph (5)
as at the last day of a business year shall submit a securities report to the
Prime Minister pursuant to the provisions of Article 24, paragraph (1) of the
Financial Instruments and Exchange Act and shall prepare consolidated financial statements for the business year.
(4) Consolidated financial statements shall be audited by the company auditors
(or, in a company with Committees, the audit committee) and accounting auditors pursuant to the provisions of a Cabinet Office Ordinance.
(5) The consolidated financial statements audited under the preceding paragraph shall be approved by the board of directors.
(6) The provisions of Article 54-5 and Article 54-6, paragraphs (1) and (3) shall
apply mutatis mutandis to consolidated financial statements. In this case, the term "contents of the business report" in Article 54-6, paragraph (3) shall be deemed to be replaced with "contents of the consolidated financial statements and the result of audit under Article 54-10, paragraph (4)"; any technical
change in interpretation shall be specified by a Cabinet Order.
Division 3 Payment of Interest on Funds, Redemption of Funds and
Distribution of Surplus
(Restrictions on Payment of Interest on Funds, etc.)
Article 55 (1) Payment of interest on funds may be made in an amount not
exceeding the amount of net assets on the balance sheet after deducting the sum total of the following amounts (referred to as "maximum limit of interest payment" in Article 55-3, paragraph (3), item (i)):
(i) The total amount of funds;
(ii) The deficiency reserve and the reserve for redemption of funds set forth in
Article 56 (including the total amount of any reduction of the reserve for redemption of funds pursuant to the provision of Article 59, paragraph (2); the same shall apply in the following paragraph); and
(iii) Other amounts specified by a Cabinet Office Ordinance.
(2) Redemption of funds or distribution of surplus may be made in an amount not exceeding the amount of net assets on the balance sheet after deducting the sum total of the following amounts (referred to as "maximum limit of
redemption, etc." in Article 55-3, paragraph (3), item (ii)); provided, however,
that such redemption or distribution may only be effected after the amount credited to assets in the balance sheet pursuant to the provision of the first sentence of Article 113 (including the cases where it is applied mutatis
mutandis pursuant to Article 272-18) has been amortized in full:
(i) The total amount of funds;
(ii) The deficiency reserve and the reserve for redemption of funds set forth in
Article 56;
(iii) The amount of interest on funds paid under the preceding paragraph;
(iv) The deficiency reserve to be set aside for the accounting period; and
(v) Other amounts specified by a Cabinet Office Ordinance.
(3) Where a Mutual Company has made any payment of interest on funds, or
redemption of funds or distribution of surplus in violation of the provisions of
the preceding two paragraphs, a creditor of the Mutual Company may cause it to refund the money thus expended.
(Distribution of Surplus)
Article 55-2 (1) Any distribution of surplus shall be made in compliance with the requirements specified by a Cabinet Office Ordinance for fair and equitable
distribution.
(2) A Mutual Company shall, as the matters listed in Article 23, paragraph (1), item (vii), prescribe in its articles of incorporation that, where the company makes an appropriation of surplus for each accounting period, it shall set aside at least the amount obtained by multiplying the appropriable amount specified by a Cabinet Office Ordinance by a certain proportion as the reserve for
distributing surplus to members pursuant to the provisions of a Cabinet Office
Ordinance.
(3) The certain proportion set forth in the preceding paragraph shall not be less than the proportion specified by a Cabinet Office Ordinance.
(4) Notwithstanding the provisions of the preceding two paragraphs, a Mutual
Company may, where it faces unavoidable circumstances in light of the status
of its settlement of account, prescribe in its articles of incorporation that, so far as the appropriation of surplus for the accounting period is concerned, the
company shall set aside as the Reserves specified by a Cabinet Office
Ordinance under paragraph (2) the amount obtained by multiplying the amount prescribed by a Cabinet Office Ordinance under paragraph (2) by a ratio which is smaller than that prescribed by a Cabinet Office Ordinance under the preceding paragraph.
(5) Any provision in the articles of incorporation under the preceding paragraph
shall not take effect unless it is approved by the Prime Minister.
(Liability for Payment of Interest on Funds, etc.)
Article 55-3 (1) Where a Mutual Company has paid any interest on funds in
violation of the provision of Article 55, paragraph (1), or made any redemption of funds or distribution of surplus in violation of the provision of paragraph (2) of the same Article, the persons who were granted any money due to such act
(referred to as "payment of interest on funds, etc." hereinafter in this Article as well as in the following Article) and the persons listed in the following items
shall jointly and severally assume the obligation to pay to the Mutual
Company the exact amount of money that those recipients have been granted:
(i) The executing person who has carried out any duty related to the payment
of interest on funds, etc. (referring to the executive director (or, in a company with Committees, executive officer) or any other person specified by a
Cabinet Office Ordinance as having participated, in the course of functions, in the execution of duties to be carried out by the executive director); and
(ii) Where the annual general meeting of members has adopted a resolution
pertaining to a proposal related to the appropriation of surplus or disposal of losses (limited to the cases where the contents of the proposal approved by
the resolution are in violation of the provision of Article 55, paragraph (1) or
(2)), the person specified by a Cabinet Office Ordinance as the director who has presented the proposal to the annual general meeting of members.
(2) Notwithstanding the provision of the preceding paragraph, a person listed in
item (i) or (ii) of that paragraph shall not assume the obligation under that
paragraph, if the person proves that he/she did not fail to exercise due care in carrying out his/her duties.
(3) A person listed in the items of paragraph (1) may not be exempted from the obligation under that paragraph; provided, however, that this shall not apply
to the whole membership consents to exempt the person from the obligation to
the amount prescribed in the relevant items in the cases listed in the following items:
(i) In the case of a payment of interest on funds: maximum limit of interest
payment; or
(ii) In the case of a redemption of funds or distribution of surplus (excluding the cases set forth in the proviso to Article 55, paragraph (2)): maximum
limit of redemption, etc.
(Restrictions, etc. on Right to Obtain Reimbursement from Members)
Article 55-4 Where a Mutual Company has made any payment of interest on funds, etc. in violation of the provision of Article 55, paragraph (1) or (2), a member without knowledge of such violation shall not be obliged to meet any request for reimbursement made by a person listed in the items of paragraph (1) of the preceding Article who has paid the money prescribed in that
paragraph.
Division 4 Reserve for Redemption of Funds and Deficiency Reserve
(Establishment of Reserve for Redemption of Funds)
Article 56 (1) A Mutual Company shall, in redeeming its funds, set aside the amount of money to be redeemed as the reserve for redemption of funds.
(2) A Mutual Company shall, when it is released from any debt pertaining to its funds, deduct the amount of debt thus relieved from the total amount of its
funds and set it aside as the reserve for redemption of funds.
(Reduction of Reserve for Redemption of Funds)
Article 57 (1) A Mutual Company may reduce the amount of the reserve for
redemption of funds by a resolution of the General Meeting of members (or
General Meeting, where the company has such meeting).
(2) The resolution set forth in the preceding paragraph shall be a resolution under Article 62, paragraph (2).
(3) The documents prescribed in Articles 18, 19 and 46 of the Commercial
Registration Act as well as the following documents shall be attached to a written application for registration of change due to any reduction of the
reserve for redemption of funds pursuant to the provision of paragraph (1):
(i) A written statement certifying that the company has given a public notice under Article 17, paragraph (2) as applied mutatis mutandis pursuant to the following paragraph with relevant changes in interpretation;
(ii) Where any Policyholder or other creditor has stated his/her objection under
Article 17, paragraph (4) as applied mutatis mutandis pursuant to the
following paragraph with relevant changes in interpretation, a written statement certifying that the company has made payment or provided
equivalent security to such Policyholder or other creditor or entrusted
equivalent property to a trust company, etc. for the purpose of ensuring that
such Policyholder or other creditor receive the payment, or that the reduction of the reserve for redemption of funds poses no risk of harming the interest
of such Policyholder or other creditor; and
(iii) A written statement certifying that the number of the Policyholders who have stated their objections under Article 17, paragraph (6) as applied
mutatis mutandis pursuant to the following paragraph with relevant changes
in interpretation has not exceeded one fifth of the total number of
Policyholders set forth in that paragraph, or a written statement certifying
that the amount specified by a Cabinet Office Ordinance as belonging to such
Policyholders has not exceeded one fifth of the total amount set forth in that paragraph.
(4) The provisions of Article 16, paragraph (1) (excluding the proviso thereto) and
(2), Article 17 (excluding the proviso to paragraph (1)), Article 17-2, paragraph (4), and Article 17-4 shall apply mutatis mutandis to a reduction of the reserve for redemption of funds under paragraph (1). In this case, the term "reduction
of the capital, etc." in those provisions shall be deemed to be replaced with
"reduction of the reserve for redemption of funds"; the terms "A Stock
Company" and "ranging from two weeks before the date of the shareholders meeting pertaining to the resolution on the reduction of the capital, etc. (or, the date of the board of directors meeting where Article 447, paragraph (3)
(Reductions in Amount of Capital) or Article 448, paragraph (3) (Reductions in
Amount of Reserves) of the Companies Act Applies) to six months from the
Effective Date of the reduction of the capital, etc." in Article 16, paragraph (1) shall be deemed to be replaced with "In the case of Article 57, paragraph (1), a Mutual Company" and "ranging from two weeks before the date of the General Meeting of members (or General Meeting, where the company has such
meeting) pertaining to the resolution under that paragraph to six months from
the date of the reduction of the reserve for redemption of funds" respectively;
the term "Where a Stock Company reduces the amount of its capital, etc.
(excluding the cases where the whole of the amount by which the Reserves are reduced is appropriated to the capital)" in Article 17, paragraph (1) shall be
deemed to be replaced with "In the case of Article 57, paragraph (1)"; and the
term "Article 447, paragraph (1) (Reductions in amount of the Capital) or
Article 448, paragraph (1) (Reductions in amount of Reserves) of the
Companies Act" in Article 17, paragraph (6) shall be deemed to be replaced with "Article 57, paragraph (1)"; any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(5) Any reduction of the reserve for redemption of funds under paragraph (1)
shall not take effect unless it is approved by the Prime Minister.
(6) The provisions of Article 828, paragraph (1) (limited to the segment
pertaining to item (v)) and (2) (limited to the segment pertaining to item (v)) (Claim Seeking Nullification of Acts Related to Organization of Company),
Article 834 (limited to the segment pertaining to item (v)) (Defendant), Article
835, paragraph (1) (Jurisdiction of Claim), Article 836 to 839 inclusive (Order to Furnish Security, Compulsory Consolidation of Oral Arguments, etc., Scope of Effect of Judgment in Favor of Claim, Effect of Judgment of Nullity or
Rescission), Article 846 (Liability for Damages in Case of Defeat of Plaintiff),
and Article 937, paragraph (1) (limited to the segment pertaining to item (i), (d)) (Commission of Registration by Judicial Decision) of the Companies Act shall apply mutatis mutandis to a claim for the nullification of a reduction of the reserve for redemption of funds. In this case, the term "shareholders, etc." in Article 828, paragraph (2), item (v) of that Act shall be deemed to be
replaced with "members, directors, company auditors or liquidators (or, in a
company with Committees, members, directors, executive officers or
liquidators) of a Mutual Company"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Deficiency Reserve)
Article 58 A Mutual Company shall set aside at least three thousandths of the amount expended in each accounting period for appropriation of surplus
(including that Part of the reserve set forth in Article 55-2, paragraph (2)
which is to be set aside pursuant to the provisions of a Cabinet Office
Ordinance) as the deficiency reserve, until such time as its funds (including the reserve for redemption of funds set forth in Article 56) reach their full amount (or any larger amount prescribed by the articles of incorporation).
(Reduction of Deficiency Reserve, etc. to Compensate Losses)
Article 59 (1) The loss compensation reserve may not be reduced, except in the case of allocating it to loss compensation.
(2) By derogation from Article 57, the reserve for redemption of funds may be
reduced to compensate for the losses, where the deficiency reserve is not sufficient to cover the whole losses.
Subsection 6 Solicitation of Additional Funds
(Solicitation of Additional Funds)
Article 60 (1) A Mutual Company may, even after its establishment, solicit additional funds by a resolution of the General Meeting of members (or
General Meeting, where the company has such meeting; hereinafter the same
shall apply in this paragraph). In this case, the Mutual Company shall
determine the amount of such additional funds by a resolution of the General
Meeting of members.
(2) The resolution specified in the preceding paragraph shall be a resolution under Article 62, paragraph (2).
(Offer of Contribution to Funds)
Article 60-2 (1) A Mutual Company shall notify the following matters to the persons who intend to offer a contribution to its funds in response to a
solicitation under paragraph (1) of the preceding Article:
(i) Matters listed in Article 23, paragraph (1), item (ii) and items (iv) to (vi)
inclusive;
(ii) The amount of the additional funds to be solicited, the rights enjoyed by the contributors to the funds and the method of redemption of the funds;
(iii) Payment date; and
(iv) The banks, etc. and other places where the payment of contribution to the funds is to be handled.
(2) A person who offers to contribute to funds in response to the solicitation
under paragraph (1) of the preceding Article shall submit to the Mutual
Company a document specifying the following matters:
(i) Name and address of the person who makes the offer; and
(ii) Planned amount of contribution to the funds.
(3) In addition to the documents specified in Articles 18 and 46 of the
Commercial Registration Act as applied mutatis mutandis pursuant to Article
67, the following documents shall be attached to the written application for registration of change due to any solicitation of additional funds under
paragraph (1) of the preceding Article:
(i) A document certifying the offer of contribution to the funds or a contract under Article 30 as applied mutatis mutandis pursuant to the following
paragraph; and
(ii) A document certifying that payment has been made to the funds under Article 30-3, paragraph (1) as applied mutatis mutandis pursuant to the following paragraph.
(4) The provisions of Article 28, paragraphs (3) to (6) inclusive, Article 29 to 30-2 inclusive, Article 30-3 (excluding paragraphs (2) and (3)), and Article 30-5,
paragraphs (2) and (3) shall apply mutatis mutandis to the solicitation of
additional funds under paragraph (1) of the preceding Article. In this case, the term "incorporators" in those provisions shall be deemed to be replaced with
"Mutual Company"; the term "preceding paragraph" in Article 28, paragraph (3) shall be deemed to be replaced with "Article 60-2, paragraph (2)"; the terms "the items of paragraph (1)" and "paragraph (2)" in Article 28, paragraph (4) shall be deemed to be replaced with "Article 60-2 the items of paragraph (1)"
and "paragraph (2) of the same Article," respectively; the term "paragraph (2), item (i)" in Article 28, paragraph (5) shall be deemed to be replaced with
"Article 60-2, paragraph (2), item (i)"; the term "paragraph (2), item (ii) of the preceding Article" in Article 29, paragraph (1) shall be deemed to be replaced with "Article 60-2, paragraph (2), item (ii)"; the term "the preceding two
Articles" in Article 30 shall be deemed to be replaced with "Article 60-2,
paragraph (1) (excluding item (iii)), and Article 28, paragraphs (3) to (6)
inclusive and the preceding Article as applied mutatis mutandis pursuant to paragraph (4) of the same Article"; the terms "without delay" and "Article 28, paragraph (1), item (iii)" in Article 30-3, paragraph (1) shall be deemed to be replaced with "on the date set forth in Article 60-2, paragraph (1), item (iii)"
and "Article 60-2, paragraph (1), item (iv)," respectively; the term "solicited at
incorporation who has received the notice under paragraph (2) shall, unless
he/she makes the payment by the date set forth in that paragraph" in Article
28, paragraph (5) be deemed to be replaced with", unless he/she makes the payment by the date set forth in paragraph (1);" and the term "After the
establishment of the Mutual Company" in Article 30-5, paragraph (3) shall be
deemed to be replaced with "After a year has elapsed since the date of
registration of change due to a solicitation of additional funds under Article 60, paragraph (1)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(5) The provisions of Article 828, paragraph (1) (limited to the segment
pertaining to item (ii)) and (2) (limited to the segment pertaining to item (ii)) (Claim Seeking Nullification of Acts Related to Organization of Company),
Article 834 (limited to the segment pertaining to item (ii)) (Defendant), Article
835, paragraph (1) (Jurisdiction of Claim), Article 836, paragraphs (1) and (3) (Order to Furnish Security), Article 837 to 840 inclusive (Compulsory
Consolidation of Oral Arguments, etc., Scope of Effect of Judgment in Favor of
Claim, Effect of Judgment of Nullity or Rescission, Effect of Judgment of
Nullity on Issue of New Shares), Article 846 (Liability for Damages in Case of
Defeat of Plaintiff), and Article 937, paragraph (1) (limited to the segment
pertaining to item (i), (b)) (Commission of Registration by Judicial Decision) of
the Companies Act shall apply mutatis mutandis to a claim for the nullification of a solicitation of additional funds under paragraph (1) of the preceding
Article; and the provisions of Article 868, paragraph (1) (Jurisdiction of Non- Contentious cases), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (ii))
(Immediate Appeal Against Ruling), the main clause of Article 873 (Stay of
Execution of Original Sentence), Article 875 to 877 inclusive (Exclusion from
Application of Provisions of Act on Procedures for Non-Contentious Cases,
Supreme Court Rules, Compulsory Consolidation of Hearings, etc.) and Article
878, paragraph (1) (Effect of Judicial Decision) of that Act shall apply mutatis mutandis to an application under Article 840, paragraph (2) of that Act as applied mutatis mutandis pursuant to this paragraph. In this case, the term
"shareholders, etc." in Article 828, paragraph (2), item (ii) of that Act shall be deemed to be replaced with "members, directors, company auditors or
liquidators (or, in a company with Committees, members, directors, executive officers or liquidators) of a Mutual Company;" any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
Subsection 7 Solicitation of Subscribers for Bonds Issued by Mutual
Company
(Determination of Matters on Bonds for Subscription)
Article 61 Whenever a Mutual Company intends to solicit persons who subscribe for the bonds (referring to the monetary claims against the Mutual Company
which accrue as a result of any allocation made by the Mutual Company
pursuant to the provisions of this Act and which are to be redeemed under fixed conditions regarding the following matters; hereinafter the same shall apply in this Subsection) that it issues, the company shall determine the
following matters with respect to the bonds for subscription (referring to the
bonds that will be allocated to the persons who have subscribed for such bonds in response to the solicitation; hereinafter the same shall apply in this
Subsection):
(i) The total amount of the bonds for subscription; (ii) The amount of each bond for subscription;
(iii) Interest rate on the bonds for subscription;
(iv) The method and due date of redemption of the bonds for subscription; (v) The method and due date of interest payment;
(vi) Where bond certificates are to be issued, a statement to that effect;
(vii) Where it is to be arranged that bondholders may not make, in whole or in Part, a demand under Article 698 of the Companies Act as applied mutatis mutandis pursuant to Article 61-5, a statement to that effect;
(viii) Where it is to be arranged that the bond administrator may perform the act listed in Article 61-7, paragraph (4), item (ii) in the absence of a
resolution of the bondholders meeting, a statement to that effect;
(ix) The amount to be paid in for each bond for subscription (referring to the amount of money to be paid in exchange for each bond for subscription:
hereinafter the same shall apply in this Subsection) or the minimum amount thereof, or the method of calculating such amount;
(x) Due date for payment of the money in exchange for the bonds for
subscription;
(xi) Where it is to be arranged that the bonds for subscription shall not be issued in their entirety unless the persons to whom the bonds for
subscription will be allocated are not prescribed for the total amount of the bonds by a certain date, a statement to that effect and that certain date; and
(xii) In addition to what is listed in the preceding items, matters specified by a
Cabinet Office Ordinance.
(Offer of Subscription for Bonds)
Article 61-2 (1) A Mutual Company shall notify the following matters to the persons who intend to offer a subscription for bonds in response to a
solicitation under the preceding Article:
(i) Name of the Mutual Company;
(ii) Matters listed in the items of the preceding Article pertaining to such solicitation; and
(iii) In addition to what is listed in the preceding two items, matters specified by a Cabinet Office Ordinance.
(2) A person who offers to subscribe for bonds in response to the solicitation
under the preceding Article shall submit to the Mutual Company a document specifying the following matters:
(i) Name and address of the person who makes the offer;
(ii) The total par value of the bonds for which he/she intends to subscribe and the number of bonds by par value; and
(iii) Where the Mutual Company has prescribed the minimum amount under item (ix) of the preceding Article, the preferred amount to be paid in.
(3) A person who makes an offer under the preceding paragraph may, in lieu of submitting the document prescribed in that paragraph, and pursuant to the
provisions of a Cabinet Order, provide the matters to be indicated in such
document by electromagnetic means, with the consent of the Mutual Company. In this case, the person who has made the offer shall be deemed to have
submitted the document prescribed in that paragraph.
(4) The provision of paragraph (1) shall not apply to the cases where the Mutual
Company has issued to the person who intends to make an offer under paragraph (1) the prospectus prescribed in Article 2, paragraph (10)
(Definitions) of the Financial Instruments and Exchange Act that describes the
matters listed in the items of paragraph (1), or to any other case specified by a
Cabinet Office Ordinance as posing no risk to the protection of persons who intend to offer a subscription for bonds.
(5) The Mutual Company shall immediately notify a person who has made an offer under paragraph (2) (hereinafter referred to as "Offeror" in this
Subsection) of any change in the matters listed in the items of paragraph (1)
and the matter affected by the change.
(6) It shall be sufficient for a notice or demand to an Offeror to be sent by the Mutual Company to the address specified under paragraph (2), item (i) (or to any other place or contact address notified by the Offeror to the Mutual
Company for the receipt of notices or demands).
(7) The notice or demand in the preceding paragraph shall be deemed to have
arrived at the time when such notice or demand should normally have arrived.
(Allocation of Bonds for Subscription)
Article 61-3 (1) The Mutual Company shall select from among the Offerors the persons to receive allocation of the bonds for subscription, and determine the par value, and the number by name, of the bonds for subscription to be
allocated to each of such persons. In this case, the Mutual Company may
reduce the number of the bonds for subscription to be allocated to each Offeror for each name from the number prescribed in paragraph (2), item (ii) of the
preceding Article.
(2) The Mutual Company shall notify the Offerors, no later than the day
immediately preceding the date referred to in Article 61, item (x) of the par value, and the number by name, of the bonds for subscription that will be
allocated to each Offeror.
(Special Provision on Offer for, and Allocation of, Bonds for Subscription)
Article 61-4 The provisions of the preceding two Articles shall not apply to the
cases where a person who intends to subscribe for bonds concludes a contract for the subscription for the total amount of those bonds.
(Application mutatis mutandis, of Companies Act)
Article 61-5 The provisions of Article 680 to 683 inclusive (Bondholders of Bonds for Subscription, Bond Registry, Delivery of Document Stating Matters to Be
Stated in Bond Registry, Management of Bond Registry), Article 684 (excluding paragraphs (4) and (5)) (Keeping and Making Available for Inspection of Bond Registry) and Article 685 to 701 inclusive (Notices to Bondholders, Exercise of
Rights by Co-owners, Assignment of Bonds with Issued Certificates, Perfection
of Assignment of Bonds, Presumption of Rights, Stating or Recording Matters to Be Stated in Bond Registry Without Request from Bondholders, Stating or Recording Matters to Be Stated in Bond Registry as Requested by Bondholders, Pledges of Bonds with Issued Certificates, Perfection of Pledge of Bonds,
Entries in Bond Registry Regarding Pledges, Delivery of Documents Stating
Matters to Be Stated in Bond Registry Regarding Pledges, Perfection
Requirements for Bonds Belonging to Trust Property, etc., Issuing of Bond Certificates, Matters to Be Stated on Bond Certificates, Conversions between Registered Bonds and Bearer Bonds, Loss of Bond Certificates, Redemption of Bonds where Coupons Missing, Extinctive Prescription of Right to Claim
Redemption of Bonds) of the Companies Act shall apply mutatis mutandis to
the cases where a Mutual Company issues bonds. In this case, the term "bond- issuing Company" in those provisions shall be deemed to be replaced with
"bond-issuing mutual company"; the term "the preceding Article" in Article 680,
item (ii) of that Act shall be deemed to be replaced with "Article 61-4 of the
Insurance Business Act"; the term "Article 676, items (iii) though (viii)" in
Article 681, item (i) of that Act shall be deemed to be replaced with "Article 61, items (iii) to (viii) inclusive of the Insurance Business Act"; the term "Article
720, paragraph (1)" in Article 685, paragraph (5) of that Act shall be deemed to be replaced with "Article 720, paragraph (1) as applied mutatis mutandis
pursuant to Article 61-8, paragraph (2) of the Insurance Business Act"; and the term "Article 676, item (vii)" in Article 698 of that Act shall be deemed to be
replaced with "Article 61, item (vii) of the Insurance Business Act"; any
technical change in interpretation shall be specified by a Cabinet Order.
(Designation of Bond Administrator)
Article 61-6 In issuing bonds, a Mutual Company shall designate a bond administrator to be entrusted with the receipt of payments, preservation of
claims and other bond administration activities on behalf of the bondholders;
provided, however, that this shall not apply to the cases where the par value of each bond is one hundred million yen or more, or any other case specified by a
Cabinet Office Ordinance as posing no risk to the protection of bondholders.
(Authority, etc. of Bond Administrator)
Article 61-7 (1) The bond administrator shall have the authority to carry out any judicial or non-judicial act to receive payments of claims pertaining to the
bonds on behalf of the bondholders, or to secure the realization of claims
pertaining to the bonds.
(2) Where the bond administrator has received any payment under the preceding paragraph, the bondholders may demand the payment of the redeemed amount of bonds and interest thereon from the bond administrator. In this case, the
bondholders shall demand the payment of such redeemed amount in exchange for bond certificates, and the payment of such interest in exchange for coupons, if the issue of bond certificates is stipulated.
(3) Any claim under the first sentence of the preceding paragraph shall lapse by prescription if not exercised within ten years.
(4) The bond administrator shall not carry out the following acts without a resolution of the bondholders meeting; provided, however, that this shall not apply to the act listed in item (ii), if there is a stipulation with respect to the matters listed in Article 61, item (viii):
(i) Grace of his/her payment for the entirety of the bonds, exemption from any liability resulting from a default on his/her debt, or settlement (excluding the act listed in the following item);
(ii) Procedural acts with respect to the entirety of the bonds, or any act
belonging to the bankruptcy procedure, rehabilitation procedure, corporate reorganization procedure or procedure regarding special liquidation
(excluding the act set forth in paragraph (1)).
(5) The bond administrator shall, when he/she has carried out the act listed in item (ii) of the preceding paragraph without a resolution of the bondholders meeting pursuant to the proviso to that paragraph, give public notice of that effect without delay, and notify each of the known bondholders thereof.
(6) A public notice under the preceding paragraph shall be made in accordance
with the Method of Public Notice adopted by the bond-issuing mutual company;
provided, however, that such public notice shall be given by way of publication in the Official Gazette, where that method is electronic public notice.
(7) The bond administrator may, when it is necessary for carrying out the act
listed in paragraph (1) or the items of paragraph (4) with respect to the bonds that he/she has been entrusted to administer, investigate with the permission
of the court the status of the business and property of the bond-issuing mutual company.
(8) The provisions of Article 703 (Qualifications of Bond Managers), Article 704 (Obligations of Bond Managers), Article 707 to 714 inclusive (Appointment of
Special Agent, Method of Acts of Bond Managers, Special Provisions for Multiple Bond Managers, Liability of Bond Manager, Resignation of Bond Managers, Liability of Bond Managers after Resignation, Dismissal of Bond
Managers, Succession to Bond Manager's Administration of Bonds), Article 868, paragraph (3) (Jurisdiction of Non-Contentious Cases), Article 869 (Showing of Prima facie Evidence), Article 870 (limited to the segment pertaining to item (iii)) (Hearing of Statements), Article 871 (Supplementary Note of Reasons),
Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874 (limited to the segment pertaining to items (i) and (iv)) (Restrictions on Appeal), Articles 875 (Exclusion from Application of
Provisions of Act on Procedures for Non-Contentious Cases) and Article 876
(Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to a bond administrator. In this case, the term "bond-issuing company" in those
provisions shall be deemed to be replaced with "bond-issuing mutual company";
the term "this Act" in Article 710, paragraph (1) of that Act shall be deemed to be replaced with "the Insurance Business Act"; and the term "Article 702" in
Article 711, paragraph (2) of that Act shall be deemed to be replaced with
"Article 61-6 of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Bondholders Meeting)
Article 61-8 (1) The bondholders shall form a bondholders meeting for each class of bond (referring to the class of bond set forth in Article 681, item (i) of the Companies Act as applied mutatis mutandis pursuant to Article 61-5).
(2) The provisions of Part IV, Chapter III (excluding Article 715 and Article 740,
paragraph (3)) (Bondholders' Meeting), Part VII, Chapter II, Section 7 (Lawsuit for Rescission of Payment, etc by Bond-Issuing Company.), Article 868,
paragraph (3) (Jurisdiction of Non-Contentious cases), Article 869 (Showing of
Prima Facie Evidence), Article 870 (limited to the segment pertaining to items
(x) to (xii) inclusive) (Hearing of Statements), Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv))
(Immediate Appeal Against Ruling), Article 873 (Stay of Execution of Original
Sentence), Article 874 (limited to the segment pertaining to item (iv))
(Restrictions on Appeal), Articles 875 (Exclusion from Application of Provisions of Act on Procedures for Non-contentious Cases) and Article 876 (Supreme
Court Rules) of the Companies Act shall apply mutatis mutandis to the cases
where a Mutual Company issues bonds. In this case, the term "bond-issuing
company" in those provisions shall be deemed to be replaced with "bond-issuing mutual company"; the term "under Article 705, paragraphs (1) to (3) inclusive, and under Articles 708 and 709" in Article 737, paragraph (2) (Execution of Resolutions of Bondholders' Meetings) of that Act shall be deemed to be
replaced with "of Article 61-7, paragraphs (1) to (3) inclusive of the Insurance
Business Act, and the provisions of Articles 708 and 709 as applied mutatis mutandis pursuant to Article 61-7, paragraph (8) of that Act"; and the term
"the provisions of Article 449, Article 627, Article 635, Article 670, Article 779 (including the cases where applied mutatis mutandis pursuant to paragraph
(2) of Article 781), Article 789 (including the cases where applied mutatis
mutandis pursuant to paragraph (2) of Article 793), Article 799 (including the cases where applied mutatis mutandis pursuant to paragraph (2) of Article
802) or Article 810 (including the cases where applied mutatis mutandis
pursuant to paragraph (2) of Article 813)" in Article 740, paragraph (1) (Special provisions on objection procedures for creditors) of that Act shall be deemed to
be replaced with "Article 17 (excluding the proviso to paragraph (1)) of the
Insurance Business Act as applied mutatis mutandis pursuant to Article 57, paragraph (4) of that Act, and Articles 88 and 165-17 (including the cases
where it is applied mutatis mutandis pursuant to Article 165-20 of that Act) of
that Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Application of Secured Bond Trust Act, etc.)
Article 61-9 For the purpose of applying the Secured Bond Trust Act (Act No. 52 of 1905) and other laws and regulations specified by a Cabinet Order, the
bonds shall, pursuant to the provisions of a Cabinet Order, be deemed to be bonds as defined in Article 2, item (xxiii) (Definitions) of the Companies Act.
(Special Provision on Short-Term Bonds)
Article 61-10 (1) A bond registry shall not be required for the bonds which meet all of the following requirements (referred to as "Short-Term Bonds" in the
following paragraph):
(i) The par value of each bond is not less than one hundred million yen;
(ii) The due date for redemption of the principal is fixed on a day within one year from the payment date of the total amount of the bonds, and no
judgment has been made authorizing installment payments;
(iii) The due date for interest payment is fixed on the same day as the due date for redemption under the preceding item; and
(iv) No security is furnished pursuant to the provisions of the Secured Bond
Trust Act.
(2) The provisions of Article 61-6 to 61-8 inclusive shall not apply to Short-Term
Bonds.
Subsection 8 Amendment in the Articles of Incorporation
Article 62 (1) Any amendment to the articles of incorporation shall require a resolution of the General Meeting of members (or General Meeting, where the company has such meeting).
(2) Notwithstanding the provisions of Article 37-3, paragraph (1) and Article 44, paragraph (1), the resolution set forth in the preceding paragraph shall be
adopted by a three quarter majority of the votes held by the attending
members in a session where half or more of the members are present (or by the three quarter majority of the votes held by the attending general
representatives in a session where half or more of the general representatives
are present).
Subsection 9 Assignment, etc. of Business
Article 62-2 (1) A Mutual Company shall, when it intends to carry out any of the following acts, obtain authorization of a contract pertaining to the relevant act by a resolution of the General Meeting of members no later than the day immediately preceding the Effective Date of the act:
(i) Assignment of the entire business;
(ii) Assignment of any important Part of the business (excluding the cases
where the book value of the assets to be transferred by such assignment does not exceed one fifth (or any smaller proportion prescribed by the articles of
incorporation) of the amount of the total assets of the Mutual Company as calculated by the method specified by a Cabinet Office Ordinance);
(iii) Acquisition of the entire business of another company (including a Mutual
Company, foreign company or any other juridical person); or
(iv) Acquisition at any time within two years after the establishment of the
Mutual Company (limited to the cases where it was incorporated pursuant to the provisions of Subsection 2; hereinafter the same shall apply in this item) of any asset that has existed since before its establishment and is to be used constantly for carrying on its business; provided, however, that this shall not apply to the cases where the ratio of the amount listed in (a) to that listed in (b) does not exceed one fifth (or any smaller proportion prescribed by the
articles of incorporation):
(a) The total book value of the property to be delivered in exchange for the asset;
(b) The amount of the net assets of the Mutual Company as calculated by the
method specified by a Cabinet Office Ordinance.
(2) The resolution set forth in the preceding paragraph shall be a resolution under paragraph (2) of the preceding Article.
Subsection 10 Miscellaneous Provisions
(Non-Member Contract)
Article 63 (1) A Mutual Company may, by a provision in its articles of
incorporation, exclude from its membership the holders of non-participating policies or any other class of insurance policy specified by a Cabinet Office
Ordinance.
(2) The articles of incorporation set forth in the preceding paragraph shall
specify the class of insurance policy to which that paragraph applies, as well as other matters specified by a Cabinet Office Ordinance.
(3) A Mutual Company shall not underwrite the insurance policies set forth in paragraph (1) over the limit specified by a Cabinet Office Ordinance.
(4) Pursuant to the provisions of a Cabinet Office Ordinance, a Mutual Company
shall, when it underwrites any of the insurance policies set forth in paragraph
(1), separate the accounting for such insurance policies from that for the insurance policies held by the members.
(5) The provisions of Part II, Chapter X (excluding Article 664 (including the
cases where it is applied mutatis mutandis pursuant to Article 683, paragraph (1)) (Insurance) and Part III, Chapter VI (Marine Insurance) of the Commercial Code shall apply mutatis mutandis to the insurance policies set forth in
paragraph (1). In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(6) In addition to what is prescribed in the preceding paragraphs, necessary matters regarding the insurance policies set forth in paragraph (1) shall be specified by a Cabinet Office Ordinance.
(Registration of Incorporation)
Article 64 (1) A Mutual Company shall complete its registration of incorporation at the location of its principal office within two weeks from the date of
conclusion of the Organizational Meeting (or from the date of resignation of the incorporators pursuant to the provision of Article 30-12, paragraph (3)).
(2) The following matters shall be registered in completing the registration set forth in the preceding paragraph:
(i) Matters listed in Article 23, paragraph (1), items (i), (ii) and (iv) to (vii)
inclusive;
(ii) Location of its offices;
(iii) Names of its directors;
(iv) Name and address of the representative director (excluding the cases set forth in item (xi));
(v) Where the company is a company with accounting advisors, a statement to
that effect, and the names of the accounting advisors and the place set forth in Article 378, paragraph (1) of the Companies Act as applied mutatis
mutandis pursuant to Article 53-17;
(vi) Where the company is a company with auditors, a statement to that effect and the names of the company auditors;
(vii) Where the company is a company with a board of company auditors, a
statement to that effect, and a statement identifying the outside company auditors among its company auditors;
(viii) Where the company is a company with accounting auditors, a statement to that effect and the names of the accounting auditors;
(ix) Name of a person appointed pursuant to the provision of Article 53-12,
paragraph (4) temporarily to carry out the duties of an accounting auditor; (x) Where it is stipulated that the special directors (referring to the special
directors as defined in Article 373, paragraph (1) of the Companies Act; the
same shall apply hereinafter) may adopt a resolution under that paragraph as applied mutatis mutandis pursuant to Article 53-16, the following
matters;
(a) A statement to the effect that it is stipulated that the special directors
may adopt a resolution under Article 373, paragraph (1) of the Companies
Act as applied mutatis mutandis pursuant to Article 53-16, (b) Names of the special directors, and
(c) A statement identifying the outside directors among its directors;
(xi) Where the company is a company with Committees, a statement to that effect and the following matters;
(a) A statement identifying the outside directors among its directors,
(b) Names of the members of each committee and its executive officers, and
(c) Name and address of its representative executive officer;
(xii) Any provision in the articles of incorporation for the exemption from liabilities of directors, executive officers, accounting advisors, company auditors or accounting auditors under Article 426, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-36;
(xiii) Any provision in the articles of incorporation for the conclusion of
contracts regarding the limit of the liabilities to be assumed by outside directors, accounting advisors, outside company auditors or accounting
auditors under Article 427, paragraph (1) of the Companies Act as applied
mutatis mutandis pursuant to Article 53-36;
(xiv) Where the provision of the articles of incorporation set forth in the preceding item concerns outside directors, a statement identifying the outside directors among its directors;
(xv) Where the provision in the articles of incorporation set forth in item (xiii)
concerns outside company auditors, a statement identifying the outside company auditors among its company auditors;
(xvi) When it intends to take measures referred to in Article 54-7, paragraph
(3), among matters necessary for allowing many and unspecified persons to receive the information contained in the balance sheet set forth in paragraph (1) of that Article, those specified by a Cabinet Office Ordinance;
(xvii) Provision in the articles of incorporation for the Method of Public Notice under Article 23, paragraph (1), item (viii);
(xviii) Where the provision in the articles of incorporation set forth in the
preceding item specifies electronic public notice as the Method of Public
Notice, the following matters:
(a) Those matters prescribed in Article 911, paragraph (3), item (xxix), (a) (Registration of incorporation of Stock Company) of the Companies Act which are necessary to ensure that the information to be published by
electronic public notice is available to many and unspecified persons; and
(b) Any provision in the articles of incorporation under the second sentence of
Article 23, paragraph (3); and
(xix) Any provision in the articles of incorporation under the second sentence of
Article 113 (including the cases where it is applied mutatis mutandis pursuant to Article 272-18).
(3) The provisions of Article 915, paragraph (1) (Registration of Change), Article
916 (limited to the segment pertaining to item (i)) (Registration of Relocation of
Head Office to Jurisdictional District of Another Registry Office), Article 918 (Registration of Managers) and Part VII, Chapter IV, Section2, Subsection 2 (excluding Article 932) (Registration at Location of Branch Offices) of the Companies Act shall apply mutatis mutandis to a Mutual Company; and the provision of Article 917 (limited to the segment pertaining to item (i))
(Registration of Provisional Disposition, etc. For Suspension of Execution of
Duty) of that Act shall apply mutatis mutandis to the directors, executive officers, accounting advisors, company auditors, representative director,
committee members or representative executive officer of a Mutual Company.
In this case, the term "the items of Article 911, paragraph (3) and the items of the three preceding Articles" in Article 915, paragraph (1) of that Act shall be deemed to be replaced with "the items of Article 64, paragraph (2) of the
Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Application for Registration of Incorporation)
Article 65 The following documents shall be attached to a written application
under paragraph (1) of the preceding Article, in addition to the documents set forth in Article 18, Article 46 and Article 47, paragraph (3) of the Commercial Registration Act as applied mutatis mutandis pursuant to Article 67:
(i) Articles of incorporation;
(ii) A document certifying the offer of contribution to funds or the contract set
forth in Article 30;
(iii) List of prospective members;
(iv) In the case of a solicitation of members, a document certifying each prospective member's application for membership;
(v) Where the articles of incorporation include any description or record on the matters listed in the items of Article 24, paragraph (1), the following
documents:
(a) A document containing the investigative report of the inspector or the directors at incorporation (or the directors at incorporation and company auditors at incorporation, where the Mutual Company to be incorporated is a company with auditors) and annexed documents thereto;
(b) In the case listed in Article 33, paragraph (10), item (ii) of the Companies
Act as applied mutatis mutandis pursuant to Article 24, paragraph (2), a document certifying the market value of the securities set forth in that
item; and
(c) In the case listed in Article 33, paragraph (10), item (iii) of the Companies Act as applied mutatis mutandis pursuant to Article 24, paragraph (2), a document containing the verification set forth in that item and attached
documents thereto;
(vi) A transcript of any juridical decision on the report of the inspector; (vii) A certificate of deposit of money under Article 30-4, paragraph (1);
(viii) A document regarding the appointment of the representative director at incorporation by the directors at incorporation;
(ix) Where the Mutual Company to be incorporated is a company with
Committees, a document regarding the election of the executive officers at incorporation, and the appointment of the committee members at
incorporation and representative executive officer at incorporation;
(x) Minutes of the Organizational Meeting;
(xi) A document certifying that the directors at incorporation, company
auditors at incorporation and representative director at incorporation (or the directors at incorporation, committee members at incorporation, executive
officers at incorporation and representative executive officer at incorporation, where the Mutual Company to be incorporated is a company with
Committees) elected or appointed pursuant to the provisions of this Act have accepted the assumption of office;
(xii) Where accounting advisors at incorporation or accounting auditors at
incorporation have been elected, the following documents:
(a) A document certifying that they have accepted the assumption of office;
(b) Where they are juridical persons, certificates of the matters registered for such juridical persons, provided, however, that this shall not apply to the
cases where the principal offices of such juridical persons are located
within the jurisdictional district of the relevant registry office; and
(c) Where they are not juridical persons, a document certifying that the
accounting advisors at incorporation meet the requirement of Article 333,
paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-4, or that the accounting auditors at incorporation meet the requirement of Article 337, paragraph (1) of that Act as applied mutatis mutandis pursuant to Article 53-7; and
(xiii) Where it is stipulated that the special directors may adopt a resolution under Article 373, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-16, a document certifying the appointment of the special directors and their acceptance of the assumption of office.
(Registry)
Article 66 A registry office shall keep a registry of mutual companies.
(Application mutatis mutandis, of Companies Act and Commercial Registration
Act to registration of mutual companies)
Article 67 The provisions of Part VII, Chapter IV, Section 1 (excluding Article
907) (General provisions) of the Companies Act, and the provisions of Article 1-
3 to 5 inclusive (Registry Office, Delegation of Duties, Suspension of Duties, Registrar, Disqualification of Registrar), Article 7 to 15 inclusive (Prohibition of Taking out Registry, etc., Loss and Restoration of Registry, Prevention of
Loss of Registry, etc., Delivery, etc. of Certificate of Registered Matters,,
Delivery of Document Containing Description of Registered Matters, Inspection of Annexed Documents, Seal Registration Certificate, Certification of
Necessary Matters, etc. for Checking Measures to Indicate Preparer of
Electromagnetic Record, Fees, Principle of Application by Party Concerned, Registration by Commission), Article 17 to 27 inclusive (Method of Application for Registration, Documents to Be Attached to Written Application,
Electromagnetic Record to be Attached to Written Application, Submission of
Seal, Reception, Receipt, Order of Registration, Identification by Registrar, Dismissal of Application, Registration After Expiration of Period for Filing Complaint, Modification of Administrative Boundaries, etc., Prohibition of Registration of Same Trade Name at Same Location), Article 31 (Registration of Discharge in Assigning Operation or business), Article 33 (Deletion of
Registration of Trade Name), Article 44 to 46 inclusive (Registration of
Company Managers, General Rules for Attached Documents), Article 47, paragraphs (1) and (3) (Registration of Incorporation), Article 48 to 55
inclusive (Registration at Location of Branch Offices, Registration of Relocation
of Head Office, Registration of Change of Directors, etc., Registration of
Change of Persons to Temporarily Carry Out Duties of Accounting Auditor),
and Article 132 to 148 inclusive (Correction, Application for Deletion, Deletion
Without any Party's Request, Exclusion from Application of Administrative
Procedure Act, Exclusion from Application of Act on Access to Information Held by Administrative Organs, Exclusion from Application of Act on Protection of Personal Information Held by Administrative Organs, Application for
Examination, Treatment of Cases of Application for Examination, Exclusion
from Application from Administrative Appeal Act, Delegation to Ordinance of
the Ministry) of the Commercial Registration Act shall apply mutatis mutandis to a registration regarding a Mutual Company. In this case, the terms "trade name," "business office (or, in a company, head office; hereinafter the same
shall apply in this Article)" and "business office pertaining to" in Article 27 of the latter Act shall be deemed to be replaced with "trade name or name,"
"principal office" and "principal office pertaining to," respectively; the term
"shareholders meeting or class shareholders meeting" in Article 46, paragraph
(2) of that Act shall be deemed to be replaced with "General Meeting of members (or General Meeting, where the company has such meeting)"; the terms "Article 319, paragraph (1) (including the cases where it is applied
mutatis mutandis pursuant to Article 325 of the Companies Act) or Article 370
(including the cases where it is applied mutatis mutandis pursuant to Article
490, paragraph (5) of that Act) of the Companies Act" and "shareholders
meeting or class shareholder meeting" in Article 46, paragraph (3) of that Act shall be deemed to be replaced with "Article 319, paragraph (1) of the
Companies Act as applied mutatis mutandis pursuant to Article 41, paragraph
(1) of the Insurance Business Act, or Article 370 of the Companies Act as
applied mutatis mutandis pursuant to Article 53-16 or 180-15 of the Insurance
Business Act" and "General Meeting of members", respectively; the term
"Article 416, paragraph (4) of the Companies Act" in Article 46, paragraph (4)
shall be deemed to be replaced with "Article 53-30, paragraph (4) of the
Insurance Business Act"; and the terms "head office" and "branch offices" in the provisions of Article 48 to 53 inclusive of that Act shall be deemed to be
replaced with "principal office" and "secondary offices," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Application mutatis mutandis of Companies Act on Electronic Public Notice) Article 67-2 The provisions of Article 940, paragraphs (1) and (3) (Period of
Public Notice, etc. for Electronic Public Notice, etc.), Article 941 (Investigation on Electronic Public Notice), Article 946 (Obligation of Investigation, etc.),
Article 947 (Cases Where Investigation on Electronic Public Notice May Not Be
Carried Out), Article 951, paragraph (2) (Keeping and Inspection, etc. of
Financial Statements, etc.), Article 953 (Order for Improvement), and Article
955 (Entries, etc. in Investigation Registry, etc.) of the Companies Act shall apply mutatis mutandis to the cases where a Mutual Company gives public
notice under this Act or any other Act in the form of electronic public notice. In this case, the terms "Article 440, paragraph (1)" and "annual shareholders
meeting" in Article 940, paragraph (1), item (ii) of that Act shall be deemed to be replaced with "Article 54-7, paragraph (1) of the Insurance Business Act"
and "annual general meeting of members (or annual general meeting, where the company has such meeting)," respectively; the term "the preceding two
paragraphs" in Article 940, paragraph (3) of that Act shall be deemed to be
replaced with "paragraph (1)"; and the term "public notice under this Act or
any other Act (excluding the public notice under Article 440, paragraph (1)" in Article 941 of that Act shall be deemed to be replaced with "public notice under the Insurance Business Act (excluding the public notice under Article 54-7,
paragraph (1) of that Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Section 3 Entity Conversion
Subsection 1 Entity Conversion from Stock Company to Mutual
Company
(Entity Conversion)
Article 68 (1) A stock Insurance Company may convert to a mutual Insurance
Company.
(2) A Stock Company that is a Small Amount and Short Term Insurance Provider may convert to a Mutual Company that is a Small Amount and Short Term
Insurance Provide.
(3) Any entity conversion under the preceding two paragraphs (hereinafter referred to as "Entity Conversion" in this Subsection) shall require a
solicitation of funds in order to raise the total amount of the funds of the
Mutual Company after the Entity Conversion to or over the amount specified in one of the following items depending on the case:
(i) Entity Conversion under paragraph (1): the amount specified by a Cabinet
Order set forth in Article 6, paragraph (1); or
(ii) Entity Conversion under the preceding paragraph: the amount specified by a Cabinet Order set forth in Article 272-4, paragraph (1), item (ii).
(4) The total amount of the funds set forth in the preceding paragraph may be
comprised in whole or in Part of a Reserves set aside at the time of Entity Conversion. In this case, the converting company shall not be required to solicit funds under that paragraph to the extent covered by the reserve.
(5) The Reserves set forth in the preceding paragraph shall be deemed as the
reserve for redemption of funds, to which the provisions of this Act (excluding
Article 56) shall apply.
(6) In the case of an Entity Conversion, the converting company may set aside a deficiency reserve in addition to the reserve set forth in paragraph (4).
(Authorization of Entity Conversion Plan)
Article 69 (1) A Stock Company shall, when it intends to convert to a Mutual Company, prepare an Entity Conversion plan to be approved by a resolution of the shareholders meeting.
(2) The resolution set forth in the preceding paragraph shall be a resolution
under Article 309, paragraph (2) (Resolution of shareholders meetings) of the
Companies Act.
(3) A Stock Company, when it intends to adopt a resolution under paragraph (1), shall provide an outline of the Entity Conversion plan in the notice to be given pursuant to Article 299, paragraph (1) (Notice of calling of shareholders'
meetings) of the Companies Act.
(4) A Stock Company shall describe the following matters in its Entity
Conversion plan:
(i) The total amount of funds of the Mutual Company to be established by the Entity Conversion (hereinafter referred to as "Converted Mutual Company" in this Subsection);
(ii) The amounts of the reserve set forth in paragraph (4) of the preceding
Article and of the deficiency reserve set forth in paragraph (6) of that Article; (iii) Matters concerning compensation to shareholders and holders of share
options;
(iv) Matters related to the rights of Policyholders after the Entity Conversion;
and
(v) The day on which the Entity Conversion takes effect (hereinafter referred to as "Effective Date" in this Subsection) and other matters specified by a
Cabinet Office Ordinance.
(5) A Stock Company which has adopted a resolution under paragraph (1) shall, within two weeks from the date of the resolution, notify each of the registered pledgees of shares and registered pledgees of share options of the planned
Entity Conversion.
(6) The provisions of Article 219, paragraph (1) (limited to the segment
pertaining to item (v)), (2) and (3) (Public notice in relation to submission of share certificate), Article 220 (Cases where share certificates cannot be
submitted), and Article 293, paragraph (1) (limited to the segment pertaining
to item (ii)) (Public notice in relation to submission of share option certificate)
of the Companies Act shall apply mutatis mutandis to a converting Stock
Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Keeping and Inspection, etc. of Document Related to Entity Conversion Plan, etc.)
Article 69-2 (1) A converting Stock Company shall, for the period ranging from the commencement date for the keeping of Entity Conversion plan to the
Effective Date, keep at each of its business offices a document or
electromagnetic record describing or recording the contents of the Entity
Conversion plan and other matters specified by a Cabinet Office Ordinance.
(2) The term "the commencement date for the keeping of Entity Conversion plan" in the preceding paragraph refers to the date listed in one of the following
items, whichever comes earliest:
(i) The day which is two weeks before the date of the shareholders meeting set forth in paragraph (1) of the preceding Article (or, in the case of Article 319, paragraph (1) (Omission of Resolution of Shareholders Meetings) of the
Companies Act, the date of proposal under that paragraph);
(ii) Where the converting Stock Company has issued share options, the date of notice under Article 777, paragraph (3) of the Companies Act as applied
mutatis mutandis pursuant to Article 71 or the date of public notice set forth
in Article 777, paragraph (4) of that Act as applied mutatis mutandis pursuant to Article 71, whichever is earlier; or
(iii) The date of public notice under paragraph (2) of the following Article.
(3) The creditors of a converting Stock Company, such as shareholders and
Policyholders, may make the following requests to the company at any time during its operating hours; provided, however, that they pay the fees
determined by the Stock Company in making a request falling under item (ii)
or (iv):
(i) A request for inspection of the document set forth in paragraph (1);
(ii) A request for a transcript or extract of the document set forth in paragraph
(1);
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in paragraph (1) in a manner specified
by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in paragraph (1) by the electromagnetic means determined
by the converting Stock Company, or for any document that describes such matters.
(4) The Converted Mutual Company shall, for six months from the Effective Date, keep at each of its offices a document or electromagnetic record describing or
recording the contents of the Entity Conversion plan and any other matter
specified by a Cabinet Office Ordinance.
(5) Policyholders or other creditors of a Converted Mutual Company may make
the following requests to the company at any time during its business hours;
provided, however, that they pay the fees determined by the Converted Mutual
Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the
preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means determined by the Converted Mutual Company, or for any document that
describes such matters.
(Objections of Creditors)
Article 70 (1) Policyholders or other creditors of a converting Stock Company may state to the company their objections to the Entity Conversion.
(2) A converting Stock Company shall publish the following matters in the
Official Gazette and by the Method of Public Notice prescribed by its articles of incorporation; provided, however, that the period for item (iv) may not be
shorter than one month:
(i) A statement to the effect that an Entity Conversion will be carried out; (ii) The name and address of the Converted Mutual Company;
(iii) Matters specified by a Cabinet Office Ordinance as pertaining to the financial statements of the converting Stock Company;
(iv) A statement to the effect that Policyholders or other creditors of the
converting Stock Company may state their objections within a certain period of time; and
(v) In addition to what is listed in the preceding items, matters specified by a
Cabinet Office Ordinance.
(3) Where no Policyholders or other creditors have stated their objections within the period set forth in item (iv) of the preceding paragraph, such Policyholders or creditors shall be deemed to have approved the Entity Conversion.
(4) Where any Policyholder or other creditor has stated his/her objection under
paragraph (2), item (iv), the converting Stock Company shall make payment or provide equivalent security to such Policyholder or other creditor, or entrust
equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the payment; provided, however,
that this shall not apply to the cases where the Entity Conversion poses no risk of harming the interest of such Policyholder or other creditor;
(5) The provision of the preceding paragraph shall not apply to the Policyholders or any rights held by other persons pertaining to insurance contracts (other
than Insurance Claims, etc.).
(6) Any resolution of authorization under Article 69, paragraph (1) shall be null and void if the number of the Policyholders who have stated their objections
within the period set forth in paragraph (2), item (iv) (excluding the holders of
policies under which Insurance Claims, etc. had already arisen at the time of
public notice under the paragraph (2) (but limited to those policies that would
be terminated with the payment of the Insurance Claims, etc.); hereinafter the same shall apply in this paragraph and the following paragraph) exceeds one fifth of the total number of Policyholders, and the amount specified by a
Cabinet Office Ordinance as the credits (other than Insurance Claims, etc.)
belonging to the insurance contracts of the Policyholders who have stated such objections exceeds one fifth of the total amount of credits belonging to the
Policyholders.
(7) An Entity Conversion carried out pursuant to the provisions of the preceding paragraphs shall also be effective against the Policyholders who have stated
their objections under the preceding paragraph and other persons who hold any
right (other than Insurance Claims, etc.) pertaining to the insurance contracts involving the Policyholders.
(8) In addition to what is provided for in the preceding paragraphs, necessary
matters for the application of those provisions shall be specified by a Cabinet
Order.
(Demand for Purchase of Share Options, etc.)
Article 71 The provisions of Article 777 (Demand for Purchase of Share Options), Article 778 (Determination on Value of Share Options, etc.), Article 868,
paragraph (1) (Jurisdiction of Non-Contentious Cases), Article 870 (limited to the segment pertaining to item (iv)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the
segment pertaining to item (iv)) (Immediate Appeal Against Ruling), the main
clause of Article 873 (Stay of Execution of Original Sentence), Article 875 (Exclusion from Application of Provisions of Act on Procedures for Non-
Contentious Cases) and Article 876 (Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to the cases where the converting Stock Company has issued share options. In this case, the term "converted
membership company" in Article 778, paragraph (1), Article 778, paragraph (2),
and Article 778, paragraph (4) of that Act shall be deemed to be replaced with
"Converted Mutual Company (referring to a Converted Mutual Company as defined in Article 69, paragraph (4), item (i) of the Insurance Business Act";
any other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(Contract during Procedure of Entity Conversion)
Article 72 (1) A converting Stock Company shall, when it intends to conclude an insurance contract on or after the day following the date of public notice under Article 70, paragraph (2), notify the prospective Policyholder to the effect that
the company is going through the procedure of Entity Conversion to obtain
his/her consent.
(2) A Policyholder who has given his/her consent under the preceding paragraph shall not be deemed as a Policyholder for the purpose of applying the following Article to Article 77 inclusive.
(Policyholders Meeting)
Article 73 Where the number of the Policyholders who have stated their
objections within the period set forth in Article 70, paragraph (2), item (iv) or
the amount of their credits as specified by a Cabinet Office Ordinance set forth in paragraph (6) of the same Article has not exceeded the proportion specified
in that paragraph, the directors of the converting Stock Company shall convene
a Policyholders meeting without delay following the completion of the procedure prescribed in the same Article.
(Method of Adopting Resolution, etc.)
Article 74 (1) Each Policyholder shall be entitled to one vote in the Policyholders meeting.
(2) A resolution of the policyholders meeting shall be adopted by a three quarter majority of the votes held by the attending Policyholders in a session where half or more of the Policyholders are present.
(3) The provisions of Article 67, paragraph (1) (Determination to Call
Organizational Meetings), Article 68 (excluding the items in paragraph (2) and paragraphs (5) to (7) inclusive) (Notices of Calling of Organizational Meetings), Articles 70 and 71 (Giving of Organizational Meeting Reference Documents and Voting Forms), Article 74 to 76 inclusive (Proxy Voting, Voting in Writing,
Voting by Electromagnetic Method), Article 78 to 80 inclusive (Accountability
of Incorporators, Authority of Chairperson, Resolution for Postponement or
Adjournment), Article 81, paragraphs (1) to (3) inclusive (Minutes) and Article
316, paragraph (1) (Investigation of Materials Submitted to the Shareholders
Meeting) of the Companies Act shall apply mutatis mutandis to the
policyholders meeting; and the provisions of Article 830 (Action for Declaratory
Judgment on Nonexistence or Nullity of Resolution of Shareholders Meeting,
etc.), Article 831 (Lawsuit for Rescission of Resolution of Shareholders Meeting, etc.), Article 834 (limited to the segment pertaining to items (xvi) and (xvii))
(Defendant), Article 835, paragraph (1) (Jurisdiction of Claim), Article 836,
paragraphs (1) and (3) (Order to Furnish Security), Article 837 (Compulsory
Consolidation of Oral Arguments, etc.), Article 838 (Scope of Effect of
Judgment in Favor of Claim), Article 846 (Liability for Damages in Case of
Defeat of Plaintiff), and Article 937, paragraph (1) (limited to the segment
pertaining to item (i), (g)) (Commission of Registration by Judicial Decision) of that Act shall apply mutatis mutandis to an action for a declaratory judgment on nonexistence or nullity of, or rescission of a resolution of the policyholders meeting. In this case, the terms "incorporators", "shareholders at
incorporation" and "Stock Company" in those provisions shall be deemed to be
replaced with "converting Stock Company," "policyholders" and "Mutual
Company," respectively; the term "in the following cases" in Article 68,
paragraph (2) of that Act shall be deemed to be deleted; the term "head office" in Article 74, paragraph (6) of that Act shall be deemed to be replaced with
"principal office"; the term "shareholders" in Article 74, paragraph (7) of that
Act shall be deemed to be replaced with "members"; and the terms
"shareholders, etc. (or shareholders, etc., shareholders at incorporation,
directors at incorporation or company auditors at incorporation, where the
shareholders meeting, etc. in the relevant item is the Organizational Meeting or class organizational meeting)" and "directors, company auditors or
liquidators (including, where the resolution is a resolution of the shareholders
meeting or class meeting, a person assuming the rights and obligations of a
director, company auditor or liquidator pursuant to the provision of Article 346, paragraph (1) (including the cases where it is applied mutatis mutandis
pursuant to Article 479, paragraph (4)), or, where the resolution is a resolution of the Organizational Meeting or class organizational meeting, directors at
incorporation or company auditors at incorporation)" in Article 831, paragraph
(1) of that Act shall be deemed to be replaced with "policyholders, directors, company auditors or liquidators (or, in a company with Committees,
Policyholders, directors, executive officers or liquidators" and "directors,
company auditors or liquidators," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) It shall be sufficient for a notice or demand to a Policyholder to be sent by the
converting Stock Company to the place or address which the Policyholder has notified to the Stock Company for the receipt of notices or demands.
(5) The notice or demand set forth in the preceding paragraph shall be deemed to
have arrived at the time when such notice or demand should normally have arrived.
(6) The provisions of the preceding two paragraphs shall apply mutatis mutandis
to the delivery of documents to Policyholders in giving a notice under Article 68, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to
paragraph (3), or the provision by electromagnetic means of the matters to be described in such documents. In this case, the term "to have arrived" in the
preceding paragraph shall be deemed to be replaced with "to have been effected by delivery of such document or provision of such matters by electromagnetic means"; and any other necessary technical change in interpretation shall be
specified by a Cabinet Order.
(Report of Directors)
Article 75 The directors shall report to the policyholders meeting the matters related to an Entity Conversion.
(Resolution of Policyholders Meeting)
Article 76 (1) The policyholders meeting shall, in its resolutions, adopt the
articles of incorporation of the Converted Mutual Company and other matters required for the organization of the Converted Mutual Company, and elect the persons to serve as directors of the Converted Mutual Company.
(2) In the following cases, the policyholders meeting shall elect the persons set forth in the relevant items:
(i) Where the Converted Mutual Company is a company with accounting advisors, the persons to serve as accounting advisors of the Converted Mutual Company;
(ii) Where the Converted Mutual Company is a company with auditors, the
persons to serve as company auditors of the Converted Mutual Company; and
(iii) Where the Converted Mutual Company is a company with accounting auditors, the persons to serve as accounting auditors of the Converted Mutual Company.
(3) The resolution set forth in Article 69, paragraph (1) may be amended by a
resolution under paragraph (1); provided, however, that such amendment may not harm the interest of the creditors of the converting Stock Company.
(4) Any amendment under the preceding paragraph that poses the risk of causing
any damage to the interest of shareholders shall be subject to the authorization of the shareholders meeting. In this case, the provision of Article 69, paragraph (2) shall apply mutatis mutandis.
(5) The resolution of authorization set forth in Article 69, paragraph (1) shall lose
its effect without the authorization of the shareholders meeting set forth in the preceding paragraph.
(6) The policyholders meeting may not adopt a resolution on any other matter
than that listed in Article 67, paragraph (1), item (ii) of the Companies Act as applied mutatis mutandis pursuant to Article 74, paragraph (3); provided,
however, that this shall not apply to a decision on the articles of incorporation of the Converted Mutual Company or on any other matter required for the
organization of the Converted Mutual Company, and the election of the persons specified in paragraphs (1) and (2).
(General Meeting of Policyholders)
Article 77 (1) The converting Stock Company may, by a resolution under Article
69, paragraph (1), establish an organ composed of general representatives elected from among the Policyholders (hereinafter referred to as "General Meeting of Policyholders") in lieu of the policyholders meeting.
(2) The resolution set forth in the preceding paragraph shall specify the matters
specified by a Cabinet Office Ordinance, such as the number and election method of general representatives.
(3) Policyholders of a converting Stock Company (excluding the holders of the
policies for which Insurance Claims, etc. had already arisen at the time of
public notice under the following paragraph (but limited to those policies that
would be terminated with the payment of the Insurance Claims, etc.); the same shall apply in that paragraph and paragraph (5)) may state to the converting
Stock Company their objections to the resolution set forth in paragraph (1).
(4) A converting Stock Company shall give public notice of the following matters within two weeks from the date of the resolution set forth in paragraph (1);
provided, however, that such period for item (ii) may not be shorter than one month:
(i) Contents of the resolution set forth in paragraph (1);
(ii) A statement to the effect that Policyholders of the converting Stock
Company may state their objections within a certain period of time; and
(iii) In addition to what is listed in the preceding two items, matters specified by a Cabinet Office Ordinance.
(5) Any resolution under paragraph (1) shall be null and void if the number of
Policyholders who have stated their objections within the period set forth in item (ii) of the preceding paragraph exceeds one fifth of the total number of Policyholders, and the amount specified by a Cabinet Office Ordinance as the
credits (other than Insurance Claims, etc.) belonging to the insurance contracts
of the Policyholders who have stated such objections exceeds one fifth of the total amount of credits belonging to the Policyholders.
(6) The provisions of Article 44-2 (excluding the second sentence of paragraph
(3)) and Article 73 to the preceding Article inclusive shall apply mutatis
mutandis to the General Meeting of Policyholders. In this case, the term "the preceding paragraph" in Article 310, paragraph (2) of the Companies Act as applied mutatis mutandis pursuant to the first sentence of Article 44-2,
paragraph (3) and the term "paragraph (1)" in Article 310, paragraph (3) shall
be deemed to be replaced with "Article 44-2, paragraph (1) of the Insurance
Business Act"; the term "Article 299, paragraph (3)" in Article 310, paragraph
(4) shall be deemed to be replaced with "Article 68, paragraph (3) as applied mutatis mutandis pursuant to Article 74, paragraph (3) of the Insurance
Business Act"; the term "shareholders (excluding the shareholders who may not exercise their votes on all matters which may be resolved at the
shareholders meeting under the preceding paragraph. The same shall apply hereinafter in paragraph (4) of the following Article and in Article 312,
paragraph (5))" in Article 310, paragraph (7) shall be deemed to be replaced with "Policyholders or members"; the term "Article 74 to 76 inclusive" in
Article 74, paragraph (3) shall be deemed to be replaced with "Articles 75 and
76"; the term "Policyholder" in Article 74, paragraph (4) shall be deemed to be replaced with "general representative"; and the terms "shareholders, etc. (or shareholders, etc., shareholders at incorporation, directors at incorporation or
company auditors at incorporation, where the shareholders meeting, etc. in the
relevant item is the Organizational Meeting or class organizational meeting)" and "directors, company auditors or liquidators (including, where the
resolution is a resolution of the shareholders meeting or class meeting, a
person assuming the rights and obligations of a director, company auditor or
liquidator pursuant to the provision of Article 346, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 479, paragraph (4)), or, where the resolution is a resolution of the Organizational Meeting or
class organizational meeting, directors at incorporation or company auditors at
incorporation)" in Article 831, paragraph (1) of that Act as applied mutatis
mutandis pursuant to Article 74, paragraph (3) shall be deemed to be replaced with "general representatives, directors, company auditors or liquidators (or, in a company with Committees, general representatives, directors, executive
officers or liquidators" and "directors, company auditors or liquidators,"
respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Solicitation of Funds in Entity Conversion)
Article 78 (1) A converting Stock Company shall, when it intends to solicit additional funds for the Converted Mutual Company, solicit the required amount of such funds without delay following the conclusion of the
policyholders meeting or General Meeting of Policyholders (or, in the case of
Article 76, paragraph (4), following the authorization of the shareholders meeting set forth in that paragraph).
(2) A converting Stock Company shall notify the following matters to the persons who intend to offer contribution to its funds in response to a solicitation under the preceding paragraph:
(i) Matters listed in Article 23, paragraph (1), item (ii) and items (iv) to (vi)
inclusive;
(ii) Amount of the additional funds to be solicited, the rights enjoyed by the contributors to the funds and the method of redemption of the funds;
(iii) Payment date; and
(iv) Location of the banks, etc. where the payment of contribution to the funds is handled.
(3) The provisions of Article 28, paragraphs (2) to (6) inclusive, Article 29 to 30-2
inclusive, Article 30-3 (excluding paragraphs (2) and (3)), and Article 30-5,
paragraphs (2) and (3) shall apply mutatis mutandis to a solicitation under (1). In this case, the term "incorporators" in those provisions shall be deemed to be replaced with "converting Stock Company"; the terms "funds solicited at
incorporation" and "funds of a Mutual Company at incorporation" in those
provisions shall be deemed to be replaced with "funds solicited under Article 78, paragraph (1)"; the term "the items in paragraph (1)" in Article 28, paragraph
(4) shall be deemed to be replaced with "the items of Article 78, paragraph (2)";
the term "the preceding two Articles" in Article 30 shall be deemed to be
replaced with "Article 78, paragraph (2) (excluding item (iii)) and Article 28,
paragraphs (2) to (6) inclusive as applied mutatis mutandis pursuant to Article
30, paragraph (3)"; the term "Mutual Company thus established" in Article 30-
4, paragraph (4) shall be deemed to be replaced with "Converted Mutual
Company"; and the term "After the establishment of the Mutual Company" in
Article 30-5, paragraph (3) shall be deemed to be replaced with "After the
Entity Conversion"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) The amount of costs required for the solicitation of funds under paragraph (1)
may be credited to assets in the balance sheet. In this case, such amount shall be amortized pursuant to the provisions of a Cabinet Office Ordinance.
(Policyholders Meeting after Solicitation of Funds)
Article 79 (1) In the case of paragraph (1) of the preceding Article, the directors
of the converting Stock Company shall, without delay after the total amount of the funds solicited under that paragraph has been paid in, convene a second
policyholders meeting or General Meeting of Policyholders.
(2) The persons to serve as directors (or directors and company auditors, where
the Converted Mutual Company is a company with auditors) of the Converted
Mutual Company shall investigate whether the total amount of the funds
solicited under paragraph (1) of the preceding Article has been subscribed for and paid in, and report the result to the policyholders meeting or General
Meeting of Policyholders set forth in the preceding paragraph.
(3) The provision of Article 94 (Special provisions in case directors at
incorporation are incorporators) of the Companies Act shall apply mutatis
mutandis to the policyholders meeting or General Meeting of Policyholders set
forth in paragraph (1), where all or some of the persons to serve as directors of the Converted Mutual Company are directors or executive officers of the
converting Stock Company. In this case, the term "the matters listed in the items of paragraph (1) of the preceding Article" in paragraph (1) of the same Article shall be deemed to be replaced with "whether the total amount of the funds solicited under Article 78, paragraph (1) of the Insurance Business Act
has been subscribed for and paid in"; any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Authorization of Entity Conversion)
Article 80 (1) An Entity Conversion shall not take effect without the authorization of the Prime Minister.
(2) The Prime Minister shall, on application for the authorization set forth in the preceding paragraph, examine whether the application meets the following
requirement:
(i) The Converted Mutual Company has a sufficient financial basis to carry on
the business of an Insurance Company, etc. in a sound and efficient manner; (ii) The Entity Conversion poses no risk of harming the rights of Policyholders;
and
(iii) In addition to what is listed in the preceding two items, the Entity Conversion poses no risk of precluding the sound management of the business of an Insurance Company, etc.
(Effectuation, etc. of Entity Conversion)
Article 81 (1) A converting Stock Company shall become a Mutual Company on the Effective Date.
(2) The shares and share options of a converting Stock Company shall become
null and void on the Effective Date.
(3) The Policyholders of a converting Stock Company shall become members of the Converted Mutual Company on the Effective Date.
(4) The provisions of the preceding three paragraphs shall not apply to the cases
where a procedure under Article 70 has not been completed or where the Entity
Conversion has been voluntarily abandoned.
(Public Notice, etc. of Entity Conversion)
Article 82 (1) A Converted Mutual Company shall, without delay following the Entity Conversion, give public notice of the effect that an Entity Conversion has been carried out and publish the matters specified by a Cabinet Office
Ordinance. The same shall apply to the cases where a converting Stock
Company has voluntarily abandoned the planned Entity Conversion after giving a public notice under Article 70, paragraph (2).
(2) A Converted Mutual Company shall, for six months following the Effective
Date, keep at each of its offices a document or electromagnetic record
describing or recording the matters specified by a Cabinet Office Ordinance as pertaining to the Entity Conversion, such as the progress of the procedure
under Article 70.
(3) Policyholders or other creditors of a Converted Mutual Company may make the following requests to the company at any time during its business hours;
provided, however, that they pay the fees determined by the Mutual Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the
preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means determined by the Converted Mutual Company, or for any document that
describes such matters.
(Pledge on Former Shares)
Article 83 The provisions of Article 151 (excluding the items) and Article 154
(Effect of pledge of shares) of the Companies Act shall apply mutatis mutandis to the monies which the shareholders are entitled to receive as a result of any Entity Conversion of a Stock Company. In this case, any other necessary
technical change in interpretation shall be specified by a Cabinet Order.
(Registration)
Article 84 (1) Where a Stock Company has carried out an Entity Conversion, the converting Stock Company shall make a registration of dissolution within two weeks from the date of Entity Conversion at the location of its head office and within three weeks from said date at the location of its branch offices; and the
Converted Mutual Company shall complete registration of incorporation within
two weeks from the date of Entity Conversion at the location of its principal office and within three weeks from said date at the location of its secondary offices.
(2) The following documents shall be attached to a written application for the registration of incorporation of a Mutual Company under the preceding
paragraph, in addition to those specified in Articles 18, 19 and 46 of the
Commercial Registration Act as applied mutatis mutandis pursuant to Article
67:
(i) Entity Conversion plan;
(ii) Articles of incorporation;
(iii) A document certifying that a public notice under Article 70, paragraph (2)
has been given;
(iv) The minutes of the shareholders meeting and policyholders meeting (or
General Meeting of Policyholders, where the company has such meeting);
(v) Where any Policyholder or other creditor has stated his/her objection under Article 70, paragraph (4), a document certifying that the company has made payment or provided equivalent security to such Policyholder or other
creditor, or entrusted equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the
payment, or a document certifying that the Entity Conversion poses no risk of harming the interest of such Policyholder or other creditor;
(vi) A document certifying that the number of Policyholders who have stated
their objections under Article 70, paragraph (6) has not exceeded one fifth of the total number of Policyholders, or a document certifying that the amount specified by a Cabinet Office Ordinance set forth in that paragraph as the
credits belonging to such Policyholders has not exceeded one fifth of the total
amount set forth in that paragraph;
(vii) Where the converting Stock Company is a company issuing share
certificates, a document certifying that a public notice has been given under
the main clause of Article 219, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 69, paragraph (6), or a document
certifying that the company has not issued share certificates for all of the shares.
(viii) Where the converting Stock Company has issued share options, a
document certifying that a public notice has been given under Article 293,
paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 69, paragraph (6), or a document certifying that the company has not issued any stock option certificate under that paragraph.
(ix) A document certifying that the directors (or directors and company
auditors, where the Converted Mutual Company is a company with auditors)
of the Converted Mutual Company have accepted the assumption of office;
(x) Where accounting advisors or accounting auditors have been elected for the
Converted Mutual Company, the following documents;
(a) A document certifying that they have accepted the assumption of office,
(b) Where they are juridical persons, certificates of the matters registered for such juridical persons, provided, however, that this shall not apply to the
cases where the principal offices of such juridical persons are located within the jurisdictional district of the relevant registry office, and
(c) Where they are not juridical persons, a document certifying that the
accounting advisors meet the requirement of Article 333, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-4, or that the accounting auditors meet the requirement of Article 337,
paragraph (1) of that Act as applied mutatis mutandis pursuant to Article
53-7;
(xi) Where funds have been solicited, a document certifying the offer of
contribution to the funds or a contract under Article 30 as applied mutatis mutandis pursuant to Article 78, paragraph (3); and
(xii) Where funds have been solicited, a document certifying that payment has been made to the funds under Article 30-3, paragraph (1) as applied mutatis mutandis pursuant to Article 78, paragraph (3).
(3) Articles 76 and 78 (Registration of Entity Conversion) of the Commercial
Registration Act shall apply mutatis mutandis to the case of paragraph (1). In this case, any other necessary technical change in interpretation shall be
specified by a Cabinet Order.
(Lawsuit for Nullification of Entity Conversion)
Article 84-2 (1) The nullity of an Entity Conversion may only be asserted in a lawsuit filed within six months from the Effective Date.
(2) A lawsuit for nullification of an Entity Conversion may only be filed by a
person who was a shareholder, etc. (referring to a person who was a
shareholder, director, company auditor or liquidator (or, in a company with
Committees, a shareholder, director, executive officer or liquidator);
hereinafter the same shall apply in this Section) of the converting Stock
Company on the Effective Date, or a member, etc. (referring to a member,
director, company auditor or liquidator (or, in a company with Committees, a member, director, executive officer or liquidator); hereinafter the same shall
apply in this Section) or bankruptcy trustee of the Converted Mutual Company or a creditor of the Converted Mutual Company who has not approved of the
Entity Conversion.
(3) A lawsuit for the nullification of an Entity Conversion shall be filed against the Converted Mutual Company.
(4) The provisions of Article 835, paragraph (1) (Jurisdiction of Claim), Article
836 to 839 inclusive (Order to Furnish Security, Compulsory Consolidation of Oral Arguments, etc., Scope of Effect of Judgment in Favor of Claim, Effect of Judgment of Nullity or Rescission), Article 846 (Liability for Damages in Case of Defeat of Plaintiff) and Article 937, paragraph (3) (limited to the segment pertaining to item (i)) (Commission of Registration by Judicial Decision) of the
Companies Act shall apply mutatis mutandis to a lawsuit for nullification of an
Entity Conversion; the provision of Article 840 (Effect of Judgment of Nullity of
Issue of New Shares) of that Act shall apply mutatis mutandis to a judgment of nullity of an Entity Conversion accompanied by the solicitation of funds set
forth in Article 78, paragraph (1); and the provisions of Article 868, paragraph
(1) (Jurisdiction of Non-Contentious Cases), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment
pertaining to item (ii)) (Immediate Appeal Against Ruling), the main clause of
Article 873 (Stay of Execution of Original Sentence), Article 875 to 877
inclusive (Exclusion from Application of Provisions of Act on Procedures for Non-Contentious Cases, Supreme Court Rules, Compulsory Consolidation of Hearings, etc.) and Article 878, paragraph (1) (Effect of Judicial Decision) of that Act shall apply mutatis mutandis to an application under Article 840,
paragraph (2) of that Act as applied mutatis mutandis pursuant to this
paragraph. In this case, the term "shareholder" in Article 878, paragraph (1)
shall be deemed to be replaced with "shareholder or member"; any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
Subsection 2 Entity Conversion from Mutual Company to Stock
Company
(Entity Conversion)
Article 85 (1) A mutual Insurance Company may convert to a stock Insurance
Company.
(2) A Mutual Company that is a Small Amount and Short Term Insurance
Provider may convert to a Stock Company that is a Small Amount and Short
Term Insurance Provider.
(Authorization of Entity Conversion Plan)
Article 86 (1) A Mutual Company shall, when it intends to carry out an Entity Conversion under the preceding Article (hereinafter referred to as "Entity Conversion" in this Subsection), prepare an Entity Conversion plan to be
approved by a resolution of the General Meeting of members (or General Meeting, where the company has such meeting; hereinafter the same shall apply in this Subsection).
(2) The resolution set forth in the preceding paragraph shall be a resolution under Article 62, paragraph (2).
(3) A Mutual Company, when it intends to adopt a resolution under paragraph (1), shall provide an outline of the Entity Conversion plan in the notice to be given pursuant to Article 299, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 41, paragraph (1) or Article 49,
paragraph (1).
(4) A Mutual Company shall prescribe the following matters in its Entity
Conversion plan:
(i) The purpose, trade name, location of the head office and total number of authorized shares of the Stock Company to be established by the Entity
Conversion (hereinafter referred to as "Converted Stock Company" in this
Subsection);
(ii) In addition to what is listed in the preceding item, matters specified by the articles of incorporation of the Converted Stock Company;
(iii) Names of the directors of the Converted Stock Company;
(iv) The following matters depending on the case;
(a) Where the Converted Stock Company is a company with accounting
advisors, the names of the persons to serve as accounting advisors of the
Converted Stock Company,
(b) Where the Converted Stock Company is a company with auditors, the names of the company auditors of the Converted Stock Company, or
(c) Where the Converted Stock Company is a company with accounting
auditors, the names of the accounting auditors of the Converted Stock
Company;
(v) The number of shares (or the classes of share and the number of shares by class, where the Converted Stock Company is a company with class shares) to be acquired by the members of the converting Mutual Company or the
method of calculating such number, and matters related to the capital and
Reserves of the Converted Stock Company;
(vi) Matters related to the allocation of the shares set forth in the preceding item to the members of the converting Mutual Company;
(vii) The amount of, and calculation method for, any money granted to the members of the converting Mutual Company;
(viii) Matters related to the allocation of the money set forth in the preceding item to the members of the converting Mutual Company;
(ix) The method of selling any additional fraction of shares to be issued as a
result of the allocation of shares to the members of the converting Mutual Company and any other matter specified by a Cabinet Office Ordinance regarding such sale.
(x) The method of purchasing any fraction of shares arising under the
preceding item and any other matter specified by a Cabinet Office Ordinance regarding such purchase;
(xi) Matters related to the rights of Policyholders after the Entity Conversion;
and
(xii) The day on which the Entity Conversion takes effect (hereinafter referred to as "Effective Date" in this Subsection) and any other matter specified by a Cabinet Office Ordinance.
(5) A Mutual Company shall, as a matter to be prescribed by the articles of
incorporation pursuant to the provision of item (ii) of the preceding paragraph, include in the Converted Stock Company's articles of incorporation a principle pertaining to the policy dividends set forth in Article 114, paragraph (1)
(including the cases where it is applied mutatis mutandis pursuant to Article
272-18).
(Keeping and Inspection, etc. of Document Related to Entity Conversion Plan, etc.)
Article 87 (1) A converting Mutual Company shall, for the period ranging from the commencement date for the keeping of an Entity Conversion plan to the
Effective Date, keep at each of its offices a document or electromagnetic record
describing or recording the contents of the Entity Conversion plan and any other matter specified by a Cabinet Office Ordinance.
(2) The term "the commencement date for the keeping of an Entity Conversion
plan" in the preceding paragraph refers to the date listed in any of the following items, whichever is earlier:
(i) The day which is two weeks before the date of the General Meeting of
members set forth in paragraph (1) of the preceding Article (or, in the case of Article 319, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 41, paragraph (1), the date of proposal under that
paragraph); or
(ii) The date of public notice under paragraph (2) of the following Article.
(3) Policyholders or other creditors of a converting Mutual Company may make the following requests to the company at any time during its business hours;
provided, however, that they pay the fees determined by the Mutual Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in paragraph (1);
(ii) A request for a transcript or extract of the document set forth in paragraph
(1);
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in paragraph (1) in a manner specified
by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in paragraph (1) by the electromagnetic means determined
by the converting Mutual Company, or for any document that describes such
matters.
(4) The Converted Stock Company shall, for six months from the Effective Date, keep at each of its business offices a document or electromagnetic record
describing or recording the contents of the Entity Conversion plan and any other matter specified by a Cabinet Office Ordinance.
(5) The creditors of a Converted Stock Company, such as Shareholders and
Policyholders, may make the following requests to the company at any time during its operating hours; provided, however, that they pay the fees
determined by the Converted Stock Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding
paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic
record set forth in the preceding paragraph by the electromagnetic means determined by the Converted Stock Company, or for any document that
describes such matters.
(Objections of Creditors)
Article 88 (1) Policyholders or other creditors of a converting Mutual Company may state to the company their objections to the Entity Conversion.
(2) A converting Mutual Company shall give public notice of the following
matters in the Official Gazette and by the Method of Public Notice prescribed
by its articles of incorporation; provided, however, that the period for item (iii)
may not be shorter than one month:
(i) A statement to the effect that an Entity Conversion will be carried out; (ii) The trade name and address of the Converted Stock Company;
(iii) A statement to the effect that Policyholders or other creditors of the
converting Mutual Company may state their objections within a certain period of time; and
(iv) In addition to what is listed in the preceding three items, matters specified
by a Cabinet Office Ordinance.
(3) Where no Policyholders or other creditors have stated their objections within
the period set forth in item (iii) of the preceding paragraph, such Policyholders or creditors shall be deemed to have approved the Entity Conversion.
(4) Where any Policyholder or other creditor has stated his/her objection under
paragraph (2), item (iii), the converting Mutual Company shall make payment
or provide equivalent security to such Policyholder or other creditor, or entrust equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the payment; provided, however,
that this shall not apply to the cases where the Entity Conversion poses no risk
of harming the interest of such Policyholder or other creditor;
(5) The provision of the preceding paragraph shall not apply to the Policyholders or any rights held by other persons pertaining to insurance contracts (other
than Insurance Claims, etc.).
(6) Any resolution of authorization under Article 86, paragraph (1) shall be null and void if the number of the Policyholders who have stated their objections
within the period set forth in paragraph (2), item (iii) (excluding the holders of
policies under which Insurance Claims, etc. had already arisen at the time of
public notice under the paragraph (2) (but limited to those policies that would be terminated with the payment of the Insurance Claims, etc.); the same shall apply hereinafter in this paragraph and in the following paragraph) exceeds
one fifth of the total number of Policyholders, and the amount specified by a
Cabinet Office Ordinance as the credits (other than Insurance Claims, etc.)
belonging to the insurance contracts of the Policyholders who have stated such objections exceeds one fifth of the total amount of credits belonging to the
Policyholders.
(7) An Entity Conversion carried out pursuant to the provisions of the preceding paragraphs shall also be effective against the Policyholders who have stated
their objections under the preceding paragraph and other persons who hold any
right (other than Insurance Claims, etc.) pertaining to the insurance contracts involving the Policyholders.
(8) A converting Mutual Company shall, when it intends to conclude an
insurance contract on or after the day following the date of public notice under paragraph (2), notify the prospective Policyholder to the effect that the
company is going through the procedure of Entity Conversion.
(9) In addition to what is provided for in the preceding paragraphs, necessary matters for the application of those provisions shall be specified by a Cabinet Order.
(Redemption of Funds, etc.)
Article 89 (1) A converting Mutual Company shall, where it has any amount of unredeemed funds, redeem the full amount of its funds as stipulated in the
Entity Conversion plan; provided, however, that this shall not apply to any amount of credits pertaining to the funds delivered for the purpose of
contribution in kind in issuing shares under Article 92.
(2) The provisions of Article 55, paragraph (2) and Article 56 shall not apply to an Entity Conversion from a Mutual Company to a Stock Company.
(Allocation of Shares or Monies to Members)
Article 90 (1) The members of a converting Mutual Company shall receive
allocation of the Converted Stock Company's shares or monies as stipulated in the Entity Conversion plan.
(2) The allocation of shares or monies set forth in the preceding paragraph shall be made in accordance with the amount of contribution of each member
(referring to the amount calculated pursuant to the provisions of a Cabinet
Office Ordinance as equivalent to the balance of the amount paid by a member as the insurance premiums and the profits obtained by investing the money
received as such insurance premiums which have neither been allocated to the
payment of benefits such as insurance claims or refunds, nor to business or
other expenditures, after deducting the amount of assets to be retained for the performance of obligations under the insurance contract with the member).
(3) The provisions of Article 234, paragraph (1) (excluding all items) and (2) to (5) inclusive (Treatment of Fractions), Article 868, paragraph (1) (Jurisdiction of Non-Contentious Cases), Article 869 (Showing of Prima Facie Evidence),
Article 871 (Supplementary Note of Reasons), Article 874 (limited to the
segment pertaining to item (iv)) (Restrictions on Appeal), Article 875
(Exclusion from Application of Provisions of Act on Procedures for Non-
Contentious Cases) and Article 876 (Supreme Court Rules) of the Companies
Act shall apply mutatis mutandis to the allocation of shares to the members of a converting Mutual Company pursuant to the provisions of the preceding two paragraphs. In this case, any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(4) In addition to what is provided for in the preceding three paragraphs, matters required for the allocation of shares or monies in the case of an Entity
Conversion shall be specified by a Cabinet Order.
(Amount of Surplus in Entity Conversion, etc.)
Article 91 (1) A converting Mutual Company shall, as a matter to be prescribed by the articles of incorporation pursuant to the provision of Article 86,
paragraph (4), item (ii), determine the amount of surplus in Entity Conversion. (2) The amount of surplus in Entity Conversion shall be the total amount
calculated for all withdrawn members as specified by a Cabinet Office
Ordinance in accordance with a Cabinet Office Ordinance set forth in paragraph (2) of the preceding Article.
(3) In addition to what is provided for in the preceding two paragraphs, the
amount to be set aside as capital reserve on Entity Conversion, the reduction of surplus in Entity Conversion and other matters required for calculations on
Entity Conversion shall be specified by a Cabinet Office Ordinance.
(Issue of Shares in Entity Conversion)
Article 92 A converting Mutual Company may, in carrying out the Entity
Conversion, issue shares of the Converted Stock Company, in addition to the allocation of shares under Article 90, paragraph (1). In this case, the Entity
Conversion plan shall stipulate the following matters:
(i) The number of the shares to be issued pursuant to the provision of this
Article (hereinafter referred to as "Shares Issued on Entity Conversion" in
this Subsection) (or, in a company with class shares, the classes and number of the Shares Issued on Entity Conversion; hereinafter the same shall apply
in this Subsection);
(ii) The amount to be paid in for the Shares Issued on Entity Conversion
(referring to the amount of money to be paid, or of non-monetary properties to be delivered, in exchange for a share issued on Entity Conversion;
hereinafter the same shall apply in this Subsection);
(iii) Where contribution is to be made in the form of non-monetary property, a statement to that effect and the description and value of such property;
(iv) The date of the payment of money in exchange for the Shares Issued on
Entity Conversion or the delivery of the property set forth in the preceding item;
(v) Matters regarding the capital and capital reserves to be increased.
(Offer of Subscription, etc. for Shares Issued on Entity Conversion)
Article 93 (1) A converting Mutual Company shall notify the following matters to the persons who intend to offer a subscription for Shares Issued on Entity
Conversion:
(i) The trade name of the Converted Stock Company; (ii) Matters listed in the items of the preceding Article;
(iii) Places where any payment of money is to be handled; and
(iv) In addition to what is listed in the preceding three items, matters specified by a Cabinet Office Ordinance.
(2) A person who offers to subscribe for Shares Issued on Entity Conversion shall
submit to the converting Mutual Company a document specifying the following matters:
(i) The name and address of the person who makes the offer; and
(ii) The number of Shares Issued on Entity Conversion for which the person intends to subscribe.
(3) A person who makes an offer under the preceding paragraph may, in lieu of
submitting the document prescribed in that paragraph, and pursuant to the provisions of a Cabinet Order, provide the matters to be indicated in such
document by electromagnetic means, with the consent of the converting Mutual
Company. In this case, the person who has made the offer shall be deemed to have submitted the document prescribed in that paragraph.
(4) The converting Mutual Company shall immediately notify a person who has
made an offer under paragraph (2) (hereinafter referred to as "Offeror" in this
Subsection) of any change in the matters listed in the items of paragraph (1)
and the matter affected by the change.
(5) It shall be sufficient for a notice or demand to an Offeror to be sent by the
converting Mutual Company to the address specified under paragraph (2), item
(i) (or to any other place or contact address notified by the Offeror to the
Mutual Company for the receipt of notices or demands).
(6) The notice or demand set forth in the preceding paragraph shall be deemed to have arrived at the time when such notice or demand should normally have
arrived.
(7) The provision of Article 10 shall apply mutatis mutandis to a notice given by the converting Mutual Company under paragraph (1). In this case, any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Allocation of Shares Issued on Entity Conversion)
Article 94 (1) The converting Mutual Company shall select from among the Offerors the persons to receive allocation of the Shares Issued on Entity Conversion, and determine the number of the Shares Issued on Entity
Conversion to be allocated to each of such persons. In this case, the Mutual
Company may reduce the number of the Shares Issued on Entity Conversion to be allocated to each Offeror from the number prescribed in paragraph (2), item (ii) of the preceding Article.
(2) The converting Mutual Company shall notify the Offerors, no later than the
day immediately preceding the date referred to in Article 92, item (iv) of the number of the Shares Issued on Entity Conversion that will be allocated to
each Offeror.
(Subscription for Shares Issued on Entity Conversion)
Article 95 An Offeror shall be a subscriber for Shares Issued on Entity
Conversion for the number of such shares allocated by the converting Mutual
Company.
(Performance of Contribution)
Article 96 (1) Subscribers for Shares Issued on Entity Conversion (other than
those who deliver properties under Article 92, item (iii) (hereinafter referred to as "Properties Contributed in Kind" in this Subsection)) shall, by the date set
forth in item (iv) of the same Article, pay the full amount to be paid in for the
Shares Issued on Entity Conversion allocated to each of them at any of the places where such payment is to be handled under Article 93, paragraph (1), item (iii).
(2) Subscribers for Shares Issued on Entity Conversion (limited to those who
deliver Properties Contributed in Kind) shall, by the date set forth in Article
92, item (iv), deliver the Properties Contributed in Kind equivalent to the full amount to be paid in for the Shares Issued on Entity Conversion allocated to
each of them.
(3) A subscriber for Shares Issued on Entity Conversion may not set off his/her obligation of payment under paragraph (1) or delivery under the preceding
paragraph (hereinafter referred to as "Performance of Contribution" in this
Subsection) against any claim against the converting Mutual Company.
(4) Any assignment of the right to become a holder of Shares Issued on Entity Conversion by Performance of Contribution may not be duly asserted against the Converted Stock Company.
(5) A subscriber for Shares Issued on Entity Conversion who fails to perform contribution shall lose his/her right to become a holder of Shares Issued on Entity Conversion by the Performance of Contribution.
(Timing of Obtaining Shareholder Status)
Article 96-2 A subscriber for Shares Issued on Entity Conversion shall, on the Effective Date, become the holder of the Shares Issued on Entity Conversion for which he/she has performed contribution.
(Restrictions on Nullification or Recession of Subscription)
Article 96-3 (1) The proviso to Article 93 (Concealment of True Intention) and the provision of Article 94, paragraph (1) (Fictitious Manifestation of
Intention) of the Civil Code shall not apply to the manifestation of intention pertaining to the offer of subscription for, or allocation of, Shares Issued on Entity Conversion.
(2) A subscriber for Shares Issued on Entity Conversion may neither claim for
nullification of his/her subscription for Shares Issued on Entity Conversion on the grounds of mistake, nor rescind his/her subscription for Shares Issued on
Entity Conversion on the grounds of fraud or duress, after one year has lapsed since the Effective Date or he/she has exercised any right regarding his/her
shares.
(Contribution of Non-Monetary Property)
Article 96-4 The provisions of Article 207 (Contribution of Property Other than Monies), Article 212 (excluding paragraph (1), item (i)) (Liabilities of Persons Who Subscribed for Shares with Unfair Amount to Be Paid in), Article 213
(excluding paragraph (1), items (i) and (iii)) (Liabilities of Directors in Case of
Shortfall in Value of Property contributed), Article 868, paragraph (1)
(Jurisdiction of Non-Contentious Cases), Article 870 (limited to the segment pertaining to items (ii) and (vii)) (Hearing of Statements), Article 871
(Supplementary Note of Reasons), Article 872 (limited to the segment
pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874
(limited to the segment pertaining to item (i)) (Restrictions on Appeal), Article
875 (Exclusion from Application of Provisions of Act on Procedures for Non- Contentious Cases) and Article 876 (Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to any stipulation for the matters listed in Article 92, item (iii); and the provisions of Part VII, Chapter II, Section 2
(Lawsuit for Accountability, etc. in Stock Company) of that Act shall apply
mutatis mutandis to a lawsuit for payment under Article 212 (excluding
paragraph (1), item (i)) of that Act as applied mutatis mutandis pursuant to this Article. In this case, the term "director" in Article 207, paragraph (10),
item (i) of that Act shall be deemed to be replaced with "director of the converting Mutual Company set forth in Article 86, paragraph (1) of the
Insurance Business Act"; the terms "Article 209" and "Article 199, paragraph (1), item (iii)" in Article 207, paragraph (2) shall be deemed to be replaced with "Article 96-2 of the Insurance Business Act" and "Article 92, item (iii) of that Act," respectively; the terms "Article 199, paragraph (1), item (iii)" and
"application for subscription for shares for subscription or his/her
manifestation of intention relating to the contract provided for in Article 205" in Article 212, paragraph (2) of that Act shall be deemed to be replaced with
"Article 92, item (iii) of the Insurance Business Act" and "application,"
respectively; and the term "shareholders having the shares" in Article 847,
paragraph (1) of that Act shall be deemed to be replaced with "shareholders having the shares (or, where six months (or any shorter period prescribed by the articles of incorporation; hereinafter the same shall apply in this
paragraph) have not lapsed since the Effective Date of an Entity Conversion,
persons who had been members from six months prior until the Effective Date of the Entity Conversion and have been holding the shares without
interruption since the Effective Date of the Entity Conversion)"; any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Share Exchange on Entity Conversion)
Article 96-5 (1) A converting Mutual Company may, at the time of Entity
Conversion, carry out a share exchange on Entity Conversion (referring to an exchange of shares whereby a converting Mutual Company causes all of the shares of the Converted Stock Company to be acquired by another Stock
Company (hereinafter referred to as "Wholly Owning Parent Company for
Share Exchange on Entity Conversion" in this Subsection) at the time of the
Entity Conversion; hereinafter the same shall apply in this Subsection).
(2) A converting Mutual Company shall, in carrying out a share exchange on
Entity Conversion, conclude a contract for share exchange on Entity
Conversion with the Wholly Owning Parent Company for Share Exchange on
Entity Conversion.
(3) The provision of Article 791 (excluding paragraph (1), item (i) and paragraph
(3)) (Keeping and Inspection, etc. of Documents, etc. Related to Absorption- Type Split or Share Exchange) of the Companies Act shall apply mutatis
mutandis to a converting Mutual Company carrying out a share exchange on
Entity Conversion; the provisions of Article 309, paragraph (2) (excluding all items) (Resolution of Shareholders Meetings), Article 324, paragraph (2)
(excluding all items (Resolution of Class Meetings) and Part V, Chapter V,
Section 2, Subsection 2, Division 1 (excluding Article 795, paragraph (4), items
(i) and (ii), Article 796, paragraph (3), item (i), (b), Article 799, paragraph (1), items (i) and (ii), Article 800, Article 801, paragraphs (1) and (2), Article 801,
paragraph (3), items (i) and (ii), and Article 801, paragraph (5)) (Procedures for
Stock Company) of that Act shall apply mutatis mutandis to a Wholly Owning Parent Company for Share Exchange on Entity Conversion; and the provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious cases), Article
870 (limited to the segment pertaining to item (iv)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against
Ruling), the main clause of Article 873 (Stay of Execution of Original Sentence), Article 875 (Exclusion from Application of Provisions of Act on Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules) of that Act
shall apply mutatis mutandis to an application under Article 798, paragraph
(2) of that Act as applied mutatis mutandis pursuant to this paragraph. In this case, any other necessary technical change in interpretation shall be specified
by a Cabinet Order.
(Allocation, etc. of Shares of Wholly Owning Parent Company for Share
Exchange to Members)
Article 96-6 (1) Notwithstanding the provision of Article 90, paragraph (1), the members of a converting Mutual Company carrying out a share exchange on Entity Conversion shall, pursuant to the provisions of the Entity Conversion
plan, receive allocation of shares issued, or monies granted, at the time of the
share exchange by the Wholly Owning Parent Company for Share Exchange on
Entity Conversion.
(2) The provisions of Article 90, paragraphs (2) to (4) inclusive shall apply
mutatis mutandis to the case set forth in the preceding paragraph. In this case, the term "the preceding paragraph" in paragraph (2) of the same Article shall
be deemed to be replaced with "Article 96-6, paragraph (1)"; the term "the
preceding two paragraphs" in Article 90, paragraph (3) shall be deemed to be replaced with "Article 96-6, paragraph (1) and the preceding paragraph"; and
the term "the preceding three paragraphs" in Article 90, paragraph (4) shall be deemed to be replaced with "Article 96-6, paragraph (1) and the preceding two
paragraphs"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) Where a converting Mutual Company issuing shares pursuant to the
provision of Article 92 carries out a share exchange on Entity Conversion, the subscribers for shares who have made payments or delivered contributions in
kind for their shares shall, pursuant to the provisions of the Entity Conversion plan, receive allocation of shares issued, or monies delivered, at the time of the share exchange by the Wholly Owning Parent Company for Share Exchange on Entity Conversion.
(Matters Regarding Share Exchange on Entity Conversion to be Prescribed by
Entity Conversion Plan, etc.)
Article 96-7 In the case of a share exchange on Entity Conversion, the Entity Conversion plan and the contract for share exchange on Entity Conversion shall prescribe the following matters:
(i) The names, trade names and addresses of the converting Mutual Company
and the Wholly Owning Parent Company for Share Exchange on Entity
Conversion;
(ii) The following matters regarding any Shares, etc. (referring to shares or monies; hereinafter the same shall apply in this Section) issued or granted by the Wholly Owning Parent Company for Share Exchange on Entity
Conversion to the members of the converting Mutual Company (including the
subscribers for the shares issued pursuant to the provision of Article 92;
hereinafter the same shall apply in this Article) in carrying out the share exchange on Entity Conversion;
(a) Where the Shares, etc. are the shares of the Wholly Owning Parent Company for Share Exchange on Entity Conversion, the number of such shares (or, in a company with class shares, the classes of share and the numbers of shares by class) or the method of its calculation, and matters regarding the amounts of the capital and Reserves of the Wholly Owning Parent Company for Share Exchange on Entity Conversion, or
(b) Where the Shares, etc. are monies, the amount of such monies or the
method of its calculation;
(iii) In the case of the preceding item, matters regarding the allocation of the Shares, etc. set forth in that item to the members of the converting Mutual Company (excluding the Wholly Owning Parent Company for Share
Exchange on Entity Conversion);
(iv) The method of selling any additional fraction of shares to be issued as a result of the allocation of shares to the members of the converting Mutual
Company and any other matter specified by a Cabinet Office Ordinance regarding such sale.
(v) The method of purchasing any additional fraction of shares arising under the preceding item and any other matter specified by a Cabinet Office
Ordinance regarding such purchase; and
(vi) The day on which the Entity Conversion and share exchange on Entity
Conversion take effect.
(Share Transfer on Entity Conversion)
Article 96-8 (1) A converting Mutual Company may, at the time of Entity Conversion, carry out a share transfer on Entity Conversion (referring to a transfer whereby a converting Mutual Company or two or more converting
mutual companies cause(s) all of the shares of the Converted Stock Company
(including, in the case set forth in paragraph (1), item (ix) of the following Article, the Stock Company set forth in that item) to be acquired by a new Stock Company to be incorporated (hereinafter referred to as "Wholly Owning parent Company Formed by Share Transfer on Entity Conversion" in this
Subsection) at the time of the Entity Conversion).
(2) The provision of Article 96-6 shall apply mutatis mutandis to a share transfer on Entity Conversion. In this case, the term "Wholly Owning Parent Company
for Share Exchange on Entity Conversion" in paragraph (1) of the same Article
shall be deemed to be replaced with "Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion"; the term "Article 96-6, paragraph
(1)" in Article 96-6, paragraph (2) shall be deemed to be replaced with "Article
96-6, paragraph (1) as applied mutatis mutandis pursuant to Article 96-8, paragraph (2)"; and the term "Wholly Owning Parent Company for Share
Exchange on Entity Conversion" in Article 96-6, paragraph (3) shall be deemed
to be replaced with "Wholly Owning Parent Company Formed by Share
Transfer on Entity Conversion"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Matters Regarding Share Transfer on Entity Conversion to be Prescribed by
Entity Conversion Plan, etc.)
Article 96-9 (1) In the case of a share transfer on Entity Conversion, the Entity
Conversion plan shall prescribe the following matters:
(i) The purpose of the Wholly Owning Parent Company Formed by Share
Transfer on Entity Conversion, the trade name, the location of its head office, and the total number of authorized shares;
(ii) In addition to what is listed in the preceding item, matters specified by the
articles of incorporation of the Wholly Owning Parent Company Formed by
Share Transfer on Entity Conversion;
(iii) The names of the persons to serve as directors at the incorporation of the
Wholly Owning Parent Company Formed by Share Transfer on Entity
Conversion;
(iv) Any of the following matters depending on the case;
(a) Where the Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion is a company with accounting advisors, the names of the persons to serve as accounting advisors at the incorporation of the Wholly
Owning Parent Company Formed by Share Transfer on Entity Conversion, (b) Where the Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion is a company with auditors, the names of the persons to
serve as company auditors at the incorporation of the Wholly Owning
Parent Company Formed by Share Transfer on Entity Conversion, or
(c) Where the Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion is a company with accounting auditors, the names of the persons to serve as accounting auditors at the incorporation of the Wholly
Owning Parent Company Formed by Share Transfer on Entity Conversion;
(v) The number of the shares (or, in a company with class shares, the classes of share and the numbers of shares by class) to be issued by the Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion to the members of the converting Mutual Company (including the subscribers for
shares issued pursuant to the provision of Article 92; hereinafter the same
shall apply in this Article) in carrying out the share transfer on Entity
Conversion or the method of calculating such number, and matters regarding the amounts of the capital and Reserves of the Wholly Owning Parent
Company Formed by Share Transfer on Entity Conversion;
(vi) Matters regarding the allocation of the shares set forth in the preceding item to the members of the converting Mutual Company;
(vii) The amount of any money to be granted by the Wholly Owning Parent
Company Formed by Share Transfer on Entity Conversion to the members of the converting Mutual Company in carrying out the share transfer on Entity Conversion or the method of calculating such amount;
(viii) In the case of the preceding item, matters regarding the allocation of the money set forth in that item to the members of the converting Mutual
Company; and
(ix) In jointly incorporating a Wholly Owning Parent Company Formed by
Share Transfer on Entity Conversion with another converting Mutual
Company or a Stock Company, a statement to that effect, and the matters
listed in Article 773, paragraph (1), items (ix) and (x) (Share Transfer Plan)
of the Companies Act regarding the share options of the Stock Company.
(2) The provisions of Part II, Chapter I (excluding Article 27 (excluding items (iv)
and (v)), Article 29, Article 31, Article 39, Section 6 and Article 49)
(Incorporation) of the Companies Act shall not apply to the incorporation of a
Wholly Owning Parent Company Formed by Share Transfer on Entity
Conversion.
(3) The articles of incorporation of a Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion shall be drafted by the converting Mutual Company carrying out the share transfer on Entity Conversion (or, in the case
of paragraph (1), item (ix), the converting Mutual Company carrying out the
share transfer on Entity Conversion and the Stock Company set forth in that item).
(4) The provision of Article 811 (excluding paragraph (1), item (i)) (Keeping and
Inspection , etc. of Documents, etc. Regarding Incorporation-Type Company
Split or Share Transfer) of the Companies Act shall apply mutatis mutandis to a converting Mutual Company carrying out a share transfer on Entity
Conversion; the provisions of Article 219, paragraph (1) (limited to the segment pertaining to item (viii)), (2) and (3) (Public Notice in Relation to Submission of Share Certificate), Article 220 (Cases Where Share Certificates Cannot be
Submitted), Article 293, paragraph (1) (limited to the segment pertaining to
item (vii)) and (2) to (4) inclusive (Public Notice in Relation to Submission of
Share Option Certificate), Article 309, paragraph (2) (excluding the items) and (3) (limited to the segment pertaining to item (iii)) (Resolution of Shareholders Meetings), Article 324, paragraph (2) (excluding the items) and (3) (limited to
the segment pertaining to item (ii)) (Resolution of Class Meetings), and Part V,
Chapter V, Section 3, Subsection 1, Division 1 (excluding Article 803,
paragraph (1), items (i) and (ii), Article 805, Article 808, paragraph (1), items (i) and (ii), Article 808, paragraph (3), items (i) and (ii), Article 810, paragraph (1), items (i) and (ii), Article 811, paragraph (1), item (i), Article 811,
paragraph (3), and Article 812) (Procedures for Stock Company) of that Act
shall apply mutatis mutandis to a Stock Company set forth in paragraph (1), item (ix); and the provisions of Article 815, paragraph (3) (limited to the
segment pertaining to item (iii)), (4) and (6) (Keeping and Inspection, etc. of
Documents, etc. Regarding Consolidation-Type Merger Agreement, etc.) of that Act shall apply mutatis mutandis to a Wholly Owning Parent Company Formed by Share Transfer on Entity Conversion. In this case, any other necessary
technical change in interpretation shall be specified by a Cabinet Order.
(Authorization of Entity Conversion)
Article 96-10 (1) An Entity Conversion shall not take effect without the authorization of the Prime Minister.
(2) The Prime Minister shall, on application for the authorization set forth in the
preceding paragraph, examine whether the application meets the following requirement:
(i) The Converted Stock Company has a sufficient financial basis to carry on its business in a sound and efficient manner;
(ii) The Entity Conversion poses no risk of harming the rights of Policyholders; (iii) The allocation of shares or money under Article 90 or 96-6 (including the
cases where it is applied mutatis mutandis pursuant to Article 96-8, paragraph (2)) has been carried out appropriately; and
(iv) In addition to what is listed in the preceding three items, the Entity
Conversion poses no risk of precluding the sound management of its business.
(Effectuation, etc. of Entity Conversion)
Article 96-11 (1) A converting Mutual Company shall become a Stock Company
on the Effective Date (or, in the case of a share transfer on Entity Conversion, the date of the establishment of the Wholly Owning Parent Company Formed
by Share Transfer on Entity Conversion).
(2) The members of a converting Mutual Company shall, on the Effective Date, become holders of the shares set forth in Article 86, paragraph (4), item (v)
pursuant to the provision on the matters listed in Article 86, paragraph (4), item (vi).
(3) The provisions of the preceding two paragraphs shall not apply to the cases
where a procedure under Article 88 has not been completed or where the Entity
Conversion has been voluntarily abandoned.
Article 96-12 (1) Notwithstanding the provisions of paragraph (2) of the preceding Article and Article 96-2, the Wholly Owning Parent Company for
Share Exchange on Entity Conversion shall acquire all of the issued shares of a
Converted Stock Company (excluding the shares of the Converted Stock
Company held by the Wholly Owning Parent Company for Share Exchange on
Entity Conversion) on the Effective Date, where the converting Mutual
Company carries out a share exchange on Entity Conversion.
(2) Notwithstanding the provisions of paragraph (2) of the preceding Article and Article 96-2, the members of a converting Mutual Company (including the subscribers for the shares issued pursuant to the provision of Article 92) shall become holders of the shares set forth in Article 96-7, item (ii), (a) on the
Effective Date pursuant to the provision on the matters listed in item (iii) of
the same Article, where the converting Mutual Company carries out a share exchange on Entity Conversion.
(3) The provisions of the preceding two paragraphs shall not apply to the cases
where a procedure under Article 88 has not been completed or where the Entity
Conversion has been voluntarily abandoned.
Article 96-13 (1) Notwithstanding the provisions of Article 96-11, paragraph (2)
and Article 96-2, the Wholly Owning Parent Company Formed by Share
Transfer on Entity Conversion shall, on the date of its establishment, acquire all of the shares to be allocated to members pursuant to the provision of Article
90, paragraph (1) (including the shares issued pursuant to the provision of
Article 92 and the shares issued by the Stock Company set forth in Article 96-9, paragraph (1), item (ix)), where the converting Mutual Company carries out a
share transfer on Entity Conversion.
(2) Notwithstanding the provisions of Article 96-11, paragraph (2) and Article 96-
2, the members of a converting Mutual Company (including the subscribers for the shares issued pursuant to the provision of Article 92 and the shareholders
of the Stock Company set forth in Article 96-9, paragraph (1), item (ix)) shall, on the date of the establishment of the Wholly Owning Parent Company
Formed by Share Transfer on Entity Conversion, become holders of the shares set forth in Article 96-9, paragraph (1), item (v) pursuant to the provision on
the matters listed in Article 96-9, paragraph (1), item (vi), where the
converting Mutual Company carries out a share exchange on Entity Conversion. (3) The provisions of Article 774, paragraphs (4) and (5) (Effectuation, etc. of
Share Transfer) of the Companies Act shall apply mutatis mutandis to the case
of Article 96-9, paragraph (1), item (ix). In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Registration)
Article 96-14 (1) Where a Mutual Company has carried out an Entity Conversion, the converting Mutual Company shall complete registration of dissolution
within two weeks from the date of Entity Conversion at the location of its
principal office and within three weeks from said date at the location of its
secondary offices; and the Converted Stock Company shall make a registration of incorporation within two weeks from the date of Entity Conversion at the
location of its head office and within three weeks from said date at the location of its branch offices.
(2) The provision of Article 89 (limited to the segment pertaining to items (i) to
(iv) inclusive) (Registration of Share Exchange) of the Commercial Registration
Act shall apply mutatis mutandis to a share exchange on Entity Conversion
carried out by a converting Mutual Company; and the provisions of Article 925 (excluding items (ii) and (iv)) (Registration of Share Transfer) and Article 930, paragraph (1) (limited to the segment pertaining to item (iv)) (Registration at
Location of Branch Offices) of the Companies Act, and the provision of Article
90 (Registration of Share Transfer) of the Commercial Registration Act shall apply mutatis mutandis to a share transfer on Entity Conversion carried out by a converting Mutual Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) The following documents shall be attached to a written application for
registration of incorporation under paragraph (1), in addition to those specified in Articles 18, 19 and 46 of the Commercial Registration Act as applied mutatis mutandis pursuant to Article 67:
(i) Entity Conversion plan;
(ii) articles of incorporation;
(iii) The minutes of the Mutual Company's General Meeting of members; (iv) A document certifying that the directors (or directors and company
auditors, where the Converted Stock Company is a company with auditors) of
the Converted Stock Company have accepted the assumption of office;
(v) Where accounting advisors or accounting auditors have been appointed for the Converted Stock Company, the following documents;
(a) A document certifying that they have accepted the assumption of office,
(b) Where they are juridical persons, certificates of the matters registered for such juridical persons, provided, however, that this shall not apply to the
cases where the principal offices of such juridical persons are located within the jurisdictional district of the relevant registry office, and
(c) Where they are not juridical persons, a document certifying that the
accounting advisors meet the requirement of Article 333, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 53-4, or that the accounting auditors meet the requirement of Article 337,
paragraph (1) of that Act as applied mutatis mutandis pursuant to Article
53-7;
(vi) A document certifying a contract with any administrator of the shareholder registry;
(vii) A document certifying that a public notice under Article 88, paragraph (2)
has been given;
(viii) Where any Policyholder or other creditor has stated his/her objection
under Article 88, paragraph (4), a document certifying that the company has made payment or provided equivalent security to such Policyholder or other
creditor, or entrusted equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the
payment, or a document certifying that the Entity Conversion poses no risk
of harming the interest of such Policyholder or other creditor;
(ix) A document certifying that the number of Policyholders who have stated
their objections under Article 88, paragraph (6) has not exceeded one fifth of the total number of Policyholders, or a document certifying that the amount specified by a Cabinet Office Ordinance set forth in that paragraph as the
credits belonging to such Policyholders has not exceeded one fifth of the total
amount set forth in that paragraph; and
(x) Where shares have been issued on the Entity Conversion pursuant to the
provision of Article 92, the following documents:
(a) A document certifying the offers of subscription for the shares;
(b) Where contribution is to be made in the form of money, a document
certifying that payments have been made under Article 96, paragraph (1); (c) Where contribution is to be made in the form of non-monetary property,
the following documents;
1. Where an inspector has been elected, a document containing the
investigative report of the inspector and annexed documents thereto,
2. In the cases listed in Article 207, paragraph (9), item (iii) of the
Companies Act as applied mutatis mutandis pursuant to Article 96-4, a document certifying the market value of the securities,
3. In the cases listed in Article 207, paragraph (9), item (iv) of the
Companies Act as applied mutatis mutandis pursuant to Article 96-4, a document containing the verification set forth in that item and
annexed documents thereto, and
4. In the cases listed in Article 207, paragraph (9), item (v) of the
Companies Act as applied mutatis mutandis pursuant to Article 96-4, the accounting books carrying the monetary claim set forth in that
item; and
(d) Transcript of any judicial decision on the report of the inspector.
(4) In addition to the documents set forth in Articles 18, 19 (Documents to be
Attached to Written Application) and 46 (General Rules for Attached
Documents) of the Commercial Registration Act, and Article 89 (limited to the segment pertaining to items (i) to (iv) inclusive) of that Act as applied mutatis mutandis pursuant to paragraph (2), and the documents listed in the items of
the preceding paragraph, a certificate of matters registered for the Mutual Company (except when the principal office of the Mutual Company is located within the jurisdictional district of the relevant registry office) shall be
attached to a written application for registration of change due to any share exchange on Entity Conversion carried out by a Wholly Owning Parent
Company for Share Exchange on Entity Conversion.
(5) In addition to the documents set forth in Articles 18, 19 and 46 of the
Commercial Registration Act, and Article 90 of that Act as applied mutatis mutandis pursuant to paragraph (2), and the documents listed in the items of paragraph (3), a certificate of matters registered for the Mutual Company
(except when the principal office of the Mutual Company is located within the
jurisdictional district of the relevant registry office) shall be attached to a written application for incorporation due to any share transfer on Entity
Conversion.
(6) The provisions of Articles 76 and 78 (Registration of Entity Conversion) of the
Commercial Registration Act shall apply mutatis mutandis to the cases of
paragraph (1); and the provision of Article 46, paragraph (3) of that Act as
applied mutatis mutandis pursuant to Article 67 shall apply mutatis mutandis to the cases of Article 3, item (iii), paragraph (4) and the preceding paragraph
(limited to the segment pertaining to the documents listed in Article 3, item
(iii)). In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Application mutatis mutandis of Provisions on Entity Conversion from Stock
Company to Mutual Company)
Article 96-15 The provision of Article 82 shall apply mutatis mutandis to an
Entity Conversion from a Mutual Company to a Stock Company. In this case,
the term "Article 70, paragraph (2)" in paragraph (1) of the same Article shall be deemed to be replaced with "Article 88, paragraph (2)"; and the term
"Article 70" in Article 82, paragraph (2) shall be deemed to be replaced with "Article 88"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Lawsuit for Nullification of Entity Conversion)
Article 96-16 (1) The nullity of an Entity Conversion may only be asserted in a lawsuit filed within six months from the Effective Date (or, in the case of a
share transfer on Entity Conversion, the date of the establishment of the
Wholly Owning Parent Company Formed by Share Transfer on Entity
Conversion; the same shall apply in the following paragraph).
(2) A lawsuit for nullification of an Entity Conversion may only be filed by any of the persons listed in the following items depending on the case:
(i) In the case of an Entity Conversion accompanied by a share exchange on Entity Conversion, a person who was a member, etc. of the converting Mutual Company or a shareholder, etc. of the Wholly Owning Parent
Company for Share Exchange on Entity Conversion as of the Effective Date,
or a shareholder, etc. or bankruptcy trustee of the Converted Stock Company or a creditor of the Converted Stock Company who has not approved of the
Entity Conversion or a shareholder, etc. or bankruptcy trustee of the Wholly
Owning Parent Company for Share Exchange on Entity Conversion;
(ii) In the case of an Entity Conversion accompanied by a share transfer on Entity Conversion, a person who was a member, etc. of the converting Mutual Company as of the Effective Date, or a shareholder, etc. or
bankruptcy trustee of the Converted Stock Company or the Stock Company
set forth in Article 96-9, paragraph (1), item (ix) or a creditor of such Stock
Company who has not approved of the Entity Conversion or a shareholder,
etc. or bankruptcy trustee of the Wholly Owning Parent Company Formed by
Share Transfer on Entity Conversion; or
(iii) In any other case than those listed in the preceding two paragraphs, a
person who was a member, etc. of the converting Mutual Company as of the Effective Date, or a shareholder, etc. or bankruptcy trustee of the Converted Stock Company or a creditor of the Converted Stock Company who has not
approved of the Entity Conversion.
(3) A lawsuit for the nullification of an Entity Conversion shall be filed against any of the persons listed in the following items depending on the case:
(i) In the case of item (i) of the preceding paragraph, the Converted Stock Company and the Wholly Owning Parent Company for Share Exchange on Entity Conversion;
(ii) In the case of item (ii) of the preceding paragraph, the Converted Stock
Company and the Wholly Owning Parent Company Formed by Share
Transfer on Entity Conversion; or
(iii) In the case of item (iii) of the preceding paragraph, the Converted Stock
Company.
(4) The provisions of Article 835, paragraph (1) (Jurisdiction of Claim), Article
836 to 839 inclusive (Order to Furnish Security, Compulsory Consolidation of Oral Arguments, etc., Scope of Effect of Judgment in Favor of Claim, Effect of Judgment of Nullity or Rescission), Article 846 (Liability for Damages in Case of Defeat of Plaintiff), and Article 937, paragraph (3) (limited to the segment pertaining to item (i)) and (4) (Commission of Registration by Judicial
Decision) of the Companies Act shall apply mutatis mutandis to a lawsuit for
the nullification of an Entity Conversion; the provision of Article 840 (Effect of Judgment of Nullity of Issue of New Shares) of that Act shall apply mutatis mutandis to a judgment of nullity of an Entity Conversion accompanied by the issue of shares on Entity Conversion under Article 92; the provision of Article
844 (Effect of Judgment of Nullity of Share Exchange or Share Transfer) of
that Act shall apply mutatis mutandis to a judgment of nullity of an Entity
Conversion accompanied by a share exchange on Entity Conversion or share
transfer on Entity Conversion; and the provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious Cases), the main clause of Article 871
(Supplementary Note of Reasons), Article 872 (limited to the segment
pertaining to item (ii)) (Immediate Appeal Against Ruling), the main clause of
Article 873 (Stay of Execution of Original Sentence), Article 875 to 877
inclusive (Exclusion from Application of Provisions of Act on Procedures for Non-Contentious Cases, Supreme Court Rules, Compulsory Consolidation of Hearings, etc.) and Article 878, paragraph (1) (Effect of Judicial Decision) of that Act shall apply mutatis mutandis to an application under Article 840,
paragraph (2) of that Act as applied mutatis mutandis pursuant to this
paragraph. In this case, the term "shareholder" in Article 878, paragraph (1)
shall be deemed to be replaced with "shareholder or member"; any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(5) For the purpose of applying the provision of Article 475 (Causes of
Commencement of Liquidation) of the Companies Act to a Wholly Owning
Parent Company Formed by Share Transfer on Entity Conversion, the term "in the cases listed below" in that Article shall be deemed to be replaced with "in
the cases listed below or the cases where a judgment in favor of any claim in a lawsuit for the nullification of an Entity Conversion accompanied by a share
transfer on Entity Conversion under Article 96-8, paragraph (1) of the
Insurance Business Act has become final and binding." Chapter III Business
(Scope of Business, etc.)
Article 97 (1) An Insurance Company may, in accordance with the types of licenses provided by Article 3, paragraph (2), underwrite insurance.
(2) An Insurance Company shall invest assets such as money received as
insurance premiums by any of the methods specified by a Cabinet Office
Ordinance, such as acquisition of securities.
Article 97-2 (1) An Insurance Company shall not invest assets specified by a
Cabinet Office Ordinance, that exceed the amount calculated pursuant to the provisions of a Cabinet Office Ordinance.
(2) In addition to the provisions under the preceding paragraph, the amount of
assets as specified by a Cabinet Office Ordinance to be invested by an
Insurance Company regarding one person (including persons or entities in a special relationship, specified by a Cabinet Office Ordinance, with said person; the same shall apply in the following paragraph) shall not exceed the amount
calculated pursuant to the provisions of a Cabinet Office Ordinance.
(3) In the case where an Insurance Company possesses any persons with which it shares a special relationship as specified by a Cabinet Office Ordinance, such
Subsidiary Companies (hereinafter referred to in this Article as "Subsidiary
Companies, etc."), the total amount of assets as specified by a Cabinet Office
Ordinance to be invested in any one person by the Insurance Company and its
Subsidiary Companies, etc., or by such Subsidiary Companies, etc. shall not exceed the amount calculated pursuant to the provisions of a Cabinet Office Ordinance.
Article 98 (1) An Insurance Company may, in addition to the businesses it
carries out pursuant to the provision of Article 97, carry out the following and other businesses incidental thereto:
(i) Representing the businesses or carrying out services (limited to those specified by a Cabinet Office Ordinance) on behalf of other insurance companies (including Foreign Insurers), Small Amount and Short Term
Insurance Providers, shipowners mutual insurance associations (meaning
shipowners mutual insurance associations prescribed in Article 2, paragraph
(1) (Definition) of the Shipowners Mutual Insurance Association Act (Act No.
177 of 1950)), and other persons carrying out financial businesses; (ii) Guarantee of obligation;
(iii) Underwriting (excluding that carried out for the purpose of secondary
distribution) of National Government Bonds, local government bonds or
Government-Guaranteed Bonds (hereinafter referred to as "National
Government Bonds, etc." in this Article) or handling of public offerings of the
National Government Bonds, etc. pertaining to that underwriting;
(iv) Acquisition or transfer (not for the purpose of asset investment) of
monetary claims (including those indicated in any of the certificates specified by a Cabinet Office Ordinance, such as certificates of negotiable deposits);
(iv)-2 Underwriting (excluding that carried out for the purpose of secondary distribution) of Specified Company Bonds issued by Special Purpose
Companies (excluding Specified Short-Term Company Bonds and limited to
those where only nominative monetary claims or rights of beneficiary of trust into which nominative monetary claims are placed are acquired using the money gained through the issuance of that Specified Company Bonds under
Asset Securitization Plans) and any other securities specified by a Cabinet
Office Ordinance as those equivalent thereto (hereinafter referred to as
"Specified Company Bonds, etc." in this item) or handling of public offering of the Specified Company Bonds, etc. pertaining to that underwriting;
(iv)-3 Acquisition or transfer of short-term Company bonds, etc. (except those
for the investment of assets);
(v) Handling of a private placement of securities (except those that fall under monetary claims indicated on the certificates prescribed in item (iv) and
Short-Term Bonds, etc.);
(vi) Derivative Transactions (excluding those which are carried out for the investment of assets and those which fall under the category of Transactions of Securities-Related Derivatives; the same shall apply in the following item) that are specified by a Cabinet Office Ordinance (excluding those that fall under the category of the business listed in item (iv));
(vii) Intermediary, introducing brokerage or agency service of Derivative
Transactions (limited to those specified by a Cabinet Office Ordinance); (viii) Transactions where the relevant parties promise to give and receive
money calculated based on the difference between the reference value that they have determined in advance, in terms of an indicator such as interest
rate, currency value or commodity price, on the one hand, and the actual
numerical value of that indicator at a fixed point of time in the future, on the other, or any equivalent transactions thereto, that are specified by a Cabinet Office Ordinance (referred to as "Financial Derivative Transactions" in the next item) (excluding those which are carried out for the purpose of asset investment and those falling under any of the businesses listed in items (iv)
and (vi));
(ix) Intermediary, introducing brokerage or agency service of Financial
Derivative Transactions. (excluding such business that falls under the
category of business specified in item (vii) and those specified by a Cabinet
Office Ordinance);
(x) Over-the-Counter Transactions of Securities-Related Derivatives (limited to those that are settled through giving and receiving the difference in the case where the securities pertaining to that Over-the-Counter Transactions of
Securities-Related Derivatives fall under the category of monetary claims
that are indicated in the form of certificates as prescribed in item (iv) and are not Short-Term Company Bonds, etc.; the same shall apply in the
following item) (except those which are carried out for the investment of
assets); and
(xi) Intermediary, introducing brokerage or agency service of Over-the-Counter
Transactions of Securities-Related Derivatives.
(2) An Insurance Company shall, when carrying out the businesses listed in the preceding paragraph, item (i), specify its content and obtain the authorization from the Prime Minister.
(3) The term "Government-Guaranteed Bonds" in paragraph (1), item (iii) means
bonds, such as company bonds, for which redemption of the principal and payment of interest are guaranteed by the government.
(4) The business listed in paragraph (1), item (iv) concerning the monetary claims indicated on the certificates prescribed in the same item which fall
under securities and the business listed in the same paragraph, item (iv)-3
concerning Short-Term Bonds, etc. shall include the business of carrying out
acts listed in Article 2, paragraph (8), items (i) to (vi) inclusive and items (viii)
to (x) inclusive (Definitions) of the Financial Instruments and Exchange Act. (5) The terms "special purpose company," "asset securitization program" or
"specified company bond" in paragraph (1), item (iv)-2 mean the special
purpose company, asset securitization program, or specified company bond
prescribed in Article 2, paragraph (3), (4), or (7) (Definitions) of the Act on the
Liquidation of Assets (Act No. 105 of 1998), respectively, and the term
"specified short-term bond" means the specified short-term bond prescribed in
Article 2, paragraph (8) of the same Act.
(6) The term "Short-Term Bonds, etc." set forth in paragraph (1), items (iv)-3, (v),
and (x), and paragraph (4) means the following bonds:
(i) Short-Term Bonds prescribed in Article 66, item (i) (Ownership of Rights) of the Act on Transfer of Bonds, Shares, etc.;
(ii) Deleted
(iii) Short-term investment corporation bonds prescribed in Article 139-12, paragraph (1) (Special Provisions Pertaining to Short-term Investment Corporation Bonds) of the Act on Investment Trust and Investment
Corporation (Act No. 198 of 1951);
(iv) Short-Term Bonds prescribed in Article 54-4, paragraph (1) (Issuance of
Short-Term Bonds) of the Shinkin Bank Act (Act No. 238 of 1951); (v) Short-Term Bonds prescribed in Article 61-10, paragraph (1);
(vi) Specified Short-Term Bonds prescribed in the preceding paragraph;
(vii) Short-term Norinchukin Bank debentures prescribed in Article 62-2,
paragraph (1) (Issuance of Short-Term Norinchukin Bank Debentures) of the
Norinchukin Bank Act (Act No. 93 of 2001); and
(viii) Of the rights to be indicated in bonds issued by foreign juridical persons for which ownership of the rights is to be decided based on the entry or
record in the transfer account registry pursuant to the provisions of the Act
on Transfer of Bonds, Shares, etc. (excluding bonds having a nature of
company bonds with share warrant), those that satisfy all of the following requirements:
(a) The amount of each right is not below hundred million yen;
(b) There are provisions on a fixed due date for redemption of the principal that is within one year from the day on which the total amount of the
rights has been paid, and there is no provision on an installment plan; and
(c) There are provisions to make the due date for the payment of interest the same date as the due date for the redemption of the principal set forth in
(b).
(7) The "Handling of Private Placement of Securities" set forth in paragraph (1), item (v) means to handle the Private Placement of Securities (meaning the
private placement of securities prescribed in Article 2, paragraph (3) (Definitions) of the Financial Instruments and Exchange Act).
(8) The term "Derivative Transactions" or "Transactions of Securities-Related
Derivatives" set forth in paragraph (1), item (vi) or (vii) respectively means the Derivative Transactions prescribed in Article 2, paragraph (20) (Definitions) of the Financial Instruments and Exchange Act or the Transactions of Securities- Related Derivatives prescribed in Article 28, paragraph (8), item (vi)
(Definitions) of that Act.
(9) The term "Over-the-Counter Transactions of Securities-Related Derivatives"
in paragraph (1), item (x) or (xi) means the acts listed in Article 28, paragraph
(8), item (iv) (Definitions) of the Financial Instruments and Exchange Act
Article 99 (1) An Insurance Company may, in addition to the businesses it
carries out pursuant to the provision of Article 97 and the preceding Article, carry out, with regard to the securities or transactions listed in the items of Article 33, paragraph (2) of the Financial Instruments and Exchange Act
(Restriction, etc. on Security-related Businesses of Financial Institutions), the
businesses to perform any of the acts listed in the items of the same paragraph
(excluding businesses carried out pursuant to the provision of the preceding
Article, paragraph (1)) and any of those businesses specified by a Cabinet
Office Ordinance as incidental thereto, within a limit so as not to preclude the execution of the businesses in Article 97.
(2) In addition to the businesses it carries out pursuant to the provision of Article
97 and the preceding Article, an Insurance Company may conduct the following businesses, within a limit so as not to preclude the execution of the businesses
in Article 97:
(i) Subscription or commissioning the administration of bonds such as local government bonds or company bonds; and
(ii) Trust business concerning secured bonds that is carried out pursuant to the
Secured Bond Trust Act.
(3) A Life Insurance Company may, in addition to the businesses it carries out
pursuant to the provision of Article 97 and the preceding Article, carry out the business of underwriting trusts concerning the insurance claims paid
(hereinafter referred to as "Insurance Claim Trust Business"), within a limit so as not to preclude the execution of the businesses in Article 97,
notwithstanding the provision of the Trust Business Act.
(4) An Insurance Company shall, if it intends to carry out the business prescribed in paragraph (1) pursuant to the provision of the same paragraph, set forth the contents and method of that business whose other Parties are many and
unspecified, and obtain the authorization from the Prime Minister. The same shall apply when an Insurance Company intends to modify the contents and method of the business that obtained said authorization.
(5) An Insurance Company shall obtain the authorization from the Prime Minister when it intends to carry out the businesses listed in the items of paragraph (2) pursuant to the provision of the same paragraph.
(6) An Insurance Company shall, with regard to the businesses listed in the
items of paragraph (2), be deemed to be a bank (a company or bank prescribed by laws and regulations in the case of a Mutual Company) pursuant to the
provisions of a Cabinet Order, for the purpose of the application of the laws and regulations specified by a Cabinet Order, such as the Commercial Code, Secured Bond Trust Act, and Companies Act. In this case, the provision of the proviso (Trade Name) of Article 14, paragraph (2) of the Trust Business Act
shall not apply.
(7) A Life Insurance Company shall, if it intends to carry out the Insurance
Claim Trust Business, set forth the method and obtain the authorization from the Prime Minister. The same shall apply when a Life Insurance Company
intends to modify the method of the business that obtained said authorization. (8) The provisions of Article 11 (Business Deposit), Articles 22 to 31 inclusive
(Entrustment of Trust Business, Liability of Trust Company Pertaining to
Entrustment of Trust Business, Conduct Rules Pertaining to Underwriting of
Trust, Application mutatis mutandis of the Financial Instruments and
Exchange Act, Explanation of Contents of Trust Contract, Written Issuance at Conclusion of Trust Contract, Issuance of Report on Trust Property Situation, Duty of Loyalty of Trust Company, etc., Conduct Rules Pertaining to Trust
Property, Change of Important Trust, etc., Explanation of Reimbursement of
Costs, etc. or Scope of Advance Payment, etc., Special Measures for Public Notice of Trusts, and Debt Set-off Pertaining to Trust Property), Article 42 (Inspection, etc.), and Article 49 (Dismissal Procedure in the Case of Rescission, etc. of License, etc.) of the Trust Business Act and Article 6 (Conclusion of
Trust Contract on Loss Compensation, etc.) of the Act on Provision, etc. of
Trust Business by Financial Institutions shall apply mutatis mutandis to cases where a Life Insurance Company carries out the Insurance Claim Trust
Business pursuant to the provision of paragraph (3). In this case, the phrases
listed in the middle column of the following table in the provisions of the Trust
Business Act listed in the left column of the table shall be deemed to be replaced with the phrases listed in the right column of the table.
Article 49, paragraph (1)
In the case where the registration of
Article 7, paragraph (3) is not
renewed, in the case where the license of Article 3 is rescinded pursuant to
the provision of Article 44, paragraph
(1), or the registration of Article 7, paragraph (1) pursuant to the
provision of Article 45, paragraph (1)
License of Article 3, paragraph (1) of the
Insurance Business Act
pursuant to the
provision of Article 133 or 134 of the same Act
(9) In the case where a Life Insurance Company entrusts a third Party to act as an agent or intermediary for the conclusion of a trust contract underwritten
pursuant to the provision of paragraph (3), the Life Insurance Company shall be deemed to be a trust company and the provisions of Article 2, paragraph (8) (Definitions) and Chapter V (including penal provisions pertaining to these
provisions) of the Trust Business Act shall apply. In this case, the term
"affiliated trust company" in the same Chapter means "affiliated Life
Insurance Company" and "Article 34, paragraph (1)" in Article 78, paragraph (1) of the same Act means "Article 111, paragraphs (1) and (2) of the Insurance Business Act."
(10) A Life Insurance Company that carries out the Insurance Claim Trust
Business pursuant to the provision of paragraph (3) shall be deemed to be a
trust company pursuant to the provisions of a Cabinet Order, with regard to the application of what is specified by a Cabinet Order in the laws and
regulations on taxation with regard to said Insurance Claim Trust Business.
(Restriction on Other Businesses)
Article 100 An Insurance Company may not conduct business other than the business conducted pursuant to the provision of Article 97 and the preceding two Articles and business conducted pursuant to other Acts.
(Measures Concerning Business Operation)
Article 100-2 Unless provided otherwise in this Act or any other Act, an
Insurance Company shall, pursuant to the provisions of a Cabinet Office
Ordinance, take measures to ensure sound and appropriate management, such as explanation of important matters pertaining to its business to customers,
appropriate handling of customer information acquired in relation to its business, and proper execution of any business entrusted to a third party.
(Trade with Specified Person Concerned, etc.)
Article 100-3 An Insurance Company shall not carry out the following
transactions or acts with any of its specified persons concerned (referring to
the persons with whom the Insurance Company has a special relationship as
specified by a Cabinet Order with the Insurance Company, such as a
Subsidiary Company of said Insurance Company, a Major Shareholder of said Insurance Company, the Insurance Holding Company of which said Insurance Company is a Subsidiary Company, a Subsidiary Company of said Insurance
Holding Company (except said Insurance Company); hereinafter the same shall apply in this Article), or with any customers of its specified persons concerned; provided, however, that this shall not apply to the cases where the
authorization to carry out such transactions or acts is obtained from the Prime
Minister is obtained for any of the compelling reasons specified by a Cabinet
Office Ordinance:
(i) Any transaction with the specified person concerned, such as the purchase and sales of assets, carried out on significantly different terms and
conditions from those applied to normal transactions of said Insurance
Company; and
(ii) Any transaction or activity carried out with the specified person concerned or a customer of the specified person concerned that is equivalent to the
transaction listed in the preceding item and are specified by a Cabinet Office Ordinance as posing a risk to the sound and appropriate management of the business of said Insurance Company.
(Restriction on Becoming a Member with Unlimited Liability, etc.)
Article 100-4 An Insurance Company may not become an unlimited partner or partners who execute the business of a membership company.
(Exclusion from Application of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade)
Article 101 (1) The provisions set forth in the Act on Prohibition of Private
Monopolization and Maintenance of Fair Trade shall not apply to the following acts, which are carried out with the authorization set forth in the following
Article, paragraph (1); provided, however, that this shall not apply to the cases
where any unfair trade practice is used, where substantial restraint of competition in certain fields of trade unjustly harms the interest of
Policyholders or those insured, or where one month has passed from the day of
the public notice that was given under the provision of Article 105, paragraph
(4) (except when the Prime Minister renders any disposition under the
provision of Article 103 in response to the request in Article 105, paragraph
(3)):
(i) Concerted business carried out by a Non-Life Insurance Company with
another Non-Life Insurance Company (including foreign non-life insurance companies, etc.) with regard to businesses which are specific to the aviation Insurance Business (meaning the business of underwriting insurance of
which the purpose is to insure aircraft (including rockets; hereinafter the
same shall apply in this item) or cargo transported by aircraft, or insurance concerning liability for the compensation of damage caused by an aircraft
accident; including the business pertaining to the underwriting of insurance concerning the injuries of those on board the aircraft), nuclear Insurance
Business (meaning the business of underwriting insurance of which the
purpose is to insure a nuclear facility, or insurance concerning liability for the compensation of damage caused by an accident at a nuclear facility),
automobile damage liability Insurance Business pursuant to the Automobile
Liability Security Act (Act No. 97 of 1955), or the business related to the earthquake insurance contract prescribed in the Act on Earthquake
Insurance (Act No. 73 of 1966); and
(ii) Concerted business carried out by a Non-Life Insurance Company with another Non-Life Insurance Company (including foreign non-life insurance companies, etc.) concerning all or Part of the following acts related to a
reinsurance contract or insurance contract pertaining to reinsurance, when it
is found that there is a risk of extreme disadvantage to a Policyholder or
those insured unless a Non-Life Insurance Company and another Non-Life Insurance Company (including foreign non-life insurance companies, etc.) jointly provide for reinsurance in advance to carry out risk distribution or
equalization with regard to the businesses pertaining to the underwriting of
insurance not listed in the preceding item:
(a) Ruling on contents of insurance contracts (except those pertaining to the insurance rate);
(b) Ruling on the method of damage assessment;
(c) Ruling on a other Party or amount concerning reinsurance trade; and
(d) Ruling on the reinsurance rate and reinsurance fee.
(2) When a request under the provision of Article 105, paragraph (3) is made concerning a Section of the contents of a concerted business, the provision of the main clause of the preceding paragraph shall be deemed applicable
notwithstanding the provision of the proviso of the preceding paragraph
(limited to the Parts pertaining to the public notice that was given under the provision of paragraph (4) of the same Article) for Sections of the contents of
the concerted business which do not pertain to the request.
(Authorization of Concerted Business)
Article 102 (1) When a Non-Life Insurance Company intends to carry out a concerted business under the provisions of the items of paragraph (1) of the
preceding Article or modify its contents, it shall obtain the authorization from
the Prime Minister.
(2) The Prime Minister shall not grant the authorization of the preceding
paragraph unless he/she finds that the contents of the concerted business
pertaining to the application for authorization of the same paragraph conform to the following items:
(i) There is no unjust harm to the interest of Policyholders or those insured; (ii) The business is not unfairly discriminatory;
(iii) There is no unreasonable restraint of enrollment and withdrawal; and
(iv) It stays within the minimum necessary level in light of risk distribution or equalization, or any other purpose of the concerted business.
(Order to Change of Concerted Business and Rescission of Authorization)
Article 103 The Prime Minister shall, when he/she finds that the contents of the concerted business pertaining to the authorization of the preceding Article,
paragraph (1) no longer conform to the items of the same Article, paragraph (2), order the Non-Life Insurance Company to modify the contents of the concerted
business or rescind the authorization.
(Notification of Abolition of Concerted Business)
Article 104 A Non-Life Insurance Company shall, upon abolishing a concerted business, give notification thereof to the Prime Minister without delay.
(Relationship with the Fair Trade Commission)
Article 105 (1) When the Prime Minister intends to grant the authorization set forth in Article 102, paragraph (1), he/she shall, in advance, obtain the consent of the Fair Trade Commission.
(2) The Prime Minister shall, upon rendering a disposition under the provision of
Article 103 or accepting a notification under the provision of the preceding
Article, give notice thereof to the Fair Trade Commission without delay. (3) The Fair Trade Commission may, when it finds that the contents of the
concerted business which obtained the authorization set forth in Article 102,
paragraph (1) no longer conform to the items of the same Article, paragraph (2), request the Prime Minister to render a disposition under the provision of
Article 103.
(4) The Fair Trade Commission shall, upon making a request under the provision of the preceding paragraph, give public notice thereof in the official gazette.
Chapter IV Subsidiary, etc.
(Scope of Subsidiary Company of Insurance Company, etc.)
Article 106 (1) An Insurance Company shall not have any Subsidiary Company other than companies which falls under any of the categories specified in the
following items (hereinafter such companies shall be referred to as "Companies
Eligible for Subsidiary Companies" in this Article): (i) A Life Insurance Company;
(ii) A Non-Life Insurance Company;
(ii)-2 A Small Amount and Short Term Insurance Provider; (iii) A bank;
(iv) A long term credit bank as defined in Article 2 (Definitions) of the Long
Term Credit Bank Act (Act No. 187 of 1952) (hereinafter referred to as "Long
Term Credit Bank");
(v) A Financial Instruments Business Operator (referring to a Financial
Instruments Business Operator, etc. as defined in Article 2, paragraph (9)
(Definitions) of the Financial Instruments and Exchange Act; the same shall apply in Article 271-5, paragraph (1) and Article 333, paragraph (1), item (i)) that, apart from the securities-related businesses, exclusively engages in any of the businesses specified by a Cabinet Office Ordinance, such as the
business of carrying out any of the acts listed in Article 35, paragraph (1),
items (i) to (viii) inclusive (Scope of Business of Persons Who Engage in Type
1 Financial Instruments Transaction Business or Investment Management Business) of that Act (hereinafter referred to as "Company Specialized in Securities Business");
(vi) A Financial Instruments Intermediary Service Provider as defined in Article 2, paragraph (12) (Definitions) of the Financial Instruments and Exchange Act that, apart from the Financial Instruments Intermediary
Service (referring to the Financial Instruments Intermediary Service defined in Article 2, paragraph (11) (Definitions) of that Act and limited to the
business of carrying out any of the following acts on a regular basis;
hereinafter the same shall apply in this item), exclusively engages in any of the businesses specified by a Cabinet Office Ordinance, such as a business
incidental to the Financial Instruments Intermediary Service (hereinafter referred to as "Company Specialized in Securities Intermediary Service"); (a) Acts listed in Article 2, paragraph (11), item (i) (Definitions) of the
Financial Instruments and Exchange Act;
(b) Intermediary for the entrustment of sales and purchase of securities on
Financial Instruments Exchange Markets prescribed in Article 2,
paragraph (17) (Definitions) of the Financial Instruments and Exchange
Act or Foreign Financial Instruments Markets prescribed in Article 2,
paragraph (8), item (iii), (b) (Definitions) of that Act (excluding acts listed in (c));
(c) Intermediary for the entrustment of acts listed in item (iii) or (v) of
Article 28, paragraph (8) (Definitions) of the Financial Instruments and
Exchange Act; and
(d) Acts listed in Article 2, paragraph (11), item (iii) of the Financial
Instruments and Exchange Act.
(vii) A trust company specialized in the trust business (referring to the trust business defined in Article 1, paragraph (1) of the Act on Provision, etc. of
Trust Business by Financial Institutions; the same shall apply in item (viii), (a) of the following paragraph) (hereinafter referred to as "Companies
Specialized in Trust Business");
(viii) Foreign companies which engage in Insurance Business;
(ix) Foreign companies which engage in Banking Business (means Banking
Business prescribed in Article 2, paragraph (2) (Definitions, etc.) of the
Banking Act; the same shall apply hereinafter) (excluding those that fall under the category of companies specified in preceding item);
(x) Foreign companies which engage in Securities-Related Business (excluding
those that fall under the category of companies specified in item (viii));
(xi) Foreign Companies which engage in Trust Business (means Trust Business prescribed in Article 2, paragraph (1) (Definitions) of the Trust Business Act; the same shall apply hereinafter) (excluding those that fall under the
category of companies specified in item (viii));
(xii) Companies which exclusively engage in Dependent Business or Finance- Related Business (limited, in case of those which engage in Dependent
Business, to companies that engage in the Dependent Business mainly for business operated by the Insurance Company, its Subsidiary Companies (limited to those that fall under any of the categories in item (i), (ii) or (viii); the same shall apply in paragraph (7)) or other entities specified by a
Cabinet Office Ordinance as being similar to the Insurance Company and its
Subsidiary Companies, and in case of those which engage in Finance-Related Business and fall under any of the following business categories, to the cases specified in for the respective categories):
(a) Companies which conduct Specialized Banking-Related Business,
Specialized Securities-Related Business and a Specialized Trust-Related
Business: limited to the case where, among all voting rights of the company, the total voting rights held by the banking Subsidiary Companies, etc. of
the Insurance Company exceeds the total voting rights held by the
Insurance Company or its Subsidiary Company (excluding Banking
Subsidiary Company, etc. Securities Subsidiary Company, etc. and Trust
Subsidiary Company, etc.), and the total voting rights held by the
Securities Subsidiary Company, etc. of the Insurance Company exceeds the total voting rights held by the Insurance Company or its Subsidiary
Company (excluding Banking Subsidiary Company, etc., Securities
Subsidiary Company, etc. and Trust Subsidiary Company, etc.), and the total voting rights held by the Trust Subsidiary Company, etc. of the
Insurance Company exceeds the total voting rights held by the Insurance
Company or its Subsidiary Company (excluding Banking Subsidiary
Company, etc., Securities Subsidiary Company, etc. and Trust Subsidiary
Company, etc.);
(b) Companies which conduct Specialized Banking-Related Business and
Specialized Securities-Related Business (excluding those falling under the category listed in (a)): limited to the case where, among all voting rights of the company, the total voting rights held by the Banking Subsidiary
Company, etc. of the Insurance Company exceeds the total voting rights held by the Insurance Company or its Subsidiary Company (excluding
Banking Subsidiary Company, etc. and Securities Subsidiary Company, etc.), and the total voting rights held by the Securities Subsidiary
Company, etc. of the Insurance Company exceeds the total voting rights
held by the Insurance Company or its Subsidiary Company (excluding
Banking Subsidiary Company, etc. and Securities Subsidiary Company, etc.);
(c) Companies which operate Specialized Banking-Related Business and a
Specialized Trust-Related Business (excluding those falling under the
category listed in (a)): limited to the case where, among all voting rights of the company, the total voting rights held by the Banking Subsidiary
Companies, etc. of the Insurance Company exceeds the total voting rights held by the Insurance Company or its Subsidiary Companies (excluding
Banking Subsidiary Companies, etc. and Trust Subsidiary Companies, etc.), and the total voting rights held by the Trust Subsidiary Companies, etc. of
the Insurance Company exceeds the total voting rights held by the
Insurance Company or its Subsidiary Companies (excluding Banking
Subsidiary Companies, etc. and Trust Subsidiary Companies, etc.);
(d) Companies which conduct Specialized Securities-Related Business and a
Specialized Trust-Related Business (excluding those falling under the
category listed in (a)): limited to the case where, among all voting rights of the company, the total voting rights held by the Securities Subsidiary
Company, etc. of the Insurance Company exceeds the total voting rights held by the Insurance Company or its Subsidiary Company (excluding
Securities Subsidiary Company, etc. and Trust Subsidiary Company, etc.),
and the total voting rights held by the Trust Subsidiary Company, etc. of the Insurance Company exceeds the total voting rights held by the
Insurance Company or its Subsidiary Companies (excluding Securities
Subsidiaries, etc. and Trust Subsidiaries, etc.);
(e) Companies which conduct Specialized Banking-Related Business
(excluding those falling under the category listed in (a), (b) or (c)): limited to the case where, among all voting rights of the company, the total voting rights held by the Banking Subsidiaries, etc. of the Insurance Company
exceeds the total voting rights held by the Insurance Company or its
Subsidiaries (excluding Banking Subsidiaries, etc.);
(f) Companies which conduct Specialized Securities-Related Business (other than a company falling under (a), (b) or (d)): limited to the case where
among all voting rights of the company, the total voting rights held by the
Securities Subsidiaries, etc. of the Insurance Company exceeds the total
voting rights held by the Insurance Company or its Subsidiaries (excluding
Securities Subsidiaries, etc.); and
(g) Companies which conduct Specialized Trust-Related Business (excluding those falling under the category listed in (a), (c) or (d)); limited to the case where, among all voting rights of the company, the total voting rights held by the Trust Subsidiaries, etc. of the Insurance Company exceeds the total voting rights held by the Insurance Company or its Subsidiaries (excluding Trust Subsidiaries, etc.);
(xiii) Companies specified by a Cabinet Office Ordinance as those exploring
new business fields (limited to the case where, among all voting rights of the company, the total voting rights held by the Insurance Company and its
Subsidiary Companies other than those falling under the categories listed in
the preceding item and specified by a Cabinet Office Ordinance (such
excluded companies shall be referred to as "Specified Subsidiary Company" in paragraph (7) of the following Article) does not exceed the Voting Right Holding Threshold prescribed in paragraph (1) of the same Article); and
(xiv) Among Holding Companies whose Subsidiary Companies consist
exclusively of companies falling under any of the categories specified in the preceding items, those specified by a Cabinet Office Ordinance (including
those which are scheduled to become such a Holding Company).
(2) In the preceding paragraph, the meanings of the terms listed in the following items shall be prescribed respectively in those items:
(i) Dependent Business: Business specified by a Cabinet Office Ordinance as those being dependent on business of an Insurance Company or a company falling under any of items (ii)-2 to (xi) inclusive of the preceding paragraph;
(ii) Finance-Related Business: Business specified by a Cabinet Office
Ordinance as those being incidental or related to the Insurance Business, Banking Business, Securities-Related Business or Trust Business;
(iii) Specialized Banking-Related Business: Business specified by a Cabinet
Office Ordinance as incidental or related exclusively to the banking business; (iv) Specialized Securities-Related Business: Business specified by a Cabinet
Office Ordinance as those being incidental or related exclusively to the
Securities-Related Business;
(v) Specialized Trust-Related Business: Business specified by a Cabinet Office
Ordinance as those being incidental or related exclusively to the Trust
Business.
(vi) Banking Subsidiary Company, etc.: An Insurance Company's Subsidiary
Company which falls under any of the following categories:
(a) A Bank (including a Long Term Credit Bank; hereinafter the same shall
apply in this item) or a foreign company carrying on the banking business; (b) A holding company falling under item (xiv) of the preceding paragraph
whose subsidiaries include a company falling under (a); or
(c) Any other company which is a subsidiary of a bank that is itself a
subsidiary of the Insurance Company and specified by a Cabinet Office
Ordinance;
(vii) Securities Subsidiary, etc.: An Insurance Company's Subsidiary Company which falls under any of the following categories:
(a) A Company Specialized in Securities Business, Company Specialized in Securities Intermediary Services or foreign company which engages in Securities-Related Business;
(b) A Holding Company which falls under the category listed in item (xiv) of
the preceding paragraph and which has a Subsidiary Company that falls under the category listed in (a) above; and
(c) Any other company which is a Subsidiary Company of a Company
Specialized in Securities Business, or Specialized in Securities
Intermediary Services that is a Subsidiary Company of that Insurance
Company, and is specified by a Cabinet Office Ordinance; and
(viii) Trust Subsidiary, etc.: An Insurance Company's Subsidiary Company which falls under any of the following categories:
(a) A Bank which engages in Trust Business under the authorization set forth in Article 1, paragraph (1) (Authorization of Trust Business) of the Act on Provision, etc. of Trust Business by Financial Institutions
(hereinafter referred to as "Trust Bank" in this item);
(b) A Company Specialized in Trust Business or foreign company which engages in Trust Business;
(c) A Holding Company which falls under the category listed in item (xiv) of the preceding paragraph and which has a Subsidiary Company that falls under the category listed in (a) or (b) above; and
(d) Any other company which is a Subsidiary Company of a Trust Bank or
Company Specialized in Trust Business that is a Subsidiary Company of
that Insurance Company, and is specified by a Cabinet Office Ordinance. (3) The provision of paragraph (1) shall not apply where a company other than
Companies Eligible for Subsidiary Company became a Subsidiary Company of that Insurance Company following any of the events specified by a Cabinet
Office Ordinance, such as the acquisition of shares or equity interests as a result of the exercise of security rights by the Insurance Company or its
Subsidiaries; provided, however, that the Insurance Company shall take necessary measures for making the company, which became to its Subsidiary Company in a manner as described as above, cease to be its Subsidiary
Company by the day on which one year has elapsed from the date on which that event arose.
(4) An Insurance Company shall, when it intends to have as its subsidiary any of
the Company Eligible for Subsidiary Company listed in paragraph (1), items (i)
to (xii) inclusive or (xiv) (other than a company specialized in a Dependent
Business (referring to a Dependent Business falling under paragraph (2), item (i); hereinafter the same shall apply in this paragraph and paragraph (7)) or in any business specified by a Cabinet Office Ordinance as ancillary or related to
the Insurance Business (for a company carrying on a Dependent Business,
limited to that engages in it mainly for business operated by the Insurance
Company); referred to as "Insurance Company, etc. Eligible for Subsidiary
Company" hereinafter in this Article as well as in paragraph (4), item (i) of the following Article), obtain in advance the authorization from the Prime Minister, unless it receives an authorization for business acquisition, merger or company split under Article 142, Article 167, paragraph (1) or Article 173-6, paragraph
(1).
(5) The provision of the preceding paragraph shall not apply where an Insurance
Company, etc. Eligible for Subsidiary Company became a Subsidiary of an
Insurance Company by acquisition of its shares or equity interests as a result
of the exercise of security rights by the Insurance Company or its subsidiaries,
or any other justifiable event specified by a Cabinet Office Ordinance; provided, however, that the Insurance Company shall take necessary measures for
making the Insurance Company, etc. Eligible for Subsidiary Company, cease to be its Subsidiary Company, by the day on which one year has elapsed from the date on which the cause arose, except when the Insurance Company has
obtained an authorization from the Prime Minister for having the Insurance
Company etc. Eligible for Subsidiary Company, which became to its Subsidiary
Company, continue to be its Subsidiary Company.
(6) The provision of paragraph (4) shall apply mutatis mutandis to the cases
where an Insurance Company intends to change a company falling under any of the categories prescribed in the items of paragraph (1) as its Subsidiary Company into its Subsidiary Company falling under any of the categories
prescribed in the items of that paragraph (limited to an Insurance Company,
etc. Eligible for Subsidiary Company).
(7) In a case falling under paragraph (1), item (xii) or paragraph (4), the Prime
Minister shall provide for criteria for regarding a company as engaging in
Dependent Business mainly for business operated by the Insurance Company, its Subsidiary Companies, any other similar company specified by a Cabinet
Office Ordinance or operated by the Insurance Company.
(Restrictions on Acquisition of Voting Rights, etc. by Insurance Company, etc.) Article 107 (1) An Insurance Company or its Subsidiary Companies shall not
acquire or hold voting rights of a Domestic Company (excluding companies
falling under the category listed in paragraph (1), items (i) to (vii) inclusive of the preceding Article, (xii) or (xiv) ; hereinafter the same shall apply in this
Article), if the total number of such voting rights held by the Insurance
Company and/or Subsidiary Companies exceeds the Voting Right Threshold
(meaning the five hundredths of the number of Voting Rights Held by All of the
Shareholders, etc. of the Domestic Company; the same shall apply in this
Article).
(2) The provision of the preceding paragraph shall not apply to the cases where an Insurance Company and/or its Subsidiary Companies, following any of the events specified by a Cabinet Office Ordinance such as the acquisition of
shares or equity interests through exercise of security rights, comes to acquire
or hold voting rights of a Domestic Company if the total number of the voting right held by the Insurance Company and/or its Subsidiary Companies exceeds the Voting Right Holding Threshold; provided, however, that the Insurance Company and/or the Subsidiary Companies shall not continue to hold the part of the voting rights which it came to acquire or hold in excess of the Voting
Right Holding Threshold after one year from the day on which it came to
acquire or hold the voting rights, except when the Insurance Company has in advance obtained approval for holding such portion of the voting rights from
the Prime Minister.
(3) In the case referred to in the proviso in the preceding paragraph, when the total number of voting rights acquired or hold by the Insurance Company and/or its Subsidiary Companies exceeds fifty hundredths of Voting Rights Held by All of the Shareholders, etc. that Domestic Company, the Prime
Minister's approval given under that paragraph shall not cover the part of the
voting rights which the Insurance Company and/or its Subsidiary Companies came to acquire or hold in excess of fifty hundredths; and the approval of the Prime Minister shall be given on the condition that the Insurance Company and/or the Subsidiary Companies will dispose of the part of the voting rights which it came to acquire or hold in excess of the Voting Right Holding
Threshold promptly.
(4) Notwithstanding the provision of paragraph (1), in the case listed in any of the following items, even if the total number of voting rights of a Domestic Company to be held by an Insurance Company and its subsidy companies on the day prescribed in the respective items exceeds the Voting Right Holding
Threshold, the Insurance Company and/or its Subsidiary Companies may hold
the voting rights in excess of the Voting Right Holding Threshold after that day; provided, however, that the Prime Minister shall not grant an
authorization (or the license in the case of item (vi); the same shall apply in the next paragraph) referred to in the following items, if the total number of the
Domestic Company's voting rights to be held by the Insurance Company and
the Subsidy Companies in the case referred to in the respective items exceeds fifty hundredths of Voting Rights Held by All of the Shareholders, etc. of that Domestic Company:
(i) In the case where the Insurance Company makes a Subsidiary Insurance
Company, etc. Eligible for Subsidiary Company under the authorization set
forth in paragraph (4) of the preceding Article (limited to the cases specified by a Cabinet Office Ordinance): the day when the subsidiary Insurance
Company, etc. became its subsidiary;
(ii) In the case where that Insurance Company receives transfer of any other party's business under the authorization set forth in Article 142 (limited to
the cases specified by a Cabinet Office Ordinance); the day when the transfer is carried out;
(iii) In the case where a company which has been established by Joint
Incorporation-Type Split under the authorization set forth in Article 173-6,
paragraph (1) obtains a license under Article 3, paragraph (1) and became an
Insurance Company:: the day when the company obtains the license;
(iv) In the case where the Insurance Company has succeeds any other party's business through absorption-type split under the authorization set forth in Article 173-6, paragraph (1) (limited to the cases specified by a Cabinet
Office Ordinance): the day when the absorption-type split is carried out;
(v) In the case where the Insurance Company is established by the Merger
under the authorization set forth in Article 167, paragraph (1): the day when the Insurance Company is established; and
(vi) In the case where that Insurance Company carries out a Merger under the authorization set forth in Article 167, paragraph (1) (limited to the cases
where the Insurance Company survives the merger), the day when the
Merger is carried out;
(5) The Prime Minister's authorization set forth in the items of the preceding
paragraph shall be given on the condition that, among the voting rights of the
Domestic Company which will be held by the Insurance Company and its
Subsidiary Companies and of which the total number will exceed the Voting
Right Holding Threshold on the day specified in the respective items, the part of the voting rights to be held in excess of the Voting Right Holding Threshold shall be disposed in accordance with requirements set by the Prime Minister
and by the day on which five years has elapsed from the day.
(6) In the case where an Insurance Company and its Subsidiary Companies come
to hold voting rights of a Domestic Company of which the total number exceeds the Voting Right Holding Threshold, the part of the voting rights held by that
Insurance Company and its Subsidiary Companies in excess of the Voting
Right Holding Threshold shall be deemed to be acquired or held by that
Insurance Company.
(7) In the cases of the referred to in the preceding paragraphs, with respect to acquisition or holding of voting rights of a company specified by a Cabinet
Office Ordinance as that exploring new business fields, a Specified Subsidiary
Company shall be deemed not to be a Subsidiary Company of the Insurance
Company.
(8) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the voting rights acquired or held by an Insurance Company or its Subsidiaries
under any of the preceding paragraphs. Article 108 Deleted
Chapter V Accounting
(Business Year)
Article 109 The Business Year of an Insurance Company shall run from 1 April to 31 March of the next year.
(Business Report, etc.)
Article 110 (1) An Insurance Company shall, for each business year, prepare an interim business report and business report describing the status of its
business and property for submission to the Prime Minister.
(2) Where an Insurance Company has any company with which it has a special relationship as specified by a Cabinet Office Ordinance, such as a Subsidiary Company (referred to as "Subsidiary Company, etc." hereinafter in this
Chapter as well as in the following Chapter), the Insurance Company shall, for
each business year, prepare in addition to the report set forth in the preceding
paragraph an interim business report and business report describing the status of the business and property of the Insurance Company and the Subsidiary
Company, etc. in a consolidated manner for submission to the Prime Minister. (3) The matters to be described in the reports set forth in the preceding two
paragraphs, their submission dates and other necessary matters regarding
those reports shall be specified by a Cabinet Office Ordinance.
(Public Inspection, etc. of Explanatory Documents on Business and Property
Status)
Article 111 (1) An Insurance Company shall, for each business year, prepare
explanatory documents describing the matters specified by a Cabinet Office Ordinance as pertaining to the status of its business and property, and keep them for public inspection at its head office or principal office and branch
offices or secondary offices, or any other equivalent place specified by a Cabinet
Office Ordinance.
(2) In the case where an Insurance Company has a Subsidiary Company, etc., the
Insurance Company shall, for each business year, prepare in addition to the explanatory documents set forth in the preceding paragraph explanatory
documents describing, with regard to the Insurance Company and the
Subsidiary Company, etc., the matters specified by a Cabinet Office Ordinance as pertaining to the status of the business and property of the Insurance
Company and the Subsidiary, etc. in a consolidated manner, and keep them for
public inspection at the Insurance Company's head office or principal office and its branch offices or secondary offices, or any other equivalent place specified
by a Cabinet Office Ordinance.
(3) The matters to be stated in the reports set forth in the preceding two paragraphs, may be prepared in the form of electromagnetic record.
(4) Where the explanatory documents set forth in paragraph (1) or (2) are
prepared in the form of electromagnetic record, the Insurance Company may take the measures specified by a Cabinet Office Ordinance as measures to
ensure that the information recorded on the electromagnetic record is available
to many and unspecified persons at its head office or principal office and its
branch offices or secondary offices, or any other equivalent place specified by a Cabinet Office Ordinance. In this case, the explanatory documents set forth in paragraph (1) or (2) shall be deemed to be kept for public inspection pursuant to the provision of paragraph (1) or (2).
(5) In addition to what is provided for in the preceding paragraphs, the period for
making the documents set forth in paragraph (1) or (2) available for public inspection and any other matter required for applying the provisions of the preceding paragraphs shall be specified by a Cabinet Office Ordinance.
(6) An Insurance Company shall endeavor to disclose, in addition to the matters
set forth in paragraph (1) or (2), any matter that should serve as reference for
Policyholders and other customers in knowing the status of the business and property of the Insurance Company and its Subsidiary Company, etc.
(Special Provisions on Valuation of Shares)
Article 112 (1) An Insurance Company may, when the current value of the quoted shares that it owns (excluding those shares which are accounted for
under the Special Account set forth in Article 118, paragraph (1); hereinafter
the same shall apply in this paragraph) exceeds the acquisition value of such shares, attach to the shares any value that exceeds their acquisition value but
does not exceed their current value with the authorization of the Prime
Minister, pursuant to the provisions of a Cabinet Office Ordinance.
(2) Any profit recorded as a result of revaluation under the preceding paragraph shall be set aside as a Reserve specified by a Cabinet Office Ordinance.
(Amortization of Business Expenditures, etc.)
Article 113 An Insurance Company may credit to the assets on the balance sheet an amount pertaining to its business expenditures for the first five years
following the establishment of the Insurance Company as well as any other
amount specified by a Cabinet Office Ordinance. In this case, the Insurance
Company shall, pursuant to the provisions of its articles of incorporation,
amortize the amount thus credited within ten years from the establishment of the Insurance Company.
(Policy Dividend)
Article 114 (1) Any policy dividend (referring to the distribution to Policyholders, in whole or in Part, of those profits obtained by investing insurance premiums
and the money received as insurance premiums which have neither been
allocated to any payments such as insurance claims or refunds, nor to any business or other expenditures, where such distribution is stipulated in the
insurance contracts, the same shall apply hereinafter) distributed by a stock
Insurance Company shall meet the requirements specified by a Cabinet Office
Ordinance as requirements for fair and equitable distribution.
(2) A Cabinet Office Ordinance shall specified how to fund the reserve for policy dividends as well as any other necessary matter pertaining to Policyholder
dividends.
(Price Fluctuation Reserve)
Article 115 (1) An Insurance Company shall, with regard to the assets specified by a Cabinet Office Ordinance as susceptible to losses due to price fluctuation, such as shares (referred to as "Shares, etc." in the following paragraph), within its portfolio, set aside as a price fluctuation reserve the amount calculated
pursuant to the provisions of a Cabinet Office Ordinance; provided, however,
that this shall not apply to any amount exempted from this funding
requirement by virtue of an authorization granted by the Prime Minister to relieve the Insurance Company of the requirement in whole or in part.
(2) The Reserves set forth in the preceding paragraph shall not be reduced except when it is allocated to compensation for any excess amount of the losses due to buying and selling, etc. of Shares, etc. (referring to losses due to buying and
selling, revaluation and fluctuation in foreign exchange rates, and losses on
redemption) over the profits due to buying and selling, etc. of Shares, etc.
(referring to profits due to buying and selling, revaluation and fluctuation in foreign exchange rates (excluding any profit credited as a result of revaluation
under Article 112, paragraph (1)), and gains on redemption); provided, however, that this shall not apply to the cases where the Prime Minister has approved
such reduction.
(Policy Reserve)
Article 116 (1) An Insurance Company shall, for each accounting period, set aside a certain amount of money as a policy reserve to prepare for future performance of obligations under its insurance contracts.
(2) The Prime Minister may set necessary requirements for the method of
funding the policy reserve pertaining to the long-term insurance contracts specified by a Cabinet Office Ordinance, as well as for the levels of the
coefficients that should constitute the basis for calculating the amount of the policy reserve, such as expected mortality.
(3) In addition to what is provided for in the preceding two paragraphs, the method of funding the policy reserve pertaining to any reinsured insurance
contract and any other matter required for funding the policy reserves shall be
specified by a Cabinet Office Ordinance.
(Reserve for Outstanding Claims)
Article 117 (1) For each business year, an Insurance Company shall set aside a certain amount of money as reserve for outstanding claims, where it has any
payments due, such as insurance claims or refunds (hereinafter referred to as
"Insurance Claims, etc." in this paragraph), under its insurance contracts, or any other equivalent payment specified by a Cabinet Office Ordinance that has not been recorded as an expenditure for Insurance Claims, etc.
(2) A Cabinet Office Ordinance shall specify matters required for funding the
reserve for outstanding claims set forth in the preceding paragraph.
(Statutory Lien for Policyholders, etc. in Life Insurance Company)
Article 117-2 (1) In a Life Insurance Company, the Policyholders (excluding the holders of reinsurance policies) and the persons who have any of the following rights (excluding the rights pertaining to reinsurance) shall enjoy a statutory lien against the whole assets of the Life Insurance Company for the total
amount of money paid for the insurers and for the amount of the relevant right,
respectively:
(i) Insurance claims;
(ii) The right to demand compensation for losses (other than the right listed in the preceding item); or
(iii) The right to demand a payment, such as refund, dividend of surplus or
policy dividend (other than insurance claim).
(2) The statutory lien set forth in the preceding paragraph shall be ranked next in priority to the statutory lien set forth in Article 306, item (i) of the Civil Code (Statutory lien for expenses for common interest).
(Special Account)
Article 118 (1) An Insurance Company shall, as regards performance-linked insurance contracts (referring to the insurance contracts stipulating that
insurance claims, refunds or other benefits shall be paid to the Policyholders in
accordance with the performance of investment of the money received as
insurance premiums) and any other class of insurance contract specified by a Cabinet Office Ordinance, create a Special Account to separate the property managed under such insurance contracts from other properties (hereinafter referred to as "Special Account" in this Article).
(2) Unless provided otherwise in a Cabinet Office Ordinance, an Insurance
Company shall not commit any of the following acts:
(i) Transfer any property to be accounted for under a Special Account to a Non- Special Account or to another Special Account; or
(ii) Transfer to a Special Account any property other than a property to be accounted for under the Special Account.
(3) A Cabinet Office Ordinance shall specify how to manage the property
belonging to a Special Account and any other necessary matter pertaining to
Special Accounts. Article 119 Deleted
(Appointment of Actuary, etc.)
Article 120 (1) The board of directors of an Insurance Company (limited to a Life
Insurance Company or a Non-Life Insurance Company meeting the
requirements specified by a Cabinet Office Ordinance. The same shall apply in the paragraph (3) and in Article 122) shall appoint an actuary to Participate in the matters specified by a Cabinet Office Ordinance as actuarial matters
pertaining, among others, to the method of calculating insurance premiums.
(2) The actuary shall be a person with necessary knowledge and experience with regard to actuarial science who meets the requirements specified by a Cabinet Office Ordinance.
(3) An Insurance Company shall, when it has appointed an actuary or when its
actuary has left his/her office, notify the Prime Minister thereof without delay, pursuant to the provisions of a Cabinet Office Ordinance.
(Actuary's Duties)
Article 121 (1) The actuary shall, for each accounting period, check the following matters pursuant to the provisions of a Cabinet Office Ordinance and submit to the board of directors a written opinion describing his/her findings:
(i) Whether the policy reserve pertaining to the insurance contracts specified
by a Cabinet Office Ordinance has been funded according to sound actuarial practice;
(ii) Whether policy dividends or dividends of surplus to members have been distributed in a fair and equitable manner; and
(iii) Any other matter specified by a Cabinet Office Ordinance.
(2) The actuary shall, without delay following the submission to the board of
directors of the written opinion set forth in the preceding paragraph, submit a copy of the written opinion to the Prime Minister.
(3) The Prime Minister may request the actuary to provide explanations about
the copy of his/her written opinion set forth in the preceding paragraph and to present an opinion on any other matter in the scope of his/her duties.
(4) In addition to what is provided for in the preceding three paragraphs, any
necessary matter regarding the written opinion set forth in paragraph (1) shall be specified by a Cabinet Office Ordinance.
(Dismissal of Actuary)
Article 122 The Prime Minister may order an Insurance Company to dismiss its actuary, when the latter has violated any provision of this Act or any
dispositions of the Prime Minister under this Act.
(Designation, etc.)
Article 122-2 (1) The Prime Minister may, on application, designate a general incorporated association that he/she considers to meet the following
requirement regarding the businesses set forth in the following paragraph as a person to carry on such businesses:
(i) The incorporated association is found to have sufficient accounting and
technical expertise to ensure proper execution of its business; and
(ii) In addition to the requirement set forth in the preceding item, the
incorporated association has the ability to carry on its business in a fair and appropriate manner.
(2) An incorporated association designated pursuant to the provision of the
preceding paragraph (hereinafter referred to as "Designated Association" in this Article) shall carry on any of the following businesses:
(i) Developing and training persons with expert knowledge and skills on actuarial science;
(ii) Conducting necessary research and study, preparing statistics, collecting data, or providing information regarding actuarial science;
(iii) Any of the businesses entrusted by the Prime Minister pertaining to the levels of coefficients that should constitute the basis for calculating the
amount of the policy reserve set forth in Article 116, paragraph (2) or pertaining to any other actuarial matter; or
(iv) A business that is incidental to any of the businesses listed in the preceding three items.
(3) The Prime Minister may, when he/she finds that an improvement is required in the management of any of the businesses set forth in the preceding
paragraph, order the Designated Association to take necessary measures for
such improvement.
(4) The Prime Minister may, when he/she finds it necessary for ensuring proper management of any of the businesses specified in paragraph (2), request the
Designated Association to submit as necessary a report concerning its business carried on under that paragraph or its property, or cause his/her staff members to enter the Designated Association's offices, ask questions on its business
carried on under that paragraph or its property or inspect its books and
documents and other related materials.
(5) The Prime Minister may rescind a designation under paragraph (1) (referred to as "Designation" in item (ii) and the following paragraph), when the
Designated Association:
(i) is found to be unable to carry on its businesses under paragraph (2) in a fair and appropriate manner;
(ii) has committed any wrongful act in relation to the Designation; or
(iii) has violated an order under paragraph (3).
(6) In addition to what is provided for in the preceding paragraphs, the procedure of Designation and any other necessary matter with regard to Designated
Associations shall be specified by a Cabinet Office Ordinance.
Chapter VI Supervision
(Change of Matters Prescribed in Statement of Business Procedures, etc.)
Article 123 (1) An Insurance Company shall obtain the authorization from the
Prime Minister when it intends to modify the matters prescribed in the
documents listed in Article 4, paragraph (2), items (ii) to (iv) inclusive (except matters specified by a Cabinet Office Ordinance as being not very likely to impair the protection of Policyholders, etc.).
(2) An Insurance Company shall, when it intends to modify the matters specified
by a Cabinet Office Ordinance set forth in the preceding paragraph in the case where it intends to modify the matters prescribed in the documents prescribed
in the same paragraph, give advance notification thereof to the Prime Minister.
(Authorization of Change of Matters Prescribed in Statement of Business
Procedures, etc.)
Article 124 The Prime Minister shall, when an application for the authorization set forth in the preceding Article, paragraph (1) is made, examine whether or not the matters listed in each of the following items conform to the
requirement prescribed in each of that items respectively:
(i) Matters prescribed in the documents listed in Article 4, paragraph (2), items
(ii) and (iii); Requirement listed in Article 5, paragraph (1), item (iii), (a) to
(e) inclusive; and
(ii) Matters prescribed in the documents listed in Article 4, paragraph (2), item
(iv); Requirement listed in Article 5, paragraph (1), item (iv), (a) to (c)
inclusive.
(Notification, etc. of Change of Matters Prescribed in Statement of Business
Procedures, etc.)
Article 125 (1) In the case where a notification under the provision of Article 123, paragraph (2) is made, it shall be deemed that the change pertaining to said notification was made on the day when ninety days have passed since the day immediately following the date on which the Prime Minister received said
notification.
(2) The Prime Minister may, when he/she finds that the matters pertaining to
the notification under the provision of Article 123, paragraph (2) conform to the requirement listed in Article 5, paragraph (1), item (iii), (a) to (e) inclusive of
or item (iv), (a) to (c) inclusive, shorten the period of time prescribed in the
preceding paragraph to a period of time found to be reasonable. In this case,
the Prime Minister shall, without delay, give notice of the shortened period of time to the person that made said notification.
(3) The Prime Minister may, when there is a reasonable ground that a reasonable period of time is required to examine whether the matters pertaining to the
notification under the provision of Article 123, paragraph (2) conform to the
requirement listed in Article 5, paragraph (1), item (iii), (a) to (e) inclusive or item (iv), (a) to (c) inclusive and it is found that said examination will not
terminate within the period of time prescribed in paragraph (1), extend the
period of time to a period found to be reasonable. In this case, the Prime Minister shall, without delay, give notice of the extended period of time and the reasons for the extension to the person that made said notification.
(4) The Prime Minister may, when he/she finds that the matters pertaining to
the notification under the provision of Article 123, paragraph (2) do not
conform to the requirement listed in Article 5, paragraph (1), item (iii), (a) to
(e) inclusive or item (iv), (a) to (c) inclusive, order the person that made said
notification to modify the matters pertaining to said notification for a limited
period or revoke said notification, limited to within a period of time until the day when ninety days have passed since the day following the date on which said notification was received (the extended period of time in the case where
the period of time is extended pursuant to the provision of the preceding paragraph).
(Authorization of an amendment in the articles of incorporation)
Article 126 Any resolutions of the shareholders meeting or the General Meeting of members or the General Meeting concerning any amendment in the articles of incorporation pertaining to the following matters of an Insurance Company
shall not come into effect without obtaining the authorization of the Prime
Minister:
(i) Trade name or name;
(ii) Matters concerning the redemption of funds; (iii) Reasons for the withdrawal of members;
(iv) Matters concerning the number and selection method of general representatives;
(v) Matters concerning the contract set forth in Article 63, paragraph (1);
(vi) Matters concerning the policy pertaining to Policyholders' dividends of a
Converted Stock Company set forth in Article 86, paragraph (5);
(vii) Matters concerning the appropriation of residual assets set forth in Article
182;
(viii) Matters concerning the policy set forth in Article 240-5, paragraph (5).
(Matters to be Notified)
Article 127 (1) An Insurance Company shall, when it falls under any of the
following items, notify thereof to the Prime Minister pursuant to the provision of a Cabinet Office Ordinance:
(i) When it has commenced an Insurance Business;
(ii) When it intends to have a company falling under the category specified in
Article 106, paragraph (1), item (xii) or (xiii) (excluding that for which paragraph (4) provides that in order to have such a company as its
Subsidiary Company, an Insurance Company shall obtain authorization)
become its Subsidiary Company (excluding the case where it intends to
accept a business, merge, or demerge upon obtaining authorization pursuant to the provision of Article 142, Article 167, paragraph (1) or Article 173-6,
paragraph (1));
(iii) When such Subsidiary Company ceases to be its Subsidiary Company
(excluding the case where it accepted a business or demerged upon obtaining authorization under the provision of Article 142 or Article 173-6, paragraph (1)), or when a Subsidiary Company that falls under an Insurance Company,
etc. Eligible for Subsidiary Company prescribed in Article 106, paragraph (4)
becomes a Subsidiary Company that does not fall under said subsidiary
Insurance Company, etc.;
(iv) When it intends to increase the amount of capital or the total amount of funds;
(v) When it modifies the articles of incorporation pertaining to matters other
than those provided for otherwise;
(vi) When it intends to establish an branch office or secondary office or representative office in a foreign state;
(vii) When the holder's voting rights that exceed five hundredths of the Voting Rights Held by All of its Shareholders are acquired or come to be held by a single shareholder; or;
(viii) When it falls under any of the other cases specified by a Cabinet Office
Ordinance (Cabinet Office Ordinance or Ordinance of the Ministry of Finance for those pertaining to the financial bankruptcy processing system and
financial crisis management).
(2) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the voting rights of an Insurance Company to be acquired or possessed by one
shareholder prescribed in the preceding paragraph, item (vii).
(Submission of Reports or Materials)
Article 128 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. by ensuring the sound and appropriate management of an Insurance Company, require the Insurance Company to submit reports or materials concerning the status of its business or property.
(2) The Prime Minister may, when and to the extent that he/she finds it
particularly necessary to protect Policyholders, etc. by ensuring the sound and appropriate management of an Insurance Company, require a Subsidiary, etc. of said Insurance Company (meaning a Subsidiary Company or any other
insurance companies that is specified by a Cabinet Office Ordinance as a
juridical person of which management is controlled by that Insurance
Company; the same shall apply in the following paragraph and the following
Article, paragraphs (2) and (3)) or subcontractor of the Insurance Company, to submit reports or materials that would helpful to understand the status of the business or property of the Insurance Company.
(3) A Subsidiary, etc. of an Insurance Company or a person to whom business has
been entrusted by that Insurance Company may, if there are justifiable
grounds, refuse to submit reports or materials required under the provision of the preceding paragraph.
(Inspection)
Article 129 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. by ensuring the sound and appropriate management of an Insurance Company, have his/her officials enter a facility of the
Insurance Company, such as a business or other office, ask questions on the
status of its business or property, or inspect relevant objects such as books and documents.
(2) The Prime Minister may, when he/she finds it particularly necessary in the
case of entering a site, asking questions, or conducting an inspection under the preceding paragraph, have his/her officials enter a facility of a Subsidiary, etc. of the Insurance Company or that of a person to whom business has been
entrusted by that Insurance Company, have them ask questions on matters that are necessary for questioning or inspecting the Insurance Company, or have them inspect relevant objects such as books and documents, within the limit necessary.
(3) A Subsidiary, etc. of an Insurance Company or a person to whom business has
been entrusted by that Insurance Company may, if there are justifiable
grounds, refuse the questions and inspections under the provision of the preceding paragraph.
(Standard of Soundness)
Article 130 The Prime Minister may prescribe standards for determining the
soundness in management of an Insurance Company regarding whether or not
the situation of the enhancement of the ability to pay for Insurance Claims, etc. is appropriate, using the following amounts pertaining to an Insurance
Company:
(i) Total amount of the items specified by a Cabinet Office Ordinance such as capital, funds and reserves; and
(ii) Amount calculated pursuant to the provisions of a Cabinet Office Ordinance as the amount for coping with possible risks exceeding standard predictions
that may occur due to any events pertaining to the insurance being
underwritten, such as insured events.
(Order to Change Regarding Matters Prescribed in Statement of Business
Procedures, etc.)
Article 131 The Prime Minister may, when he/she finds it necessary to protect
Policyholders, etc. by ensuring the sound and appropriate management of an
Insurance Company in light of the situation of the business or property of the
Insurance Company or a change in the circumstances, order the Insurance
Company to modify the matters prescribed in the documents listed in Article 4, paragraph (2), items (ii) to (iv) inclusive, within the limit necessary.
(Suspension of Business, etc.)
Article 132 (1) The Prime Minister may, when he/she finds it necessary to protect Policyholders, etc. by ensuring soundness in management of an
Insurance Company in light of the situation of the business or property of the
Insurance Company or the situation of the assets of the Insurance Company
and its Subsidiary Company, etc., request the Insurance Company to submit an improvement program for ensuring the soundness of management by
identifying matters for which measures shall be taken as well as due dates or order changes to the submitted improvement program, or, within the limit necessary, order the full or Partial suspension of the business of the Insurance Company with due dates, or order the deposit of property of the Insurance
Company or other necessary measures for supervision.
(2) When it shall be deemed that the orders under the provision of the preceding paragraph (including the request for submission of an improvement program)
are necessary in light of the situation of the enhancement of the ability to pay
for Insurance Claims, etc. of an Insurance Company, the orders shall be those specified by a Cabinet Office Ordinance and an Ordinance of the Ministry of
Finance in accordance with the categories pertaining to the situation of the
enhancement of the ability to pay for Insurance Claims, etc. of the Insurance
Company.
(Rescission of License, etc.)
Article 133 The Prime Minister may, when an Insurance Company shall fall under any of the following items, order the full or Partial suspension of the business of the Insurance Company or the dismissal of the director, executive
officer, accounting advisor, or company auditor, or rescind the license set forth in Article 3, paragraph (1):
(i) When it is in violation of laws and regulations, disposition of the Prime Minister pursuant to laws and regulations, or particularly vital matters among those prescribed in the documents listed in the items of Article 4, paragraph (2);
(ii) When it is in violation of the conditions attached to said license; and
(iii) When it commits acts prejudicial to the public interest.
Article 134 The Prime Minister may, when he/she finds that the situation of the property of an Insurance Company is significantly worsening and that it is not appropriate to continue the Insurance Business from the viewpoint of
protecting Policyholders, etc., rescind the license of the Insurance Company set forth in Article 3, paragraph (1).
Chapter VII Comprehensive Transfer of Insurance Contracts, Assignment
or Acquisition of Business, and Entrustment of Business and Property
Administration
Section 1 Comprehensive Transfer of Insurance Contracts
(Comprehensive Transfer of Insurance Contracts)
Article 135 (1) An Insurance Company may, pursuant to the provisions of this Act, transfer insurance contracts to another Insurance Company (including a Foreign Insurance Company, etc.; hereinafter the same shall apply in this
paragraph) under an Agreement with such other Insurance Company
(hereinafter referred to as "Transferee Company" in this Section).
(2) A transfer of insurance contracts shall cover the whole insurance contracts for which the policy reserve is calculated on the same basis (excluding the
insurance contracts specified by a Cabinet Office Ordinance, such as those for which an insured event had occurred by the time of public notice under Article
137, paragraph (1) (limited to those contracts which would be terminated with
the payment of insurance claims pertaining to the insured event)).
(3) An Agreement under paragraph (1) shall provide for the matters related to the transfer of the Insurance Company's property which accompanies the
transfer of insurance contracts. In this case, the Insurance Company which
intends to transfer insurance contracts (hereinafter referred to as "Transferor
Company" in this Section) shall retain the property deemed necessary to protect the interest of the Transferor Company's creditors other than the
Policyholders to which pertains the insurance contracts to be transferred under the Agreement (hereinafter referred to as "Affected Policyholders" in this
Section).
(4) In an Agreement under paragraph (1), the Transferor Company may stipulate minor changes to the clauses of the insurance contracts to be transferred under the Agreement, so long as such changes are not disadvantageous to the
Policyholders.
(Resolution on Transfer of Insurance Contracts)
Article 136 (1) Any transfer of insurance contracts under paragraph (1) of the
preceding Article shall require a resolution of the shareholders meeting or the General Meeting of members (or the General Meeting, where the company has such meeting) (referred to as "Shareholders Meeting, etc." hereinafter in this
Chapter, as well as in Chapters VIII and X) in both the Transferor Company
and the Transferee Company (other than a Foreign Insurance Company, etc.). (2) The resolution set forth in the preceding paragraph shall be a resolution
under Article 309, paragraph (2) (Resolution of shareholders meetings) of the
Companies Act or under Article 62, paragraph (2) above.
(3) In adopting a resolution under paragraph (1), the Transferor Company and
the Transferee Company shall describe the gist of the Agreement set forth in paragraph (1) of the preceding Article in the notice to be given under Article
299, paragraph (1) (Notice of Calling of Shareholders' Meetings) of the Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 41, paragraph (1) and Article 49, paragraph (1)).
(Keeping, etc. of Documents pertaining to Transfer of Insurance Contracts) Article 136-2 (1) The directors (or, in a company with Committees, executive
officers) of the Transferor Company shall keep at each of its business offices or
offices the documents specified by a Cabinet Office Ordinance, such as the
written Agreement concluded under paragraph (1) of the preceding Article, for a period ranging from two weeks before the date of the Shareholders Meeting, etc. set forth in Article 136, paragraph (1) to the end of the period specified
pursuant to the provision of paragraph (2) of the following Article in a
supplementary note to the public notice set forth in paragraph (1) of the following Article.
(2) A shareholder or a Policyholder of the Transferor Company may, within the company's operating hours or business hours, make a request for inspection of the documents set forth in the preceding paragraph, or for a transcript or
extract of such documents in exchange for the fees determined by the
Transferor Company.
(Public Notice of, and Filing of Objection to, Transfer of Insurance Contracts)
Article 137 (1) The Transferor Company shall, within two weeks from the date of the resolution set forth in Article 136, paragraph (1), give public notice of the
gist of the Agreement concluded under Article 135, paragraph (1), and the balance sheets of the Transferor Company and the Transferee Company (for a Foreign Insurance Company, etc., the balance sheet pertaining to its Insurance Business in Japan), as well as other matters specified by a Cabinet Office
Ordinance.
(2) The public notice set forth in the preceding paragraph shall include a
supplementary note to the effect that any affected Policyholder who is opposed to the transfer should state his/her objection within a certain period of time.
(3) The period under the preceding paragraph cannot be less than one month.
(4) A transfer of insurance contracts shall not be carried out where the number of the Affected Policyholders who have stated their objections within the period
set forth in paragraph (2) exceeds one fifth of all Affected Policyholders, and
the amount specified by a Cabinet Office Ordinance as the credits belonging to the insurance contracts of the Affected Policyholders who have thus stated
their objections (excluding any insurance claim, etc. (referring to the Insurance
Claims, etc. set forth in Article 17, paragraph (5)) that had arisen with regard
to such insurance contracts by the time of public notice under paragraph (1))
exceeds one fifth of the amount prescribed as the credits belonging to all
Affected Policyholders.
(5) Where the number of the Affected Policyholders who have stated their
objections within the period set forth in paragraph (2) or the amount of credits specified by a Cabinet Office Ordinance set forth in the preceding paragraph for such Policyholders does not exceed the proportion specified in that
paragraph, all of the Affected Policyholders shall be deemed to have approved the transfer of insurance contracts.
(Suspension of Conclusion of Insurance Contracts)
Article 138 The Transferor Company shall not conclude any insurance contract
that belongs to the same class as the insurance contracts to be transferred, for
the period ranging from the time of the adoption of the resolution under Article
136, paragraph (1) to the time of execution or renunciation of the transfer of insurance contracts.
(Authorization of Transfer of Insurance Contracts)
Article 139 (1) Any transfer of insurance contracts shall be not become effective without the authorization of the Prime Minister.
(2) The Prime Minister shall, when an application for the authorization set forth
in the preceding paragraph is made, examine whether the application meets the following requirement:
(i) The transfer of insurance contracts is appropriate in light of the protection
of Policyholders, etc.;
(ii) It is certain that the Transferee Company will carry on its business in an appropriate, fair and efficient manner following the transfer of insurance contracts; and
(iii) The transfer poses no risk of unduly harming the interest of the creditors of the Transferor Company other than the Affected Policyholders.
(Public Notice, etc. of Transfer of Insurance Contracts)
Article 140 (1) The Transferor Company shall, following the transfer of
insurance contracts, give public notice of without delay the fact that a transfer of insurance contracts has been carried out and other matters specified by a
Cabinet Office Ordinance. The same shall apply where the company has
renounced the transfer of insurance contracts.
(2) The Transferee Company shall, when it has received any transfer of
insurance contracts, notify thereof (or, where any minor change to the
transferred insurance contracts under Article 135, paragraph (4) is stipulated
in the Agreement set forth in paragraph (1) of the same Article, of the fact that
it has received a transfer of insurance contracts and the contents of such minor change) to the Policyholders affected by the transfer of insurance contracts
within three months from such transfer.
(3) Where the Transferor Company has outstanding loans or other claims against Policyholders, and such claims are to be assigned to the Transferee Company under the Agreement on the transfer of insurance contracts set forth in Article
135, paragraph (1), a notice in the form of an instrument carrying a fixed date
under Article 467 (Requirement for Assertion of Assignment of Nominative
Claims Against Third Parties ) of the Civil Code shall be deemed to have been given to the Policyholders when a public notice under the first sentence of
paragraph (1) has been given, in accordance with the Method of Public Notice specified by the company, by way of publication in a daily newspaper that publishes matters on current events. In this case, the date of the public notice shall be deemed as the fixed date.
(Membership due to Transfer of Insurance Contracts)
Article 141 Where insurance contracts are transferred to a Mutual Company, the
Policyholders affected by the transfer become members of the Mutual
Company; provided, however, that this shall not apply to the cases where the articles of incorporation of the Transferee Company do not grant membership to the Policyholders taking out the same class of insurance contracts as those covered by the transfer agreement.
Section 2 Assignment or Acquisition of Business
(Authorization of Assignment or Acquisition of Business)
Article 142 Unless otherwise specified by a Cabinet Office Ordinance, any assignment or acquisition of business involving Insurance Company or
insurance companies shall be not become effective without the authorization of the Prime Minister.
(Special Provisions for Insurance Company Carrying out Insurance Premium
Trust Business)
Article 143 (1) Where a Mutual Company carrying out the insurance premium trust business has adopted a resolution on the transfer of all insurance
contracts, and the General Meeting of members (or the General Meeting, where
the company has such meeting) or the meeting of the board of directors has
adopted a resolution on the assignment of a business including the insurance
premium trust business, the Mutual Company shall, within two weeks from the date of the latter resolution, give public notice of the effect that any beneficiary of a monetary trust (hereinafter referred to as "Beneficiary" in this Article)
who is opposed to the gist of the resolution and the assignment of the business should state their objections within a certain period of time.
(2) The period under the preceding paragraph cannot be less than one month.
(3) Where no beneficiaries have stated their objections during the period set forth in paragraph (1), the beneficiaries shall be deemed to have approved the
assignment of the business.
Section 3 Entrustment of Business and Property Administration
(Entrustment of Business and Property Administration)
Article 144 (1) An Insurance Company may, pursuant to the provisions of this Act, entrust another Insurance Company (including a Foreign Insurance Company, etc. (unless otherwise p specified by a Cabinet Office Ordinance);
hereinafter the same shall apply in this paragraph) with the administration of its business and property under an Agreement with such other Insurance
Company (hereinafter referred to as "Entrusted Company" in this Section). (2) Any entrustment of the administration business set forth in the preceding
paragraph shall require a resolution of the Shareholders Meeting, etc. in both
the Insurance Company entrusting the administration business (hereinafter referred to as "Entrusting Company" in this Section) and the Entrusted
Company (other than a Foreign Insurance Company, etc.).
(3) The resolution set forth in the preceding paragraph shall be a resolution
under Article 309, paragraph (2) (Resolution of shareholders meetings) of the
Companies Act or under Article 62, paragraph (2) above.
(4) The provision of Article 136, paragraph (3) shall apply mutatis mutandis to the adoption of a resolution under paragraph (2).
(Authorization of Entrustment of Business and Property Administration)
Article 145 (1) Any entrustment of business and property administration under
paragraph (1) of the preceding Article shall be not become effective without the authorization of the Prime Minister.
(2) The Prime Minister shall, when an application for the authorization set forth in the preceding paragraph is made, examine whether the application meets
the following requirement:
(i) The entrustment of the administration business is necessary and appropriate in light of the protection of Policyholders, etc.; and
(ii) It is certain that the Entrusted Company will carry on its business pertaining to the entrustment of the administration business in an
appropriate, fair and efficient manner.
(Public Notice and Registration)
Article 146 (1) The Entrusting Company shall, without delay following the
authorization set forth in paragraph (1) of the preceding Article, give public notice of the gist of the Agreement set forth in Article 144, paragraph (1)
(hereinafter referred to as "Administration Entrustment Agreement" in this Section) and register the entrustment of the administration business, and the Entrusted Company's trade name, name and its head office or principal office, or its principal branch in Japan (referring to the principal branch in Japan set forth in Article 187, paragraph (1), item (iv)).
(2) The registration set forth in the preceding paragraph shall be made at the
location of the Entrusted Company's head office or principal office.
(3) The following documents shall be attached to a written application for the
registration set forth in paragraph (1), in addition to the documents set forth in
Articles 18 and 19 (Documents to be Attached to Written Application) and
Article 46 (General Rules on Attached Documents) of the Commercial
Registration Act (including the cases where it is applied mutatis mutandis pursuant to Article 67):
(i) A copy of the Administration Entrustment Agreement; and
(ii) The minutes of the Shareholders Meeting, etc. of the Entrusted Company
(other than a Foreign Insurance Company, etc.).
(Internal Relationship)
Article 147 Unless provided otherwise in this Act, the relationship between the
Entrusting Company and the Entrusted Company shall be governed by the provisions on mandate.
(External Relationship)
Article 148 (1) The Entrusted Company shall, in carrying out any act on behalf of the Entrusting Company, such as the conclusion of an insurance contract,
indicate that the business is carried out on behalf of the Entrusting Company. (2) Any business carried out without the indication set forth in the preceding
paragraph shall be deemed to have been carried out on the Entrusted
Company's own account.
(3) The provisions of Article 11, paragraphs (1) and (3) (Manager's Authority of Representation) of the Companies Act shall apply mutatis mutandis to an Entrusted Company. In this case, the terms "a Company" and" business" in
paragraph (1) of the same Article shall be deemed to be replaced with "the
Entrusting Company set forth in Article 144, paragraph (2) of the Insurance
Business Act" and "business and properties," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) The provision of Article 78 (Liability for Damages Pertaining to Act of
Representative Person) of the Act on General Incorporated Association and
General Incorporated Foundation shall apply mutatis mutandis to an Entrusting Company. In this case, the term "representative director or any other representative person" in that Article shall be deemed to be replaced with "Entrusted Company set forth in Article 144, paragraph (1) of the
Insurance Business Act."
(Amendment or Cancellation of Administration Entrustment Agreement)
Article 149 (1) Any amendment to an Administration Entrustment Agreement or cancellation of an Administration Entrustment Agreement shall require a
resolution of the Shareholders Meeting, etc. in both the Entrusting Company and the Entrusted Company (other than a Foreign Insurance Company, etc.).
(2) The amendment or cancellation set forth in the preceding paragraph shall be
not become effective without the authorization of the Prime Minister.
(3) The provisions of Article 144, paragraphs (3) and (4) shall apply mutatis mutandis to the adoption of a resolution under paragraph (1).
(Public Notice, etc. of Amendment or Termination of Administration
Entrustment Agreement)
Article 150 (1) The Entrusting Company shall give public notice of that effect
without delay any where it has obtained an authorization under paragraph (2)
of the preceding Article. The same shall apply where an Administration
Entrustment Agreement has been terminated due to any other cause than the cancellation set forth in paragraph (1) of the same Article.
(2) The provision of Article 146, paragraph (3) shall apply mutatis mutandis to
the registration of any amendment to an Administration Entrustment
Agreement or cancellation of an Administration Entrustment Agreement. In
this case, the term "following documents" in that paragraph shall be deemed to be replaced with "following documents (or, in the case of termination due to
any other cause than cancellation, the document listed in item (i) and a
document certifying the occurrence of the cause of termination)"; and the term "Administration Entrustment Agreement" in Article 146, paragraph (3), item (i) shall be deemed to be replaced with "Administration Entrustment
Agreement (or, in the case of any amendment, Administration Entrustment
Agreement thus amended)." Article 151 Deleted
Chapter VIII Dissolution, Merger, Company Split and Liquidation
Section 1 Dissolution
(Causes of Dissolution)
Article 152 (1) For the purpose of applying the provision of Article 471 (Grounds for dissolution) of the Companies Act to a Stock Company carrying on the
Insurance Business, the term "below" in that Article shall be deemed to be replaced with "in items (iii) to (vi) inclusive."
(2) The provision of Article 471 of the Companies Act as applied with the change in interpretation set forth in the preceding paragraph shall apply mutatis
mutandis to a Mutual Company. In this case, the term "a shareholders
meeting" in item (iii) of that Article shall be deemed to be replaced with "the
General Meeting of members (or the General Meeting, where the company has such meeting)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(3) An Insurance Company, etc. shall dissolve due to the following causes (or, for
a Stock Company carrying on the Insurance Business, the cause listed in item
(ii)), in addition to the causes listed in Article 471, items (iii) to (vi) inclusive of the Companies Act as applied with the change in interpretation set forth in
paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to the preceding paragraph):
(i) Transfer of all insurance contracts; or
(ii) Cancellation of a license under Article 3, paragraph (1) or a registration under Article 272, paragraph (1).
(Authorization of Dissolution, etc.)
Article 153 (1) None of the following matters shall be effective without authorization of the Prime Minister:
(i) A resolution of the Shareholders Meeting, etc. that approves dissolution of the Insurance Company, etc.;
(ii) A resolution of the shareholders meeting that approves abolition of
Insurance Business; and
(iii) A merger of which parties solely consist of stock companies or include a
Stock Company or stock companies carrying on the Insurance Business
(excluding a merger under Article 167, paragraph (1); the same shall apply in the following paragraph).
(2) When an application for the authorization set forth in the preceding Article is
filed, the Prime Minister shall whether or not the following requirements are satisfied:
(i) Where the Applicant for the authorization is made by an Insurance
Company, the dissolution or abolition of Insurance Business by the resolution, or said merger must be inevitable in light of the status of business and property of said the Insurance Company; or
(ii) The dissolution or abolition of Insurance Business envisaged by the
resolution, or the planned merger poses no risk to the protection of
Policyholders, etc.
(3) The Prime Minister shall not grant an authorization referred to d in
paragraph (1), where the Insurance Company, etc. which has submitted an application under paragraph (1) (limited to a Stock Company or a Mutual Company whose articles of incorporation include the provision set forth in
Article 63, paragraph (1)) remains the insurer in any of the insurance contracts
in force (excluding the insurance contracts specified by a Cabinet Order, such
as those for which an insured event had occurred by the date of the application
(limited to those contracts which would be terminated with the payment of insurance claims pertaining to the insured event)).
(Public Notice of Dissolution, etc.)
Article 154 Upon obtaining the authorization set forth in paragraph (1) the Insurance Company, etc., of the preceding Article shall, without delay, give public notice of that effect and details of the matters for which the
authorization is granted pursuant to the provisions of a Cabinet Office
Ordinance.
(Registration of Dissolution due to Transfer of Insurance Contracts)
Article 155 The following documents shall be attached to a written application
for registration of dissolution due to the cause listed in Article 152, paragraph (3), item (i), in addition to the documents set forth in Articles 18, 19 and 46 of the Commercial Registration Act as applied mutatis mutandis pursuant to
Article 67, and in Article 71, paragraph (3) of that Act as applied mutatis
mutandis pursuant to Article 158:
(i) The minutes of the Shareholders Meeting, etc. of the Transferee Company
(other than a Foreign Insurance Company, etc.) set forth in Article 135, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 272-29);
(ii) A document certifying that a public notice has been given under Article 137,
paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 272-29);
(iii) A document certifying that the number of those Affected Policyholders set
forth in Article 137, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 272-29) who have stated their
objections within the period set forth in that paragraph, or the amount of
credits specified by a Cabinet Office Ordinance set forth in Article 137,
paragraph (4) (including the cases where it is applied with relevant changes in interpretation pursuant to the provision of Article 251, paragraph (2) and where it is applied mutatis mutandis pursuant to Article 272-29; hereinafter
the same shall apply in this item) as belonging to such Affected Policyholders
has not exceeded the proportion set forth in Article 137, paragraph (4); and
(iv) A document certifying any public notice given under Article 250, paragraph
(4).
(Procedure, etc. of Dissolution for Mutual Company)
Article 156 Any resolution on the dissolution of a Mutual Company shall be a resolution under Article 62, paragraph (2).
(Keeping, etc. of Document pertaining to Dissolution)
Article 156-2 (1) A Mutual Company shall, for the period ranging from two
weeks before the date of the General Meeting of members (or General Meeting, where the company has such meeting) pertaining to the resolution on its dissolution to the date of such resolution (or, where the resolution is adopted
by the General Meeting, the day which is one month after the date of public notice under paragraph (1) of the following Article), keep at each of its offices a document or electromagnetic record describing or recording the matters
specified by a Cabinet Office Ordinance, such as the proposal on dissolution. (2) Members of a Mutual Company may make the following requests to the
company at any time during its business hours; provided, however, that they pay the fees determined by the Mutual Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding
paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means
determined by the Mutual Company, or for any document that describes such matters.
Article 157 (1) Where the General Meeting has adopted a resolution on
dissolution, the Mutual Company shall, within two weeks from the date of such resolution, give public notice of the gist of the resolution and its balance sheet, as well as any other matter specified by a Cabinet Office Ordinance.
(2) In the case set forth in the preceding paragraph, members representing at
least five thousandths (or, in a Specified Mutual Company, members equal to
or exceeding the number specified by the Cabinet Order set forth in Article 50, paragraph (1)), who have been members of the Mutual Company without
interruption for the preceding six months may demand the directors to convene the General Meeting of members with the purpose of discussing matters
pertaining to the resolution, by indicating the proposed agenda for the meeting and the reason for the convocation. In this case, the demand shall be made
within one month from the date of public notice under that paragraph.
(3) In the case referred to in the preceding paragraph, the resolution of the
General Meeting shall lose its effect, unless the General Meeting of members adopts a resolution approving the General Meeting's resolution on dissolution within six weeks from the date of demand under that paragraph.
(4) The provision of Article 156 shall apply mutatis mutandis to the resolution of
the General Meeting of members set forth in the preceding paragraph. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Article 158 The provisions of Article 926 (Registration of Dissolution) of the
Companies Act, and Article 71, paragraphs (1) and (3) (Registration of
Dissolution) of the Commercial Registration Act shall apply mutatis mutandis to a Mutual Company. In this case, the term "Article 478, paragraph (1), item
(i) of the Companies Act" in Article 71, paragraph (3) of the Commercial
Registration Act shall be deemed to be replaced with "Article 180-4, paragraph
(1), item (i) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Section 2 Merger
Subsection 1 General Rules
Article 159 (1) A Mutual Company may merge with another Mutual Company or a Stock Company carrying on the Insurance Business. In this case, a merger agreement shall be concluded between the mutual companies or between the Mutual Company and the Stock Company.
(2) In the case referred to in the preceding paragraph, the company surviving the
merger or the company incorporated by the merger shall be a company falling under one of the following items as the case may be:
(i) Where a Mutual Company merges with another Mutual Company: a Mutual
Company; or
(ii) Where a Mutual Company merges with a Stock Company carrying on the
Insurance Business: a Mutual Company or a Stock Company carrying on the
Insurance Business.
Subsection 2 Merger Agreement
(Absorption-Type Merger Agreement between Mutual Companies)
Article 160 Where mutual companies carry out an absorption-type merger
(referring to any merger that a Mutual Company effects with another Mutual
Company or a Stock Company, whereby the surviving mutual or Stock
Company succeeds to any and all rights and obligations of the absorbed mutual or Stock Company; the same shall apply hereinafter), the absorption-type
merger agreement shall provide for the following matters:
(i) The names and addresses of the Mutual Company surviving the absorption- type merger (hereinafter referred to as "Absorbing Mutual Company" in this Section) and the Mutual Company that becomes extinct following the merger (hereinafter referred to as "Absorbed Mutual Company" in this Section);
(ii) The amount of any money to be granted to the members of the Absorbed
Mutual Company;
(iii) Matters regarding the rights of the Policyholders of the Absorbed Mutual
Company following the merger;
(iv) The date on which the Merger takes effect; and
(v) Any other matter specified by a Cabinet Office Ordinance.
(Consolidation-Type Merger Agreement between Mutual Companies)
Article 161 Where mutual companies carry out a consolidation-type merger
(referring to any merger effected by two or more mutual companies or by two or more mutual and stock companies, whereby the new mutual or Stock Company incorporated by the merger succeeds to any and all rights and obligations of
the mutual or stock companies consolidated by the merger; the same shall
apply hereinafter), the consolidation-type merger agreement shall provide for the following matters:
(i) The names and addresses of the Mutual Companies that become extinct
following the merger (hereinafter referred to as "Consolidated Mutual
Companies" in this Section);
(ii) The purpose and name of the Mutual Company to be incorporated by the
merger (hereinafter referred to as "Formed Mutual Company" in this Section)
and the address of its principal office;
(iii) In addition to what is listed in the preceding item, matters specified by the articles of incorporation of the Formed Mutual Company;
(iv) The names of the directors at incorporation of the Formed Mutual
Company;
(v) Any of the following matters as the case may be:
(a) Where the Formed Mutual Company is a company with accounting
advisors: the names of the accounting advisors at incorporation of the
Formed Mutual Company;
(b) Where the Formed Mutual Company is a company with auditors: the
names of the company auditors at incorporation of the Formed Mutual
Company; or
(c) Where the Formed Mutual Company is a company with accounting auditors: the names of the accounting auditors at incorporation of the Formed Mutual Company;
(vi) The amount of any money to be granted to the members of the
Consolidated Mutual Companies;
(vii) Matters regarding the rights of Policyholders following the merger; and
(viii) Any other matter specified by a Cabinet Office Ordinance.
(Absorption-Type Merger Agreement between Stock and Mutual Companies
Survived by Mutual Company)
Article 162 (1) In an absorption-type merger between a Stock Company and a
Mutual Company where the surviving Insurance Company, etc. is the Mutual
Company, the merger agreement shall provide for the following matters:
(i) The trade names, names and addresses of the Stock Company that becomes extinct following the merger (hereinafter referred to as "Absorbed Stock
Company" in this Section) and the Absorbing Mutual Company;
(ii) The method of compensation for the shareholders and holders of share options of the Absorbed Stock Company;
(iii) Matters regarding the Reserves of the Absorbing Mutual Company;
(iv) Matters regarding the rights of the Policyholders of the Absorbed Stock
Company following the merger;
(v) The date on which the merger takes effect; and
(vi) Any other matter specified by a Cabinet Office Ordinance.
(2) The provision of Article 68, paragraph (6) shall apply mutatis mutandis to the absorption-type merger set forth in the preceding paragraph. In this case, the term "deficiency reserve in addition to the reserve set forth in paragraph (4)" in that paragraph shall be deemed to be replaced with "deficiency reserve"; any
other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(3) The provision of Article 72, paragraph (1) shall apply mutatis mutandis to the Absorbed Stock Company set forth in paragraph (1), item (i). In this case, the terms "Article 70, paragraph (2)" and "Entity Conversion" in that paragraph shall be deemed to be replaced with "Article 165-7, paragraph (2)" and
"absorption-type merger," respectively; and the term "to obtain his/her consent"
shall be deemed to be deleted; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) The provision of Article 83 shall apply mutatis mutandis to the absorption-
type merger set forth in paragraph (1). In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Consolidation-Type Merger between Stock and Mutual Companies
Incorporating Mutual Company)
Article 163 (1) In a consolidation-type merger between a Stock Company (or
stock companies) and a Mutual Company where the Insurance Company, etc. to be incorporated is a Mutual Company, the merger agreement shall provide for
the following matters:
(i) The trade names, names and addresses of the Stock Company (or stock
companies) that become(s) extinct following the merger (hereinafter referred to as "Consolidated Stock Company" in this Section) and the consolidated mutual company;
(ii) The purpose and name of the Formed Mutual Company and the address of
its principal office;
(iii) In addition to what is listed in the preceding item, matters specified by the articles of incorporation of the Formed Mutual Company;
(iv) The names of the directors at incorporation of the Formed Mutual
Company;
(v) Any of the following matters as the case may be:
(a) Where the Formed Mutual Company is a company with accounting
advisors: the names of the accounting advisors at incorporation of the
Formed Mutual Company;
(b) Where the Formed Mutual Company is a company with auditors: the names of the company auditors at incorporation of the Formed Mutual Company; or
(c) Where the Formed Mutual Company is a company with accounting
auditors: the names of the accounting auditors at incorporation of the
Formed Mutual Company;
(vi) The method of compensation for the shareholders and holders of share options of the Consolidated Stock Company;
(vii) The amount of any money to be granted to the members of the
consolidated mutual company;
(viii) Matters regarding the Reserves of the Formed Mutual Company;
(ix) Matters regarding the rights of Policyholders following the merger; and
(x) Any other matter specified by a Cabinet Office Ordinance.
(2) The provision of paragraph (2) of the preceding Article shall apply mutatis mutandis to the consolidation-type merger set forth in the preceding
paragraph; and the provision of paragraph (3) of that Article shall apply
mutatis mutandis to a Consolidated Stock Company. In this case, the term
"absorption-type merger" in Article 162, paragraph (3) shall be deemed to be replaced with "consolidation-type merger"; any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(3) The provision of Article 83 shall apply mutatis mutandis to the consolidation- type merger set forth in paragraph (1). In this case, any other necessary
technical change in interpretation shall be specified by a Cabinet Order.
(Absorption-Type Merger Agreement between Stock and Mutual Companies
Survived by Stock Company)
Article 164 (1) In an absorption-type merger between a Stock Company and a Mutual Company where the surviving Insurance Company, etc. is the Stock Company, the merger agreement shall provide for the following matters:
(i) The trade names, names and addresses of the Stock Company surviving the
merger (hereinafter referred to as "Absorbing Stock Company" in this
Section) and the Absorbed Mutual Company;
(ii) The following matters regarding any share, etc. (referring to any share or money; hereinafter the same shall apply in this Section) to be granted to the members of the Absorbed Mutual Company by the Absorbing Stock Company in carrying out the merger:
(a) Where the share, etc. is the shares of the Absorbing Stock Company, the number of such shares (or, in a company with class shares, the classes of such shares and the number of shares by class) or the method of
calculating such number, and matters regarding the amounts of the capital and Reserves of the Absorbing Stock Company; or
(b) Where the share, etc. is money, the amount of such money or the method of calculating the amount;
(iii) Where the preceding item applies, matters regarding the allocation of
Shares, etc. to the members of the Absorbed Mutual Company (excluding the
Absorbing Stock Company) under that item;
(iv) The method of sale for the new shares to be issued for fractional lots
generated by the allocation of shares to the members of the Absorbed Mutual
Company, and any other matter specified by a Cabinet Office Ordinance regarding such sale;
(v) Where the shares set forth in the preceding item are purchased, the method of the purchase and any other matter specified by a Cabinet Office Ordinance regarding such purchase;
(vi) The amount of any money to be granted to the contributors to the funds of
the Absorbed Mutual Company;
(vii) Matters regarding the rights of the Policyholders of the Absorbed Mutual
Company following the merger;
(viii) Matters regarding the amount of surplus from consolidation; (ix) The date on which the merger takes effect; and
(x) Any other matter specified by a Cabinet Office Ordinance.
(2) The provisions of the main clause of Article 89, paragraph (1) and Article 89,
paragraph (2) shall apply mutatis mutandis to the absorption-type merger set forth in the preceding paragraph. In this case, the terms "converting Mutual Company," "Effective Date" and "entity conversion plan" in paragraph (1) of the same Article shall be deemed to be replaced with "Absorbed Mutual Company,"
"date set forth in Article 164, paragraph (1), item (ix)" and "absorption-type merger agreement set forth in Article 164, paragraph (1)," respectively; any other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(3) The provision of Article 90 shall apply mutatis mutandis to the absorption- type merger set forth in paragraph (1); and the provision of Article 162,
paragraph (3) shall apply mutatis mutandis to an Absorbed Mutual Company.
In this case, the terms "members of a converting mutual company," "Converted Stock Company" and "entity conversion plan" in Article 90, paragraph (1) shall be deemed to be replaced with "members of an Absorbed Mutual Company,"
"Absorbing Stock Company" and "absorption-type merger agreement set forth
in Article 164, paragraph (1)" respectively; and the term "Article 165-7,
paragraph (2)" in Article 162, paragraph (3) shall be deemed to be replaced
with "Article 165-17, paragraph (2)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) The provision of Article 91 shall apply mutatis mutandis to an Absorbing
Stock Company. In this case, the term "amount of surplus in Entity
Conversion" in that Article shall be deemed to be replaced with "amount of merger surplus"; the term "as a matter to be specified by the articles of
incorporation pursuant to the provision of Article 86, paragraph (4), item (ii)"
in Article 91, paragraph (1) shall be deemed to be replaced with "in its articles of incorporation"; the term "paragraph (2) of the preceding Article" in Article
91, paragraph (2) shall be deemed to be replaced with "paragraph (2) of the
preceding Article as applied mutatis mutandis pursuant to Article 164,
paragraph (3)"; and the terms "capital Reserve on Entity Conversion" and
"calculations on Entity Conversion" in Article 91, paragraph (3) shall be
deemed to be replaced with "capital Reserve on an absorption-type merger under Article 164, paragraph (1)" and "calculations on such absorption-type merger," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Consolidation-Type Merger Agreement between Stock and Mutual Companies
Incorporating Stock Company)
Article 165 (1) In a consolidation-type merger between a Stock Company (or
stock companies) and a Mutual Company where the Insurance Company, etc. to be incorporated is a Stock Company, the merger agreement shall provide for
the following matters:
(i) The trade names, names and addresses of the consolidated companies
(referring to the Consolidated Stock Company and the consolidated mutual company; hereinafter the same shall apply in this Section);
(ii) The purpose, trade name, address of the head office, and total number of authorized shares of the Stock Company to be incorporated following the
merger (hereinafter referred to as "Formed Stock Company" in this Section);
(iii) In addition to what is listed in the preceding item, matters specified by the articles of incorporation of the Formed Stock Company;
(iv) The names of the persons to serve as directors at the incorporation of the
Formed Stock Company;
(v) Any of the following matters, as the case may be:
(a) Where the Formed Stock Company is a company with accounting
advisors: the names of the persons to serve as accounting advisors at the incorporation of the Formed Stock Company;
(b) Where the Formed Stock Company is a company with auditors: the names
of the persons to serve as company auditors at the incorporation of the
Formed Stock Company; or
(c) Where the Formed Stock Company is a company with accounting auditors:
the names of the persons to serve as accounting auditors at the incorporation of the Formed Stock Company;
(vi) The number of the Formed Stock Company's shares (or, in a company with
class shares, the classes of share and the number of shares by class) to be
granted by the company in carrying out the merger to the shareholders of the
Consolidated Stock Company in lieu of the latter company's shares, or the method of calculating such number;
(vii) The number of the Formed Stock Company's shares (or, in a company with class shares, the classes of shares and the number of shares by class) to be
granted by the company in carrying out the merger to the members of the consolidated mutual company;
(viii) Matters regarding the amounts of the capital and reserves of the Formed
Stock Company;
(ix) Matters regarding the allocation of shares under item (vi) or (vii) to the shareholders of the Consolidated Stock Company (excluding any
Consolidated Stock Company or consolidated mutual company) or the members of the consolidated mutual company (excluding any Consolidated Stock Company or consolidated mutual company);
(x) The method of sale for the new shares to be issued for fractional lots
generated by the allocation of shares to the members of the consolidated mutual company, and any other matter specified by a Cabinet Office
Ordinance regarding such sale;
(xi) Where the shares set forth in the preceding item are purchased, the
method of the purchase and any other matter specified by a Cabinet Office
Ordinance regarding such purchase;
(xii) Where a Consolidated Stock Company has issued share options, the
following matters regarding the Formed Stock Company's share options or
money to be granted by the latter company in carrying out the merger to the holders of share options of the Consolidated Stock Company in lieu of such
share options:
(a) Where share options of the Formed Stock Company are granted to the holders of stock options of the Consolidated Stock Company, the contents and number of the share options thus granted and the method of
calculating such number;
(b) In the case prescribed in (a), and the share options of the Consolidated
Stock Company set forth in (a) are share options attached to bonds, a
statement to the effect that the Formed Stock Company shall assume the
obligations pertaining to the bonds (referring to bonds as defined in Article
2, item (xxiii) of the Companies Act; the same shall apply in this sub-item)
with stock options, and the classes of bonds covered by such assumption
and the total value of the bonds by class or the method of calculating such amount; or
(c) Where any money is granted to the holders of stock options of a
Consolidated Stock Company other than that set forth in (a), the amount of such money or the method of calculating such amount;
(xiii) Where the preceding item applies, matters concerning the allocation of Formed Stock Company's share options or money to the holders of share options of the Consolidated Stock Company set forth in that item;
(xiv) The amount of any money to be granted to the shareholders of the Consolidated Stock Company, or the contributors to the funds and the members of the consolidated mutual company;
(xv) Matters regarding the rights of Policyholders following the merger; (xvi) Matters regarding the amount of surplus from consolidation; and
(xvii) Any other matter specified by a Cabinet Office Ordinance.
(2) In the case prescribed in the preceding paragraph, the consolidated companies may, where all or any of the consolidated stock company is a
company with class shares, prescribe the following matters as matters listed in item (vi) of that paragraph, depending on the class structure of the shares
issued by the Consolidated Stock Company:
(i) Where they do not allocate shares of the Formed Stock Company to any
specific class of shareholder, a statement to that effect and the relevant class of share; and
(ii) In addition to what is listed in the preceding item, where they treat each class of share in a different manner in allocating shares of the Formed Stock
Company, a statement to that effect and the description of such different treatment.
(3) Where paragraph (1) applies, the provision for the matters listed in item (vi) of that paragraph shall include a clause that the shares of the Formed Stock Company shall be allocated in accordance with the number of shares (or, where the articles of incorporation include a provision for the matters listed in item
(ii) of the preceding paragraph, the number of shares by class) held by each
shareholder of the Consolidated Stock Company (excluding any Consolidated Stock Company, consolidated mutual company or holder of the class of share set forth in item (i) of the preceding paragraph).
(4) The provision of the main clause of Article 89, paragraph (1) and Article 89, paragraph (2) shall apply mutatis mutandis to the consolidation-type merger set forth in paragraph (1). In this case, the terms "converting Mutual
Company," "Effective Date" and "entity conversion plan" in paragraph (1) of the same Article shall be deemed to be replaced with "consolidated mutual
company," "date of the establishment of the Formed Stock Company" and
"consolidation-type merger agreement set forth in Article 165, paragraph (1)," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(5) The provision of Article 90 shall apply mutatis mutandis to the consolidation- type merger set forth in paragraph (1); and the provision of Article 162,
paragraph (3) shall apply mutatis mutandis to a consolidated mutual company.
In this case, the terms "members of a converting Mutual Company," "Converted Stock Company" and "entity conversion plan" in Article 90, paragraph (1) shall be deemed to be replaced with "members of a consolidated mutual company,"
"Formed Stock Company" and "consolidation-type merger agreement set forth in Article 165, paragraph (1)" respectively; and the term "Article 165-7,
paragraph (2)" in Article 162, paragraph (3) shall be deemed to be replaced
with "Article 165-17, paragraph (2)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(6) The provision of Article 91 shall apply mutatis mutandis to a Formed Stock Company. In this case, the term "amount of surplus in Entity Conversion" in that Article shall be deemed to be replaced with "amount of surplus from
consolidation"; the term "Article 86, paragraph (4), item (ii)" in Article 91,
paragraph (1) shall be deemed to be replaced with "Article 165, paragraph (1), item (iii)"; the term "paragraph (2) of the preceding Article" in Article 91,
paragraph (2) shall be deemed to be replaced with "paragraph (2) of the preceding Article as applied mutatis mutandis pursuant to Article 165,
paragraph (5)"; and the terms "capital Reserve on Entity Conversion" and
"calculations on Entity Conversion" in Article 91, paragraph (3) shall be
deemed to be replaced with "capital reserve on a consolidation-type merger
under Article 165, paragraph (1)" and "calculations on such consolidation-type merger," respectively; any other necessary technical change in interpretation
shall be specified by a Cabinet Order.
Subsection 3 Procedure of Merger
Division 1 Procedure for Extinct Stock Company
(Keeping and Inspection, etc. of Document Related to Merger Agreement, etc.) Article 165-2 (1) An extinct stock company (referring to an Absorbed Stock
Company or a Consolidated Stock Company; hereinafter the same shall apply in this Section) shall, for the period ranging from any of the following dates, whichever is the earliest, to the date on which the merger takes effect
(hereinafter referred to as "Effective Date" in this Section), keep at each of its
business offices a document or electromagnetic record describing or recording
the contents of the merger agreement and other matters specified by a Cabinet
Office Ordinance.
(i) The day which is two weeks before the date of the shareholders meeting set forth in paragraph (1) of the following Article or the class meeting set forth
in paragraph (5) of the same Article;
(ii) The date of notice under Article 165-4, paragraph (1) or the date of public notice under paragraph (2) of the same Article, whichever is earlier; or
(iii) The date of public notice under Article 165-7, paragraph (2).
(2) The creditors of an extinct stock company, such as shareholders and
Policyholders, may make the following requests to the company at any time during its operating hours; provided, however, that they pay the fees
determined by the extinct stock company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the
preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means
determined by the extinct stock company, or for any document that describes such matters.
(Authorization of Merger Agreement)
Article 165-3 (1) An extinct stock company shall have its merger agreement
approved by a resolution of the shareholders meeting by the day before the
Effective Date.
(2) The resolution set forth in the preceding paragraph to be adopted by an
extinct stock company shall be a resolution under Article 309, paragraph (2) (Resolution of shareholders meetings) of the Companies Act.
(3) An extinct stock company, when it intends to adopt a resolution under
paragraph (1), shall provide an outline of the merger agreement in the notice to be given pursuant to Article 299, paragraph (1) (Notice of Calling of
Shareholders' Meetings) of the Companies Act.
(4) Notwithstanding the provision of paragraph (2), where the merger involves an extinct stock company that is a public company (referring to a public company
as defined in Article 2, item (v) (Definitions) of the Companies Act; hereinafter
the same shall apply in this Section), and all or Part of the Shares, etc. to be distributed to the shareholders of the extinct stock company are shares with restriction on transfer, the resolution set forth in paragraph (1) shall be a
resolution under Article 309, paragraph (3) of that Act; provided, however, that
this shall not apply to the cases where the extinct stock company is a company with class shares.
(5) In a consolidation-type merger involving a Consolidated Stock Company that is a company with class shares, where all or Part of the shares of the Formed
Stock Company to be distributed to the shareholders of the Consolidated Stock
Company are shares with restriction on transfer, the merger shall be null and void unless approved by a resolution of the class meeting composed of the
holders of the class of share (excluding shares with restriction on transfer) for
which the shares with restriction on transfer are to be distributed (or, where the shares with restriction on transfer are to be distributed to the holders of
two or more classes of share, the class meetings each composed of the holders
of one of such classes of share); provided, however, that this shall not apply to
the cases where no shareholders can exercise their voting rights in the relevant class meeting.
(6) Any resolution by a Consolidated Stock Company under the preceding
paragraph shall be a resolution under Article 324, paragraph (3) (Resolution of
Class Meetings) of the Companies Act.
(Notice, etc. to Shareholders, etc.)
Article 165-4 (1) An extinct stock company shall, no later than twenty days before the Effective Date, notify its shareholders and the registered pledgees of its shares, and the holders of its share options and the registered pledgees of
its share options of the planned merger, and of the trade name or name and
address of the Absorbing Mutual Company, or the Stock Company carrying on the Insurance Business or Mutual Company to be incorporated by the merger
(hereinafter referred to as "Formed Company" in this Section).
(2) A notice under the preceding paragraph may be replaced with a public notice. (3) The provisions of Article 219, paragraph (1) (limited to the segment
pertaining to item (vi)), (2) and (3) (Public Notice in Relation to Submission of
Share Certificate), Article 220 (Cases Where Share Certificates Cannot be
Submitted), and Article 293, paragraph (1) (limited to the segment pertaining to item (iii) (Public Notice in Relation to Submission of Share Option
Certificate) of the Companies Act shall apply mutatis mutandis to an extinct stock company. In this case, any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Right to Request Purchase of Shares)
Article 165-5 (1) The following shareholders may request the extinct stock company to purchase the shares that they hold at a fair price:
(i) A shareholder who, prior to the shareholders meeting to approve the merger
agreement (including the class meeting; hereinafter the same shall apply in this item), has given notice to the extinct stock company of his/her intent to
oppose the merger, and has actually opposed the merger at the shareholders
meeting (limited to a shareholder who can exercise his/her voting rights at the shareholders meeting); and
(ii) A shareholder who cannot exercise his/her voting rights at the shareholders
meeting.
(2) The provisions of Article 785, paragraphs (5) to (7) inclusive (Right of
Opposing Shareholders to Request Purchase of Shares), Article 786 (Determination of Value of Shares, etc.), Article 868, paragraph (1)
(Jurisdiction of Non-Contentious Cases), Article 870 (limited to the segment pertaining to item (iv)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment
pertaining to item (iv)) (Immediate Appeal Against Ruling), the main clause of
Article 873 (Stay of Execution of Original Sentence), Articles 875 (Exclusion
from Application of Provisions of Act on Procedures for Non-Contentious Cases)
and Article 876 (Supreme Court Rules) of the Companies Act shall apply
mutatis mutandis to a request made under the preceding paragraph. In this
case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Right to Request Purchase of Share Options)
Article 165-6 (1) A holder of share options of an extinct stock company may
request the company to purchase the share options that he/she holds at a fair price:
(2) The provisions of Article 787, paragraphs (5) to (7) inclusive (Right to Request
Purchase of Share Options), Article 788 (Determination of Value of Share
Options, etc.), Article 868, paragraph (1) (Jurisdiction of Non-Contentious
Cases), Article 870 (limited to the segment pertaining to item (iv)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), the main clause of Article 873 (Stay of Execution of Original Sentence), Articles 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of the Companies Act shall apply mutatis mutandis to a request made under
the preceding paragraph. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Objections of Creditors)
Article 165-7 (1) Policyholders or other creditors of an extinct stock company may state to the company their objections to the merger.
(2) An extinct stock company shall give public notice of the following matters in the Official Gazette and by the Method of Public Notice prescribed by its
articles of incorporation; provided, however, that the period for item (iv) may
not be shorter than one month:
(i) A statement to the effect that a merger will be carried out;
(ii) The trade names or names and addresses of the Absorbing Mutual
Company or other consolidated companies (referring to consolidated stock companies and Consolidated Mutual Companies; the same shall apply in
Article 165-17, paragraph (2)) and the Formed Company;
(iii) The matters specified by a Cabinet Office Ordinance as pertaining to the financial statements of an extinct stock company;
(iv) A statement to the effect that Policyholders or other creditors of the extinct
stock company may state their objections within a certain period of time; and
(v) In addition to what is listed in the preceding items, matters specified by a
Cabinet Office Ordinance.
(3) Where no Policyholders or other creditors have stated their objections within the period set forth in item (iv) of the preceding paragraph, such Policyholders or other creditors shall be deemed to have approved the merger.
(4) The provisions of Article 70, paragraphs (4) to (8) inclusive shall apply
mutatis mutandis to objections of creditors under paragraph (1). In this case,
the term "paragraph (2), item (iv)" in paragraphs (5) and (6) of the same Article shall be deemed to be replaced with "Article 165-7, paragraph (2), item (iv)";
any other necessary technical change in interpretation shall be specified by a
Cabinet Order.
(Change in Effective Date of Absorption-type Merger)
Article 165-8 (1) An Absorbed Stock Company may change the Effective Date in an agreement with the Absorbing Mutual Company.
(2) In the case set forth in the preceding paragraph, the Absorbed Stock
Company shall give public notice of the Effective Date thus changed by the day before the original Effective Date (or, where the changed Effective Date falls before the original Effective Date, the changed Effective Date).
(3) Where the Effective Date has been changed pursuant to the provision of
paragraph (1), the changed Effective Date shall be deemed as the Effective
Date for the purpose of applying the provisions of this Section.
Division 2 Procedure for Absorbing Stock Company
(Keeping and Inspection, etc. of Document Related to Absorption-Type Merger
Agreement, etc.)
Article 165-9 (1) An Absorbing Stock Company shall, for the period ranging from any of the following dates, whichever is the earliest, to the day which is six
months after the Effective Date, keep at each of its business offices a document or electromagnetic record describing or recording the contents of the
absorption-type merger agreement and other matters specified by a Cabinet
Office Ordinance.
(i) Where the merger agreement needs to be approved by a resolution of the shareholders meeting (including the class meeting), the day which is two weeks before the date of the shareholders meeting;
(ii) The date of notice under Article 165-4, paragraph (1) as applied mutatis
mutandis pursuant to Article 165-12 or the date of public notice under
Article 165-4, paragraph (2) as applied mutatis mutandis pursuant to Article
165-12, whichever is earlier; or
(iii) The date of public notice under Article 165-7, paragraph (2) as applied mutatis mutandis pursuant to Article 165-12.
(2) The creditors of an Absorbing Stock Company, such as Shareholders and
Policyholders, may make the following requests to the company at any time during its operating hours; provided, however, that they pay the fees
determined by the Absorbing Stock Company in making a request falling under
item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on
the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means
determined by the Absorbing Stock Company, or for any document that describes such matters.
(Authorization of Absorption-Type Merger Agreement, etc.)
Article 165-10 (1) An Absorbing Stock Company shall have its merger agreement approved by a resolution of the shareholders meeting by the day before the
Effective Date.
(2) The resolution set forth in the preceding paragraph to be adopted by an
Absorbing Stock Company shall be a resolution under Article 309, paragraph
(2) (Resolution of Shareholders Meetings) of the Companies Act.
(3) An Absorbing Stock Company, when it intends to adopt a resolution under paragraph (1), shall provide an outline of the absorption-type merger
agreement in the notice to be given pursuant to Article 299, paragraph (1)
(Notice of Calling of Shareholders' Meetings) of the Companies Act.
(4) Where an Absorbing Stock Company succeeds to the assets of the Absorbed Mutual Company including its own shares, its directors shall explain matters regarding such shares in the shareholders meeting set forth in paragraph (1).
(5) In an absorption-type merger involving an absorbing company that is a company with class shares, where the Shares, etc. to be granted to the
members of the Absorbed Mutual Company are shares of the Absorbing Stock Company, the merger shall be null and void unless approved by a resolution of the class meeting composed of the holders of the class of share set forth in
Article 164, paragraph (1), item (ii), (a) (limited to the shares with restriction
on transfer which are not covered by the provision in the articles of
incorporation set forth in Article 199, paragraph (4) (Determination of
Subscription Requirements) of the Companies Act) (or, where the shares are to be granted to the holders of two or more classes of share, the class meetings
each composed of the holders of one of such classes of share); provided, however,
that this shall not apply to the cases where no shareholders can exercise their voting rights in the relevant class meeting.
(6) Any resolution by an Absorbing Stock Company under the preceding
paragraph shall be a resolution under Article 324, paragraph (3) (Resolution of
Class Meetings) of the Companies Act.
(Cases where Authorization of Absorption-Type Merger Agreement is not
Required, etc.)
Article 165-11 (1) The provisions of the preceding Article paragraphs (1) to (4)
inclusive shall not apply where the amount set forth in item (i) does not exceed one fifth (or any smaller proportion prescribed by the articles of incorporation
of the Absorbing Stock Company) of the amount set forth in item (ii); provided, however, that this shall not apply to a nonpublic company with class shares
falling under the main clause of paragraph (5) of the same Article: (i) The total of the following amounts:
(a) The amount obtained by multiplying the number of Absorbing Stock
Company's shares to be distributed to the members of the Absorbed Mutual Company by the amount of net assets per share (referring to the amount of net assets per share set forth in Article 141, paragraph (2) (Notice of
purchases by Stock Company) of the Companies Act); and
(b) The amount of money to be granted to the members of the Absorbed
Mutual Company;
(ii) The amount of net assets of the Absorbing Stock Company as calculated by the method specified by a Cabinet Office Ordinance.
(2) In the case prescribed in the main clause of the preceding paragraph, an absorption-type merger agreement shall be approved by a resolution of the
shareholders meeting by the day before the Effective Date, where the holders of the number of shares specified by a Cabinet Office Ordinance (limited to
those who can exercise their voting rights at the shareholders meeting set forth
in paragraph (1) of the preceding Article) have notified to the Absorbing Stock Company of their intention to oppose to the merger within two weeks from the date of notice under Article 165-4, paragraph (1) as applied mutatis mutandis pursuant to the following Article or the date of public notice under Article 165-
4, paragraph (2) as applied mutatis mutandis pursuant to the following Article.
(Provision on Application mutatis mutandis)
Article 165-12 The provisions of Articles 165-4, 165-5 and 165-7 shall apply
mutatis mutandis to an Absorbing Stock Company. In this case, the term "and address" in Article 165-4, paragraph (1) shall be deemed to be replaced with ", address and, where Article 165-10, paragraph (4) applies, matters regarding
the shares set forth in that paragraph"; any other necessary technical change
in interpretation shall be specified by a Cabinet Order.
(Keeping and Inspection, etc. of Document Related to Absorption-Type Merger, etc.)
Article 165-13 (1) An Absorbing Stock Company shall, without delay following
the Effective Date, prepare a document or electromagnetic record describing or recording the matters specified by a Cabinet Office Ordinance as pertaining to an absorption-type merger, such as the rights and obligations of the Absorbed Mutual Company assumed by the Absorbing Stock Company as a result of the
absorption-type merger.
(2) An Absorbing Stock Company shall, for six months from the Effective Date,
keep at each of its business offices a document or electromagnetic record set forth in the preceding paragraph.
(3) The creditors of an Absorbing Stock Company, such as Shareholders and
Policyholders, may make the following requests to the company at any time during its operating hours; provided, however, that they pay the fees
determined by the Absorbing Stock Company in making a request falling under
item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on
the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic
record set forth in the preceding paragraph by the electromagnetic means determined by the Absorbing Stock Company, or for any document that
describes such matters.
Division 3 Procedure for Formed Stock Company
Article 165-14 (1) The provisions of Part II, Chapter I (excluding Article 27
(excluding items (iv) and (v)), Article 29, Article 31, Article 39, Section 6 and
Article 49) (Incorporation) of the Companies Act shall not apply to the incorporation of a Formed Stock Company.
(2) The articles of incorporation of a Formed Stock Company shall be drafted by the consolidated companies.
(3) The provision of the preceding Article shall apply mutatis mutandis to a
Formed Stock Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Division 4 Procedure for Extinct Mutual Company
(Keeping and Inspection, etc. of Document Related to Merger Agreement, etc.) Article 165-15 (1) An extinct mutual company (referring to an Absorbed Mutual Company or a consolidated mutual company; hereinafter the same shall apply
in this Section) shall, for the period ranging from any of the following dates,
whichever is earlier, to the Effective Date, keep at each of its offices a
document or electromagnetic record describing or recording the contents of the merger agreement and other matters specified by a Cabinet Office Ordinance. (i) The day which is two weeks before the date of the General Meeting of
members (or General Meeting, where the company has such meeting;
hereinafter the same shall apply in this Subsection) set forth in paragraph
(1) of the following Article; or
(ii) The date of public notice under Article 165-17, paragraph (2).
(2) Policyholders or other creditors of an extinct mutual company may make the following requests to the company at any time during its business hours;
provided, however, that they pay the fees determined by the extinct mutual company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding
paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic
record set forth in the preceding paragraph by the electromagnetic means determined by the extinct mutual company, or for any document that
describes such matters.
(Authorization of Merger Agreement)
Article 165-16 (1) An extinct mutual company shall have its merger agreement
approved by a resolution of the General Meeting of members by the day before the Effective Date.
(2) The resolution set forth in the preceding paragraph to be adopted by an
extinct mutual company shall be a resolution under Article 62, paragraph (2).
(Objections of Creditors)
Article 165-17 (1) Policyholders or other creditors of an extinct mutual company may state to the company their objections to the merger.
(2) An extinct mutual company shall give public notice of the following matters in the Official Gazette and by the Method of Public Notice prescribed by its
articles of incorporation; provided, however, that the period for item (iii) may
not be shorter than one month:
(i) A statement to the effect that a merger will be carried out;
(ii) The trade names or names and addresses of the absorbing company
(referring to the Absorbing Mutual Company or Absorbing Stock Company;
hereinafter the same shall apply in this Section) or other consolidated companies and the Formed Company;
(iii) A statement to the effect that Policyholders or other creditors of the
extinct mutual company may state their objections within a certain period of
time; and
(iv) In addition to what is listed in the preceding items, any matter specified by a Cabinet Office Ordinance.
(3) Where no Policyholders or other creditors have stated their objections within
the period set forth in item (iii) of the preceding paragraph, such Policyholders or other creditors shall be deemed to have approved the merger.
(4) The provisions of Article 88, paragraphs (4) to (6) inclusive shall apply
mutatis mutandis to objections of creditors under paragraph (1). In this case, the term "paragraph (2), item (iii)" in paragraphs (4) and (6) of the same
Article shall be deemed to be replaced with "Article 165-17, paragraph (2), item
(iii)"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Change in Effective Date of Absorption-type Merger, etc.)
Article 165-18 (1) An Absorbed Mutual Company may change the Effective Date in an agreement with the absorbing company.
(2) In the case set forth in the preceding paragraph, the Absorbed Mutual
Company shall give public notice of the Effective Date thus changed by the day before the original Effective Date (or, where the changed Effective Date falls before the original Effective Date, the changed Effective Date).
(3) Where the Effective Date has been changed pursuant to the provision of
paragraph (1), the changed Effective Date shall be deemed as the Effective
Date for the purpose of applying the provisions of this Section.
Division 5 Procedure for Absorbing Mutual Company
(Keeping and Inspection, etc. of Document Related to Absorption-Type Merger
Agreement, etc.)
Article 165-19 (1) An Absorbing Mutual Company shall, for the period ranging from any of the following dates, whichever is earlier, to the day which is six months after the Effective Date, keep at each of its offices a document or
electromagnetic record describing or recording the contents of the absorption- type merger agreement and other matters specified by a Cabinet Office
Ordinance.
(i) The day which is two weeks before the date of the General Meeting of members set forth in Article 165-16, paragraph (1) as applied mutatis mutandis pursuant to the following Article; or
(ii) The date of public notice under Article 165-17, paragraph (2) as applied mutatis mutandis pursuant to the following Article.
(2) Policyholders or other creditors of an Absorbing Mutual Company may make the following requests to the company at any time during its business hours;
provided, however, that they pay the fees determined by the Absorbing Mutual
Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic
record set forth in the preceding paragraph by the electromagnetic means determined by the Absorbing Mutual Company, or for any document that describes such matters.
(Provision on Application mutatis mutandis)
Article 165-20 The provisions of Articles 165-16 and 165-17 shall apply mutatis mutandis to an Absorbing Mutual Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Keeping and Inspection, etc. of Document Related to Absorption-Type Merger, etc.)
Article 165-21 (1) An Absorbing Mutual Company shall, without delay following the Effective Date, prepare a document or electromagnetic record describing or recording the matters specified by a Cabinet Office Ordinance as pertaining to an absorption-type merger, such as the rights and obligations of the Absorbed Mutual Company or Absorbed Stock Company assumed by the Absorbing
Mutual Company as a result of the absorption-type merger.
(2) An Absorbing Mutual Company shall, for six months from the Effective Date, keep at each of its offices a document or electromagnetic record set forth in the preceding paragraph.
(3) Policyholders or other creditors of an Absorbing Mutual Company may make
the following requests to the company at any time during its business hours; provided, however, that they pay the fees determined by the Absorbing Stock Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on
the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means
determined by the Absorbing Mutual Company, or for any document that describes such matters.
Division 6 Procedure for Formed Mutual Company
Article 165-22 (1) The provisions of Chapter II, Section 2, Subsection 2
(excluding Article 23 (excluding paragraph (1), item (ix) and paragraph (4)),
Article 25, Article 26, Article 30-10, paragraphs (2) to (4) inclusive and (6), and Article 30-13, paragraph (1)) shall not apply to the incorporation of a Formed Mutual Company.
(2) The articles of incorporation of a Formed Mutual Company shall be drafted by
the Consolidated Mutual Companies.
(3) The provision of the preceding Article shall apply mutatis mutandis to a
Formed Mutual Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Division 7 Special Provisions for Merger of Stock Companies
(Special Provisions for Keeping and Inspection, etc. of Document Related to
Merger Agreement, etc.)
Article 165-23 For the purpose of applying the provisions of Article 782,
paragraph (1), Article 794, paragraph (1) (Keeping and Inspection, etc. of
Document, etc. Related to Absorption-Type Merger Agreement, etc.) and Article
803, paragraph (1) (Keeping and Inspection, etc. of Document, etc. Related to Consolidation-Type Merger Agreement, etc.) of the Companies Act to a merger of stock companies carrying on the Insurance Business under Article 748
(Conclusion of Merger Agreement) of that Act, the terms "Ordinance of the Ministry of Justice" and "its head office" in those provisions shall be deemed to be replaced with "Ordinance of the Ministry of Justice or a Cabinet Office
Ordinance" and "each of its business offices," respectively.
(Special Provisions for Objections of Creditors)
Article 165-24 (1) Policyholders or other creditors of a stock company carrying on the Insurance Business that intends to carry out a merger under Article 748
(Conclusion of Merger Agreement) of the Companies Act (limited to the cases where the company to survive the merger or to be incorporated by the merger
is a stock company carrying on the Insurance Business) (hereinafter referred to
as "Merging Company under the Companies Act" in this Section) may state to the company their objections to the merger.
(2) In the case set forth in the preceding paragraph, a Merging Company under the Companies Act shall give public notice of the following matters in the
Official Gazette and by the Method of Public Notice prescribed by its articles of incorporation; provided, however, that the period for item (iv) may not be
shorter than one month:
(i) A statement to the effect that a merger will be carried out;
(ii) The trade names and addresses of the merging companies and the company to survive the merger or the company to be incorporated by the merger;
(iii) The matters specified by a Cabinet Office Ordinance as pertaining to the
financial statements of the companies set forth in the preceding item; (iv) A statement to the effect that Policyholders or other creditors of the
Merging Company under the Companies Act may state their objections
within a certain period of time; and
(v) In addition to what is listed in the preceding items, any matter specified by a Cabinet Office Ordinance.
(3) Where no Policyholders or other creditors have stated their objections within the period set forth in item (iv) of the preceding paragraph, such Policyholders or other creditors shall be deemed to have approved the merger.
(4) Where any Policyholder or other creditor has stated his/her objection under
paragraph (2), item (iv), the merging company under the Company Act shall make payment or provide equivalent security to such Policyholder or other
creditor, or entrust equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the payment;
provided, however, that this shall not apply to the cases where the merger
poses no risk of harming the interest of such Policyholder or other creditor;
(5) The provision of the preceding paragraph shall not apply to the Policyholders or any rights held by other persons pertaining to insurance contracts (other
than Insurance Claims, etc.).
(6) Any resolution approving the merger under shall be null and void if the
number of the Policyholders who have stated their objections within the period set forth in paragraph (2), item (iv) (excluding the holders of policies under
which Insurance Claims, etc. had arisen by the time of public notice under
paragraph (2) (but limited to those policies that would be terminated with the payment of the Insurance Claims, etc.); hereinafter the same shall apply in
this paragraph and the following paragraph) exceeds one fifth of the total number of Policyholders, and the amount specified by a Cabinet Office
Ordinance as the credits (other than Insurance Claims, etc.) belonging to the insurance contracts of the Policyholders who have stated such objections
exceeds one fifth of the total amount of credits belonging to the Policyholders.
(7) A merger carried out pursuant to the provisions of the preceding paragraphs shall also be effective against the Policyholders who have stated their
objections under the preceding paragraph and other persons who hold any
right (other than Insurance Claims, etc.) pertaining to the insurance contracts involving the Policyholders.
(8) In addition to what is provided for in the preceding paragraphs, necessary matters for the application of those provisions shall be specified by a Cabinet Order.
(9) The provisions of Articles 789, 799 and 810 (Objections of creditors) of the
Companies Act shall not apply to a Merging Company under the Companies
Act.
Division 8 Public Notice, etc. after Merger
Article 166 (1) An Insurance Company, etc. surviving a merger or an Insurance
Company, etc. incorporated by a merger shall, without delay following the
merger, give public notice of the fact that the merger has been carried out and the matters specified by a Cabinet Office Ordinance. The same shall apply
where an Insurance Company, etc. that has given public notice under
paragraph (2) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to Article 165-12), Article 165-17, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article
165-20) or paragraph (2) of the preceding Article has renounced the planned
merger.
(2) An Insurance Company, etc. surviving a merger or an Insurance Company,
etc. incorporated by a merger shall, for six months from the date of the merger, keep at each of its business offices or offices a document or electromagnetic
record describing or recording the matters specified by a Cabinet Office
Ordinance as pertaining to a merger, such as the progress of the procedure
provided for in Article 165-7 (including the cases where it is applied mutatis mutandis pursuant to Article 165-20), Article 165-17 (including the cases
where it is applied mutatis mutandis pursuant to Article 165-20).
(3) The creditors, such as Shareholders and Policyholders, of an Insurance
Company, etc. surviving a merger or an Insurance Company, etc. incorporated by a merger may make the following requests at any time during its operating hours or business hours; provided, however, that they pay the fees determined by the Insurance Company, etc. in making a request falling under item (ii) or
(iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the
preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on
the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means determined by the Insurance Company, etc. surviving a merger or the
Insurance Company, etc. incorporated by a merger or for any document that
describes such matters.
Subsection 4 Effectuation, etc. of Merger
(Authorization of Merger)
Article 167 (1) Any merger involving an Insurance Company, etc. (limited to the cases where the Insurance Company, etc. survives the merger or where an
Insurance Company, etc. is established by the merger) shall be null and void without the authorization of the Prime Minister.
(2) The Prime Minister shall, when an application for the authorization set forth in the preceding paragraph is made, examine whether the following
requirements are satisfied:
(i) The merger is appropriate in light of the protection of Policyholders, etc.;
(ii) Where the Applicant is an Insurance Company, the merger poses no risk of impeding the appropriate competitive relationships among insurance
companies; and
(iii) It is certain that the Insurance Company, etc. surviving the merger or the
Insurance Company, etc. established by the merger will carry on its business in an appropriate, fair and efficient manner following the merger.
(3) The Prime Minister shall not give the authorization set forth in paragraph (1)
for any application made under that paragraph for a merger between an
Insurance Company and a Small Amount and Short Term Insurance Provider, unless the company surviving the merger or the company established by the merger is an Insurance Company.
(Deemed License, etc.)
Article 168 (1) A Stock Company or Mutual Company established by a merger
with the authorization set forth in paragraph (1) of the preceding Article shall, at the time of its establishment, be deemed to obtain the license from the
Prime Minister set forth in Article 3, paragraph (1) where the merger involves
an Insurance Company, or the registration set forth in Article 272, paragraph
(1) where the merger does not involve any Insurance Company.
(2) The license set forth in the preceding paragraph shall be either of the two types of license listed in Article 3, paragraph (2), whichever was obtained under paragraph (1) of the same Article by the Insurance Company that
becomes extinct following the merger.
(Effectuation, etc. of Merger)
Article 169 (1) An Absorbing Mutual Company shall, on the Effective Date,
succeed to the rights and obligations of the absorbed company (referring to the Absorbed Mutual Company or Absorbed Stock Company; hereinafter the same shall apply in this Section).
(2) The dissolution of an absorbed company following a merger may not be duly asserted against a third Party prior to the registration of the merger.
(3) The shares and share options of an Absorbed Stock Company shall expire on the Effective Date.
(4) The Policyholders of an absorbed company shall obtain the membership of the
Absorbing Mutual Company on the Effective Date; provided, however, that this shall not apply to the cases where the Absorbing Mutual Company's articles of
incorporation do not grant membership to the Policyholders taking out the
same class of insurance contracts as those covered by the merger agreement. (5) The provisions of the preceding paragraphs shall not apply where the
procedure set forth in Article 165-7 or 165-17 (including the cases where it is
applied mutatis mutandis pursuant to Article 165-20) has not been completed, or where the absorption-type merger has been voluntarily abandoned.
Article 169-2 (1) A Formed Mutual Company shall, on the date of its establishment, succeed to the rights and obligations of the consolidated companies.
(2) The Policyholders of a consolidated company shall obtain the membership of
the Formed Mutual Company on the date of the latter's establishment;
provided, however, that this shall not apply to the cases where the Formed
Mutual Company's articles of incorporation do not grant membership to the
Policyholders taking out the same class of insurance contracts as those covered by the merger agreement.
(3) The shares and share options of a Consolidated Stock Company shall expire on the date of the establishment of the Formed Mutual Company.
Article 169-3 (1) An Absorbing Stock Company shall succeed to the rights and obligations of the absorbed company on the Effective Date.
(2) The dissolution of an absorbed company following a merger may not be duly
asserted against a third Party prior to the registration of the merger.
(3) Where the merger agreement provides for the matters listed in Article 164, paragraph (1), item (ii), (a), the members of an Absorbed Mutual Company
shall, on the Effective Date, become holders of the shares set forth in said sub- item pursuant to the provision of the merger agreement on the matters listed
in Article 164, paragraph (1), item (iii).
(4) The provisions of the preceding three paragraphs shall not apply where the procedure set forth in Article 165-7 as applied mutatis mutandis pursuant to Article 165-12 or in Article 165-17 has not been completed, or where the absorption-type merger has been voluntarily abandoned.
Article 169-4 (1) A Formed Stock Company shall, on the date of its establishment, succeed to the rights and obligations of the consolidated companies.
(2) The shareholders or members of a consolidated company shall, on the date of
the establishment of the Formed Stock Company, become the holders of the
shares set forth in Article 165, paragraph (1), item (vi) or (vii) pursuant to the provision of the merger agreement on the matters listed in Article 165,
paragraph (1), item (ix).
(3) The share options of a Consolidated Stock Company shall expire on the date of the establishment of the Formed Stock Company.
(4) In the case prescribed in Article 165, paragraph (1), item (xii), (a), the holders of share options of a Consolidated Stock Company shall, on the date of the establishment of the Formed Stock Company, become holders of the latter
company's share options as set forth in said sub-item, pursuant to the
provision of the merger agreement on the matters listed in Article 165, paragraph (1), item (xiii).
(Registration of Merger)
Article 169-5 (1) Where a Mutual Company or stock company has carried out an absorption-type merger, it shall make, at the location of its principal office or head office, a registration of dissolution for the absorbed company and a
registration of change for the absorbing company, within two weeks from the
date on which the merger took effect.
(2) Where two or more Mutual Companies or Stock Companies are involved in a consolidation-type merger, they shall complete, at the location of their
principal offices or head offices, registrations of dissolution for the consolidated companies and a registration of incorporation for the Formed Company, within
two weeks from the date specified in any of the following items as the case may be:
(i) Where the consolidated companies only include stock companies, any of the
following dates, whichever is the latest:
(a) The date of the resolution of the shareholders meeting set forth in Article
165-3, paragraph (1);
(b) Where a resolution of the class meeting is required for the merger, the date of such resolution;
(c) The day on which twenty days have elapsed since a notice under Article
165-4, paragraph (1) or a public notice under paragraph (2) of the same
Article was given;
(d) The date of completion of the procedure set forth in Article 165-7; or
(e) Any date fixed by the consolidated companies in an agreement;
(ii) Where the consolidated companies only include Mutual Companies, any of the following dates, whichever is the latest:
(a) The date of the resolution of the General Meeting of members set forth in
Article 165-16, paragraph (1);
(b) The date of completion of the procedure set forth in Article 165-17; or
(c) Any date fixed by the consolidated companies in an agreement; or
(iii) Where the consolidated companies include a Stock Company (or stock companies) and a Mutual Company, any of the dates specified in the
preceding two items, whichever is the latest.
(3) In the cases prescribed in the preceding two paragraphs, the Mutual
Company or Stock Company shall also complete the registration(s) set forth in
the applicable provision at the location of its (their) branch offices or secondary offices, within three weeks from the date specified in the applicable provision;
provided, however, that a registration of change under paragraph (1) shall only be made where the change affects any of the matters listed in the items of
Article 930, paragraph (2) (Registration at Location of Branch Offices) of the
Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 64, paragraph (3)).
(Application for Registration of Merger, etc.)
Article 170 (1) The following documents shall be attached to a written
application for registration of change due to a merger under Article 159,
paragraph (1) and Article 165-23, in addition to the documents set forth in Articles 18 and 19 (Documents to be Attached to Written Application) and Article 46 (General Rules on Attached Documents) of the Commercial
Registration Act (including the cases where they are applied mutatis mutandis
pursuant to Article 67), and Article 80 (Registration of Absorption-Type
Merger) of that Act (including the cases where it is applied mutatis mutandis pursuant to paragraph (3)):
(i) A document certifying that a public notice has been given under Article 165-
7, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 165-12), Article 165-17, paragraph (2) (including the
cases where it is applied mutatis mutandis pursuant to Article 165-20) or
Article 165-24, paragraph (2);
(ii) For an extinct stock company or Absorbing Stock Company, a document certifying that the number of the Policyholders who raised their objections
within the period set forth in Article 165-7, paragraph (2), item (iv)
(including the cases where it is applied mutatis mutandis pursuant to Article
165-12) has not exceeded one fifth of the total number of Policyholders set forth in Article 70, paragraph (6) (including the cases where it is applied
with relevant changes in interpretation pursuant to the provision of Article
255, paragraph (2) (hereinafter referred to as "The Cases of Application with Relevant Changes in Interpretation Pursuant to the Provision of Article 255, paragraph (2)"in this item); hereinafter the same shall apply in this item) as
applied mutatis mutandis pursuant to Article 165-7, paragraph (4) (including
the cases where it is applied mutatis mutandis pursuant to Article 165-12;
hereinafter the same shall apply in this item) (or, in The Cases of
Application with Relevant Changes in Interpretation Pursuant to the
Provision of Article 255, paragraph (2), one tenth of such total number), or a document certifying that the amount of credits specified by a Cabinet Office Ordinance set forth in Article 70, paragraph (6) as applied mutatis mutandis pursuant to Article 165-7, paragraph (4) as belonging to such Policyholders has not exceeded one fifth (or, in The Cases of Application with Relevant Changes in Interpretation Pursuant to the Provision of Article 255,
paragraph (2), one tenth) of the total amount set forth in Article 70,
paragraph (6) as applied mutatis mutandis pursuant to Article 165-7, paragraph (4);
(iii) For an extinct Mutual Company or Absorbing Mutual Company, a
document certifying that the number of the Policyholders who raised their
objections within the period set forth in Article 165-17, paragraph (2), item (iii) (including the cases where it is applied mutatis mutandis pursuant to Article 165-20) has not exceeded one fifth of the total number of
Policyholders set forth in Article 88, paragraph (6) (including the cases
where it is applied with relevant changes in interpretation pursuant to the
provision of Article 255, paragraph (2) (hereinafter referred to as "The Cases of Application with Relevant Changes in Interpretation Pursuant to the
Provision of Article 255, paragraph (2)"in this item); hereinafter the same shall apply in this item) as applied mutatis mutandis pursuant to Article
165-17, paragraph (4) (including the cases where it is applied mutatis
mutandis pursuant to Article 165-20; hereinafter the same shall apply in this item) (or, in The Cases of Application with Relevant Changes in
Interpretation Pursuant to the Provision of Article 255, paragraph (2), one
tenth of such total number), or a document certifying that the amount of credits specified by a Cabinet Office Ordinance set forth in Article 88,
paragraph (6) as applied mutatis mutandis pursuant to Article 165-17,
paragraph (4) as belonging to such Policyholders has not exceeded one fifth
(or, in The Cases of Application with Relevant Changes in Interpretation
Pursuant to the Provision of Article 255, paragraph (2), one tenth) of the total amount set forth in Article 88, paragraph (6) as applied mutatis mutandis pursuant to Article 165-17, paragraph (4);
(iv) For a Merging Company under the Companies Act, a document certifying that the number of the Policyholders who raised their objections within the period set forth in Article 165-24, paragraph (2), item (iv) has not exceeded
one fifth of the total number of Policyholders set forth in paragraph (6) of the
same Article (including the cases where it is applied with relevant changes in interpretation pursuant to the provision of Article 255, paragraph (2)
(hereinafter referred to as "The Cases of Application with Relevant Changes in Interpretation Pursuant to the Provision of Article 255, paragraph (2)"in this item); hereinafter the same shall apply in this item) (or, in The Cases of Application with Relevant Changes in Interpretation Pursuant to the
Provision of Article 255, paragraph (2), one tenth of such total number), or a document certifying that the amount of credits specified by a Cabinet Office Ordinance set forth in Article 165-24, paragraph (6) as belonging to such
Policyholders has not exceeded one fifth (or, in The Cases of Application with Relevant Changes in Interpretation Pursuant to the Provision of Article 255, paragraph (2), one tenth) of the total amount set forth in that paragraph;
and
(v) A document certifying any public notice made under Article 254, paragraph
(3).
(2) The documents listed in the items of the preceding paragraph shall be
attached to a written application for registration of incorporation due to a
merger under Article 159, paragraph (1) and Article 165-23, in addition to the documents set forth in Articles 18, 19 and 46 of the Commercial Registration
Act (including the cases where they are applied mutatis mutandis pursuant to
Article 67), and Article 81 (Registration of Consolidation-Type Merger) of that
Act (including the cases where it is applied mutatis mutandis pursuant to the following paragraph).
(3) The provisions of Article 79 to 83 inclusive (Registration of Merger) of the Commercial Registration Act shall apply mutatis mutandis to a registration pertaining to a Mutual Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Claim Seeking Nullification of Merger)
Article 171 The provisions of Article 828, paragraph (1) (limited to the segment pertaining to items (vii) and (viii)) and (2) (limited to the segment pertaining to items (vii) and (viii)) (Claim Seeking Nullification of Acts Related to
Organization of Company), Article 834 (limited to the segment pertaining to
items (vii) and (viii)) (Defendant), Article 835, paragraph (1) (Jurisdiction of
Claim), Article 836 to 839 inclusive (Order to Furnish Security, Compulsory Consolidation of Oral Arguments, etc., Scope of Effect of Judgment in Favor of claim, Effect of Judgment of Nullity or Rescission), Article 843 (excluding
paragraph (1), items (iii) and (iv), and the proviso to paragraph (2)) (Effect of
Judgment Nullifying Merger), Article 846 (Liability for Damages in Case of Defeat of Plaintiff), and Article 937, paragraph (3) (limited to the segment pertaining to items (ii) and (iii)) and (4) (Commission of Registration by
Judicial Decision) of the Companies Act shall apply mutatis mutandis to a
lawsuit for the nullification of a merger under Article 159, paragraph (1); and the provisions of Article 868, paragraph (5) (Jurisdiction of Non-Contentious
Cases), Article 870 (limited to the segment pertaining to item (xv)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), the main clause of Article 873 (Stay of Execution of Original Sentence), Articles 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of that Act shall apply mutatis mutandis to an application under Article 843,
paragraph (4) of that Act as applied mutatis mutandis pursuant to this Article. In this case, the term "members, etc." in Article 828, paragraph (2), items (vii) and (viii) of that Act shall be deemed to be replaced with "members, directors, company auditors or liquidator(s) (or, in a company with Committees, members, directors, executive officers or liquidator(s)) of a Mutual Company"; any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
Article 172 Deleted
Article 173 Deleted
Section 3 Company Split
(Split of Stock Company Carrying on Insurance Business)
Article 173-2 (1) Where a Stock Company carrying on the Insurance Business
(hereinafter referred to as "Stock Insurance Company" in this Section)
transfers its insurance contracts in a company split (hereinafter referred to as
"Split" in this Section), the transfer shall cover the whole insurance contracts for which the policy reserve is calculated on the same basis (excluding the
insurance contracts specified by a Cabinet Order, such as those for which an insured event had occurred by the time of public notice under Article 173-4, paragraph (2) (limited to those contracts which would be terminated with the payment of insurance claims pertaining to the insured event)).
(2) A Stock Insurance Company that transfers its insurance contracts in a Split may, in the relevant incorporation-type company split plan or absorption-type split agreement (hereinafter referred to as "Split Plan, etc."), stipulate minor
changes to the clauses of the insurance contracts to be transferred in the Split, so long as such changes are not disadvantageous to the Policyholders.
(Keeping and Inspection, etc. of Documents pertaining to Split, etc.)
Article 173-3 For the purpose of applying the provisions of Article 782,
paragraph (1) (Keeping and Inspection. etc. of Documents, etc. Pertaining to
Absorption-Type Merger Agreement, etc.), Article 794, paragraph (1) (Keeping and Inspection, etc. of Documents, etc. Pertaining to Absorption-Type Merger
Agreement, etc.) and Article 803, paragraph (1) (Keeping and Inspection, etc. of
Documents, etc. Pertaining to Consolidation-Type Merger Agreement, etc.) of the Companies Act to a Stock Insurance Company involved in a Split, the
terms "matters prescribed by the Ordinance of the Ministry of Justice" and
"head office" in those provisions shall be deemed to be replaced with "matters
prescribed by a Ordinance of the Ministry of Justice and matters specified by a
Cabinet Office Ordinance" and "business offices," respectively.
(Objections of Creditors)
Article 173-4 (1) Where a Stock Insurance Company is involved in a Split, the persons listed in the following items may state to the relevant Stock Insurance Company their objections to the Split, as the case may be:
(i) Policyholders or other creditors (limited to the creditors set forth in Article
789, paragraph (1), item (ii) (Objections of Creditors) of the Companies Act)
of a splitting company in an absorption-type split (referring to a Stock
Company or limited liability company carrying out an absorption-type split; hereinafter the same shall apply in this Article) that is a Stock Insurance Company: the splitting company in an absorption-type split;
(ii) Policyholders or other creditors of a succeeding company in an absorption-
type split (referring to a Stock Company, general Partnership company,
limited Partnership company or limited liability company assuming, in whole or in Part, the rights and obligations of the splitting company in an
absorption-type split with regard to its business; the same shall apply
hereinafter) that is a Stock Insurance Company: the succeeding company in an absorption-type split; and
(iii) Policyholders or other creditors (limited to the creditors set forth in Article
810, paragraph (1), item (ii) (Objections of Creditors) of the Companies Act)
of a splitting company in an incorporation-type company split (referring to a
Stock Company or limited liability company carrying out an incorporation-
type company split; hereinafter the same shall apply in this Article) that is a
Stock Insurance Company: the splitting company in an incorporation-type company split.
(2) In the case set forth in the preceding paragraph, a Stock Insurance Company falling under any of the items of that paragraph (hereinafter referred to as
"Split-Involved Company" in this Article) shall give public notice of the
following matters in the Official Gazette and by the Method of Public Notice
prescribed by the Split-Involved Company in its articles of incorporation, and notify such matters to each of the known creditors (limited to the creditors set forth in Article 789, paragraph (3) or Article 810, paragraph (3) of the
Companies Act); provided, however, that the period set forth in item (iv) may
not be shorter than one month:
(i) A statement to the effect that a Split will be carried out;
(ii) The trade name and address of the companies listed in (a) or (b), as the case may be:
(a) In the case of an absorption-type split: the splitting company in an
absorption-type split and the succeeding company in an absorption-type split; or
(b) In the case of an incorporation-type split: the splitting company in an
incorporation-type company split and the Stock Company, general
Partnership company, limited Partnership company or limited liability company to be incorporated by the Split.
(iii) The matters specified by a Cabinet Office Ordinance as pertaining to the financial statements of a Stock Company falling under (a) or (b) of the
preceding item;
(iv) A statement to the effect that Policyholders or other creditors of the Split-
Involved Company may raise their objections within a certain period of time;
and
(v) In addition to what is listed in the preceding items, matters specified by a
Cabinet Office Ordinance.
(3) Where no Policyholders or other creditors have raised their objections within the period set forth in item (iv) of the preceding paragraph, such Policyholders or other creditors shall be deemed to have approved the merger.
(4) Where any Policyholder or other creditor has raised his/her objection under
paragraph (2), item (iv), the Split-Involved Company shall make payment or provide equivalent security to such Policyholder or other creditor, or entrust equivalent property to a trust company, etc. for the purpose of ensuring that such Policyholder or other creditor receive the payment; provided, however,
that this shall not apply to the cases where the Split poses no risk of harming the interest of such Policyholder or other creditor.
(5) The provision of the preceding paragraph shall not apply to the Policyholders or any rights held by other persons pertaining to insurance contracts (other
than Insurance Claims, etc.).
(6) Any Split shall be invalid if the number of the Policyholders who have raised their objections within the period set forth in paragraph (2), item (iv)
(excluding the holders of policies under which Insurance Claims, etc. had
already arisen at the time of public notice under the paragraph (2) (but limited to those policies that would be terminated with the payment of the Insurance Claims, etc.); hereinafter the same shall apply in this paragraph and the
following paragraph) exceeds one fifth of the total number of Policyholders
(limited to those who may raise their objections pursuant to the provision of
paragraph (1)), and the amount specified by a Cabinet Office Ordinance as the
credits (other than Insurance Claims, etc.) belonging to the insurance contracts of the Policyholders who have raised such objections exceeds one fifth of the
total amount of credits belonging to the Policyholders (limited to those who may raise their objections pursuant to the provision of paragraph (1)).
(7) A Split carried out pursuant to the provisions of the preceding paragraphs
shall also be effective against the Policyholders who have raised their objections under the preceding paragraph and other persons who hold any
right (other than Insurance Claims, etc.) pertaining to the insurance contracts
involving the Policyholders.
(8) In addition to what is provided for in the preceding paragraphs, necessary matters for the application of those provisions shall be specified by a Cabinet Order.
(9) The provisions of Articles 789 and 799 (Objections of creditors) and Article
810 of the Companies Act shall not apply to a Stock Insurance Company falling under paragraph (1), item (i) or (ii).
(10) For the purpose of applying to the cases set forth in paragraph (1) the provisions of Article 759, paragraphs (2) and (3) (Effectuation, etc. of
Absorption-Type Split Transferring Rights and Obligations to Stock Company), Article 761, paragraphs (2) and (3) (Effectuation, etc. of Absorption-Type Split Transferring Rights and Obligations to Membership Company), Article 764,
paragraphs (2) and (3) (Effectuation, etc. of Incorporation-Type Split Forming
Stock Company), and Article 766, paragraphs (2) and (3) (Effectuation, etc. of
Incorporation-Type Split Forming Membership Company) of the Companies Act, the term "objections pursuant to the provision of Article 789, paragraph (1),
item (ii) (including the cases where it is applied mutatis mutandis pursuant to Article 793, paragraph (2); the same shall apply in the following paragraph)" in Article 759, paragraph (2) and Article 761, paragraph (2) of that Act shall be deemed to be replaced with "objections pursuant to the provision of Article 789, paragraph (1), item (ii) (including the cases where it is applied mutatis
mutandis pursuant to Article 793, paragraph (2); the same shall apply in the
following paragraph) or the provision of Article 173-4, paragraph (1) of the
Insurance Business Act"; the term "individual notification under Article 789, paragraph (2) (excluding item (iii) and including the cases where it is applied mutatis mutandis pursuant to Article 793, paragraph (2); the same shall apply hereinafter in this paragraph as well as in the following paragraph)" in Article
759, paragraph (2) and Article 761, paragraph (2) of that Act shall be deemed to be replaced with "individual notification under Article 789, paragraph (2) (excluding item (iii) and including the cases where it is applied mutatis
mutandis pursuant to Article 793, paragraph (2); the same shall apply
hereinafter in this paragraph as well as in the following paragraph) or under
Article 173-4, paragraph (2) of the Insurance Business Act"; the term
"objections pursuant to the provision of Article 810, paragraph (1), item (ii) (including the cases where it is applied mutatis mutandis pursuant to Article
813, paragraph (2); the same shall apply in the following paragraph)" in Article
764, paragraph (2) and Article 766, paragraph (2) of that Act shall be deemed to be replaced with "objections pursuant to the provision of Article 810,
paragraph (1), item (ii) (including the cases where it is applied mutatis
mutandis pursuant to Article 813, paragraph (2); the same shall apply in the following paragraph) or the provision of Article 173-4, paragraph (1) of the
Insurance Business Act"; the term "individual notification under Article 810, paragraph (2) (excluding item (iii) and including the cases where it is applied mutatis mutandis pursuant to Article 813, paragraph (2); the same shall apply hereinafter in this paragraph as well as in the following paragraph)" in Article
764, paragraph (2) and Article 766, paragraph (2) of that Act shall be deemed to be replaced with "individual notification under Article 810, paragraph (2) (excluding item (iii) and including the cases where it is applied mutatis
mutandis pursuant to Article 813, paragraph (2); the same shall apply
hereinafter in this paragraph as well as in the following paragraph) or under
Article 173-4, paragraph (2) of the Insurance Business Act"; the term
"individual notification under Article 789, paragraph (2)" in Article 759,
paragraph (2) and Article 761, paragraph (2) of that Act shall be deemed to be replaced with "individual notification under Article 789, paragraph (2) or
under Article 173-4, paragraph (2) of the Insurance Business Act"; the term
"individual notification under Article 810, paragraph (2)" in Article 764,
paragraph (2) and Article 766, paragraph (2) of that Act shall be deemed to be replaced with "individual notification under Article 810, paragraph (2) or
under Article 173-4, paragraph (2) of the Insurance Business Act"; the terms
"Article 789, paragraph (1), item (ii)" and "paragraph (2) of the same Article" in Article 759, paragraph (3) and Article 761, paragraph (3) of that Act shall be deemed to be replaced with "Article 789, paragraph (1), item (ii) or Article 173-
4, paragraph (1) of the Insurance Business Act" and "Article 789, paragraph (2)
or Article 173-4, paragraph (2) of that Act," respectively; and the terms "Article
810, paragraph (1), item (ii)" and "Article 810, paragraph (2)" in Article 764,
paragraph (3) and Article 766, paragraph (3) of that Act shall be deemed to be replaced with "Article 810, paragraph (1), item (ii) or Article 173-4, paragraph (1) of the Insurance Business Act" and "Article 810, paragraph (2) or Article
173-4, paragraph (2) of that Act," respectively.
(11) The provisions of Article 759, paragraphs (2) and (3), Article 761,
paragraphs (2) and (3), Article 764, paragraphs (2) and (3), and Article 766, paragraphs (2) and (3) of the Companies Act shall not apply to the creditor
specified by a Cabinet Order, such as a person holding any right pertaining to
an insurance contract, a Beneficiary of money trust pertaining to the Insurance
Claim Trust Business set forth in Article 99, paragraph (3).
(Suspension of Conclusion of Insurance Contracts)
Article 173-5 A Stock Insurance Company that transfers its insurance contracts in a Split shall not conclude any insurance contract that belongs to the same
type as the insurance contracts to be transferred, for the period ranging from the time of adoption of the resolution on the Split to the time of execution or renunciation of the Split.
(Authorization of Split of Stock Insurance Company)
Article 173-6 (1) Any Split of a Stock Insurance Company shall be null and void without the authorization of the Prime Minister.
(2) The Prime Minister shall, when an application for the authorization set forth in the preceding paragraph is made, examine whether the application meets
the following requirement:
(i) The Split is appropriate in light of the protection of Policyholders, etc.;
(ii) Where the Applicant is an Insurance Company, the Split poses no risk of impeding the appropriate competitive relationships among Insurance
Companies; and
(iii) It is certain that the Stock Insurance Company applying for the
authorization will carry on its business in an appropriate, fair and efficient manner following the Split.
(3) The Prime Minister shall not approve any application made under paragraph
(1) pertaining to a Split that involves the transfer of insurance contracts of an
Insurance Company, unless the company that acquires the insurance contracts is an Insurance Company.
(Public Notice, etc. of Split)
Article 173-7 (1) A Stock Insurance Company that transfers its insurance contracts in a Split shall, following the Split, give public notice of without
delay the fact that its insurance contracts have been transferred in the Split
and other matters specified by a Cabinet Office Ordinance. The same shall apply where the company has renounced the Split.
(2) A Stock Insurance Company that has acquired insurance contracts in a Split shall, within three months from the date of the Split, notify thereof (or, where any minor change under Article 173-2, paragraph (2) is stipulated in the Split
Plan, etc. with regard to the insurance contracts transferred in the Split, of the
fact that it has acquired the insurance contracts in the Split and the contents
of such minor change) to the Policyholders affected by the transfer of insurance contracts in the Split.
(3) Where a Stock Insurance Company that transfers its insurance contracts in a Split has outstanding loans or other claims against Policyholders, and such claims are to be assigned to the Stock Insurance Company that acquires the
insurance contracts under the Split Plan, etc., a notice in the form of an
instrument carrying a fixed date under Article 467 (Requirement for Assertion of Assignment of Nominative Claims Against Third Parties) of the Civil Code shall be deemed to have been given to the Policyholders when a public notice under the first sentence of paragraph (1) has been given by way of publication
in a daily newspaper that publishes matters on current events. In this case,
the date of the public notice shall be deemed as the fixed date.
(Registration of Split)
Article 173-8 (1) The following documents shall be attached to a written
application for registration of incorporation due to an incorporation-type split, in addition to the documents specified in Articles 18 and 19 (Documents to be Attached to Written Application), Article 46 (General Rules on Attached
Documents), Article 86 (excluding item (viii)) (Registration of Company Split) and Article 109, paragraph (2) (excluding that segment in item (iii) pertaining to the documents listed in Article 86, item (viii) of that Act and including the
cases where it is applied mutatis mutandis pursuant to Article 116, paragraph
(1) and Article 125 of that Act) (Registration of Company Split) of the
Commercial Registration Act:
(i) A document certifying that a public notice under Article 173-4, paragraph
(2) has been given;
(ii) Where any Policyholder or other creditor has raised his/her objection under Article 173-4, paragraph (4), a document certifying that the company has made payment or provided equivalent security to such Policyholder or other
creditor, or entrusted equivalent property to a trust company, etc. for the
purpose of ensuring that such Policyholder or other creditor receive the
payment, or a document certifying that the Split poses no risk of harming the interest of such Policyholder or other creditor;
(iii) A document certifying that the number of Policyholders who raised their
objections under Article 173-4, paragraph (6) has not exceeded one fifth of
the total number of Policyholders, or a document certifying that the amount specified by a Cabinet Office Ordinance set forth in that paragraph as the
credits belonging to such Policyholders has not exceeded one fifth of the total amount set forth in that paragraph;
(2) The documents listed in the items of the preceding paragraph shall be
attached to a written application for registration of change due to an
absorption-type split carried out by a Stock Company, general Partnership
company, limited Partnership company or limited liability company that is the succeeding company in an absorption-type split, in addition to the documents
set forth in the following provisions of the Commercial Registration Act: Article
18, Article 19, Article 46, Article 85 (excluding the segment pertaining to the
documents listed in item (iii) or (viii) of the same Article with regard to a Stock
Insurance Company) (Registration of Company Split), Article 93 (General
Rules on Attached Documents) (including the cases where it is applied mutatis mutandis pursuant to Articles 111 and 118 of that Act) and Article 109,
paragraph (1) (excluding that segment in item (ii) pertaining to the documents listed in Article 85, item (viii) of that Act and including the cases where it is
applied mutatis mutandis pursuant to Article 106, paragraph (1) and Article
125 of that Act).
Section 4 Liquidation
(Appointment and Dismissal of Liquidators by Prime Minister)
Article 174 (1) The Prime Minister shall appoint liquidators, at the request of interested persons or the Minister of Justice, or without any Party's request, where an Insurance Company, etc. has dissolved on the grounds listed in
Article 471, item (vi) (Grounds for Dissolution) of the Companies Act as applied
with relevant changes in interpretation pursuant to the provision of Article 152, paragraph (1) (including the cases where it is applied mutatis mutandis
pursuant to Article 152, paragraph (2)), or at the request of interested persons or without any Party's request where no one is entitled to become a liquidator pursuant to the provision of Article 180-4, paragraph (1) or under Article 478, paragraph (1) (Assumption of Office of Liquidators) of that Act or where an
Insurance Company, etc. falls under Article 180, item (ii) or under Article 475, item (ii) (Causes of Commencement of Liquidation) of that Act.
(2) For the purpose of applying the provision of Article 477, paragraph (4) (Establishment of Structures Other than Shareholders Meetings) of the
Companies Act to a Stock Company carrying on the Insurance Business, the
term "Large Company" in that paragraph shall be deemed to be replaced with
"Insurance Company or a Stock Company listed in Article 272-4, paragraph (1),
item (i), (b) of the Insurance Business Act."
(3) The provisions of Article 478, paragraphs (2) to (4) inclusive of the Companies
Act shall not apply to a Stock Company carrying on the Insurance Business.
(4) Notwithstanding the provision of Article 180-4, paragraph (1) or Article 478, paragraph (1) of the Companies Act, the Prime Minister shall appoint
liquidators where an Insurance Company, etc. has dissolved due to the
cancellation of a license under Article 3, paragraph (1) or a registration under
Article 272, paragraph (1).
(5) The provision of Article 8-2, paragraph (2) shall apply mutatis mutandis to the liquidator(s) of a Stock Company carrying on the Insurance Business.
(6) For the purpose of applying to a Stock Company carrying on the Insurance
Business the provision of Article 331, paragraph (1), item (iii) (Qualifications of
Directors) of the Companies Act as applied mutatis mutandis pursuant to
Article 478, paragraph (6) of that Act, the term "this Act" in that item shall be deemed to be replaced with "the Insurance Business Act, this Act."
(7) The Prime Minister may, when he/she appoints liquidators pursuant to the
provision of paragraph (1), (4) or (9), designate from among them a liquidator (hereinafter referred to as "Representative Liquidator" in this Section) who represents the Stock Company or Mutual Company to be liquidated
(hereinafter referred to as "Liquidating Insurance Company, etc." in this
Section).
(8) The liquidator(s) (excluding the persons appointed by the Prime Minister and
the liquidator(s) in the case of special liquidation) shall, within two weeks from the date of their assumption of office, notify the Prime Minister of the following matters; provided, however, that this shall not apply to the cases where special
liquidation has commenced in the meantime.
(i) Grounds for the dissolution (or, for a Liquidating Insurance Company, etc. falling under Article 180, item (ii) or under Article 475, item (ii) of the
Companies Act, a statement to that effect) and the date of dissolution; and
(ii) The name(s) and address(es) of the liquidator(s).
(9) In the case of the liquidation of an Insurance Company, etc. (other than a
special liquidation), the Prime Minister may dismiss a liquidator, when he/she finds material grounds for such dismissal. In this case, the Prime Minister may appoint another liquidator.
(10) For the purpose of applying the provision of Article 479 (Dismissal of
Liquidators) of the Companies Act to the liquidation of a Stock Company
carrying on the Insurance Business, the term "court pursuant to the provisions of paragraphs (2) to (4) inclusive of the preceding Article" in paragraph (1) of
that Article shall be deemed to be replaced with "Prime Minister"; and the
term "liquidator" in paragraph (2) of that Article shall be deemed to be replaced with "liquidator (other than a person appointed by the Prime
Minister)."
(11) The provisions of Article 73, paragraphs (1) and (3) (Registration of
Liquidators), and Article 74, paragraph (1) (Registration of Change with
Regard to Liquidators) of the Commercial Registration Act (including the cases where it is applied mutatis mutandis pursuant to Article 183, paragraph (2)) shall apply mutatis mutandis to a liquidator appointed by the Prime Minister.
In this case, any other necessary technical change in interpretation shall be
specified by a Cabinet Order.
(12) The Prime Minister shall, where he/she dismisses a liquidator pursuant to the provision of paragraph (9), commission a registration to that effect to the registry office with jurisdiction over the head office or principal office of the Liquidating Insurance Company, etc.
(Remuneration for Liquidators Appointed by Prime Minister)
Article 175 (1) A liquidator appointed pursuant to the provision of paragraphs
(1), (4) or (9) of the preceding Article may receive remuneration from the
Liquidating Insurance Company, etc.
(2) The amount of the remuneration set forth in the preceding paragraph shall be determined by the Prime Minister.
(Submission of Closing Financial Statements, etc.)
Article 176 The liquidator(s) of a Liquidating Insurance Company, etc. (other than the liquidator(s) in the case of a special liquidation) shall, when the Shareholders Meeting, etc. has approved the material set forth in Article 492,
paragraph (3) (Preparation of Inventory of Property) or Article 497, paragraph
(2) (Provision of Balance Sheet to Annual Shareholders Meeting) (including the cases where they are applied mutatis mutandis pursuant to Article 180-17), or Article 507, paragraph (3) (Conclusion of Liquidation) (including the cases
where it is applied mutatis mutandis pursuant to Article 183, paragraph (1)) of the Companies Act, submit such material (or, where such material is prepared
in the form of electromagnetic record or where an electromagnetic record is prepared in lieu of such material, the electromagnetic record specified by a
Cabinet Office Ordinance or a document describing the information contained
in the electromagnetic record) without delay to the Prime Minister.
(Cancellation of Insurance Contracts after Dissolution)
Article 177 (1) Where an Insurance Company, etc. has dissolved on the grounds listed in Article 471, item (iii) or (vi) (Grounds for Dissolution) of the
Companies Act as applied with relevant changes in interpretation pursuant to
the provision of Article 152, paragraph (1) (including the cases where it is
applied mutatis mutandis pursuant to Article 152, paragraph (2)) or in Article
152, paragraph (3), item (ii), a Policyholder may cancel his/her insurance contract prospectively.
(2) In the case referred to in the preceding paragraph, any insurance contract that is not cancelled by the Policyholder pursuant to the provision of that
paragraph shall lose its effect on the day which is three months after the date of dissolution.
(3) In the cases set forth in the preceding two paragraphs, the Liquidating
Insurance Company, etc. shall refund to the Policyholder the amount of money reserved for the insured, any unearned premium (referring to the insurance
premium paid for that Part of the period of insurance stipulated in an
insurance contract which had not lapsed by the time when the insurance contract was cancelled or lost its effect) and any other amount of money specified by a Cabinet Office Ordinance.
(Permission of Performance during Period for Stating Claims)
Article 178 For the purpose of applying the provision of Article 500 (Restrictions on Performance of Obligations) of the Companies Act to the liquidation of a
Stock Company carrying on the Insurance Business, the term "court" in
paragraph (2) of that Article shall be deemed to be replaced with "Prime
Minister."
(Order for Supervision of Liquidation)
Article 179 (1) In the case of the liquidation of an Insurance Company, etc.
(other than a special liquidation), the Prime Minister may, when he/she finds it necessary, order the Liquidating Insurance Company, etc. to deposit its
properties or to take any other necessary measure for supervising the liquidation.
(2) The provisions of Article 128, paragraph (1), Article 129, paragraph (1),
Article 272-22, paragraph (1) and Article 272-23, paragraph (1) shall apply
mutatis mutandis to the case referred to in the preceding paragraph, when the
Prime Minister finds it necessary for supervising the liquidation of a
Liquidating Insurance Company, etc.
(Causes of Commencement of Mutual Company's Liquidation)
Article 180 A Mutual Company shall go into liquidation in the following cases, pursuant to the provisions of this Section:
(i) Where the company has dissolved (excluding the cases where it has
dissolved on the grounds listed in Article 471, item (iv) of the Companies Act as applied mutatis mutandis pursuant to Article 152, paragraph (2) and
where it has dissolved as a result of a ruling to commence bankruptcy proceedings and such bankruptcy proceedings have not ended); or
(ii) Where a judgment allowing a claim seeking nullification of the company's incorporation has become final and binding.
(Capacity of Liquidation Mutual Company)
Article 180-2 A Mutual Company that goes into liquidation pursuant to the provision of the preceding Article (hereinafter referred to as "Liquidation
Mutual Company" in this Section) shall be deemed to remain in existence until the liquidation is completed, to the extent of the purpose of the liquidation.
(Organs of Liquidation Mutual Company Other than General Meeting of
Members and General Meeting)
Article 180-3 (1) A Liquidation Mutual Company shall have one or more liquidator(s) and company auditor(s).
(2) A Liquidation Mutual Company may have a board of liquidators or a board of company auditors as prescribed by its articles of incorporation.
(3) A Liquidation Mutual Company whose articles of incorporation provide for the establishment of a board of company auditors shall also have a board of
liquidators.
(4) In a Liquidation Mutual Company that was a company with Committees
when it fell under Article 180, item (i) or (ii), the Audit Committee Members shall become the company auditors.
(5) The provision of Article 51 shall not apply to a Liquidation Mutual Company.
(Assumption of Office of Liquidators)
Article 180-4 (1) The following persons shall become the liquidators of a
Liquidation Mutual Company:
(i) Directors (unless the company has a person falling under the following item or item (iii));
(ii) Person(s) prescribed by the articles of incorporation; and
(iii) Person(s) elected by a resolution of the General Meeting of members (or
General Meeting, where the company has such meeting).
(2) For the purpose of applying the provisions of item (i) of the preceding
paragraph and Article 53-5, paragraph (3) to a Liquidation Mutual Company
that was a company with Committees when it fell under Article 180, item (i) or
(ii), the term "Directors" in item (i) of the preceding paragraph shall be deemed to be replaced with "Directors other than Audit Committee Members"; and the term "outside company auditors (referring to those company auditors of a
Mutual Company who have never been a director, executive officer or
accounting advisor (or, if the accounting advisor is a juridical person, any
member of that juridical person who is supposed to carry out relevant duties), or manager or any other employee of the Mutual Company or any of its de facto
Subsidiary Companies; the same shall apply hereinafter)" in Article 180,
paragraph (3) shall be deemed to be replaced with "persons who have never been a director, executive officer or accounting advisor (or, if the accounting advisor is a juridical person, any member of that juridical person who is
supposed to carry out relevant duties), or manager or any other employee of the company with a board of auditors or any of its de facto Subsidiary
Companies."
(3) The provisions of Article 8-2, paragraph (2), Article 53 and Article 53-2, paragraph (1) shall apply mutatis mutandis to the liquidator(s) of a
Liquidation Mutual Company; and the provision of Article 53-2, paragraph (3) shall apply mutatis mutandis to the liquidators of a Mutual Company with a board of liquidators (referring to a mutual liquidating company that has a
board of liquidators; hereinafter the same shall apply in this Section). In this
case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Dismissal of Liquidators)
Article 180-5 (1) A liquidator (other than a person appointed by the Prime
Minister pursuant to the provision of Article 174, paragraph (1), (4) or (9)) may be dismissed at any time by a resolution of the General Meeting of members (or General Meeting, where the company has such meeting).
(2) The court may, when it finds any material grounds, dismiss a liquidator
under the preceding paragraph in response to a petition filed by members
representing at least three thousandths (or any smaller proportion prescribed by the articles of incorporation) of the total membership, or three thousand (or any smaller number prescribed by the articles of incorporation) or more
members of the Mutual Company (or, in a Specified Mutual Company,
members equal to or exceeding the number specified by the Cabinet Order set forth in Article 38, paragraph (1)), who have been members of the Mutual
Company without interruption for the preceding six months (or any shorter
period prescribed by the articles of incorporation) (or, in a company with a
General Meeting, those members or nine (or any smaller number prescribed by the articles of incorporation) or more general representatives).
(3) The provisions of Article 868, paragraph (1) (Jurisdiction of Non-Contentious Cases), Article 870 (limited to the segment pertaining to item (iii)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal
Against Ruling), Article 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of the Companies Act shall apply mutatis mutandis to a petition under the
preceding paragraph; and the provision of Article 937, paragraph (1) (limited to
the segment pertaining to item (ii), (e) and item (iii), (a)) (Commission of
Registration by Judicial Decision) of that Act shall apply mutatis mutandis to a judicial decision on the dismissal of a liquidator under paragraph (1). In this
case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) The provisions of Article 53-12, paragraphs (1) to (3) inclusive, and the
provisions of Article 868, paragraph (1), Article 870 (limited to the segment pertaining to item (ii), Article 871, Article 872 (limited to the segment
pertaining to item (iv)), Article 874 (limited to the segment pertaining to item
(i)) (Restrictions on appeal), Article 875, Article 876 and Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (b) and (c)) of the Companies Act shall apply mutatis mutandis to the liquidator set forth in paragraph (1).
In this case, any other necessary technical change in interpretation shall be
specified by a Cabinet Order.
(Company Auditor's Term of Office)
Article 180-6 The provision of Article 53-6 shall not apply to the company auditors of a Liquidation Mutual Company.
(Liquidator's Duties)
Article 180-7 The liquidator(s) of a Liquidation Mutual Company shall carry out the following duties:
(i) Completion of pending transactions;
(ii) Collection of debts and performance of obligations; and
(iii) Distribution of residual assets.
(Execution of Business)
Article 180-8 (1) The liquidator(s) shall execute the business of the Liquidation Mutual Company (other than a Mutual Company with a board of liquidators; hereinafter the same shall apply in this Article).
(2) Where a Liquidation Mutual Company has two or more liquidators, the
business of the company shall be decided upon by a majority of the liquidators, unless otherwise provided for in the articles of incorporation.
(3) In the case set forth in the preceding paragraph, the liquidators may not delegate to any liquidator a decision regarding any of the following matters: (i) Appointment or dismissal of a manager;
(ii) Establishment, relocation or abolition of a secondary office;
(iii) Matters listed in the items of Article 298, paragraph (1) of the Companies
Act as applied mutatis mutandis pursuant to Article 41, paragraph (1) or
Article 49, paragraph (1); or
(iv) Revision of a system to ensure that the liquidators carry out their duties in
compliance with applicable laws and regulations and the articles of
incorporation, and any other system required by a Cabinet Office Ordinance for ensuring that the business of a Liquidation Mutual Company is executed in an appropriate manner.
(4) The provisions of Article 353 to 357 inclusive (Representation of Companies in
Actions Between Stock Company and Directors, Apparent Representative
Directors, Duty of Loyalty, Restrictions on Competition and Conflicting
Interest Transactions, Director's Duty to Report), Article 360, paragraph (1) (Enjoinment of Acts of Directors by Shareholders) and Article 361
(Remuneration for Directors) of the Companies Act shall apply mutatis
mutandis to a liquidator (with regard to the provision of Article 361 of that Act, other than a liquidator appointed by the Prime Minister pursuant to the
provision of Article 174, paragraph (1), (4) or (9)). In this case, the term
"Article 349, paragraph (4)" in Article 353 of that Act shall be deemed to be replaced with "Article 349, paragraph (4) as applied mutatis mutandis
pursuant to Article 180-9, paragraph (5) of the Insurance Business Act"; the
term "a Representative Director" in Article 354 of that Act shall be deemed to
be replaced with "the Representative Liquidator"; and the terms "shareholders having the shares" and "substantial detriment" in Article 360, paragraph (1) of that Act shall be deemed to be replaced with "persons who have been members of the company" and "irreparable damage," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Representative of Liquidation Mutual Company)
Article 180-9 (1) The liquidator(s) shall represent the Liquidation Mutual
Company; provided, however, that this shall not apply to the cases where the liquidating Insurance Company appoints a Representative Liquidator or any other person to act as its representative.
(2) Where a Liquidation Mutual Company has two or more liquidators, each of
the liquidators shall represent the company for the purpose of the main clause of the preceding paragraph.
(3) A Liquidation Mutual Company (other than a Mutual Company with a board of liquidators) may appoint a Representative Liquidator from among its
liquidators (excluding a person appointed by the Prime Minister pursuant to the provision of Article 174, paragraph (1), (4) or (9); hereinafter the same shall apply in this paragraph) in accordance with its articles of incorporation, by mutual vote of the liquidators pursuant to the provisions of its articles of
incorporation, or by a resolution of the General Meeting of members (or
General Meeting, where the company has such meeting).
(4) Where a representative director has been appointed, the representative
director shall act as the Representative Liquidator when the directors become
the liquidators pursuant to the provision of Article 180-4, paragraph (1), item
(i).
(5) The provisions of Article 349, paragraphs (4) and (5) (Representatives of
Companies) and Article 351 (Measures when Vacancy Arises in Office of
Representative Director) of the Companies Act shall apply mutatis mutandis to the Representative Liquidator of a Liquidation Mutual Company; the provision of Article 352 (Authority of Persons Who Perform Duties on Behalf of
Directors) of that Act shall apply mutatis mutandis to a person appointed by a provisional disposition order under Article 56 (Commission of Registration of
Provisional Disposition for Stay of Execution of Duties by Representative of
Juridical Person, etc.) of the Civil Provisional Relief Act to act for a liquidator or the Representative Liquidator of a Liquidation Mutual Company; the
provisions of Article 868, paragraph (1) (Jurisdiction of Non-contentious cases), Article 869 (Showing of Prima Facie Evidence), Article 870 (limited to the
segment pertaining to item (ii)) (Hearing of Statements), Article 871
(Supplementary Note of Reasons), Article 872 (limited to the segment pertaining to item (iv)) (Immediate Appeal Against Ruling), Article 874 (limited to the segment pertaining to items (i) and (iv)) (Restrictions on
Appeal), Articles 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of the Companies Act shall apply mutatis mutandis to the liquidator(s) or
Representative Liquidator of a Liquidation Mutual Company; and the provision of Article 937, paragraph (1) (limited to the segment pertaining to item (ii), (b)
and (c)) (Commission of Registration by Judicial Decision) of that Act shall
apply mutatis mutandis to a person who should carry out the duties of the temporary Representative Liquidator of a Liquidation Mutual Company. In this case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Commencement of Bankruptcy Proceedings for Liquidation Mutual Company) Article 180-10 (1) The liquidators shall, when it has become clear that the assets
of the Liquidation Mutual Company are not sufficient to fully discharge its
debts, immediately file a petition for commencement of bankruptcy proceedings. (2) Where a Liquidation Mutual Company was given a ruling for commencement
of bankruptcy proceedings, the liquidator(s) shall be deemed to have
accomplished their duties when they have transferred their tasks to the bankruptcy trustee.
(3) In the case prescribed in the preceding paragraph, the bankruptcy trustee may recover any payment made to creditors by the Liquidation Mutual
Company.
(Liquidator's Liability for Damages to Liquidation Mutual Company)
Article 180-11 (1) A liquidator shall be liable to the Liquidation Mutual
Company for any damage caused by the failure to carry out his/her (their)
duties.
(2) Where a liquidator has carried out the transaction listed in Article 356, paragraph (1), item (i) of the Companies Act in violation of Article 356,
paragraph (1) of that Act as applied mutatis mutandis pursuant to Article 180-
8, paragraph (4), the amount of the profit gained by the liquidator or any third Party from such transaction shall be presumed to be the amount of the damage set forth in the preceding paragraph.
(3) Any of the following liquidators shall be presumed to have failed to carry out
his/her duties when the Liquidation Mutual Company has suffered any damage from the transaction set forth in Article 356, paragraph (1), item (ii) or (iii) of
the Companies Act as applied mutatis mutandis pursuant to Article 180-8, paragraph (4):
(i) A liquidator falling under Article 356, paragraph (1) of the Companies Act as applied mutatis mutandis pursuant to Article 180-8, paragraph (4);
(ii) A liquidator who decided that the Liquidation Mutual Company carry out
such transaction; or
(iii) A liquidator who agreed to the board of liquidators' resolution to approve such transaction.
(4) The provision of Article 53-34 and the provision of Article 428, paragraph (1)
(Special Provision on Transactions Carried out by Director for Himself/Herself)
of the Companies Act shall apply mutatis mutandis to the liability of a
liquidator under paragraph (1). In this case, the term "Article 356, paragraph
(1), item (ii) (including the cases where it is applied mutatis mutandis
pursuant to Article 419, paragraph (2))" in Article 428, paragraph (1) of that
Act shall be deemed to be replaced with "Article 356, paragraph (1), item (ii) as applied mutatis mutandis pursuant to Article 180-8, paragraph (4) of the
Insurance Business Act"; any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(Liquidator's Liability for Damages to Third Party)
Article 180-12 (1) A liquidator of a Liquidation Mutual Company shall be liable to a third Party for any damage caused by his/her bad faith or gross negligence in carrying out his/her duties.
(2) The provision of the preceding paragraph shall also apply where the
liquidator set forth in that paragraph has committed any of the following acts; provided, however, that this shall not apply to the cases where the liquidator has proven that he/she did not fail to exercise due care in carrying out the act: (i) A false notice with respect to any important matter to be notified in
soliciting subscribers for bonds (referring to the bonds set forth in Article 61), or a false statement or record with respect to any material used for the
explanation of the Liquidation Mutual Company's business or other matter for the purpose of such solicitation;
(ii) A false statement or record with respect to any important matter to be
described or recorded in the inventory of property, etc. set forth in Article
492, paragraph (1) of the Companies Act as applied mutatis mutandis
pursuant to Article 180-17 or the balance sheet and administrative report set forth in Article 494, paragraph (1) of that Act as applied mutatis mutandis
pursuant to Article 180-17, or in the annexed detailed statements thereto; (iii) A false registration; or
(iv) A false public notice.
(Joint and Several Liability of Liquidators and Company Auditors)
Article 180-13 (1) Where a liquidator or company auditor is liable for any
damage caused to the Liquidation Mutual Company or a third Party, the other liquidator(s) or company auditor(s) shall be his/her joint and several obligors
when the latter is (are) also liable for that damage.
(2) The provision of Article 430 of the Companies Act as applied mutatis
mutandis pursuant to Article 53-36 shall not apply to the case set forth in the preceding paragraph.
(Authority, etc. of Board of Liquidators)
Article 180-14 (1) The board of liquidators of a Liquidation Mutual Company shall be composed of all of its liquidators.
(2) The board of liquidators shall carry out the following duties:
(i) Decision on the execution of business of the Mutual Company with a board of liquidators;
(ii) Supervision of the execution of duties by the liquidators; and
(iii) Appointment and removal of the Representative Liquidator.
(3) The board of liquidators shall appoint the Representative Liquidator from among the liquidators; provided, however, that this shall not apply to the cases where the Representative Liquidator has been appointed otherwise.
(4) The board of liquidators may remove the Representative Liquidator that it
has appointed or the person who has become the Representative Liquidator pursuant to the provision of Article 180-9, paragraph (4).
(5) Where the Prime Minister has appointed the Representative Liquidator of a
Liquidation Mutual Company pursuant to the provision of Article 174, paragraph (7), the board of liquidators may not appoint or remove the Representative Liquidator.
(6) The board of liquidators may not delegate to any liquidator an important
decision on the execution of business, including on any of the following matters:
(i) The appropriation of and acceptance of assignment of important assets ; (ii) Contracting of a large amount of debt;
(iii) Appointment or removal of a manager or any other important employee; (iv) Establishment, change or abolition of a secondary office or any other
important structure;
(v) The matters specified by a Cabinet Office Ordinance as an important
matter regarding the solicitation of subscribers for bonds (referring to the
bonds set forth in Article 61), such as the matter listed in Article 61, item (i);
or
(vi) Revision of a system to ensure that the liquidators carry out their duties in compliance with applicable laws and regulations and the articles of
incorporation, and any other system required by a Cabinet Office Ordinance for ensuring that the business of a Liquidation Mutual Company is executed in an appropriate manner.
(7) The business of a Mutual Company with a board of liquidators shall be executed by:
(i) The Representative Liquidator in a Liquidation Mutual Company; or
(ii) A liquidator other than the Representative Liquidator appointed by a resolution of the board of liquidators to execute the business of the Mutual Company with a board of directors.
(8) A liquidator listed in the items of the preceding paragraph shall report, at
least once in every three months, the status of execution of his/her duties to the board of liquidators.
(9) The provisions of Article 364 (Representation of Company in Actions between Companies with Board of Directors and Directors) and Article 365 (Restrictions on Competition and Transactions with Companies with Board of Directors) of
the Companies Act shall apply mutatis mutandis to a Mutual Company with a board of liquidators. In this case, the term "Article 353" in Article 364 of that Act shall be deemed to be replaced with "Article 353 as applied mutatis
mutandis pursuant to Article 180-8, paragraph (4) of the Insurance Business Act"; the term "Article 356" in Article 365, paragraph (1) of that Act shall be deemed to be replaced with "Article 356 as applied mutatis mutandis pursuant to Article 180-8, paragraph (4) of the Insurance Business Act"; and the term
"the items of Article 356, paragraph (1)" in Article 365, paragraph (2) of that
Act shall be deemed to be replaced with "the items of Article 356, paragraph (1)
as applied mutatis mutandis pursuant to Article 180-8, paragraph (4) of the
Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Operations of Board of Liquidators)
Article 180-15 The provisions of Part II, Chapter IV, Section 5, Subsection 2 (excluding Article 367, Article 371, paragraphs (3) and (5), Article 372,
paragraph (3), and Article 373) (Operations) of the Companies Act shall apply mutatis mutandis to the operations of the board of liquidators of a Mutual Company with a board of liquidators; and the provisions of Article 868,
paragraph (1) (Jurisdiction of Non-Contentious Cases), Article 869 (Showing of
Prima Facie Evidence), Article 870 (limited to the segment pertaining to item (i)) (Hearing of Statements), the main clause of Article 871 (Supplementary Note of Reasons), the main clause of Article 873 (Stay of Execution of Original Sentence ), Articles 875 (Exclusion from Application of Provisions of Act on
Procedures for Non-Contentious Cases) and Article 876 (Supreme Court Rules)
of that Act shall apply mutatis mutandis to an application for permission
under Article 371, paragraph (2) or (4) of that Act as applied mutatis mutandis pursuant to this Article. In this case, the terms "shareholder" and "at any time during the business hours of a Stock Company" in Article 371, paragraph (2) (Minutes) of that Act shall be deemed to be replaced with "member (or general representative, where the company has a General Meeting)" and "with the
permission of the court," respectively; the term "Parent Company or
Subsidiary" in Article 371, paragraph (6) of that Act shall be deemed to be replaced with "de facto Subsidiary Company as set forth in Article 33-2,
paragraph (1) of the Insurance Business Act"; and the term "Article 363,
paragraph (2)" in Article 372, paragraph (2) (Omission of report to board of directors) of that Act shall be deemed to be replaced with "Article 180-14,
paragraph (8) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Application of Provisions on Directors, etc.)
Article 180-16 For the purpose of applying to a Liquidation Mutual Company the provisions of Chapter II, Section 2, Subsection 3; Chapter II, Section 2,
Subsection 4, Divisions 1 and 2; Article 53-5, paragraph (2); Article 343,
paragraphs (1) and (2) of the Companies Act as applied mutatis mutandis
pursuant to Article 53-11; Article 345, paragraph (3) of that Act as applied
mutatis mutandis pursuant to Article 345, paragraph (4) of that Act as applied mutatis mutandis pursuant to Article 53-11; Article 359 of that Act as applied mutatis mutandis pursuant to Article 53-15; Chapter II, Section 2, Subsection
4, Division 6; and Article 62-2, the provisions pertaining to a director,
representative director, board of directors or Mutual Company shall be deemed as provisions applicable to a liquidator, Representative Liquidator, board of
liquidators or Mutual Company with board of liquidators, respectively, and shall apply as such to the liquidator(s), Representative Liquidator, board of
liquidators or Mutual Company with a board of liquidators as the case may be.
(Inventory of Property, etc.)
Article 180-17 The provisions of Part II, Chapter IX, Section 1, Subsection 3
(excluding Article 496, paragraph (3) and Article 497, paragraph (1), item (iii)) (Property Inventories) of the Companies Act shall apply mutatis mutandis to a Liquidation Mutual Company. In this case, the terms "the items of Article 489, paragraph (7)" and "the items of Article 475" in Article 492, paragraph (1)
(Preparation of Inventory of Property) of that Act shall be deemed to be
replaced with "Article 180-14, paragraph (7), item (i) or (ii) of the Insurance
Business Act" and "Article 180, item (i) or (ii) of that Act," respectively; and the term "the items of Article 475" in Article 494, paragraph (1) (Preparation and Retention of Balance Sheet) of that Act shall be deemed to be replaced with
"Article 180, item (i) or (ii) of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Order of Appropriation of Property)
Article 181 (1) The liquidator(s) of a Liquidation Mutual Company shall perform the obligations, and redeem the funds of the Mutual Company.
(2) In the case referred to in the preceding paragraph, the funds shall not be redeemed prior to the performance of the Mutual Company's obligations.
(Performance of Obligations, etc.)
Article 181-2 The provisions of Part II, Chapter IX, Section 1, Subsection 4
(Performance of Obligations), Article 868, paragraph (1) (Jurisdiction of Non- Contentious Cases), Article 871 (Supplementary Note of Reasons), Article 874
(limited to the segment pertaining to item (i)) (Restrictions on Appeal), Article
875 (Exclusion from Application of Provisions of Act on Procedures for Non- Contentious Cases) and Article 876 (Supreme Court Rules) of the Companies Act shall apply mutatis mutandis to a Liquidation Mutual Company. In this
case, the term "the items of Article 475" in Article 499, paragraph (1) (Public
Notices to Creditors) of that Act shall be deemed to be replaced with "Article
180, item (i) or (ii) of the Insurance Business Act"; and the term "court" in
Article 500, paragraph (2) of that Act shall be deemed to be replaced with
"Prime Minister"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Distribution of Residual Assets)
Article 182 (1) Unless otherwise provided in the articles of incorporation, any
appropriation of the residual assets of a Liquidation Mutual Company shall be made by a resolution of the General Meeting of members (or General Meeting,
where the company has such meeting).
(2) The residual assets of a Liquidation Mutual Company shall be distributed to its members or disposed of in a manner that contributes to the protection of
Policyholders, etc.
(3) Any distribution of the residual assets of a Liquidation Mutual Company to its members shall be made in accordance with the members' amount of
contribution (referring to the amount calculated pursuant to the provisions of a
Cabinet Office Ordinance as that part of the profits obtained by investing the insurance premiums paid by the members and the amount of money received as such insurance premiums which have neither been allocated to any
payments such as insurance claims or refunds, nor to any business or other expenditures (including any refund under Article 177, paragraph (3)).
(4) Any measures of the residual assets of a Liquidation Mutual Company in a manner that contributes to the protection of Policyholders, etc. under
paragraph (2) shall be made in an amount not exceeding the total amount
calculated in accordance with a Cabinet Office Ordinance set forth in the
preceding paragraph for all withdrawing members, pursuant to the provisions of a Cabinet Office Ordinance.
(5) The resolution set forth in paragraph (1) shall be a resolution under Article
62, paragraph (2).
(6) Any resolution under paragraph (1) shall be null and void without the authorization of the Prime Minister.
(Completion of Liquidation Process, etc.)
Article 183 (1) The provisions of Article 507 (Conclusion of Liquidation), Article
508 (Retention of Accounting Materials), Article 868, paragraph (1)
(Jurisdiction of Non-Contentious Cases), Article 871 (Supplementary Note of
Reasons), Article 874 (limited to the segment pertaining to item (i))
(Restrictions on Appeal), Article 875 (Exclusion from Application of Provisions of Act on Procedures for Non-Contentious Cases) and Article 876 (Supreme
Court Rules) of the Companies Act shall apply mutatis mutandis to a
Liquidation Mutual Company. In this case, the term "the items of Article 489, paragraph (7)" in Article 508, paragraph (1) of that Act shall be deemed to be replaced with "Article 180-14, paragraph (7), item (i) or (ii) of the Insurance
Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(2) The provisions of Article 928 (excluding paragraph (2)) (Registration, etc. of
Liquidators), Article 929 (limited to the segment pertaining to item (i))
(Registration of Completion of Liquidation) and the main clause of Article 932 (Registration of Change in Branch Offices) of the Companies Act, and Article
73 to 75 inclusive (Registration of Liquidators, Registration of Change
Regarding Liquidators, Registration of Completion of Liquidation) of the Commercial Registration Act shall apply mutatis mutandis to a registration regarding the liquidation of a Mutual Company. In this case, any other
necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Application mutatis mutandis, of Companies Act to Special Liquidation of
Mutual Company)
Article 184 The provisions of Part II, Chapter IX, Section 2 (excluding Article
522, paragraph (3) and Article 541) (Special Liquidations), Part VII, Chapter II, Section 4 (Lawsuits over Special Liquidations), Part VII, Chapter III, Sections
1 (excluding Article 868, paragraphs (2) to (5) inclusive and Article 870 to 874
inclusive) (General Provisions) and 3 (excluding Article 879, Article 880, and
Article 898, paragraphs (1), (2) and (5)) (Special Provisions on Special
Liquidation Procedure), and Article 938, paragraphs (1) to (5) inclusive
(Commissioned Registration by Judgment Concerning Special Liquidations) of the Companies Act shall apply mutatis mutandis to a Liquidation Mutual
Company. In this case, the term "shareholders who have held, for the
consecutive period of the past six months or more (or, in cases where a shorter period is provided for in the articles of incorporation, such period), not less
than three hundredths of the voting rights held by all of the shareholders
(excluding the shareholders that cannot exercise voting rights on all matters on which resolutions can be passed at the shareholders meeting; or, in cases where any proportion less than that is provided for in the articles of
incorporation, such proportion) or shareholders who have held, for the
consecutive period of the past six months or more (or, in cases where a shorter period is provided for in the articles of incorporation, such period), not less
than three hundredths of the issued shares (excluding treasury shares; or, in
cases where a lower proportion is provided for in the articles of incorporation, such proportion)" in Article 522, paragraph (1) (Order to investigate) of that
Act shall be deemed to be replaced with "members representing at least three thousandths (or any smaller proportion prescribed by the articles of
incorporation) of the total membership, or three thousand (or any smaller
number prescribed by the articles of incorporation) or more members of the Mutual Company (or, in a Specified Mutual Company, members equal to or exceeding the number specified by a Cabinet Order set forth in Article 38,
paragraph (1) of the Insurance Business Act), who have been members of the
Mutual Company without interruption for the preceding six months (or any
shorter period prescribed by the articles of incorporation)"; the term "assigned claims owed by the Liquidating Stock Company or shares in" in Article 532,
paragraph (2) (Remunerations of Supervisors) of that Act shall be deemed to be
replaced with "acquire any claim against"; the term "Chapter VII (excluding
Article 467, paragraph (1), item (v))" in Article 536, paragraph (3) (Restrictions on Assignment of Business) of that Act shall be deemed to be replaced with
"Article 62-2 of the Insurance Business Act"; and the term "Article 492,
paragraph (1)" in Article 562 (Report to Creditors' Meeting of Outcome of
Investigations by Liquidators) of that Act shall be deemed to be replaced with
"Article 492, paragraph (1) as applied mutatis mutandis pursuant to Article
180-17 of the Insurance Business Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Chapter IX Foreign Insurer
Section 1 General Rules
(License)
Article 185 (1) A Foreign Insurer may, only in cases where it established a
branch office, etc. in Japan (referring to an office in Japan, such as a branch office or secondary office, of the Foreign Insurer, or the office of those
entrusted by the Foreign Insurer to act as an agent for the underwriting of
insurance pertaining to the Insurance Business in Japan of the Foreign
Insurer; the same shall apply hereinafter in this Section to Section 5 inclusive)
and obtained a license of the Prime Minister, transact Insurance Business pertaining to that license at said branch office, etc., notwithstanding the
provision of Article 3, paragraph (1).
(2) The license set forth in the preceding paragraph refers to two types of
licenses: the foreign life insurance business license and the foreign non-life insurance business license.
(3) The same person cannot obtain both the foreign life insurance business
license and the foreign non-life insurance business license.
(4) The foreign life insurance business license shall be a license pertaining to the business of underwriting the classes of insurance listed in Article 3, paragraph (4), item (i) or, in addition, underwriting the classes of insurance listed in the
same paragraph, items (ii) or (iii).
(5) The foreign non-life insurance business license shall be a license pertaining to the business of underwriting the classes of insurance listed in Article 3,
paragraph (5), item (i) or, in addition, underwriting the classes of insurance listed in the same paragraph, item (ii) or (iii).
(6) A Foreign Insurance Company, etc. shall, except as otherwise specified by a
Cabinet Office Ordinance, conclude, in Japan, an insurance contract pertaining to any persons with an address or residence in Japan or property located in
Japan, or vessels or aircraft with Japanese nationality.
(Foreign Insurers, etc. Without Branch Offices, etc. in Japan)
Article 186 (1) A Foreign Insurer without a branch office, etc. in Japan shall not conclude an insurance contract pertaining to any persons with an address or residence in Japan or property located in Japan, or vessels or aircrafts with Japanese nationality (except for insurance contracts specified by a Cabinet
Order; the same shall apply in the following paragraph); provided, however,
that this shall not apply to insurance contracts pertaining to the permission set forth in the same paragraph.
(2) A person that intends to apply to a Foreign Insurers without a branch office,
etc. in Japan for an insurance contract pertaining to any persons with an address or residence in Japan or property located in Japan, or vessels or
aircrafts with Japanese nationality, shall obtain the permission of the Prime
Minister pursuant to the provisions of a Cabinet Office Ordinance before the application is made.
(3) The Prime Minister shall not grant the permission set forth in the preceding
paragraph in the case where the insurance contract is found to fall under any of the following items:
(i) The contents of that insurance contract are in violation of laws and
regulations or are unfair;
(ii) In place of concluding that insurance contract, it is easy to conclude an insurance contract between insurance companies or foreign insurance
companies, etc. which have equivalent or favorable conditions relative to that insurance contract;
(iii) The conditions of that insurance contract are significantly less balanced
compared to the conditions that shall normally be attached in the case of
concluding an insurance contract similar to that contract between insurance companies or foreign insurance companies, etc.;
(iv) There is a risk of unjustifiable infringement to the interests of the insured and other relevant persons due to the conclusion of that insurance contract; and
(v) There is a risk of adverse effect to the sound development of the Insurance
Business in Japan or harm to the public interest due to the conclusion of that insurance contract.
(Application Procedures for a License, etc.)
Article 187 (1) A Foreign Insurer that intends to obtain the license set forth in
Article 185, paragraph (1) shall submit to the Prime Minister a written application for a license stating the following matters:
(i) The name of the home country of that Foreign Insurer (meaning the country
where that Foreign Insurer started the Insurance Business or the country that enacted laws and regulations in relation to the establishment of a
juridical person pertaining to that Foreign Insurer; hereinafter the same shall apply in this Section to Section 4 inclusive) and the name or trade
name or denomination of that Foreign Insurer, address or location of the
head office or principal office, and date of commencement or establishment of the Insurance Business;
(ii) Name and address of the representative person in Japan;
(iii) Types of license desired; and
(iv) Principal branch in Japan (meaning the branch office, etc. which the
Foreign Insurer has prescribed as the headquarters of its Insurance Business in Japan; hereinafter the same shall apply in this Section to Section 4
inclusive).
(2) A certificate from an organization with jurisdiction of the home country which proves the following matters shall be attached to the written application for a
license set forth in the preceding paragraph:
(i) That the commencement of the Insurance Business of that Foreign Insurer or the establishment of a juridical person pertaining to that Foreign Insurer was done lawfully; and
(ii) That the Foreign Insurer is lawfully transacting an Insurance Business in
its home country that is similar to the Insurance Business it intends to transact in Japan after obtaining that license.
(3) In addition to what is prescribed in the preceding paragraph, the following
documents and other documents specified by a Cabinet Office Ordinance shall be attached to the written application for a license set forth in paragraph (1): (i) Articles of incorporation or equivalent documents;
(ii) Statement of business procedures in Japan;
(iii) General policy conditions of the insurance contract concluded in Japan;
and
(iv) Statement of calculation procedures for insurance premiums and policy reserve pertaining to the insurance contract concluded in Japan.
(4) The documents listed in items (ii) to (iv) inclusive of the preceding paragraph
shall state the matters specified by a Cabinet Office Ordinance.
(5) The provision of Article 5 shall apply mutatis mutandis to cases where an
application is made for the license set forth in Article 185, paragraph (1). In
this case, the term "business of an Insurance Company" in Article 5, paragraph
(1), items (i) and (ii) shall be deemed to be replaced with "business in Japan of a Foreign Insurance Company, etc.", the term "the preceding Article,
paragraph (2), items (ii) and (iii)" in the same paragraph, item (iii) shall be
deemed to be replaced with "Article 187, paragraph (3), items (ii) and (iii)", and the term "the preceding Article, paragraph (2), item (iv)" in the same
paragraph, item (iv) shall be deemed to be replaced with "Article 187, paragraph (3), item (iv)".
(Conditions for a License)
Article 188 (1) The Prime Minister may, in the case where the Insurance
Business intended to be transacted in Japan by a Foreign Insurer, which applied for a foreign life insurance business license, only pertains to the underwriting of an insurance contract in which the insurance amount is
indicated in foreign currency and for which the counter parties are those
specified by a Cabinet Order, grant a license set forth in Article 185, paragraph
(1) attached with conditions to the effect that the Foreign Insurer may carry out only the businesses pertaining to that insurance contract.
(2) The provisions specified by a Cabinet Order, such as Article 196, shall not apply to Foreign Life Insurance Companies, etc., which obtained the license set forth in Article 185, paragraph (1) attached with conditions set forth in the
preceding paragraph; any necessary special measures concerning the application of this Act may be specified by a Cabinet Order.
(3) Special measures regarding the application procedures for a license set forth in Article 185, paragraph (1) of a Foreign Insurer in the case prescribed in
paragraph (1) and other necessary matters concerning the application of the
provision of paragraph (1) shall be specified by a Cabinet Order.
(Public Notice of Prime Minister)
Article 189 The Prime Minister shall, when he/she grants the license set forth in
Article 185, paragraph (1), give public notice thereof and the matters listed in
the items of Article 187, paragraph (1) in the official gazette without delay. The same shall apply when a notification is made under the provision of Article 209 on the change of matters listed in the same paragraph, items (i), (ii) or (iv).
(Deposit)
Article 190 (1) A Foreign Insurance Company, etc. shall deposit money to the deposit office closest to the principal branch in Japan in the amount specified by a Cabinet Order deemed to be necessary and appropriate to protect
Policyholders, etc. in Japan.
(2) The Prime Minister may, when he/she finds it necessary to protect
Policyholders, etc. in Japan, order a Foreign Insurance Company, etc. to
deposit money in the amount found to be reasonable, in addition to the amount specified by a Cabinet Order of the preceding paragraph, prior to commencing an Insurance Business in Japan.
(3) A Foreign Insurance Company, etc. may, pursuant to the provisions of a
Cabinet Order, when it concludes a contract by which the required deposit
would be deposited for that Foreign Insurance Company, etc. in response to the order of the Prime Minister and notifies the Prime Minister thereof, choose not
to deposit all or part of the deposit set forth in the preceding two paragraphs concerning the amount deemed to be deposited under that contract while the contract is in effect (hereinafter referred to in this Article as "Contract
Amount").
(4) The Prime Minister may, when he/she finds it necessary to protect
Policyholders, etc. in Japan, order any persons who have concluded the contract set forth in the preceding paragraph with a Foreign Insurance
Company, etc. or that Foreign Insurance Company, etc. to deposit all or part of the amount corresponding to the Contract Amount.
(5) A Foreign Insurance Company, etc. shall not commence the Insurance
Business pertaining to its license unless it has deposited (including the
conclusion of the contract set forth in paragraph (3); the same shall apply in paragraph (8)) the deposit set forth in paragraph (1) (including the following
deposit in the case where a company is ordered to deposit the money set forth
in paragraph (2) pursuant to the provision of the same paragraph) and notified thereof to the Prime Minister.
(6) Policyholders pertaining to insurance contracts in Japan, the insured, or any
persons who shall receive insurance amounts have the right to receive payment ahead of other obligees with regard to the deposit pertaining to that Foreign
Insurance Company, etc. concerning claims resulting from an insurance contract.
(7) The necessary matters concerning the execution of the rights set forth in the preceding paragraph shall be specified by a Cabinet Order.
(8) A Foreign Insurance Company, etc. shall, when the deposit amount (including
Contract Amount) is deemed to be short of the amount specified by a Cabinet
Order of paragraph (1) for any reason such as the execution of the rights set forth in paragraph (6), deposit the deficit within two weeks from the date specified by a Cabinet Office Ordinance and notify thereof to the Prime Minister without delay.
(9) A Foreign Insurance Company, etc. may replace the deposit set forth in
paragraph (1), paragraph (2), or the preceding paragraph with national government bond certificates, local government bond certificates, or other securities specified by a Cabinet Office Ordinance (including transfer bonds
specified by Article 278, paragraph (1) of the Act on Transfer of Bonds, Shares,
etc.; the same shall apply in Article 223, paragraph (10), Article 272-5, paragraph (9) and Article 291, paragraph (9)).
(10) The deposit which was deposited pursuant to the provision of paragraph (1), (2), (4), or (8) may be reclaimed pursuant to the provisions of a Cabinet Order
if it falls under any of the following items:
(i) When the license set forth in Article 185, paragraph (1) pertaining to that
Foreign Insurance Company, etc. is revoked pursuant to the provision of
Articles 205 or 206; and
(ii) When the license set forth in Article 185, paragraph (1) pertaining to that Foreign Insurance Company, etc. loses its validity pursuant to the provision of Article 273.
(11) In addition to the matters specified by the preceding paragraphs, the
necessary matters concerning the deposit shall be specified by a Cabinet Office
Ordinance and Ordinance of the Ministry of Justice.
(Trade Name or Denomination of a Foreign Insurance Company, etc.)
Article 191 The provision of Article 7, paragraph (2) shall not apply to a Foreign
Insurance Company, etc.
(Representative Person in Japan)
Article 192 (1) Representative persons in Japan of a Foreign Insurance Company, etc. (except for foreign companies prescribed in Article 2, item (ii) (Definitions)
of the Companies Act; hereinafter the same shall apply in this paragraph to
paragraph (3) inclusive) shall have the authority to take all judicial and non- judicial action in connection with the business in Japan of that Foreign
Insurance Company, etc.
(2) Restrictions on the right set forth in the preceding paragraph may not be asserted against a third party without knowledge of such restrictions.
(3) A Foreign Insurance Company, etc. shall bear responsibility for the compensation of damage caused to a third party in connection with
representative persons in Japan carrying out their duties.
(4) Representative persons in Japan of a Foreign Insurance Company, etc. shall, even after retiring from their posts, have rights and duties as representative
persons in Japan until the registration of Article 22 (Registration of Manager)
of the Commercial Code or Article 933, paragraph (2) (Registration of Foreign
Company) of the Companies Act (including the cases where it is applied
mutatis mutandis pursuant to Article 215) regarding the name and address and other locations of representative persons who shall act in their place or
public notice under the provision of the second sentence of Article 189 is made. (5) Representative persons in Japan of a Foreign Insurance Company, etc. shall
not engage in the daily affairs of other company, except when authorized by the
Prime Minister.
(6) When an application for authorization referred to in the preceding paragraph is filed, the Prime Minister shall not grant the authorization unless he/she
finds that the matters pertaining to the application are not likely to interfere with the sound and appropriate business in Japan of the Foreign Insurance Company, etc.
(Foreign Mutual Company)
Article 193 (1) A Foreign Mutual Company shall prescribe representative
persons in Japan when it intends to continue trading in Japan. In this case, at least one of the representative persons in Japan shall be persons with an
address in Japan.
(2) The provision of Article 818 (Prohibition of Continuous Trading Prior to
Registration, etc.) and Article 819 (Public Notice of Matters Corresponding to the Balance Sheet) of the Companies Act shall apply mutatis mutandis to a
Foreign Mutual Company. In this case, the term "foreign company registered
as a foreign company (limited to those where similar companies or their closest equivalents in Japan are stock companies)" in the same Article, paragraph (1) shall be deemed to be replaced with "Foreign Mutual Company registered as a Foreign Mutual Company", the term "Article 438, paragraph (2)" in the same
Article, paragraph (1) shall be deemed to be replaced with "Article 54-6, paragraph (2) of the Insurance Business Act," and the term "Article 939, paragraph (1), item (i) or (ii)" in the same Article, paragraph (2) shall be deemed to be replaced with "Article 217, paragraph (1), item (i) of the
Insurance Business Act." In addition, the necessary technical change in
interpretation shall be specified by a Cabinet Order.
Section 2 Business, Accounting, etc.
(Transaction with Special Person Concerned, etc.)
Article 194 A Foreign Insurance Company, etc. shall not carry out any of the following transactions or activities with a person who has a special
relationship as specified by a Cabinet Order with the Foreign Insurance
Company, etc. (hereinafter referred to as "Special Person Concerned" in this Article) or a customer related to any Special Person Concerned; provided, however, this shall not apply where the Prime Minister has approved such
transaction or activity for any of the compelling reasons specified by a Cabinet
Office Ordinance:
(i) Any transaction, such as the purchase and sale of assets, carried out with a Special Person Concerned in a branch office, etc. of the Foreign Insurance Company, etc. on significantly different terms and conditions from those
applied to normal transactions of the Foreign Insurance Company, etc.; or
(ii) Any transaction or activity carried out with a Special Person Concerned or a customer related to a Special Person Concerned in a branch office, etc. of the Foreign Insurance Company, etc. that is equivalent to the transaction
listed in the preceding item and specified by a Cabinet Office Ordinance as
posing a risk to the sound and appropriate management of the Insurance
Business carried on by the Foreign Insurance Company, etc. in Japan.
(Submission of Closing Financial Statements of Head Office or Principal Office) Article 195 A Foreign Insurance Company, etc. shall, for each business year,
submit to the Prime Minister an inventory of property, balance sheet, profit
and loss statement and business report prepared in its head office or principal office, pursuant to the provisions of a Cabinet Office Ordinance, within a reasonable period of time following the end of the business year.
(Keeping and Inspection, etc. of Articles of Incorporation, etc.)
Article 196 (1) The representative person of a Foreign Insurance Company, etc. in Japan shall keep in its principal branch in Japan its articles of
incorporation or any other equivalent document (or, for a Foreign Mutual
Company, such document and its members list in Japan), or a electromagnetic record thereof.
(2) The representative person of a Foreign Insurance Company, etc. in Japan
shall, pursuant to the provisions of a Cabinet Office Ordinance, keep in its
principal branch in Japan the document or electromagnetic record set forth in the preceding Article for five years from the day following the date of its
submission pursuant to the provision of that Article.
(3) The representative person of a Foreign Insurance Company, etc. in Japan shall, pursuant to the provisions of a Cabinet Office Ordinance, prepare the following documents and annex detailed statements thereto for each
accounting period of the business year in Japan and keep them in its principal branch in Japan for five years from the day following the date of the end of the business year in Japan covered by such accounting.
(i) Balance sheet for the Insurance Business carried on in Japan;
(ii) Profit and loss statement for the Insurance Business carried on in Japan;
and
(iii) Business report for the Insurance Business carried on in Japan.
(4) The documents set forth in the preceding paragraph may be prepared in the form of electromagnetic record.
(5) The creditors and insured of a Foreign Insurance Company, etc., such as
Policyholders and beneficiaries of insurance benefits, may make the following requests at any time during the hours in which the Foreign Insurance
Company, etc. should be in business; provided, however, that they pay the fees determined by the Foreign Insurance Company, etc. in making a request
falling under item (ii) or (iv):
(i) Where the documents set forth in paragraphs (1) to (3) inclusive are prepared in writing, a request for inspection of such documents;
(ii) A request for a transcript or extract of the documents referred to in the preceding item;
(iii) Where the documents set forth in paragraphs (1) to (3) inclusive are
prepared in the form of electromagnetic record, a request for inspection of
anything that displays the matters recorded on the electromagnetic record in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding item by the electromagnetic means
determined by the Foreign Insurance Company, etc., or for any document that describes such matters.
(Obligation to Hold Assets in Japan)
Article 197 A Foreign Insurance Company, etc. shall, pursuant to the provisions of a Cabinet Office Ordinance, hold in Japan the assets equivalent to the sum total of the amount calculated pursuant to the provisions of a Cabinet Office
Ordinance on the basis of the policy reserve and reserve for outstanding claims set aside in Japan pursuant to the provisions of Article 116, paragraph (1) and
Article 117, paragraph (1) as applied mutatis mutandis pursuant to Article 199, and the amount specified by a Cabinet Office Ordinance as equivalent to equity
capital, such as the deposit set forth in Article 190.
(Application mutatis mutandis, of Companies Act, etc.)
Article 198 (1) The provision of Article 8 (No Use of Name, etc. which is likely to
be mistaken for a company) of the Companies Act shall apply mutatis mutandis to the use of a trade name or name which is likely to be mistaken for a Foreign Mutual Company; the provision of Article 9 (Liability of Company Permitting
Others to Use Its Trade Name) of that Act shall apply mutatis mutandis to the
name of a Foreign Mutual Company; the provisions of Part I, Chapter III,
Section 1 (Employees of a Company) of that Act shall apply mutatis mutandis to the employees of a Foreign Mutual Company; the provisions of Part I,
Chapter III, Section 2 (excluding Article 18) (Commercial Agents of the
Companies) of that Act shall apply mutatis mutandis to a person acting as an agent or intermediary in a transaction for a Foreign Mutual Company; the
provisions of Part I, Chapter IV (excluding Article 24) (Non Competition after Assignment of Business) of that Act shall apply mutatis mutandis to the cases where a Foreign Mutual Company has assigned its business or acquired any business or operation; and the provisions of Article 54, Article 54-2 and Article
54-3, paragraphs (1) and (4) shall apply mutatis mutandis to the books and
other materials of a Foreign Mutual Company. In this case, any technical change in interpretation required shall be specified by a Cabinet Order.
(2) The provisions of Part II, Chapter I (excluding Article 501 to 503 inclusive
and Article 523) (General Provisions) of the Commercial Code shall apply
mutatis mutandis to the activities carried out by a Foreign Mutual Company;
the provisions of Part II, Chapter II (Buying or Selling) of said Code shall apply mutatis mutandis to buying or selling between a Foreign Mutual
Company and a merchant or Mutual Company (including a Foreign Mutual
Company); the provisions of Part II, Chapter III (Current Account) of said Code shall apply mutatis mutandis to a contract pertaining to set-offs between a
Foreign Mutual Company and its usual trading partner; the provisions of Part
II, Chapter V (excluding Article 545) (Brokerage Business) of said Code shall
apply mutatis mutandis to the acting as an intermediary by a Foreign Mutual
Company in a commercial transaction between third parties; and the
provisions of Part II, Chapter VI (excluding Article 558) (Commission Agent
Business) and Article 593 (Deposit) of said Code shall apply mutatis mutandis to a Foreign Mutual Company.
(Application mutatis mutandis, of Provisions on Business, etc.)
Article 199 The provisions of Article 97, Article 97-2, paragraphs (1) and (2),
Article 98, Article 99, paragraphs (1), (2) and (4) to (6), Article 100 and Article
100-2 shall apply mutatis mutandis to the business of the branch offices, etc. of a Foreign Insurance Company, etc.; the provisions of Article 99, paragraphs (3) and (7) to (10) inclusive shall apply mutatis mutandis to the business of the
branch offices, etc. of a Foreign Life Insurance Company, etc.; the provisions of
Article 101 to 105 inclusive shall apply mutatis mutandis to a concerted activity carried out by a Foreign Non-Life Insurance Company, etc. with
another Non-Life Insurance Company (including a Foreign Non-Life Insurance
Company, etc.); and the provisions of Article 7-2, Article 109, Article 110,
paragraphs (1) and (3), Article 111, paragraph (1) and paragraphs (3) to (6)
inclusive, Article 112, Article 114 to 118 inclusive, and Article 120 to 122
inclusive shall apply mutatis mutandis to a Foreign Insurance Company, etc. In this case, the term "Article 3, paragraph (2)" in Article 97, paragraph (1) shall be deemed to be replaced with "Article 185, paragraph (2)"; the term
"Mutual Company" in Article 99, paragraph (6) shall be deemed to be replaced
with "Foreign Mutual Company"; the term "In the case where the license of
Article 3, paragraph (1) of the Insurance Business Act is cancelled pursuant to the provision of Article 133 or 134 of that Act, or in the case where the license of Article 3, paragraph (1) of that Act loses its effect pursuant to the provision of Article 273 of that Act" in Article 99, paragraph (8) shall be deemed to be
replaced with "In the case where the license of Article 185, paragraph (1) of the
Insurance Business Act is cancelled pursuant to the provision of Article 205 or
206 of that Act, or in the case where the license of Article 185, paragraph (1) of
that Act loses its effect pursuant to the provision of Article 273 of that Act"; the term "Article 3, paragraph (1) of the Insurance Business Act pursuant to the
provision of Article 133 or 134 of that Act" in Article 99, paragraph (8) shall be
deemed to be replaced with "Article 185, paragraph (1) of the Insurance
Business Act pursuant to the provision of Article 205 or 206 of that Act"; the term "Article 111, paragraphs (1) and (2)" in Article 99, paragraph (9) shall be deemed to be replaced with "Article 111, paragraph (1) as applied mutatis
mutandis pursuant to Article 199"; the term "business year" in Article 109
shall be deemed to be replaced with "business year in Japan"; the term "for each business year, prepare an interim business report and business report
describing the status of its business and property" in Article 110, paragraph (1) shall be deemed to be replaced with "for each business year in Japan, prepare an interim business report and business report describing the status of its business and property in Japan"; the term "for each business year, prepare
explanatory documents describing the matters specified by a Cabinet Office
Ordinance as pertaining to the status of its business and property" in Article
111, paragraph (1) shall be deemed to be replaced with "for each business year
in Japan, prepare explanatory documents describing the matters specified by a
Cabinet Office Ordinance as pertaining to the status of its business and
property in Japan"; the term "its head office or principal office and its branch
offices or secondary offices, or any other equivalent place specified by a Cabinet Office Ordinance" in Article 111, paragraphs (1) and (4) shall be deemed to be replaced with "the branch office of the Foreign Insurance Company, etc. in
Japan or any other equivalent place specified by a Cabinet Office Ordinance";
the term "business and property of the Insurance Company and its Subsidiary
Company, etc." in Article 111, paragraph (6) shall be deemed to be replaced
with "business and property of the Foreign Insurance Company, etc. in Japan";
the term "owns" in Article 112, paragraph (1) shall be deemed to be replaced
with "owns in Japan"; the term ", pursuant to the provisions of a Cabinet Office
Ordinance" in Article 112, paragraph (1) shall be deemed to be deleted; the term "set aside as a reserve" in Article 112, paragraph (2) shall be deemed to
be replaced with "set aside in Japan as a reserve;" the term "Policyholders" in
Article 114, paragraph (1) shall be deemed to be replaced with "Policyholders in Japan"; the terms "within its portfolio" and "set aside as price fluctuation
reserve" in Article 115, paragraph (1) shall be deemed to be replaced with "within its portfolio in Japan" and "set aside in Japan as price fluctuation reserve," respectively; the term "Shares, etc." in Article 115, paragraph (2) shall be deemed to be replaced with "Shares, etc. in Japan"; the terms "each accounting period," "insurance contracts" and "set aside a certain amount of
money" in Article 116, paragraph (1) shall be deemed to be replaced with "each
accounting period of the business year in Japan," "insurance contracts in
Japan" and "set aside in Japan a certain amount of money," respectively; the term "funding the policy reserve" in Article 116, paragraph (2) shall be deemed to be replaced with "funding in Japan the policy reserve"; the term "insurance
contract" in Article 116, paragraph (3) shall be deemed to be replaced with
"insurance contract in Japan"; the terms "each accounting period," "insurance contracts," "as expenditure" and "reserve for outstanding claims" in Article 117, paragraph (1) shall be deemed to be replaced with "each accounting period of
the business year in Japan," "insurance contracts in Japan," "in Japan as
expenditure" and "reserve for outstanding claims in Japan," respectively; the terms "insurance contract specified by a Cabinet Office Ordinance" and
"create" in Article 118, paragraph (1) shall be deemed to be replaced with
"insurance contract in Japan specified by a Cabinet Office Ordinance" and
"create in Japan," respectively; the terms "board of directors," "Life Insurance
Company or a Non-Life Insurance Company meeting the requirements
specified by a Cabinet Office Ordinance," "actuary" and "method of calculating insurance premiums" in Article 120, paragraph (1) shall be deemed to be
replaced with "representative person," "Foreign Life Insurance Company, etc. or a Foreign Non-Life Insurance Company, etc. meeting the requirements
specified by a Cabinet Office Ordinance," "actuary of the Foreign Insurance Company, etc. in Japan" and "method of calculating the insurance premiums applicable to the insurance contracts concluded in Japan," respectively; the term "actuary" in Article 120, paragraph (2) shall be deemed to be replaced
with "actuary of a Foreign Insurance Company, etc. in Japan"; the terms "Insurance Company" and "actuary" in Article 120, paragraph (3) shall be deemed to be replaced with "Foreign Insurance Company, etc." and "actuary in Japan" respectively; the terms "actuary," "each accounting period," and "board of directors" in Article 121 shall be deemed to be replaced with "actuary of a Foreign Insurance Company, etc. in Japan," "each accounting period of the business year in Japan" and "representative person of the Foreign Insurance
Company, etc. in Japan," respectively; and the terms "Insurance Company" and
"actuary" in Article 122 shall be deemed to be replaced with "Foreign
Insurance Company, etc." and "actuary in Japan", respectively.
Section 3 Supervision
(Submission of Reports or Materials)
Article 200 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. in Japan by ensuring the sound and appropriate management in Japan of a Foreign Insurance Company, etc., request the Foreign Insurance Company, etc. or a person acting as an agent for the
underwriting of insurance prescribed in Article 185, paragraph (1) to submit reports or materials concerning the status of its business in Japan or property of the Foreign Insurance Company, etc.
(2) The Prime Minister may, when he/she finds it particularly necessary to
protect Policyholders, etc. in Japan by ensuring the sound and appropriate management in Japan of a Foreign Insurance Company, etc., request any
Special Person Concerned of the Foreign Insurance Company, etc. (meaning
the Special Person Concerned prescribed in Article 194; the same shall apply in the following paragraph and the following Article) or subcontractor in Japan
from the Foreign Insurance Company, etc. (except for the person acting as an
agent for the underwriting of insurance set forth in the preceding paragraph;
the same shall apply in the next paragraph), to submit reports or materials that would be helpful to understand the status of the business in Japan or
property of the Foreign Insurance Company, etc., within the limit necessary. (3) Any Special Person Concerned of a Foreign Insurance Company, etc. or
subcontractor in Japan from the Foreign Insurance Company, etc. may refuse
to submit reports or materials required under the preceding paragraph if there are justifiable grounds.
(On-Site Inspection)
Article 201 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. in Japan by ensuring the sound and appropriate management in Japan of a Foreign Insurance Company, etc., have his/her
officials enter a branch office, etc. of the Foreign Insurance Company, etc., ask questions on the status of its business in Japan or property of the Foreign
Insurance Company, etc., or inspect relevant items such as books and documents.
(2) The Prime Minister may, when and to the extent that he/she finds it
particularly necessary in the case of entering a site, asking questions, or conducting inspection under the preceding paragraph, have his/her officials enter a facility of any Special Person Concerned of the Foreign Insurance
Company, etc. or that of a person to whom business has been entrusted by that
Foreign Insurance Company in Japan, etc., have them ask questions on
matters that are necessary for questioning or inspecting the Foreign Insurance
Company, or have them inspect relevant items such as books and documents. (3) Any Special Person Concerned of a Foreign Insurance Company, etc. or
subcontractor in Japan from the Foreign Insurance Company, etc. may, when
there are justifiable grounds, refuse the questions and inspections under the provision of the preceding paragraph.
(Standard of Soundness)
Article 202 The Prime Minister may prescribe standards for determining the soundness of the management in Japan of a Foreign Insurance Company, etc. regarding whether or not the situation of the enhancement of the ability to pay for Insurance Claims, etc. is appropriate, using the following amounts
pertaining to a Foreign Insurance Company, etc.:
(i) Total amount of the items specified by a Cabinet Office Ordinance, such as the deposit set forth in Article 190; and
(ii) Amount calculated pursuant to the provisions of a Cabinet Office Ordinance as the amount for coping with possible risks exceeding standard predictions
that may occur due to any events pertaining to the insurance being
underwritten in Japan, such as insured events.
(Order to Change Regarding Matters Prescribed in Statement of Business
Procedures, etc.)
Article 203 The Prime Minister may, when he/she finds it necessary to protect
Policyholders, etc. in Japan by ensuring the sound and appropriate
management in Japan of a Foreign Insurance Company, etc. in light of the
situation of the business or property of the Foreign Insurance Company, etc. or a change in the circumstances, order the Foreign Insurance Company, etc. to
modify the matters prescribed in the documents listed in Article 187, paragraph (3), items (ii) to (iv) inclusive within the limit necessary.
(Suspension of Business, etc.)
Article 204 (1) The Prime Minister may, when he/she finds it necessary to protect Policyholders, etc. in Japan by ensuring sound and appropriate
management in Japan of a Foreign Insurance Company, etc. in light of the
situation of the business or property of the Foreign Insurance Company, etc., request that Foreign Insurance Company, etc. to submit an improvement plan for ensuring soundness in management in Japan of that Foreign Insurance Company, etc. or order a change to the submitted improvement plan by
designating the matters and the time limit for which measures should be taken,
or, the to the extent necessary, order suspension of the whole or part of business of that Foreign Insurance Company by setting a limit or order deposit of property of that Foreign Insurance Company or other measures necessary
for the purpose of supervision.
(2) An order under the preceding paragraph(including the request of submission
of an improvement plan) that is given when it is found necessary in light of the adequacy When it shall be deemed that the orders under the provision of the
preceding paragraph (including the request for submission of an improvement program) are necessary in light of the situation of the enhancement of the
ability to pay for Insurance Claims, etc. of a Foreign Insurance Company, etc., the orders shall be one of those that are specified by a Cabinet Office
Ordinance and an Ordinance of the Ministry of Finance for the categories of
the adequacy of the ability to pay for Insurance Claims, etc. of the Foreign
Insurance Company, etc.
(Rescission of License, etc.)
Article 205 The Prime Minister may, when a Foreign Insurance Company, etc. shall fall under any of the following items, order the full or Partial suspension of the business in Japan of the Foreign Insurance Company, etc. or the
dismissal of the representative person in Japan, or rescind the license set forth
in Article 185, paragraph (1):
(i) When it is in violation of laws and regulations (including foreign laws and regulations), the measures of the Prime Minister pursuant to laws and
regulations, or particularly vital matters among those prescribed in the documents listed in the items of Article 187, paragraph (3)
(ii) When it is in violation of the conditions attached to the license set forth in
Article 185, paragraph (1) or the license obtained in its country which
pertains to the Insurance Business (including any administrative measures similar to said license, such as permission or registration; the same shall
apply in Article 209, item (vii)); and
(iii) When it commits acts prejudicial to the public interest.
Article 206 The Prime Minister may, when he/she finds that the situation of the property of a Foreign Insurance Company, etc. is significantly worsening and
that it is not appropriate to continue the Insurance Business in Japan from the
viewpoint of protecting Policyholders, etc. in Japan, rescind the license of the
Foreign Insurance Company, etc. set forth in Article 185, paragraph (1).
(Application mutatis mutandis of Provisions Concerning Supervision)
Article 207 The provisions in Article 123 to 125 inclusive shall apply mutatis mutandis to a Foreign Insurance Company, etc. In this case, the term "Article
4, paragraph (2), items (ii) to (iv) inclusive" in Article 123, paragraph (1) shall be deemed to be replaced with "Article 187, paragraph (3), items (ii) to (iv)
inclusive," the term "Article 4, paragraph (2), items (ii) and (iii)" in Article 124,
paragraph (1) shall be deemed to be replaced with "Article 187, paragraph (3), items (ii) and (iii)," the term "Article 5, paragraph (1), item (iii), (a) to (e)
inclusive" in Article 124, paragraph (1) shall be deemed to be replaced with
"Article 5, paragraph (1), item (iii), (a) to (e) inclusive as applied mutatis mutandis pursuant to Article 187, paragraph (5)," the term "Article 4,
paragraph (2), item (iv)" in the same Article, item (ii) shall be deemed to be
replaced with "Article 187, paragraph (3), item (iv)," the term "Article 5,
paragraph (1), item (iv), (a) to (c) inclusive" in the same Article, item (ii) shall be deemed to be replaced with "Article 5, paragraph (1), item (iv), (a) to (c)
inclusive as applied mutatis mutandis pursuant to Article 187, paragraph (5),"
and the term "Article 5, paragraph (1), item (iii), (a) to (e) inclusive or item (iv),
(a) to (c) inclusive" in Article 125 shall be deemed to be replaced with "Article 5, paragraph (1), item (iii), (a) to (e) inclusive or item (iv), (a) to (c) inclusive as
applied mutatis mutandis pursuant to Article 187, paragraph (5)." Section 4 Abolition of Insurance Business, etc.
(Abolition of Insurance Business in Japan)
Article 208 A Foreign Insurance Company, etc. shall, when it intends to abolish its Insurance Business in Japan (excluding the cases falling under paragraph (6) of the following Article), obtain the authorization from the Prime Minister.
(Notification by Foreign Insurance Company, etc.)
Article 209 A Foreign Insurance Company, etc. shall, when it falls under any of the following items, notify the Prime Minister without delay pursuant to the
provisions of a Cabinet Office Ordinance, when it:
(i) has started its Insurance Business in Japan;
(ii) has modified any of the matters listed in Article 187, paragraph (1), item (i), (ii) or (iv), or any of the matters prescribed by the document listed in Article
187, paragraph (3), item (i);
(iii) has modified the amount of its capital or contribution, or the total amount of its funds;
(iv) has carried out an Entity Conversion;
(v) has merged, transferred or succeeded to a business through a company split, or assigned or acquired the whole or an important Part of a business (other
than a business that only pertains to branch offices, etc.);
(vi) has dissolved (for any other reason than a merger) or abolished its
Insurance Business;
(vii) has had its license pertaining to the Insurance Business canceled in its home country;
(viii) has been subject to a ruling for the commencement of bankruptcy
proceedings; or
(ix) When the holder falls under any of the other cases specified by a Cabinet
Office Ordinance.
(Application mutatis mutandis, of Provisions on Comprehensive Transfer of
Insurance Contracts)
Article 210 (1) The provisions of Chapter VII, Section 1 shall apply mutatis
mutandis to the comprehensive transfer of insurance contracts in Japan by a
Foreign Insurance Company, etc. In this case, the term "creditors" in Article
135, paragraph (3) shall be deemed to be replaced with "creditors of branch offices, etc. set forth in Article 185, paragraph (1);" the term "Transferor
Company and the Transferee Company" in Article 136, paragraphs (1) and (3)
shall be deemed to be replaced with "Transferee Company;" the terms "two
weeks before the date of the Shareholders Meeting, etc. set forth in paragraph (1) of the preceding Article," "written agreement concluded under Article 135, paragraph (1)" and "business offices or offices" in Article 136-2, paragraph (1) shall be deemed to be replaced with "the date of preparation of the written
agreement concluded under Article 135, paragraph (1) (hereinafter referred to
as "Transfer Agreement" in this Section)," "Transfer Agreement" and "branch offices, etc.," respectively; the term "shareholder or Policyholder of the
Transferor Company" in Article 136-2, paragraph (2) shall be deemed to be
replaced with "affected Policyholder;" the term "resolution set forth in Article
136, paragraph (1)" in Article 137, paragraph (1) shall be deemed to be
replaced with "preparation of the Transfer Agreement;" the terms "the time of the adoption of resolution under Article 136, paragraph (1)" and "shall not
conclude" in Article 138 shall be deemed to be replaced with "the time of
preparation of the Transfer Agreement" and "shall not conclude in Japan," respectively; and the term "creditors" in Article 139, paragraph (2), item (iii) shall be deemed to be replaced with "creditors of branch offices, etc. set forth in Article 185, paragraph (1)."
(2) Any Foreign Insurance Company, etc. that has transferred all of its insurance contracts in Japan shall be deemed to have abolished its Insurance Business in Japan. The provision of Article 208 shall not apply in this case.
(Application mutatis mutandis, of Provisions on Assignment or Acquisition of
Business, and Entrustment of Business and Property Administration) Article 211 The provision of Article 142 shall apply mutatis mutandis to a
transfer or acquisition of business in Japan involving a Foreign Insurance
Company, etc. or foreign insurance companies, etc.; and the provisions of
Chapter VII, Section 3 shall apply mutatis mutandis where a Foreign
Insurance Company, etc. has entrusted the administration of its business and property in Japan. In this case, the term "both the Insurance Company
entrusting the administration business (hereinafter referred to as "Entrusting
Company" in this Section) and the Entrusted Company" in Article 144,
paragraph (2) shall be deemed to be replaced with "the Entrusted Company";
the term "head office or principal office" in Article 146, paragraph (2) shall be deemed to be replaced with "principal branch in Japan set forth in that
paragraph"; the term ", Article 19" in item (iii) of that paragraph shall be
deemed to be replaced with "and Article 19," the term "and Article 46 (General
Rules on Attached Documents) of the Commercial Registration Act (including
the cases where they are applied mutatis mutandis pursuant to Article 67)" in
Article 146, paragraph (3) shall be deemed to be replaced with "(including the
cases where they are applied mutatis mutandis pursuant to Article 216, paragraph (1)"; the term "Entrusting Company set forth in Article 144,
paragraph (2) of the Insurance Business Act" in Article 148, paragraph (3)
shall be deemed to be replaced with "Foreign Insurance Company, etc. as defined in Article 2, paragraph (7) of the Insurance Business Act that has
entrusted the administration of its business and property in Japan"; the term
"Article 144, paragraph (1) of the Insurance Business Act" in Article 148,
paragraph (4) shall be deemed to be replaced with "Article 144, paragraph (1)
of the Insurance Business Act as applied mutatis mutandis pursuant to Article
211 of that Act;" and the term "both the Entrusting Company and the
Entrusted Company" in Article 149, paragraph (1) shall be deemed to be
replaced with "the Entrusted Company"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(Liquidation of Foreign Insurance Company, etc.)
Article 212 (1) A Foreign Insurance Company, etc. shall, when it falls under any of the following items, liquidate the whole of its property in Japan when:
(i) the license under Article 185, paragraph (1) pertaining to the Foreign
Insurance Company, etc. has been cancelled pursuant to the provision of
Article 205 or 206; or
(ii) the license under Article 185, paragraph (1) pertaining to the Foreign Insurance Company, etc. has lost its effect pursuant to the provision of Article 273.
(2) Where a Foreign Insurance Company, etc. goes into liquidation pursuant to
the provision of the preceding paragraph, the Prime Minister shall appoint (a)
liquidator(s) at the request of any interested person or without any Party's request. The same shall apply where he/she dismisses the liquidator(s).
(3) The Prime Minister shall, where he/she dismisses a liquidator pursuant to the provision of the preceding paragraph, commission the registry office with
jurisdiction over the principal branch of the liquidating Foreign Insurance
Company, etc. in Japan to make a registration to that effect.
(4) The provision of Article 500 (Restrictions on Performance of Obligations) of
the Companies Act as applied with relevant changes in interpretation pursuant to the provision of Article 178, and the provisions of Article 476 (Capacity of
Liquidating Stock Companies), Part II, Chapter IX, Section 1, Subsection 2 (Structures for Liquidating Stock Companies), Article 492 (Preparation of
Inventory of Property), Part II, Chapter IX, Section 1, Subsection 4 (excluding Article 500) (Performance of Obligations), Article 508 (Retention of Accounting Materials), Part II, Chapter IX, Section 2 (excluding Articles 510, 511 and 514) (Special Liquidations), Part VII, Chapter III, Sections 1 (General Provisions) and 3 (Special Provisions on Special Liquidation Procedure) and Article 938,
paragraphs (1) to (5) inclusive (Commissioned Registration by Judgment
Concerning Special Liquidations) of that Act shall apply mutatis mutandis to the liquidation of the property of a Foreign Insurance Company, etc. in Japan under paragraph (1), unless their specific characters forbid such application. In this case, any other necessary technical change in interpretation shall be
specified by a Cabinet Order.
(5) The provision of Article 177 shall apply mutatis mutandis to the liquidation of a Foreign Insurance Company, etc. under paragraph (1); the provisions of
Article 175 and Article 179, paragraph (1) shall apply mutatis mutandis to the
liquidation of a Foreign Insurance Company, etc. under paragraph (1)
(excluding the cases to which apply the provisions of Part II, Chapter IX,
Section 2 (excluding Articles 510, 511 and 514), Part VII, Chapter III, Sections
1 and 3, and Article 938, paragraphs (1) to (5) inclusive of the Companies Act as applied mutatis mutandis pursuant to the preceding paragraph; hereinafter the same shall apply in this paragraph); and the provisions of Article 200,
paragraph (1) and Article 201, paragraph (1) shall apply mutatis mutandis to
the liquidation of a Foreign Insurance Company, etc. under paragraph (1)
where the Prime Minister finds it necessary for supervising the liquidation of
the liquidating Foreign Insurance Company, etc. In this case, the term "date of dissolution" in Article 177, paragraph (2) shall be deemed to be replaced with
"date of cancellation or expiration of the license issued to the Foreign
Insurance Company, etc. under Article 185, paragraph (1)"; the term
"Liquidating Insurance Company, etc." in Article 177, paragraph (3) shall be
deemed to be replaced with "liquidating Foreign Insurance Company, etc."; the terms "paragraph (1), (4) or (9) of the preceding Article" and "Liquidating
Insurance Company, etc." in Article 175 shall be deemed to be replaced with
"Article 212, paragraph (2)" and "liquidating Foreign Insurance Company, etc.," respectively; and the term "Liquidating Insurance Company, etc." in Article 179, paragraph (1) shall be deemed to be replaced with "liquidating
Foreign Insurance Company, etc.;" any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(6) The provision of Article 812 (Retirement of Representative Person in Japan Who Has Address in Japan) of the Companies Act shall not apply to a Foreign Insurance Company, etc. (other than a Foreign Mutual Company) that has
obtained a license from the Prime Minister set forth in Article 185, paragraph
(1).
(Application mutatis mutandis, of Companies Act)
Article 213 The provisions of Article 822, paragraphs (1) to (3) inclusive
(Liquidation of Property of Foreign Company in Japan), Part VII, Chapter I, Section 2 (Order for Prohibition of Continuous Transactions or Closure of
Business Offices of Foreign Company), Part VII, Chapter III, Sections 1
(General Provisions), 4 (Special Provisions on Liquidation Proceedings for
Foreign Company) and 5 (Special Provisions on Procedure for Order of
Dissolution of Company, etc.), Article 937, paragraph (2) (Commission of
Registration by Judicial decision), and Article 938, paragraph (6)
(Commissioned Registration by Judgment Concerning Special Liquidations) of the Companies Act shall apply mutatis mutandis where a Foreign Mutual
Company has established a secondary office or other office in Japan. In this
case, any other necessary technical change in interpretation shall be specified by a Cabinet Order.
Section 5 Miscellaneous Provisions
(Registry)
Article 214 A registry office shall keep a registry of foreign mutual companies.
(Application mutatis mutandis of Companies Act)
Article 215 The provisions of Part VII, Chapter IV, Section 1 (excluding Article
907) (General Provisions), and Article 933 (excluding paragraph (1), item (i)
and paragraph (2), item (vii)) (Registration of Foreign Company), Article 934,
paragraph (2) (Registration of Appointment of Representative Person in Japan, etc.), Article 935, paragraph (2) (Registration of Relocation of Domicile of
Representative Person in Japan, etc.) and Article 936, paragraph (2)
(Registration of Establishment of Business Office in Japan, etc.) of the
Companies Act shall apply mutatis mutandis to the registration of a Foreign Mutual Company. In this case, the term "this Act" in Part VII, Chapter IV, Section 1 (excluding Article 907) of that Act shall be deemed to be replaced
with "the Insurance Business Act and this Act"; any other necessary technical
change in interpretation shall be specified by a Cabinet Order.
(Application mutatis mutandis, of Commercial Registration Act)
Article 216 The provisions of Article 1-3 to 5 inclusive (Registry Office,
Delegation of Duties, Suspension of Duties, Registrar, Disqualification of
Registrar), Article 7 to 15 inclusive (Prohibition of Taking out Registry, Loss and Restoration of Registry, Prevention of Loss of Registry, Delivery of
Certificate of Registered Matters, etc., Delivery of Document Containing
Description of Registered Matters, Inspection of Annexed Documents, Seal
Registration Certificate, Certification of Necessary Matters for Checking
Measures to Indicate Preparer of Electromagnetic Record, Fees, Principle of
Application by Party concerned, Registration by Commission), Article 17,
paragraphs (1), (2) and (4) (Method of Application for Registration), Article 18
to 19-2 inclusive (Documents to be Attached to Written Application,
Electromagnetic Record to be Attached to Written Application), Article 20, paragraphs (1) and (2) (Submission of Seal), Article 21 to 23-2 inclusive
(Reception, Receipt, Order of Registration, Identification by Registrar), Article
24 (excluding items (xi) and (xii)) (Dismissal of Application), Article 25 to 27 inclusive (Registration after Expiration of Period for Filing Complaint,
Modification of Administrative Boundaries, etc., Prohibition of Registration of
Same Trade Name at Same Location), Article 33 (Deletion of Registration of
Trade Name), Articles 44 and 45 (Registration of Company Managers), Articles
51 and 52 (Registration of Relocation of Head Office), Article 128 (Applicant),
Article 129 (Registration of Foreign Company), Article 130, paragraphs (1) and
(3) (Registration of Change), and Article 132 to 148 inclusive (Correction,
Application for Deletion, Deletion without any Party's Request, Exclusion from Application of Administrative Procedure Act, Exclusion from Application of Act on Access to Information Held by Administrative Organs, Application for
Examination, Treatment of Cases of Application for Examination, Exclusion
from Application from Administrative Appeal Act, Delegation to Ordinance of
the Ministry) of the Commercial Registration Act shall apply mutatis mutandis to a registration regarding a Foreign Mutual Company. In this case, the term "or the matters to be described in a written application pursuant to the
provision of the preceding paragraph" in Article 17, paragraph (4) of that Act
shall be deemed to be deleted; the term "preceding two paragraphs" in Article
17, paragraph (4) of that Act shall be deemed to be replaced with "that
paragraph"; the term "head office" in Article 51, paragraph (1) of that Act shall be deemed to be replaced with "office in Japan"; the term "a foreign company
under Article 933, paragraph (1) of the Companies Act" in Article 129, paragraph (1) of that Act shall be deemed to be replaced with "the establishment of an office of a Foreign Mutual Company"; the term "the
company has designated its representative person in Japan or established a business office in Japan" in Article 129, paragraph (3) of that Act shall be
deemed to be replaced with "the company has established an office in Japan";
and the terms "for registration under the preceding two paragraphs,"
"registration has been made under the preceding two paragraphs" and
"documents set forth in the preceding two paragraphs" in Article 130,
paragraph (3) of that Act shall be deemed to be replaced with "for registration under the preceding paragraph," "registration has been made under that
paragraph" and "document set forth in that paragraph," respectively; any other necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Method of Public Notice of Foreign Insurance Company, etc.)
Article 217 (1) A Foreign Insurance Company, etc. (limited to a foreign company or Foreign Mutual Company; the same shall apply in the following paragraph
and paragraph (3)) shall designate as its Method of Public Notice:
(i) Publication in a daily newspaper that publishes matters on current events;
or
(ii) Electronic public notice.
(2) Where a Foreign Insurance Company, etc. designates the method listed in item (ii) of the preceding paragraph as its Method of Public Notice, it shall be sufficient for the company to prescribe that electronic public notice shall be its Method of Public Notice. In this case, the company may designate the method
listed in item (i) of that paragraph as the Method of Public Notice to be
adopted where it is unable to give an electronic public notice due to an accident or any other unavoidable circumstances.
(3) The provisions of Article 940, paragraph (1) (excluding item (i)) and (3) (Period of Public Notice for Electronic Public Notice, etc.), Article 941
(Investigation of Electronic Public Notice), Article 946 (Obligation of
Investigation, etc.), Article 947 (Cases Where Investigation on Electronic
Public Notice may not be Carried out), Article 951, paragraph (2) (Keeping and
Inspection, etc. of Financial Statements, etc.), Article 953 (Order for
Improvement), and Article 955 (Entries, etc. in Investigation Registry, etc.) of the Companies Act shall apply mutatis mutandis where a Foreign Insurance Company, etc. gives public notice under this Act or any other Act in the form of electronic public notice. In this case, the terms "Article 440, paragraph (1)" and "annual shareholders meeting" in Article 940, paragraph (1), item (ii) of that
Act shall be deemed to be replaced with "Article 819, paragraph (1) as applied
mutatis mutandis pursuant to Article 193, paragraph (2) of the Insurance
Business Act" and "procedure" respectively; the term "the preceding two
paragraphs" in Article 940, paragraph (3) of that Act shall be deemed to be replaced with "paragraph (1)"; and the term "public notice under this Act or
any other Act (excluding the public notice under Article 440, paragraph (1)" in
Article 941 of that Act shall be deemed to be replaced with "public notice under the Insurance Business Act (excluding the public notice under Article 819,
paragraph (1) as applied mutatis mutandis pursuant to Article 193, paragraph
(2) of that Act"; any other necessary technical change in interpretation shall be specified by a Cabinet Order.
(4) The Method of Public Notice of a Foreign Insurance Company, etc. (other than
a foreign company or Foreign Mutual Company) shall be publication in a daily newspaper that publishes matters on current events.
(Notification of Establishment of representative office in a foreign state, etc.) Article 218 (1) A Foreign Insurer falling under any of the following items
without the license set forth in Article 185, paragraph (1) shall, where item (i)
applies, notify it, and the content of the relevant business, the location of the offices carrying on such business and any other matter specified by a Cabinet
Office Ordinance or, where item (ii), (iii) or (iv) applies, notify without delay of that fact, to the Prime Minister without delay:
(i) The insurer intends to establish a resident office in a foreign state or any
other office in Japan to carry on any of the following businesses (including
the cases where it intends to carry on the business in an office that has been established for any other purpose):
(a) Collection or provision of information regarding the Insurance Business;
or
(b) Any other business related to the Insurance Business;
(ii) The insurer has abolished the office set forth in the preceding item;
(iii) The insurer has abolished the business listed in item (i), (a) or (b) that was carried on in the office set forth in that item; or
(iv) The insurer has modified any matter notified under item (i).
(2) The Prime Minister may, when he/she finds it necessary for the public
interest, request the Foreign Insurer set forth in the preceding paragraph to submit a report or materials concerning the business listed in item (i), (a) or (b) of that paragraph that is carried on in the office set forth in that item.
Section 6 Special Provisions for Specified Juridical Persons
(License)
Article 219 (1) A juridical person falling under both of the following items
(hereinafter referred to as "Specified Juridical Person" in this Section) may
designate a person (hereinafter referred to as "General Agent" in this Section)
to act as an underwriting agent for those members of the Specified Juridical
Person who carry out insurance underwriting business (hereinafter referred to as "Underwriting Members") pertaining to the juridical person's Insurance
Business in Japan, or as a business agent for the Specified Juridical Person
and its Underwriting Members pertaining to such Insurance Business in Japan, and obtain a license from the Prime Minister for its Underwriting Members to
carry on the Insurance Business in Japan:
(i) It was incorporated under a special foreign law or regulation; and
(ii) Pursuant to a special provision of a foreign law or regulation, its members are allowed to carry on the Insurance Business in the relevant foreign state without obtaining a license for the Insurance Business (including any
administrative measure similar to such license, such as permission or
registration);
(2) The license set forth in the preceding paragraph shall be in two types: the
specified life insurance business license and the specified non-life insurance business license.
(3) The same Specified Juridical Person may not obtain both the specified life
insurance business license and the specified non-life insurance business license. (4) The specified life insurance business license shall be a license pertaining to
the underwriting of the type of insurance listed in Article 3, paragraph (4),
item (i) to be carried out by Underwriting Members as a business in Japan or, in addition, the underwriting of the type of insurance listed in Article 3,
paragraph (4), item (ii) or (iii).
(5) The specified non-life insurance business license shall be a license pertaining to the underwriting of the type of insurance listed in Article 3, paragraph (5),
item (i) to be carried out by Underwriting Members as a business in Japan or,
in addition, the underwriting of the type of insurance listed in Article 3, paragraph (5), item (ii) or (iii).
(6) The Underwriting Members of a Specified Juridical Person that has obtained
a license under paragraph (1) may, notwithstanding the provisions of Article 3, paragraph (1) and Article 185, paragraph (1), carry on the Insurance Business
in Japan in the offices of their general agency in accordance with the type of
license issued under paragraph (2).
(Application Procedure for License)
Article 220 (1) Any Specified Juridical Person who intends to obtain the license set forth in paragraph (1) of the preceding Article shall submit to the Prime Minister a written application for a license stating the following matters:
(i) The trade name or name, address of the head office or principal office, and
date of the incorporation of the Specified Juridical Person;
(ii) The name of the country that enacted the law or regulation under which
the Specified Juridical Person was incorporated (hereinafter referred to as
"Country with Jurisdiction over Incorporation" in this Section);
(iii) The name and address of the person who represents the Specified Juridical
Person and its Underwriting Members in Japan (hereinafter referred to as
"Representative Person in Japan" in this Section); (iv) The type of license desired; and
(v) The principal branch of the Specified Juridical Person and its Underwriting
Members in Japan (referring to the head office of the General Agent;
hereinafter the same shall apply in this Section).
(2) A certificate issued by the competent authorities of the Country with
Jurisdiction over Incorporation shall be attached to the written application for a license set forth in the preceding paragraph, certifying that the Specified
Juridical Person was incorporated legally and that its Underwriting Members are legally carrying on in the Country with Jurisdiction over Incorporation the
same type of Insurance Business as that which they intend to carry on in
Japan.
(3) In addition to what is listed in the preceding paragraph, the following
documents and other documents specified by a Cabinet Office Ordinance shall be attached to the written application for the license set forth in paragraph (1): (i) The articles of incorporation of the Specified Juridical Person or any other
equivalent document;
(ii) The statement of business procedures pertaining to the business of the
Underwriting Members in Japan;
(iii) The general policy conditions pertaining to the insurance contracts to be concluded by the Underwriting Members in Japan;
(iv) The statement of calculation procedures for the insurance premiums and
policy reserve pertaining to the insurance contracts to be concluded by the
Underwriting Members in Japan; and
(v) A document indicating the name or trade name, and address or location of the head office of the person specified by a Cabinet Office Ordinance with
whom the Underwriting Members may consult for the purpose of confirming the contents of insurance contracts in connection with the insurance
underwriting business that they carry out in Japan.
(4) The documents listed in items (ii) to (iv) inclusive of the preceding paragraph shall describe the matters specified by a Cabinet Office Ordinance.
(Examination Requirement for License)
Article 221 (1) When an application for the license set forth in Article 219,
paragraph (1) is filed, the Prime Minister shall examine whether the following requirements are satisfied:
(i) The person that made the application (hereinafter referred to as "Applicant"
in this paragraph) has, in light of its human resource structure, etc., the necessary knowledge and experience to carry out the business of the
Underwriting Members in an appropriate, fair and efficient manner, and
must have sufficient social credibility;
(ii) The Applicant possesses the property to ensure the performance of the
insurance contract obligations of the Underwriting Members pursuant to the laws and regulations of the Country with Jurisdiction over Incorporation or
the bylaws of the juridical person, and has taken other measures for the protection of Policyholders, etc. in a sufficient manner;
(iii) The prospects of revenues and expenditures pertaining to the Insurance
Business to be carried on by the Underwriting Members in Japan are satisfactory
(iv) The matters described in the documents listed in paragraph (3), items (ii)
and (iii) of the preceding Article conform to the requirement listed in Article
5, paragraph (1), item (iii), (a) to (e) inclusive; and
(v) The matters described in the documents listed in paragraph (3), item (iv) of the preceding Article conform to the requirement listed in Article 5,
paragraph (1), item (iv), (a) to (c) inclusive.
(2) The Prime Minister may, when and to the extent that he/she finds it
necessary for the public interest in light of requirements for examination prescribed in the preceding paragraph, impose conditions on the license referred to in Article 219, paragraph (1) or change them.
(Public Notice by Prime Minister)
Article 222 The Prime Minister shall, when he/she has granted a license under
Article 219, paragraph (1), publish that fact and the matters listed in the items of Article 220, paragraph (1) without delay in the Official Gazette. The same shall apply where the modification of any matter listed in Article 220,
paragraph (1), item (i), (ii), (iii) or (v) has been notified under Article 234.
(Deposit)
Article 223 (1) A Specified Juridical Person that has obtained a license under
Article 219, paragraph (1) (hereinafter referred to as "Licensed Specified
Juridical Person") shall deposit the amount of money specified by a Cabinet
Order as necessary and appropriate for the protection of Policyholders, etc. in
Japan with the deposit office located nearest to its principal branch in Japan. (2) The Prime Minister may, when he/she finds it necessary for the protection of
Policyholders, etc. in Japan, order a Licensed Specified Juridical Person to
deposit, in addition to the amount of money specified by the Cabinet Order set forth in the preceding paragraph, the amount of money that he/she finds
appropriate prior to the commencement of the Insurance Business in Japan by
its Underwriting Members.
(3) A Licensed Specified Juridical Person may, when it has concluded an
agreement stipulating that a required amount of deposit be lodged for the
Licensed Specified Juridical Person by order of the Prime Minister pursuant to the provisions of a Cabinet Order and has notified the Prime Minister thereof, withhold in whole or in Part the deposit under the preceding two paragraphs regarding the amount to be deposited under said agreement (hereinafter
referred to as the "Agreed Amount" in this Article), so long as the agreement remains in effect.
(4) The Prime Minister may, when he/she finds it necessary for the protection of Policyholders, etc. in Japan, order a person who has concluded with a Licensed Specified Juridical Person an agreement as set forth in the preceding
paragraph or the Licensed Specified Juridical Person concerned to lodge a
deposit in an amount corresponding to the whole or Part of the Agreed Amount.
(5) The Underwriting Members shall not commence the Insurance Business
pertaining to the license under Article 219, paragraph (1), unless the Licensed
Specified Juridical Person has lodged the deposit under paragraph (1)
(including any deposit lodged following an order for deposit of money under paragraph (2) pursuant to the provision of that paragraph) (including the conclusion of an agreement under paragraph (3); the same shall apply in
paragraph (9)) and has notified the Prime Minister thereof.
(6) The Policyholders, insurers or beneficiaries pertaining to the insurance
contracts concluded by the Underwriting Members in Japan shall, with regard to any credit arising out of the insurance contracts, have a priority claim over
other creditors on the deposit pertaining to the Licensed Specified Juridical
Person.
(7) For the purpose of applying the provision of the preceding paragraph, a
Licensed Specified Juridical Person shall be deemed to have jointly and
severally guaranteed the obligations of its Underwriting Members under the insurance contracts that they have concluded in Japan.
(8) Any necessary matter in enforcing a claim under paragraph (6) shall be specified by a Cabinet Order.
(9) A Licensed Specified Juridical Person shall, if and when the amount of its deposit (including the Agreed Amount) falls below the amount specified by a
Cabinet Order set forth in paragraph (1) for reasons such as the enforcement of
a claim under paragraph (6), compensate for the shortfall within two weeks from the date specified by a Cabinet Office Ordinance, and notify it to the
Prime Minister without delay.
(10) A Licensed Specified Juridical Person may lodge any of the securities
specified by a Cabinet Office Ordinance, such as a national government bond or local government bond, in lieu of the deposit set forth in paragraph (1), (2) or
the preceding paragraph.
(11) The deposit lodged pursuant to the provision of paragraph (1), (2), (4) or (9) may be recovered pursuant to the provisions of a Cabinet Order, if and when: (i) The license granted to the Licensed Specified Juridical Person under Article
219, paragraph (1) is cancelled pursuant to the provision of Article 231 or
232; or
(ii) The license granted to the Licensed Specified Juridical Person under
Article 219, paragraph (1) loses its effect pursuant to the provision of Article
236.
(12) In addition to what is provided for in the preceding paragraphs, any necessary matter relating to the deposit shall be specified by a Cabinet Office Ordinance/Ordinance of the Ministry of Justice.
(Notification regarding Underwriting Members Carrying on Insurance
Business in Japan, etc.)
Article 224 (1) A Representative Person in Japan shall notify it to the Prime Minister in advance of the names and addresses of the Underwriting Members carrying on the Insurance Business in Japan, as well as the name or trade name, and address or location of the head office of the person specified by a
Cabinet Office Ordinance set forth in Article 220, paragraph (3), item (v). The
same shall apply to any change in the matters thus notified.
(2) A Representative Person in Japan shall keep in its principal branch in Japan the list of the Underwriting Members carrying on the Insurance Business in
Japan.
(3) The creditors and insured pertaining to the business of the Underwriting
Members in Japan, such as Policyholders and beneficiaries of insurance claims, may make any of the following requests to the General Agent at any time
during the hours in which it should be in business; provided, however, that
they pay the fees determined by the General Agent in making a request falling under item (ii) or (iv):
(i) Where the list set forth in the preceding paragraph is prepared in writing, a request for inspection of such document;
(ii) A request for a transcript or extract of the documents referred to in the preceding item;
(iii) Where the list set forth in the preceding paragraph is prepared in the form
of electromagnetic record, a request for inspection of anything that displays
the matters recorded on the electromagnetic record in a manner specified by a Cabinet Office Ordinance; or
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding item by the electromagnetic means
determined by the General Agent, or for any document that describes such
matters.
(Modification of Matters Prescribed in Statement of Business Procedures, etc.) Article 225 (1) A Licensed Specified Juridical Person shall obtain the
authorization from the Prime Minister when it intends to modify any of the
matters prescribed in the documents listed in Article 220, paragraph (3), items
(ii) to (iv) inclusive (excluding the matters specified by a Cabinet Office
Ordinance as posing little risk to the protection of Policyholders, etc. in Japan). (2) A Licensed Specified Juridical Person shall, when it intends to modify any of
the matters that are prescribed in the preceding paragraph and are specified
by a Cabinet Office Ordinance set forth in that paragraph, notify it in advance to the Prime Minister.
(3) The provisions of Articles 124 and 125 shall apply mutatis mutandis to the authorization under paragraph (1) and the notification set forth in the
preceding paragraph. In this case, the term "Article 4, paragraph (2), items (ii)
and (iii)" in Article 124, item (i) shall be deemed to be replaced with "Article
220, paragraph (3), items (ii) and (iii)"; and the term "Article 4, paragraph (2), item (iv)" in Article 124, item (ii) shall be deemed to be replaced with "Article
220, paragraph (3), item (iv)."
(Submission of Report or Materials)
Article 226 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. in Japan by ensuring the sound and appropriate management of Underwriting Members in Japan, request the Licensed
Specified Juridical Person, Underwriting Members or General Agent to submit a report or materials concerning the situation of the business or property of the Licensed Specified Juridical Person or its Underwriting Members in Japan.
(2) The Prime Minister may, when he/she finds it Particularly necessary to
protect Policyholders, etc. in Japan by ensuring the sound and appropriate management of Underwriting Members in Japan, request the Licensed
Specified Juridical Person to which the Underwriting Members belong or subcontractor of the Underwriting Members with their business in Japan (other than the Underwriting Members or General Agent; referred to as
"Subcontractor of Licensed Specified Juridical Person, etc." in the following paragraph, and paragraphs (2) and (3) of the following Article) to submit a
report or materials that should serve as a reference concerning the situation of the business or property of the Licensed Specified Juridical Person or
Underwriting Members in Japan, within the limit necessary.
(3) A subcontractor of licensed specified juridical person, etc. may refuse to
submit reports or materials required under the preceding paragraph if there are justifiable grounds.
(On-site Inspection)
Article 227 (1) The Prime Minister may, when he/she finds it necessary to
ensure the sound and appropriate management of Underwriting Members and protect Policyholders, etc. in Japan, direct the personnel in charge, within the
limit necessary, to enter an office of the General Agent to ask questions on the
condition of the business or property of the Licensed Specified Juridical Person or its Underwriting Members, or inspect relevant items such as books and
documents.
(2) The Prime Minister may, when he/she finds it Particularly necessary in making an entry, asking questions or conducting inspection pursuant to the provision of the preceding paragraph, direct the personnel in charge, within
the limit necessary, to enter an office of the subcontractor of licensed juridical
person, etc. to ask questions of the Licensed Specified Juridical Person or its
Underwriting Members or on necessary matters for inspection, or inspect relevant materials such as books and documents.
(3) A subcontractor of licensed specified juridical person, etc. may, when there are justifiable grounds, refuse the questioning and inspection under the
preceding paragraph.
(Standard of Soundness)
Article 228 The Prime Minister may prescribe as requirement for determining
the soundness of the business of Underwriting Members a set of requirements for the capital adequacy of Underwriting Members to support the payment of
Insurance Claims, etc., using the following amounts pertaining to the Licensed
Specified Juridical Person:
(i) The sum total of the amounts specified by a Cabinet Office Ordinance, such as the deposit under Article 223; and
(ii) An amount calculated pursuant to the provisions of a Cabinet Office
Ordinance as the amount corresponding to that part of risks which might materialize beyond normal expectations for any reasons pertaining to the
insurance underwritten in Japan by the Underwriting members, such as the
occurrence of insured events.
(Order to Change Regarding Matters Prescribed in Statement of Business
Procedures, etc.)
Article 229 The Prime Minister may, when he/she finds it necessary to protect
Policyholders, etc. in Japan by ensuring the sound and appropriate
management in Japan of Underwriting Members in light of the situation of the business or property of the Licensed Specified Juridical Person and
Underwriting Members or any change in the circumstances, order the Licensed
Specified Juridical Person to modify the matters prescribed in the documents listed in Article 220, paragraph (3), items (ii) to (iv) inclusive, within the limit necessary.
(Suspension of Business, etc.)
Article 230 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. in Japan by ensuring the sound and appropriate
management in Japan of Underwriting Members in light of the situation of the business or property of the Licensed Specified Juridical Person or
Underwriting Members, request the Licensed Specified Juridical Person or Underwriting Members to submit an improvement program to ensure the soundness of the business of the Underwriting Members in Japan by
identifying matters for which measures should be taken as well as a time limit
or order the modification of the submitted improvement program, or, within
the limit necessary, order the full or Partial suspension of the business in Japan with a time limit or order the deposit of property or other measures necessary for supervision.
(2) Any order under the preceding paragraph (including the request for
submission of an improvement program) that is deemed necessary in light of the conditions regarding the capital adequacy of Underwriting Members to
support the payment of Insurance Claims, etc., shall be the order specified by a Cabinet Office Ordinance/Ordinance of the Ministry of Finance according to the categories pertaining to the conditions regarding the capital adequacy of
Underwriting Members to support the payment of Insurance Claims, etc.
(Rescission of License, etc.)
Article 231 The Prime Minister may order the full or Partial suspension of the business in Japan of the Underwriting Members or the dismissal of the
Representative Person in Japan, or rescind the license set forth in Article 219,
paragraph (1), if and when a Licensed Specified Juridical Person or its
Underwriting Members:
(i) violate(s) a law or regulation (including foreign law or regulation), any
measures of the Prime Minister pursuant to a law or regulation, or any of the
Particularly important matters prescribed in the documents listed in Article
220, paragraph (3), items (i) to (iv) inclusive;
(ii) violate(s) any of the conditions attached to the license; or
(iii) commit(s) any act that harms public interest.
Article 232 The Prime Minister may, when he/she finds that the situation of the property of a Licensed Specified Juridical Person or its Underwriting Members has deteriorated so significantly that it is not appropriate for the Underwriting Members to carry on the Insurance Business in Japan from the viewpoint of
protecting Policyholders, etc. in Japan, cancel the license issued to the
Licensed Specified Juridical Person under Article 219, paragraph (1).
(Authorization of Abolition of General Agent)
Article 233 A Licensed Specified Juridical Person shall, when it intends to
abolish its General Agent, obtain the authorization from the Prime Minister.
(Notification by Licensed Specified Juridical Person)
Article 234 A Licensed Specified Juridical Person shall, when it falls under any of the following items, notify it to the Prime Minister without delay when:
(i) its Underwriting Members have started their Insurance Business in Japan;
(ii) it has modified any of the matters listed in Article 220, paragraph (1), item
(i), (ii), (iii) or (v), or any of the matters provided for in the document listed
in Article 220, paragraph (3), item (i);
(iii) it has carried out an Entity Conversion;
(iv) it has assigned the whole of its business;
(v) it has dissolved (for any other reason than a merger);
(vi) it has been subject to a ruling for the commencement of bankruptcy proceedings;
(vii) its Underwriting Members carrying on the Insurance Business in Japan has been subject to a ruling for the commencement of bankruptcy
proceedings; or
(viii) When it falls under any other case specified by a Cabinet Office
Ordinance.
(Liquidation of Licensed Specified Juridical Person and Underwriting
Members)
Article 235 (1) A Licensed Specified Juridical Person and its Underwriting Members shall, when it falls under any of the following items, liquidate the whole of their property in Japan when:
(i) the license issued to the Licensed Specified Juridical Person under Article
219, paragraph (1) has been canceled pursuant to the provision of Article 231 or 232; or
(ii) the license issued to the Licensed Specified Juridical Person under Article
219, paragraph (1) has lost its effect pursuant to the provision of the following Article.
(2) The Prime Minister shall appoint (a) liquidator(s) at the request of interested
persons or without any Party's request, where a Licensed Specified Juridical
Person and its Underwriting Members go into liquidation pursuant to the
provision of the preceding paragraph. The same shall apply to the dismissal of such liquidator(s).
(3) The Prime Minister shall, where he/she dismisses a liquidator pursuant to the provision of the preceding paragraph, commission a registration to that effect
to the registry office with jurisdiction over the principal branch of the
liquidating Licensed Specified Juridical Person and its Underwriting Members in Japan.
(4) The provision of Article 500 (Restrictions on Performance of Obligations) of
the Companies Act as applied with relevant changes in interpretation pursuant to the provision of Article 178, and the provisions of Article 476 (Capacity of
Liquidating Stock Companies), Part II, Chapter IX, Section 1, Subsection 2 (Structures for Liquidating Stock Companies), Article 492 (Preparation of
Inventory of Property), Part II, Chapter IX, Section 1, Subsection 4 (excluding
Article 500) (Performance of Obligations), Article 508 (Retention of Accounting
Materials), Part II, Chapter IX, Section 2 (excluding Articles 510, 511 and 514)
(Special Liquidations), Part VII, Chapter III, Sections 1 (General Provisions) and 3 (Special Provisions on Special Liquidation Procedure) and Article 938, paragraphs (1) to (5) inclusive (Commissioned Registration by Judgment
Concerning Special Liquidations) of that Act shall apply mutatis mutandis to
the liquidation of the property of a Licensed Specified Juridical Person and its Underwriting Members under paragraph (1), unless their specific characters forbid such application. In this case, any other necessary technical change in
interpretation shall be specified by a Cabinet Order.
(5) The provision of Article 177 shall apply mutatis mutandis to the liquidation of a Licensed Specified Juridical Person and its Underwriting Members under
paragraph (1); the provisions of Article 175 and Article 179, paragraph (1) shall apply mutatis mutandis to the liquidation of a Licensed Specified Juridical
Person and its Underwriting Members under paragraph (1) (excluding the
cases to which apply the provisions of Part II, Chapter IX, Section 2 (excluding
Articles 510, 511 and 514), Part VII, Chapter III, Sections 1 and 3, and Article
938, paragraphs (1) to (5) inclusive of the Companies Act as applied mutatis mutandis pursuant to the preceding paragraph; hereinafter the same shall
apply in this paragraph); and the provisions of Article 226, paragraph (1) and
Article 227, paragraph (1) shall apply mutatis mutandis to the liquidation of a
Licensed Specified Juridical Person and its Underwriting Members under
paragraph (1) where the Prime Minister finds it necessary for supervising the liquidation of the liquidating Licensed Specified Juridical Person and its
Underwriting Members. In this case, the term "date of dissolution" in Article
177, paragraph (2) shall be deemed to be replaced with "date of cancellation or expiration of the license issued to the Licensed Specified Juridical Person
under Article 219, paragraph (1)"; the term "Liquidating Insurance Company, etc." in Article 177, paragraph (3) shall be deemed to be replaced with
"liquidating Underwriting Members"; the terms "paragraph (1), (4) or (9) of the preceding Article" and "Liquidating Insurance Company, etc." in Article 175 shall be deemed to be replaced with "Article 235, paragraph (2)" and
"liquidating Licensed Specified Juridical Person and its Underwriting
Members," respectively; and the term "Liquidating Insurance Company, etc." in
Article 179, paragraph (1) shall be deemed to be replaced with "liquidating
Licensed Specified Juridical Person and its Underwriting Members"; any other necessary technical change in interpretation shall be specified by a Cabinet
Order.
(Expiration of License)
Article 236 (1) The license from the Prime Minister to a Licensed Specified
Juridical Person set forth in Article 219, paragraph (1) shall, when it falls under any of the following items, lose its effect when:
(i) all of its Underwriting Members have abolished their Insurance Business in
Japan; or
(ii) no Underwriting Members start their Insurance Business in Japan within
six months from the date of obtaining such license (excluding the cases where the Licensed Specified Juridical Person has received in advance the
authorization of the Prime Minister for any compelling reason).
(2) Where any of Article 234, items (iv) to (vi) inclusive applies and the notification under Article 234 has been made, the license from the Prime Minister to the Licensed Specified Juridical Person that has made such
notification shall lose its effect.
(Public Notice by Prime Minister)
Article 237 In the following cases, the Prime Minister shall give public notice in the Official Gazette thereof:
(i) When he/she orders suspension of the whole or part of Underwriting
Members' business in Japan under Article 230, paragraph (1) or Article 231, or under Article 240, paragraph (1) as applied pursuant to the provision of
Article 240;
(ii) When he/she rescinds the license set forth in Article 219, paragraph (1)
canceled pursuant to the provision of Article 231 or 232;
(iii) any measures ordering the administration of business and property by an insurance administrator under Article 241, paragraph (1) as applied
pursuant to the provision of Article 240, or any order under Article 258, paragraph (1) as applied pursuant to the provision of Article 240; and
(iv) When the license granted under Article 219, paragraph (1) loses its effect pursuant to the provision of the preceding Article.
(Public Notice)
Article 238 Any public notice given by a Licensed Specified Juridical Person or its Underwriting Members pursuant to the provisions of this Act shall be
published in a daily newspaper that publishes matters on current events.
(Notification by General Agent, etc.)
Article 239 A person who intends to act as General Agent for a Specified
Juridical Person that intends to obtain the license set forth in Article 219,
paragraph (1) or the Underwriting Members of the Specified Juridical Person shall, by the time of application for such license, shall notify the Prime
Minister of the matters specified by a Cabinet Office Ordinance, such as the relevant fact, the contents of its business and the method of managing the
property of the Underwriting Members in Japan. The same shall apply to any change in the matters thus notified.
(Application of this Act, etc.)
Article 240 (1) This Act shall apply as follows where a Specified Juridical Person has obtained the license set forth in Article 219, paragraph (1):
(i) For the purpose of applying the provisions of Article 185, paragraph (6);
Article 186, paragraph (3); Article 191; Article 197; Article 97, Article 97-2,
paragraphs (1) and (2), Article 98 to 100-2 inclusive, Article 112, and Article
114 to 122 inclusive as applied mutatis mutandis pursuant to Article 199; Article 210; Part II, Chapter X (excluding Articles 262, 265-2, 265-3, 265-6 and 265-42); Part III; and Part IV (including the penal provisions pertaining thereto), the Underwriting Members of a Licensed Specified Juridical Person shall be deemed as a Foreign Insurance Company, etc., or a Foreign Life
Insurance Company, etc. or Foreign Non-Life Insurance Company, etc. in
accordance with the type of license issued under Article 219, paragraph (2). In this case, the term "Article 190" in Article 197 shall be deemed to be
replaced with "Article 223"; the term "Article 185, paragraph (2)" in Article
97, paragraph (1) as applied mutatis mutandis pursuant to Article 199 shall be deemed to be replaced with "Article 219, paragraph (2)"; and the terms "In the case where the license of Article 185, paragraph (1) of the Insurance
Business Act is canceled pursuant to the provision of Article 205 or 206 of
that Act, or in the case where the license of Article 185, paragraph (1) of that
Act loses its effect pursuant to the provision of Article 273 of that Act" and
"Article 185, paragraph (1) of the Insurance Business Act pursuant to the provision of Article 205 or 206 of that Act" in Article 99, paragraph (8) as applied mutatis mutandis pursuant to Article 199 shall be deemed to be
replaced with "In the case where the license of Article 219, paragraph (1) of the Insurance Business Act is canceled pursuant to the provision of Article
231 or 232 of that Act, or in the case where the license of Article 219,
paragraph (1) of that Act loses its effect pursuant to the provision of Article
236 of that Act" and "Article 219, paragraph (1) of the Insurance Business
Act pursuant to the provision of Article 231 or 232 of that Act," respectively. (ii) For the purpose of applying the provisions of Article 101 to 105 inclusive
(including the penal provisions pertaining thereto) as applied mutatis
mutandis pursuant to Article 199, those Underwriting Members of a
Specified Juridical Person with the specified non-life insurance business
license who carry on the Insurance Business in Japan shall be deemed as a
Foreign Non-Life Insurance Company, etc.
(iii) For the purpose of applying the provisions of Article 195; Article 7-2, Article 110, paragraphs (1) and (3), and Article 111, paragraph (1) and
paragraphs (3) to (6) inclusive as applied mutatis mutandis pursuant to
Article 199; Article 262; Article 265-2; Article 265-3; Article 265-6; and
Article 265-42 (including the penal provisions pertaining thereto), a Licensed Specified Juridical Person shall be deemed as a Foreign Insurance Company, etc. In this case, the term "inventory of property, balance sheet" in Article
195 shall be deemed to be replaced with "balance sheet of the Licensed
Specified Juridical Person and its Underwriting Members"; the term "its business and property in Japan" in Article 110, paragraph (1) as applied mutatis mutandis pursuant to Article 199 shall be deemed to be replaced
with "the business and property of the Licensed Specified Juridical Person and its Underwriting Members in Japan"; the term "its business and
property in Japan" in Article 111, paragraph (1) as applied mutatis mutandis pursuant to Article 119 shall be deemed to be replaced with "the business
and property of the Licensed Specified Juridical Person and its Underwriting
Members in Japan"; the term "the branch office of the Foreign Insurance Company, etc. in Japan or any other equivalent place specified by a Cabinet Office Ordinance" in Article 111, paragraphs (1) and (4) as applied mutatis mutandis pursuant to Article 119 shall be deemed to be replaced with "the head office and branch offices of the General Agent set forth in Article 219,
paragraph (1) or any other equivalent place specified by a Cabinet Office
Ordinance"; and the term "business and property of the Foreign Insurance Company, etc. in Japan" in Article 111, paragraph (6) as applied mutatis mutandis pursuant to Article 119 shall be deemed to be replaced with
"business and property of the Licensed Specified Juridical Person and its
Underwriting Members in Japan."
(iv) For the purpose of applying the provisions of Articles 192 and 196
(including the penal provisions pertaining thereto), a Representative Person in Japan shall be deemed as the representative person of a Foreign
Insurance Company, etc. in Japan. In this case, the terms "Policyholders,
beneficiaries of insurance benefits, other creditors and insurers of a Foreign Insurance Company, etc.," "Foreign Insurance Company, etc. should be in business" and "determined by the Foreign Insurance Company, etc." in
Article 196, paragraph (5) shall be deemed to be replaced with "Policyholders,
beneficiaries of insurance benefits, other creditors and insurers of
Underwriting Members," "General Agent should be in business" and
"determined by the General Agent," respectively.
(v) For the purpose of applying the provisions of Article 109 as applied mutatis mutandis pursuant to Article 199, and Article 142 and Chapter VII, Section 3 as applied mutatis mutandis pursuant to Article 211 (including the penal
provisions pertaining thereto), a Licensed Specified Juridical Person and its
Underwriting Members shall be deemed as a Foreign Insurance Company, etc.
(vi) The provision of Article 218 shall not apply to the Underwriting Members
of a Licensed Specified Juridical Person.
(2) For the purpose of applying the laws and regulations specified by a Cabinet
Order, such as the Act on Compensation for Nuclear Damage (Act No. 147 of
1961), the Underwriting Members of a Licensed Specified Juridical Person
shall be deemed, pursuant to the provisions of a Cabinet Order, as a Foreign
Insurance Company, etc., or a Foreign Life Insurance Company, etc. or Foreign Non-Life Insurance Company, etc. in accordance with the type of license issued under Article 219, paragraph (2).
Chapter X Special Measures, etc. for Protection of Policyholders, etc.
Section 1 Modification of Contract Conditions
(Reporting of Modification of Contract Conditions)
Article 240-2 (1) An Insurance Company (including a Foreign Insurance
Company, etc.; hereinafter the same shall apply in this Section, excluding
Article 240-5 and Article 240-6) may report to the Prime Minister to the effect that it will modify the clause of its contract (hereinafter referred to as a
"Modification of Contract Conditions" in this Section), such as a reduction in
the amount of insurance claims and other modifications to contract clauses with regard to insurance contracts pertaining to that Insurance Company
(excluding Contracts Exempt from Modification) in the case that there is a
probability that the continuation of that Insurance Company's Insurance Business (In the case of Foreign Insurance Companies, etc., Insurance Business in Japan. Hereinafter the same shall apply in this Article, Article
240-11, Article 241 and Article 262) will be difficult in the light of the state of
its business or property.
(2) In the case that an Insurance Company reports as set forth in the preceding
paragraph, that Insurance Company shall show that there is a probability that the continuation of its Insurance Business will be difficult unless it makes a
Modification of Contract Conditions, and that a Modification of Contract
Conditions is inevitable for the protection of Insurance Policyholders, etc. (in the case of Foreign Insurance Companies, etc., Policyholders, etc. in Japan.
Hereinafter the same shall apply in this Chapter), and the reason in writing.
(3) The Prime Minister shall, when he/she recognizes that there is a reason in the report set forth in paragraph (1), approve the report.
(4) The term "Contracts Exempt from Modification," as prescribed in paragraph
(1), refers to the insurance contracts specified by a Cabinet Order, such as
those for which an insured event has already occurred by the date of reference of the Modification of Contract Conditions (limited to those contracts which
would be terminated with the payment of insurance claims pertaining to the insured event).
(Suspension of Business, etc.)
Article 240-3 The Prime Minister may, when he/she finds it necessary for the
protection of Insurance Policyholders, etc., in cases approved in paragraph (3)
of the preceding Article, order that Insurance Company to suspend its business pertaining to the cancellation of said Insurance Company's insurance contracts and other necessary measures with a time limit.
(Limitations on Modification of Contract Conditions)
Article 240-4 (1) A Modification of Contract Conditions shall not affect the rights pertaining to an insurance contract corresponding to the policy reserve that
should be accumulated by the date of reference of said Modification of Contract
Conditions.
(2) Concerning the assumed interest rate that shall become the basis of
calculation for the payments that are modified by the Modification of Contract
Conditions, such as insurance claims and refunds, from the standpoint of the
protection of Insurance Policyholders, etc., the assumed interest rate shall not be less than the rate specified by a Cabinet Order, taking into account the
Insurance Company's property operating situation and other circumstances.
(Resolution of Modification of Contract Conditions)
Article 240-5 (1) An Insurance Company, when it intends to carry out a
Modification of Contract Conditions, shall obtain approval as set forth in Article 240-2, paragraph (3), and after that, a resolution mandating the Modification of Contract Conditions shall be passed by the Shareholders Meeting, etc. of the Insurance Company.
(2) Cases described in the preceding paragraph shall be resolved as set forth in
Article 309, paragraph (2) (Resolutions of a Shareholders Meeting) or under
Article 62, paragraph (2) of the Companies Act.
(3) An Insurance Company, in cases where a resolution is carried out as set forth in paragraph (1), shall, in a notice pursuant to the provisions of Article 299,
paragraph (1) of the Companies Act (Notice of calling of shareholders'
meetings) (including the cases where it is applied mutatis mutandis pursuant to Article 41, paragraph (1) and Article 49, paragraph (1)), show the matters specified by a Cabinet Office Ordinance, such as the reason why the
Modification of Contract Conditions is inevitable, the details of the
Modification of Contract Conditions, a forecast of the business and property situation after the Modification of Contract Conditions is effected, matters regarding funding and the handling of debts against creditors apart from
Insurance Policyholders, etc. and matters regarding management
responsibility.
(4) In cases where a resolution is carried out as set forth in paragraph (1), where there is a policy on monetary payments concerning the insurance contracts
pertaining to the Modification of Contract Conditions, such as policy dividend and the distribution of the surplus, the Insurance Company shall show the
details in the notice set forth in the preceding paragraph.
(5) Concerning the policy set forth in the preceding paragraph, the Insurance
Company shall describe or record the policy in its articles of incorporation.
(Special Provisions concerning Extraordinary Resolutions, etc. of Shareholders
Meeting, etc., pertaining to Modification of Contract Conditions)
Article 240-6 (1) Resolutions set forth in paragraph (1) of the preceding Article of an Insurance Company that is a Stock Company, or resolutions listed in
Article 309, paragraph (2), item (iv), (v), (ix), (xi), or (xii) of the Companies Act (Resolution of Shareholders Meetings), or listed in Article 324, paragraph (2), item (i) or (iv) of that Act (Resolution of Class Meetings), or resolutions
pursuant to the provisions of Article 69, paragraph (2), Article 136, paragraph
(2), Article 144, paragraph (3), Article 165-3, paragraph (2), or Article 165-10, paragraph (2) of that Act that are to be decided together with said resolutions, may be made provisionally by two-thirds or more of the votes held by the
shareholders present, notwithstanding these provisions.
(2) Resolutions of a Shareholders Meeting or a class meeting listed in the items
of Article 309, paragraph (3) or in Articles 324, paragraph (3), items (i) and (ii)
of the Companies Act, or resolutions pursuant to the provisions of Article 323 of that Act (in the case that the provisions require a resolution of a class
meeting), or in Article 165-3, paragraph (4) and Article 165-3, paragraph (6), or
Article 165-10, paragraph (6) of that Act that are to be decided together with resolutions as set forth in paragraph (1) of the preceding Article of an
Insurance Company that is a Stock Company may be made provisionally by two-thirds or more of the votes held by the shareholders present, where a majority of shareholders are present, notwithstanding these provisions.
(3) Resolutions as set forth in paragraph (1) of the preceding Article of an
Insurance Company that is a Mutual Company, or resolutions pursuant to the provisions of Article 57, paragraph (2), Article 60, paragraph (2), Article 62,
paragraph (2), Article 62-2, paragraph (2), Article 86, paragraph (2), Article
136, paragraph (2), Article 144, paragraph (3), Article 156, or Article 165-16, paragraph (2) (including the cases where it is applied mutatis mutandis
pursuant to Article 165-20) that are to be decided together with said
resolutions may be made provisionally by a majority of three-quarters or more of the voting rights of the members present (or, where the company has a
General Meeting, General Representatives present).
(4) In the case that a resolution is made provisionally pursuant to the provisions
of paragraph (1) (hereinafter referred to as "Provisional Resolution" in this
Article), the Insurance Company shall notify the purpose of said Provisional
Resolution to its shareholders and shall call a subsequent Shareholders
Meeting within one month of the date of adoption of the Provisional Resolution. (5) In the case where a Provisional Resolution is approved by a majority as
prescribed in paragraph (1) at the Shareholders Meeting set forth in the
preceding paragraph, a resolution pertaining to the matters of said Provisional
Resolution shall be deemed to have existed when said approval was given.
(6) The provisions of the preceding two paragraphs shall apply mutatis mutandis to cases where a resolution is made provisionally pursuant to the provisions of paragraph (2). In these cases, the term "paragraph (1)" in the preceding
paragraph shall be deemed to be replaced with the term "paragraph (2)."
(7) The provisions of paragraph (4) and paragraph (5) shall apply mutatis
mutandis to cases where a resolution is made provisionally pursuant to the provisions of paragraph (3). In these cases, the term "shareholders" in
paragraph (4) shall be deemed to be replaced with the term "Members" (in
cases where a General Meeting is established, "General Representatives"), the term "Shareholders Meeting" in that paragraph and in paragraph (5) shall be deemed to be replaced with the term "General Meeting of Members" (or
"General Meeting," where the company has such meeting), and the term
"paragraph (1)" in that paragraph shall be deemed to be replaced with the term
"paragraph (3)."
(Keeping, etc. of Documents pertaining to Modification of Contract Conditions) Article 240-7 (1) From two weeks prior to the date the resolution shall be made
as set forth in Article 240-5, paragraph (1) (in the case of Foreign Insurance
Companies, etc., the date the decision was made concerning the Modification of Contract Conditions) until the date of issue of the public notice pursuant to the provisions of Article 240-13, paragraph (1), the Insurance Company shall keep
a document or electromagnetic records describing or recording the matters
specified by a Cabinet Office Ordinance, such as the reason why the
Modification of Contract Conditions is inevitable, the details of the
Modification of Contract Conditions, a forecast of the business and property situation after the Modification of Contract Conditions is effected, matters regarding funding and the handling of debts against creditors apart from
Insurance Policyholders, etc., and matters regarding management
responsibility (in cases where there is a policy pursuant to the provisions of
Article 240-5, paragraph (4), including the contents of the policy), at the
company's business offices and other offices (in the case of Foreign Insurance Companies, etc., branch offices, etc. pursuant to the provisions of Article 185, paragraph (1)).
(2) Shareholders or Insurance Policyholders of the Insurance Company (in the
case of Foreign Insurance Companies, etc., Insurance Policyholders in Japan) may make the following listed requests to that Insurance Company at any time during its operating hours or business hours; however, that they shall pay the fees determined by the Insurance Company in making a request falling under
item (ii) or (iv);
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the
preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on the electromagnetic record set forth in the preceding paragraph in a manner specified by a Cabinet Office Ordinance;
(iv) A request for the provision of the matters recorded on the electromagnetic record set forth in the preceding paragraph by the electromagnetic means determined by that Insurance Company, or for any document that describes such matters.
(Insurance Inspector)
Article 240-8 (1) The Prime Minister may, when he/she finds it necessary, in cases approved as set forth in Article 240-2, paragraph (3), appoint an
Insurance Inspector and cause that Insurance Inspector to investigate relevant matters such as the content of the Modification of Contract Conditions.
(2) In the case referred to in the preceding paragraph, the Prime Minister shall
specify the matters that should be investigated by the Insurance Inspector and the deadline by which he/she should report the investigation findings to the
Prime Minister.
(3) The Prime Minister may, when he/she finds that the Insurance Inspector is not carrying out the investigation appropriately, dismiss the Insurance
Inspector.
(4) The provisions of Article 80 and Article 81, paragraph (1) (Duty of Care and Advance Payment of Costs and Compensation of Trustees) of the Corporate Rehabilitation Act (Act No. 154 of 2002) shall apply mutatis mutandis to the
Insurance Inspector. In this case, the term "court" in that paragraph shall be
deemed to be replaced with "the Prime Minister," and any technical change in interpretation required shall be specified by a Cabinet Order.
(5) The costs and compensation prescribed in Article 81, paragraph (1) of the
Corporate Rehabilitation Act, as applied mutatis mutandis pursuant to the
preceding paragraph, shall be borne by an Insurance Company (referred to as
the "Company Being Investigated" in the following Article and in Article 318-2)
as provided in Article 240-2, paragraph (1).
(Investigation, etc., of Insurance Inspector)
Article 240-9 (1) The Insurance Inspector may request directors, executive officers, accounting advisors, company auditors, accounting auditors, and
managers or any other employee of the Company Being Investigated, and any person who has resigned from these positions, to make a report on the
situation of the business and property of the Company Being Investigated
(with regard to any person who has resigned from these positions, limited to
those items pertaining to matters that could have been known by said person during the period when he/she was engaged in the business of that Company Being Investigated), or inspect relevant items such as the books and documents of the Company Being Investigated.
(2) The Insurance Inspector may, when it is necessary to carry out his/her duty,
inquire with, or request the cooperation of, relevant persons such as government agencies, public entities.
(Confidentiality Obligation of Insurance Inspector)
Article 240-10 (1) The Insurance Inspector shall not divulge any secret learned in the course of his/her duties. The same shall apply after the Insurance
Inspector resigns from office.
(2) When the Insurance Inspector is a juridical person, its officers and employees who are engaged in the duty of the Insurance Inspector shall not divulge any secret learned in the course of his/her duties. The same shall apply after said officers or employees are no longer engaged in the duty of the Insurance
Inspector.
(Approval pertaining to Modification of Contract Conditions)
Article 240-11 (1) In cases where a resolution (in the case of Foreign Insurance Companies, etc., a decision concerning the Modification of Contract Conditions; hereinafter the same shall apply in this Section.) pursuant to the provisions of Article 240-5, paragraph (1) (including cases where it is deemed that there was a resolution as set forth in Article 240-5, paragraph (1) pursuant to the
provisions of Article 240-6, paragraph (5) (including the cases where it is
applied mutatis mutandis to paragraph (6) and paragraph (7) of that Article)), after that resolution, the Insurance Company shall, without delay, seek the
approval of the Prime Minister concerning the Modification of Contract
Conditions pertaining to that resolution.
(2) The Prime Minister shall not grant approval set forth in the preceding
paragraph except in cases where measures necessary for the continuation of Insurance Business have been undertaken by that Insurance Company, and the Modification of Contract Conditions pertaining to the resolution as set
forth in Article 240-5, paragraph (1) is found necessary for the continuation of
Insurance Business of that Insurance Company, and appropriate from the standpoint of the protection of Insurance Policyholders, etc.
(Notice of Modification of Contract Conditions and Raising of Objections, etc.) Article 240-12 (1) In cases where approval is granted as set forth in paragraph
(1) of the preceding Article, within two weeks of the date of said approval being granted, the Insurance Company shall make a public notice of the main
contents of the Modification of Contract Conditions pertaining to the resolution
set forth in Article 240-5, paragraph (1), and shall also notify in writing the
contents of the Modification of Contract Conditions pertaining to the resolution set forth in that paragraph to the Insurance Policyholders pertaining to the
Modification of Contract Conditions (hereinafter referred to as "Policyholders
Subject to Modify" in this Article).
(2) In the case referred to in the preceding paragraph, the Insurance Company shall attach the documents specified by a Cabinet Office Ordinance, such as
documents showing the reason why the Modification of Contract Conditions is inevitable, documents showing a forecast of the business and property
situation after the Modification of Contract Conditions is effected, documents showing matters regarding funding and the handling of debts against creditors other than Insurance Policyholders, etc., and documents showing matters
related to management responsibility (in cases where there is a policy
pursuant to the provisions set forth in Article 240-5, paragraph (4), including documents showing the content of the policy). Moreover, the Insurance
Company shall attach a supplementary note to the effect said persons who are
Policyholders Subject to Modify who have an objection should raise their objections within a set period of time.
(3) The period under the preceding paragraph cannot be less than a month.
(4) Contract conditions shall not be modified when the number of Policyholders
Subject to Modify who have raised objections within the period of time set forth in paragraph (2) exceeds one tenth of the total number of Policyholders Subject to Modify and the amount specified by a Cabinet Office Ordinance as an
amount equivalent to the sum of the claims pertaining to the insurance
contracts of Policyholders Subject to Modify who have raised such objections exceeds one tenth of the total amount of that amount of Policyholders Subject to Modify.
(5) When the number of Policyholders Subject to Modify who have raised their
objections within the period of time set forth in paragraph (2) or the amount specified by a Cabinet Office Ordinance belonging to those Policyholders as set forth in the preceding paragraph does not exceed the percentage specified in
that paragraph, all of said Policyholders Subject to Modify shall be deemed to
have approved said Modification of Contract Conditions.
(Public Notice, etc. of Modification of Contract Conditions)
Article 240-13 (1) An Insurance Company shall, without delay after the Modification of Contract Conditions, make a public notice of the fact a Modification of Contract Conditions has been made and any other matters specified by a Cabinet Office Ordinance. The same shall apply even when a Modification of Contract Conditions is not made.
(2) An Insurance Company shall, within three months after the Modification of
Contract Conditions, notify the Insurance Policyholders pertaining to said
Modification of Contract Conditions of the content of the rights and duties of
Insurance Policyholders after said Modification of Contract Conditions.
Section 2 Disposition, etc., of Prime Minister Related to Business and
Property Management, etc.
Subsection 1 Suspension of Business, Order for Consultation on
Merger, etc., and Business and Property Management
(Order for Suspension of Business and Consultation on Merger, etc., and
Business and Property Management)
Article 241 (1) The Prime Minister may, when he/she finds that the continuation of an Insurance Business will be difficult in light of the state of the business or property of an Insurance Company, etc., or Foreign Insurance Company, etc.,
or when he/she finds that the operation of that business (In the case of Foreign
Insurance Companies, etc., business in Japan; hereinafter the same shall apply in this Article to Article 255-2 inclusive) is extremely inappropriate and that
there is a risk that the continuation of that Insurance Business could bring
about a situation that lacks protection for Insurance Policyholders, etc., order the whole or partial suspension of business, a merger, a transfer of insurance contracts (In the case of Foreign Insurance Companies, etc., the transfer of insurance contracts in Japan) or agreement for the acquisition of the shares of that Insurance Company, etc., or Foreign Insurance Company, etc., by another Insurance Company, etc., Foreign Insurance Company, etc., or Insurance
Holding Company, etc. (referred to as "Merger, etc." in Article 247, paragraph
(1); Article 256 to Article 258 inclusive; Article 270-3-2, paragraph (4) and
Article 270-3-2, paragraph (5); and Article 270-4, Article 270-4, paragraph (4) and Article 270-4, paragraph (5)) or any other necessary measure against that Insurance Company, etc., or Foreign Insurance Company, etc., or make a
disposition ordering the business and property management (In the case of
Foreign Insurance Companies, etc., property located in Japan. The same shall apply in the following Article and Article 246-2 to Article 247-2 inclusive.) by
an Insurance Administrator.
(2) The term "Insurance Holding Company, etc." as used in this Chapter means the following:
(i) An Insurance Holding Company;
(ii) A Small Amount and Short Term Insurance Holding Company prescribed in
Article 272-37, paragraph (2);
(iii) A company that has received approval, as set forth in Article 271-18, paragraph (1), to become a Holding Company that has an Insurance Company as a Subsidiary Company through the acquisition of shares;
(iv) A company that has received approval, as set forth in Article 272-35,
paragraph (1), to become a Holding Company that has a Small Amount and
Short Term Insurance Provider as a Subsidiary Company through the acquisition of shares;
(v) A company, other than the companies listed in the preceding items
(excluding an Insurance Company, etc., and Foreign Insurance Company,
etc.), that has an Insurance Company, etc., or Foreign Insurance Company, etc., as a Subsidiary Company or is attempting to make into a Subsidiary
Company.
(3) An Insurance Company, etc., or Foreign Insurance Company, etc., shall, when the continuation of its Insurance Business will be difficult in light of the state
of its business or property, notify the Prime Minister to that effect and of the
reason in writing.
Subsection 2 Business and Property Management
(Appointment, etc., of Insurance Administrator)
Article 242 (1) When a disposition ordering the business and property
management by an Insurance Administrator has been issued under the
provision of paragraph (1) of the preceding Article (hereinafter referred to as
"Disposition Ordering Management" in this Subsection and Article 258,
paragraph (2)), the right to represent an Insurance Company, etc., or Foreign
Insurance Company, etc., that has received that disposition (hereinafter
referred to as a "Company Being Managed"), execute its business, and manage and dispose of its property (in the case of the right to represent a Foreign
Insurance Company, etc., limited to the scope pertaining to Insurance Business in Japan) shall be vested exclusively in an Insurance Administrator. The same
shall apply to the rights of the directors and executive officers under the
provisions of Article 828, paragraph (1) and Article 828, paragraph (2) (Action
for the Nullity of Acts Concerning Company Organization) (including the cases where it is applied mutatis mutandis pursuant to Article 30-15; Article 57,
paragraph (6); Article 60-2, paragraph (5); and Article 171) and Article 831,
paragraph (1) (Action to Rescind a Resolution of the Shareholders Meeting, etc.) (including the cases where it is applied mutatis mutandis pursuant to
Article 41, paragraph (2) and Article 49, paragraph (2)) and the provisions of Article 84-2, paragraph (2) and Article 96-16, paragraph (2) of the Companies Act.
(2) The Prime Minister shall, together with the Disposition Ordering
Management, appoint one or several Insurance Administrators.
(3) The Prime Minister may order the Insurance Administrators to take necessary measures regarding the business and property management of the Company Being Managed.
(4) The Prime Minister may, when he/she finds it necessary, appoint further
Insurance Administrators after appointing Insurance Administrators pursuant to the provisions of paragraph (2), or when he/she finds that the Insurance
Administrators are not appropriately managing the business and property of the Company Being Managed, dismiss the Insurance Administrators.
(5) The Prime Minister shall, when he/she has appointed Insurance
Administrators pursuant to the provisions of paragraph (2) or the preceding
paragraph or when he/she has dismissed Insurance Administrators pursuant to that paragraph, notify the Company Being Managed to that effect and make a public notice of this fact in the Official Gazette.
(6) The provisions of Article 69, Article 70, Article 80, and Article 81, paragraph
(1) and Article 81, paragraph (5) (Execution of Duty by Several Trustees,
Appointment of Trustee Representatives, Duty of Care, and Advance Payment of Costs and Compensation of a Trustee) of the Corporate Rehabilitation Act
and the provisions of Article 78 (Liability for Damages with regard to Acts of Representative Persons) of the Act on General Incorporated Association and General Incorporated Foundation shall apply mutatis mutandis to Insurance Administrators and the Company Being Managed, respectively. In this case,
the term "permission of a court" in Article 69, paragraph (1) of the Corporate Rehabilitation Act shall be deemed to be replaced with "approval of the Prime Minister," the term "trustee representatives" in Article 70 of that Act shall be deemed to be replaced with "Insurance Administrator Representatives," the
term "permission of a court" in paragraph (2) in that Article shall be deemed to
be replaced with "Approval of the Prime Minister," the term "court" in Article
81, paragraph (1) of that Act shall be deemed to be replaced with "the Prime Minister," the term "trustee representatives" in paragraph (5) in that Article shall be deemed to be replaced with "Insurance Administrator
Representatives," and the term "representative directors and other
representative persons" in Article 78 of the Act on General Incorporated Association and General Incorporated Foundation shall be deemed to be replaced with "Insurance Administrators."
Article 243 (1) An Insurance Company, etc., may become an Insurance
Administrator or an Insurance Administrator Representative.
(2) An Insurance Company, etc., if requested by the Prime Minister to become an
Insurance Administrator, shall not refuse in the absence of justifiable grounds. (3) A Policyholders Protection Corporation may become an Insurance
Administrator or an Insurance Administrator Representative and undertake the business of such.
(Notice and Registration)
Article 244 (1) The Prime Minister shall, when he/she issues a Disposition
Ordering Management, immediately notify the district court with jurisdiction over the location of the head office or principal office of the Company Being Managed to that effect, and, attach a transcript of the written order to a
written commission and commission its registration in the registry of the head
office or principal office of the Company Being Managed (in the case of a Foreign Insurance Company, etc., the location of a branch office, etc. as prescribed in Article 185, paragraph (1)).
(2) The name and address of the Insurance Administrator shall also be registered
in the registration of the preceding paragraph.
(3) The provision of paragraph (1) shall apply mutatis mutandis when modifications occur to matters listed in the preceding paragraph.
(Suspension of Business)
Article 245 When a Disposition Ordering Management has been issued, the
Company Being Managed shall suspend its business, except for the following
listed business; provided, however, that this shall not apply to a portion of that business when the Prime Minister finds it necessary that a portion of that
business is not suspended pursuant to a report of the Insurance Administrator. (i) When a contract has been concluded under the provision of Article 270-6-7,
paragraph (3) with a joined organization prescribed in Article 266, paragraph
(1), based on the claim by the creditor of the right to insurance claim, etc. pertaining to a Covered Insurance Contract (hereinafter referred to as
"Covered Insurance Contracts" in this Article) prescribed in Article 270-3,
paragraph (2), item (i) and any other right specified by a Cabinet Order, the
business of paying said insurance claims of a Covered Insurance Contracts or any other benefit (limited to the amount obtained by multiplying the amount of said insurance claims of a Covered Insurance Contracts or any other benefit by the rate specified by a Cabinet Office Ordinance or Ordinance of
the Ministry of Finance by taking into consideration the type of said Covered
Insurance Contracts, the assumed interest rate, any other content, and the
timing that the insured accident pertaining to said claim occurred, etc.;
hereinafter referred to as "Covered Insurance Claims.") (hereinafter referred to as "The Business of Paying Covered Insurance Claims").
(ii) Business pertaining to the cancellation of specified Covered Insurance Contracts (referring to those Covered Insurance Contracts specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance as
contracts having little necessity to maintain in order to protect Insurance
Policyholders, etc.; the same shall apply hereinafter) within the period of
time specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance (excluding business pertaining to the payment of cancellation
refunds or any other similar benefits; hereinafter referred to as "Business
Pertaining to the Cancellation of Specified Covered Insurance Contracts").
(Prohibition on Entry of Name Change of Shareholders)
Article 246 When a Company Being Managed (excluding a Foreign Insurance Company, etc.) is a Stock Company, the Prime Minister may, when he/she finds it necessary, prohibit the entry of a name change of shareholders.
(Insurance Administrator's Duty to Report)
Article 246-2 An Insurance Administrator shall, without delay after taking office, investigate and report the following matters to the Prime Minister:
(i) The course of events that lead to the circumstances under which the
Company Being Managed received a Disposition Ordering Management;
(ii) The situation of the business and property of the Company Being Managed; (iii) Any other necessary matter.
(Approval of Plan)
Article 247 (1) The Prime Minister may, when he/she finds it necessary for the protection of Insurance Policyholders, etc., that the maintenance of insurance contracts pertaining to the Company Being Managed (in the case of Foreign
Insurance Companies, etc., insurance contracts in Japan; hereinafter the same
shall apply in this Chapter, excluding Article 254 and Article 270-7, paragraph (1)) or the business relating to the cancellation of specified Covered Insurance Contracts or any other business be conducted smoothly, order the Insurance
Administrator to prepare a plan, including the following matters, relating to the business and property management:
(i) A policy relating to the liquidation and rationalization of the business of the
Company Being Managed; and
(ii) Measures to carry out smoothly a Merger, etc., pertaining to the Company
Being Managed.
(2) An Insurance Administrator shall obtain the approval of the Prime Minister
when he/she has prepared the plan set forth in the preceding paragraph. (3) An Insurance Administrator shall, without delay, when he/she has the
approval set forth in the preceding paragraph, move on to the implementation of the plan set forth in paragraph (1) pertaining to said approval.
(4) An Insurance Administrator may, when unavoidable circumstances arise, receive approval from the Prime Minister and change or abolish the plan set forth in paragraph (1).
(5) The Prime Minister may, when he/she finds it necessary for the protection of Insurance Policyholders, etc., order the Insurance Administrator to change or abolish the plan set forth in paragraph (1).
(Investigation, etc., by Insurance Administrator)
Article 247-2 (1) The Insurance Administrator may request directors, executive officers, accounting advisors, company auditors, accounting auditors, and
managers or any other employee of the Company Being Managed, and any
person who has resigned from these positions, to make a report on the
situation of the business and property of the Company Being Managed (with regard to any person who has resigned from these positions, limited to those
items pertaining to matters that could have been known by said person during the period when he/she was engaged in the business of that Company Being
Managed), or inspect the books, documents, or any other items of the Company
Being Managed.
(2) The Insurance Administrator may, when it is necessary to carry out his/her duty, inquire with, or request the cooperation of, government agencies, public entities, or any other person.
(Confidentiality Obligation of Insurance Administrator, etc.)
Article 247-3 (1) The Insurance Administrator and Insurance Administrator
Representative (hereinafter referred to as "Insurance Administrator, etc." in
this Article) shall not divulge any secret learned in the course of his/her duties. The same shall apply after the Insurance Administrator, etc., resigns from
office.
(2) When the Insurance Administrator, etc., is a juridical person, its officers and employees who are engaged in the duty of the Insurance Administrator, etc.,
shall not divulge any secret learned in the course of his/her duties. The same shall apply after said officers or employees are no longer engaged in the duty of the Insurance Administrator, etc.
(Measures to Clarify the Responsibility for Bankruptcy of Managers of the
Company Being Managed)
Article 247-4 (1) The Insurance Administrator shall, in order to have directors,
executive officers, accounting advisers, company auditors or accounting
auditors of the Company Being Managed, or any person who has resigned from these positions perform the civil responsibility based on the breach of
professional obligations, appeal to the court or take other necessary measures. (2) The Insurance Administrator shall, when by carrying out his/her duty he/she
considers that a crime has been committed, take the necessary measures
toward accusation.
(Transactions between the Insurance Administrator and the Company Being
Managed)
Article 247-5 (1) The Insurance Administrator shall obtain the approval of the
Prime Minister when carrying out, for himself/herself or for a third party, any transaction with the Company Being Managed. In this case, the provisions of
Article 108 (Self-Contract and Representation of Both Parties) of the Civil Code shall not apply.
(2) An act shall be null and void if the approval set forth in the preceding
paragraph has not been obtained; provided, however, that it may not be duly asserted against a third party without knowledge.
(Rescission of Disposition Ordering Management by Insurance Administrator) Article 248 (1) The Prime Minister shall, when he/she finds that there is no
longer any need for a Disposition Ordering Management, rescind that
Disposition Ordering Management.
(2) The provision of Article 244, paragraph (1) shall apply mutatis mutandis to the case set forth in the preceding paragraph.
(Special Provisions on Extraordinary Resolutions, etc., of Shareholders
Meeting, etc.)
Article 249 (1) In a Company Being Managed that is a Stock Company
(excluding a Foreign Insurance Company, etc.; hereinafter the same shall
apply in this Article and the following Article), resolutions of a Shareholders Meeting or class meeting listed in Articles 309, paragraph (2), item (iv), (v), (ix), (xi), or (xii) (Resolutions of Shareholders Meeting) or Articles 324, paragraph
(2), item (i) or (iv) (Resolutions of Class Meeting) of the Companies Act, or
resolutions pursuant to the provisions of Article 69, paragraph (2), Article 136, paragraph (2), Article 144, paragraph (3), Article 165-3, paragraph (2), or
Article 165-10, paragraph (2), may be made provisionally by two-thirds or more
of the votes held by the shareholders present, notwithstanding these provisions. (2) In a Company Being Managed that is a Stock Company, resolutions of a
Shareholders Meeting or class meeting listed in the items of Article 309, paragraph (3) or in Articles 234, paragraph (3), items (i) and (ii) of the
Companies Act or resolutions pursuant to the provisions of Article 323 (Cases
of Provision Requiring Resolution of Class Meeting) of that Act or Article 165-3, paragraph (4) or Article 165-3, paragraph (6), or Article 165-10, paragraph (6) may be made provisionally by two-thirds or more of the votes held by the
shareholders present, where a majority of shareholders are present, notwithstanding these provisions.
(3) In a Company Being Managed that is a Mutual Company, resolutions
pursuant to the provisions of Article 57, paragraph (2), Article 60, paragraph
(2), Article 62, paragraph (2), Article 62-2, paragraph (2), Article 86, paragraph
(2), Article 136, paragraph (2), Article 144, paragraph (3), Article 156 or Article
165-16, paragraph (2) (including the cases where it is applied mutatis
mutandis pursuant to Article 165-20) may be made provisionally by three- quarters or more of the votes held by the members present (or, where the
company has a General Meeting, General Representatives present), notwithstanding these provisions.
(4) In the case where a resolution is made provisionally pursuant to the provisions of paragraph (1) (hereinafter referred to as a "Provisional Resolution" in this Article), the Company Being Managed shall notify its
shareholders of the purpose of said Provisional Resolution and shall call a
subsequent Shareholders Meeting within one month of the date of adoption of said Provisional Resolution.
(5) In the case where a Provisional Resolution is approved by a majority as prescribed in paragraph (1) at the Shareholders Meeting set forth in the
preceding paragraph, a resolution pertaining to the matters of said Provisional
Resolution shall be deemed to have existed when said approval was given.
(6) The provisions of the preceding two paragraphs shall apply mutatis mutandis to cases where a resolution is made provisionally pursuant to the provisions of paragraph (2). In this case, the term "paragraph (1)" in the preceding
paragraph shall be deemed to be replaced with the term "paragraph (2)." (7) The provisions of paragraph (4) and paragraph (5) shall apply mutatis
mutandis to cases where a resolution is made provisionally pursuant to the
provisions of paragraph (3). In this case, the term "shareholders" in paragraph
(4) shall be deemed to be replaced with the term "Members (or, where the company has a General Meeting, "General Representatives")," the term
"Shareholders Meeting" in that paragraph and in paragraph (5) shall be deemed to be replaced with the term "General Meeting of Members" (or
"General Meeting," where the company has such meeting), and the term
"paragraph (1)" in that paragraph shall be deemed to be replaced with the term
"paragraph (3)."
(Permission in lieu of Extraordinary Resolution of Shareholders Meeting, etc.)
Article 249-2 (1) In the case where a Company Being Managed that is a Stock Company is unable to satisfy its obligations with its property, that Company Being Managed may obtain permission of a court and carry out the following matters, notwithstanding the provisions of Article 447, paragraph (1)
(Reductions in Amount of capital), Article 467, paragraph (1), items (i) and (ii) (Approvals of Assignment of Business), and Article 471, item (iii) (Grounds for Dissolution) of the Companies Act and the provisions of Article 136 (including
the cases where it is applied mutatis mutandis pursuant to Article 272-29; the same shall apply in the following paragraph):
(i) Assignment of all or a material portion of business; (ii) Reduction in the amount of capital;
(iii) Dissolution;
(iv) Transfer of insurance contracts.
(2) In the case where a Company Being Managed that is a Mutual Company is unable to satisfy its obligations with its property, that Company Being
Managed may obtain permission of a court and carry out the following matters, notwithstanding the provisions of Article 62-2, paragraph (1), items (i) and (ii), Article 136, and Article 156:
(i) Assignment of all or a material portion of business;
(ii) Transfer of insurance contracts; (iii) Dissolution.
(3) The Insurance Administrator may obtain permission of a court and dismiss directors, executive officers, accounting advisers, company auditors, or
accounting auditors of the Company Being Managed, notwithstanding the
provisions of Article 339, paragraph (1) (Dismissal), Article 347, paragraph (1) (Election of Directors or Company Auditors at Class Meetings), or Article 403, paragraph (1) (Dismissal of Executive Officers) of the Companies Act or the
provisions of Article 53-8, paragraph (1) or Article 53-27, paragraph (1).
(4) In the case where the Insurance Administrator intends to dismiss directors, executive officers, accounting advisers, company auditors, or accounting
auditors of the Company Being Managed pursuant to the provisions of the preceding paragraph, when the number of directors, executive officers,
accounting advisers, company auditors, or accounting auditors will fail to meet
the number prescribed by an Act or by the articles of incorporation by carrying out the dismissals, the Insurance Administrator may obtain permission of a
court and appoint directors, executive officers, accounting advisers, company
auditors, or accounting auditors of the Company Being Managed,
notwithstanding the provisions of Article 329, paragraph (1) (Election), Article
347, paragraph (1) or Article 402, paragraph (2) (Election of Executive Officers)
of the Companies Act or the provisions of Article 52, paragraph (1) or Article
53-26, paragraph (2).
(5) The directors, accounting advisers, company auditors, or accounting auditors of the Company Being Managed who have been elected pursuant to the
provision of the preceding paragraph shall retire from their posts at the
conclusion of the first annual Shareholders Meeting or annual General Meeting of Members (in cases where a General Meeting is established, "Annual General Meeting") convened after the end of the business year during which they were appointed, and executive officers shall retire from their posts at the conclusion of the first meeting of the board of directors held after the conclusion of the
first Annual Shareholders Meeting convened after the end of the business year
during which they were appointed.
(6) When the permissions prescribed in paragraph (1) to paragraph (4) inclusive (hereinafter referred to as "Replacement Permissions" in this Article and the following Article) have been obtained, it shall be deemed that a resolution of
the Shareholders Meeting, etc., class meeting, or board of directors has been made concerning matters pertaining to said Replacement Permissions. With regard to the application of the provisions in Article 16, paragraph (1), Article
136-2, paragraph (1) (including the cases where it is applied mutatis mutandis
pursuant to Article 272-29), and Article 250, paragraphs (3) and (5) in this case, the term "two weeks before the date of the Shareholders Meeting pertaining to
the resolution on the reduction (excluding the cases where the whole of the
amount by which the reserves are reduced is appropriated to the capital) of the capital or reserves (hereinafter referred to as "capital, etc." in this Section) (or, the date of the board of directors meeting where Article 447, paragraph (3)
(Reductions in Amount of Capital) or Article 448, paragraph (3) (Reductions in
Amount of Reserves) of the Companies Act applies)" in Article 60, paragraph (1) shall be deemed to be replaced with "a date within two weeks from the date of receipt of the permission set forth in Article 249-2, paragraph (1) pertaining to the reduction (excluding the cases where the whole of the amount by which the reserves are reduced is appropriated to the capital) of the capital or
reserves," the term "two weeks before the date of the Shareholders Meeting, etc.
set forth in Article 136, paragraph (1) in the preceding Article" in Article 136-2 shall be deemed to be replaced with "a date within two weeks from the date of receipt of the permission set forth in Article 249-2, paragraph (1) or (2)
pertaining to the transfer of insurance contracts," and the terms "the public
notice set forth in the following paragraph" in Article 250, paragraph (3) and "the public notice set forth in the preceding paragraph" in paragraph (5) in that Article shall be deemed to be replaced with "the public notice set forth in Article 249-2, paragraph (8)"; and the provisions of Article 156-2 and Article
250, paragraph (4) shall not apply.
(7) The district court with jurisdiction over the location of the head office or
principle office of that Company Being Managed shall have jurisdiction over
matters pertaining to Replacement Permissions.
(8) The court shall, when it has made a decision on Replacement Permissions,
serve that written decision on the Company Being Managed and make a public notice as to the gist of that decision.
(9) The public notice made pursuant to the provision of the preceding paragraph shall be published in the Official Gazette.
(10) The decision on Replacement Permissions shall take effect as from the time it has been served on the Company Being Managed under the provision of
paragraph (8).
(11) Shareholders or members may make an immediate appeal against the decision on Replacement Permissions within an unextendable period of one
week from the date of the public notice set forth in paragraph (8). In this case,
when the immediate appeal is against a decision on Replacement Permissions pertaining to dissolution, it shall have the effect of a stay of execution.
(12) The provisions of Article 2 to Article 4 inclusive (Court with Jurisdiction,
Priority Jurisdiction and Transfer, Designations of Courts with Jurisdiction), Article 15 (Statements and Attendance of a Public Prosecutor), Article 16
(Obligation to Notify a Public Prosecutor), Article 18, paragraphs (1) and (2)
(Effect of Decisions), and Article 20 (Appeals) of the Act on Procedures in Non- Contentious Cases (Act No. 14 of 1898) shall not apply concerning matters
pertaining to Replacement Permissions.
(Special Provisions on Registration Pertaining to Replacement Permissions) Article 249-3 The cases where Replacement Permissions pertaining to matters
listed in paragraph (1), item (ii) or (iii) or paragraph (2), item (iii) in the
preceding Article or matters specified in paragraph (3) or (4) in that Article, a transcript or extract of the written decision of said Replacement Permissions
shall be attached to the written application for registration pertaining to said matters.
Subsection 3 Modification of Contract Conditions in Merger, etc. (Modification of Contract Conditions in Transfer of Insurance Contracts)
Article 250 (1) In addition to the minor modifications prescribed in Article 135,
paragraph (4) (including the cases where it is applied mutatis mutandis
pursuant to Article 210, paragraph (1) and Article 272-29) made to the contract set forth in Article 135, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 210, paragraph (1) and Article 272-29),
an Insurance Company, etc., or Foreign Insurance Company, etc., may, in the
cases that fall under the following listed cases, prescribe a reduction in the amount of insurance claims and any other modifications to contract clauses
with regard to insurance contracts (excluding specified contracts) that will be
transferred pursuant to that contract (excluding said minor modifications, that reduce the policy reserves that should be reserved from Insurance Premiums
received after the time of the public notice, etc., prescribed in paragraph (3), item (i) with regard to Covered Insurance Contracts other than specified
Covered Insurance Contracts (referred to as Covered Insurance Contracts
prescribed in Article 270, paragraph (3), item (i)), and modifications that will
establish disadvantageous content relating to cancellation refunds or any other similar benefits specified by a Cabinet Office Ordinance or Ordinance of the
Ministry of Finance that accrue after the time of the public notice, etc.,
prescribed in that item with regard to specified Covered Insurance Contracts compared to other insurance claims or any other benefits pertaining to said specified Covered Insurance Contracts; hereinafter referred to in this
Subsection as "Modifications to Contract Conditions"):
(i) In the case where agreement to a transfer of insurance contracts pertaining to all insurance contracts has been ordered pursuant to the provision of
Article 241, paragraph (1), when said insurance contracts are to be transferred;
(ii) In the case where the company is a Company Being Managed, when a
transfer of insurance contracts pertaining to all or some insurance contracts
is to be made in accordance with a plan as set forth in Article 247, paragraph
(1) that has received approval as set forth in paragraph (2) in that Article (including the approval of modification as set forth in paragraph (4) in that Article);
(iii) In the case where the company is a Bankrupt Insurance Company as
prescribed in Article 260, paragraph (2) that has received the recognition of the Prime Minister as set forth in Article 268, paragraph (1) or Article 270, paragraph (1), when insurance contracts pertaining to all its insurance
contracts are to be transferred to a Relief Insurance Company as prescribed in Article 260, paragraph (3) (excluding the case given in the preceding two
items).
(2) In the case where insurance contracts are to be transferred as set forth in the item (i) or (iii) in the preceding paragraph, all the insurance contracts
pertaining to that Insurance Company, etc., or Foreign Insurance Company, etc., (including insurance contracts pertaining to business related to the
cancellation of specified Covered Insurance Contracts), other than specified
contracts, shall be transferred collectively.
(3) The term "Specified Contracts" prescribed in the preceding two paragraphs refers to the following:
(i) Insurance contracts for which an insured event (limited to insurance
contracts which would be terminated with the payment of insurance claims
pertaining to the insured event) has already occurred at the Time of the
Public Notice set forth in the following paragraph (when payment pertaining to said insurance contracts has already been suspended at the time of said
public notice in the case where a whole or partial suspension of business has been ordered pursuant to the provision of Article 241, paragraph (1) and
payment pertaining to insurance contracts has been suspended or in the case
where business has been suspended pursuant to the provision of Article 245 (including the cases where it is applied mutatis mutandis pursuant to Article
258, paragraph (2)), paragraph (5) in this Article, Article 254, paragraph (4),
or Article 255-2, paragraph (3), and payment pertaining to insurance
contracts has been suspended; referred to as "Time of Public Notice, etc." in the following item);
(ii) Insurance contracts for which the insured period has already terminated at the Time of Public Notice, etc. (including those that, at the Time of Public
Notice, etc., were cancelled during the insured period and any others for
which a cause of termination of insurance contracts has occurred (excluding those for which payment pertaining to insurance contracts has been
suspended pursuant to an order under the provision of Article 240-3), and
excluding those given in the preceding item).
(4) In the case set forth in paragraph (1), an Insurance Company, etc., shall, on the date of mailing convocation notices for the Shareholders Meeting, etc., set forth in Article 136, paragraph (1) (including the cases where it is applied
mutatis mutandis pursuant to Article 272-29), make public notice to the effect that said Shareholders Meeting, etc., will be held and that a resolution to
transfer insurance contracts that include said Modifications of Contract
Conditions is the purpose of the meeting; a Foreign Insurance Company, etc., shall, on the date of issue of contracts pertaining to the contracts set forth in Article 135, paragraph (1), make public notice to the effect that contracts that contain said Modifications of Contract Conditions have been issued.
(5) The Insurance Company, etc., or Foreign Insurance Company, etc., set forth
in paragraph (1) shall suspend all of its business (excluding the business of
payment of Covered Insurance Claims and business related to the cancellation of Specified Contracts subject to compensation) from the Time of Public Notice as set forth in the preceding paragraph, excluding the case where, already at
the Time of Public Notice, the suspension of all of its business has been ordered pursuant to the provision of Article 241, paragraph (1) or all of its business has been suspended pursuant to the provisions of the main clause of Article 245
(including the cases where it is applied mutatis mutandis pursuant to Article
258, paragraph (2)), the main clause of this paragraph, the main clause of
Article 254, paragraph (4), or the main clause of Article 255-2, paragraph (3);
provided, however, that this shall not apply to a portion of its business in the
case that the Prime Minister has found it necessary that the portion of business not be suspended pursuant to a report from that Insurance Company, etc., or Foreign Insurance Company, etc.
(Special Provisions on Public Notice of Transfer of Insurance Contracts and
Raising of Objections)
Article 251 (1) In the case where insurance contracts are to be transferred as set
forth in the paragraph (1) in the preceding Article, the public notice set forth in
Article 137, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 210, paragraph (1)and Article 272-29) shall
include a supplementary note on the main content of modifications in the rights and duties of Insurance Policyholders caused by a Modification of Contract Conditions and any other matters specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance.
(2) With regard to the application of the provisions of Article 135, paragraph (2)
and Article 137, paragraph (4) (including the cases where it is applied mutatis mutandis pursuant to Article 210, paragraph (1) and Article 272-29;
hereinafter the same shall apply in this paragraph) in the case where
insurance contracts are to be transferred as set forth in the paragraph (1) in the preceding Article, "insurance contracts for which an insured event has already occurred at the Time of Public Notice set forth in Article 137,
paragraph (1) (limited to insurance contracts which would be terminated with
the payment of insurance claims pertaining to the insured event) and any other insurance contracts specified by a Cabinet Order" in Article 135, paragraph (2)
shall be deemed to be replaced with "Specified Contracts prescribed in Article
250, paragraph (3)," and the terms "one fifth" and "at the Time of Public Notice under the provision of paragraph (1) with regard to said insurance contracts"
in Article 137, paragraph (4) shall be deemed to be replaced with "one tenth"
and "for said insurance contracts, in the case that said insurance contracts are
Specified Contracts as prescribed in Article 250, paragraph (3)," respectively.
(Effect of Transfer of Insurance Contracts Accompanied by Modification in
Contract Conditions)
Article 252 When a transfer of insurance contracts has taken place as set forth in Article 250, paragraph (1), the Transferee Company prescribed in Article
135, paragraph (1) shall assume the claims and obligations pertaining to
insurance contracts pertaining to the transfer of insurance contracts under the conditions set forth after the Modifications to Contract Conditions specified in
the contract set forth in Article 135, paragraph (1) (including the cases where
it is applied mutatis mutandis pursuant to Article 210, paragraph (1) and
Article 272-29; hereinafter the same shall apply in this Article) have been
made with regard to said insurance contracts.
(Notice of Modification of Contract Conditions)
Article 253 With regard to the application of the provision of Article 140, paragraph (2) (including the cases where it is applied mutatis mutandis
pursuant to Article 210, paragraph (1) and Article 272-29; hereinafter the same
shall apply in this Article) in the case where a transfer of insurance contracts has taken place as set forth in Article 250, paragraph (1), the term "the fact
that a transfer of insurance contracts has been received and the content of said
minor modifications when the minor modifications prescribed in the paragraph (4) in that Article have been established" in Article 140, paragraph (2) shall be deemed to be replaced with "the fact that a transfer of insurance contracts has been received and the content of the rights and duties of Insurance
Policyholders after said Modification of Contract Conditions when the
Modification of Contract Conditions prescribed in Article 250, paragraph (1) (including the minor modifications prescribed in Article 135, paragraph (4), hereinafter the same shall apply in this paragraph) has been established."
(Modification of Contract Conditions in Merger Agreement)
Article 254 (1) An Insurance Company, etc., may, in the cases that fall under the following listed cases, specify Modifications of Contract Conditions with regard to insurance contracts (excluding Specified Contracts) pertaining to that
Insurance Company, etc., in merger agreements:
(i) In the case where agreement to a merger has been ordered pursuant to the provision of Article 241, paragraph (1), when a merger is intended;
(ii) In the case where the company is a Company Being Managed, when a
merger is to be made in accordance with a plan as set forth in Article 247,
paragraph (1) that has received approval as set forth in paragraph (2) in that
Article (including the approval of modifications as set forth in paragraph (4)
in that Article);
(iii) In the case where the company is a Bankrupt Insurance Company as
prescribed in Article 260, paragraph (2) that has received the recognition of the Prime Minister as set forth in Article 268, paragraph (1) or Article 270,
paragraph (1), when a merger is to be made that will result in the survival of a Relief Insurance Company as prescribed in Article 260, paragraph (3)
(excluding the case given in the preceding two items).
(2) The provision of Article 250, paragraph (3) shall apply mutatis mutandis to
the Specified Contracts prescribed in the preceding paragraph. In this case, the term "the following paragraph" shall be deemed to be replaced with "Article
254, paragraph (3)."
(3) The Insurance Company, etc., set forth in paragraph (1) shall, on the date of
mailing convocation notices for the Shareholders Meeting, etc., at which a resolution will be made on the approval set forth in Article 783, paragraph (1) (Approval, etc., of Absorption-Type Merger Agreements, etc.), Article 795,
paragraph (1) (Approval, etc., of Absorption-Type Merger Agreements, etc.), or
Article 804, paragraph (1) (Approval of Consolidation-Type Merger Agreements, etc.) of the Companies Act, or Article 165-3, paragraph (1), Article 165-10,
paragraph (1), or Article 165-16, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 165-20), make public notice to
the effect that said Shareholders Meeting, etc., will be held and that a
resolution on the approval of a merger agreement is the purpose of the meeting. (4) The Insurance Company, etc., set forth in paragraph (1) shall suspend all of
its business (excluding the business of payment of Covered Insurance Claims
and business related to the cancellation of specified Covered Insurance
Contracts) from the Time of Public Notice as set forth in the preceding
paragraph, excluding the case where, already at the Time of Public Notice, the suspension of all of its business has been ordered pursuant to the provision of
Article 241, paragraph (1) or all of its business has been suspended pursuant to the provisions of the main clause of Article 245 (including the cases where it is
applied mutatis mutandis pursuant to Article 258, paragraph (2)), the main clause of Article 250, paragraph (5), the main clause of this paragraph, or the main clause of Article 255-2, paragraph (3); provided, however, that this shall not apply to a portion of its business in the case that the Prime Minister has found it necessary that the portion of business not be suspended pursuant to a report from that Insurance Company, etc.
(Special Provisions on Public Notice of Merger and Raising of Objections)
Article 255 (1) The Insurance Company, etc., set forth in paragraph (1) in the preceding Article, shall attach a supplementary note to the public notice under the provisions of Article 165-7, paragraph (2) (including the cases where it is
applied mutatis mutandis pursuant to Article 165-12), Article 165-17,
paragraph (2) (including the cases where it is applied mutatis mutandis
pursuant to Article 165-20), or Article 165-24, paragraph (2) on the main content of modifications in the rights and duties of Insurance Policyholders caused by a Modification of Contract Conditions and any other matters
specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance.
(2) With regard to the application of the provision of Article 70, paragraph (6), as applied mutatis mutandis pursuant to Article 165-7, paragraph (4) (including
the cases where it is applied mutatis mutandis pursuant to Article 165-12),
Article 88, paragraph (6), as applied mutatis mutandis pursuant to Article 165-
17, paragraph (4) (including the cases where it is applied mutatis mutandis
pursuant to Article 165-20), or Article 165-24, paragraph (6) in the case where
a merger is to be made as set forth in paragraph (1) in the preceding Article, in these provisions, the term "insurance contracts under which the right to
Insurance Claims, etc., had already arisen at the Time of Public Notice under the provision of that paragraph (limited to those contracts that would be
terminated with payment pertaining to said right to Insurance Claims, etc.)"
shall be deemed to be replaced with "insurance contracts prescribed in Article
250, paragraph (3), as applied mutatis mutandis pursuant to Article 254,
paragraph (2)," the term "one fifth" shall be deemed to be replaced with "one tenth," the term "Right to Insurance Claims, etc." shall be deemed to be
replaced with "insurance claims pertaining to the Specified Contracts
prescribed in Article 250, paragraph (3), as applied mutatis mutandis pursuant to Article 254, paragraph (2), and any other rights specified by a Cabinet
Order."
(3) In the case of a merger as set forth in paragraph (1) in the preceding Article, the Insurance Company, etc., that survives after the merger or the Insurance Company, etc., that is incorporated by the merger shall, within three months
after the merger, notify the Insurance Policyholders of the Insurance Company,
etc., of that paragraph to that effect and of the content of the rights and duties of Insurance Policyholders after the Modification of Contract Conditions.
(Modification of Contract Conditions in Acquisition of Shares)
Article 255-2 (1) An Insurance Company, etc., or Foreign Insurance Company, etc., may, in the cases that fall under the following listed cases (limited to
cases in which shares are acquired to execute matters specified by the Prime
Minister and the Minister of Finance as necessary to ensure the sound and appropriate operation of the business of said Insurance Company, etc., or
Foreign Insurance Company, etc., and protect Insurance Policyholders, etc.),
prepare a plan to modify contract conditions and modify contract conditions of insurance contracts (excluding Specified Contracts) pertaining to that
Insurance Company, etc., or Foreign Insurance Company, etc. In this case, the main content of changes in the rights and duties of Insurance Policyholders
caused by the Modification of Contract Conditions and any other matters
specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance shall be specified in the plan to modify contract conditions:
(i) In the case where agreement to become a Subsidiary Company of another
Insurance Company, etc., Foreign Insurance Company, etc., or Insurance
Holding Company, etc., pursuant to the provision of Article 241, paragraph (1) by the acquisition of shares has been ordered, when the company becomes a subsidiary of another Insurance Company, etc., Foreign Insurance
Company, etc., or Insurance Holding Company, etc., by the acquisition of
said shares;
(ii) In the case where the company is a Company Being Managed, when that company becomes a subsidiary of another Insurance Company, etc., Foreign Insurance Company, etc., or Insurance Holding Company, etc., by the
acquisition of shares in accordance with a plan as set forth in Article 247,
paragraph (1) that has received the approval set forth in the paragraph (2) in that Article (including the approval of the modifications set forth in the
paragraph (4) in that Article);
(iii) In the case where the company is a Bankrupt Insurance Company as
prescribed in Article 260, paragraph (2) that has received the recognition of the Prime Minister as set forth in Article 268, paragraph (1), when that
company becomes a subsidiary of a Relief Insurance Company or Relief
Insurance Holding Company, etc., as prescribed in Article 260, paragraph (3)
by the acquisition of shares (excluding the case given in the preceding two items).
(2) The provision of Article 250, paragraph (3) shall apply mutatis mutandis to
the Specified Contracts prescribed in the preceding paragraph. In this case, the term "the following paragraph" in paragraph (3), item (i) in that Article shall
be deemed to be replaced with "Article 255-4, paragraph (1)."
(3) An Insurance Company, etc., or Foreign Insurance Company, etc., that
intends to make the Modification of Contract Conditions set forth in paragraph
(1) (hereinafter referred to as "Modified Company" in this Subsection) shall suspend all of its business (excluding the business of payment of Covered
Insurance Claims and business related to the cancellation of specified Covered
Insurance Contracts) from the Time of Public Notice as set forth in Article 255-
4, paragraph (1), excluding the case where, already at the time of public notice, the suspension of all of its business has been ordered pursuant to the provision of Article 241, paragraph (1) or all of its business has been suspended pursuant to the provisions of the main clause of Article 245 (including the cases where it
is applied mutatis mutandis pursuant to Article 258, paragraph (2)), the main
clause of Article 250, paragraph (5), the main clause of Article 254, paragraph (4), or the main clause of this paragraph; provided, however, that this shall not apply to a portion of its business in the case that the Prime Minister has found
it necessary that the portion of business not be suspended pursuant to a report
from that Insurance Company, etc., or Foreign Insurance Company, etc.
(Keeping, etc. of Documents pertaining to Modification of Contract Conditions,) Article 255-3 (1) A Modified Company shall, from the date of public notice under
the provision of the paragraph (1) in the following Article until the last day of
the period of the supplementary note attached to the public notice of the
paragraph (1) in that Article pursuant to the provision of the paragraph (2) in
that Article, keep a document or electromagnetic record stating or recording the content of a plan to modify contract conditions and any other matter
specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance at the company's business offices or other offices.
(2) Insurance Policyholders pertaining to an insurance contract that is to be modified pursuant to a plan to modify contract conditions (referred to as
"Policyholders Subject to Modify" in the following Article) may make the
following listed requests to the Modified Company during its operating hours or business hours; provided, however, that they pay the expenses determined by that Modified Company in making a request falling under item (ii) or (iv):
(i) A request for inspection of the document set forth in the preceding paragraph;
(ii) A request for a transcript or extract of the document set forth in the preceding paragraph;
(iii) A request for inspection of anything that displays the matters recorded on
the electromagnetic records set forth in the preceding paragraph by a
manner specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance;
(iv) A request for the provision of the matters recorded on the electromagnetic records set forth in the preceding paragraph by electromagnetic means
determined by that Modified Company or for any document that describes
such matters.
(Public Notice of Modification of Contract Conditions and Raising of
Objections)
Article 255-4 (1) A Modified Company shall, on the day of preparation of a plan to modify contract conditions, make a public notice on the gist of the plan to modify contract conditions and the balance sheet and any other matter
specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance.
(2) The public notice set forth in the preceding paragraph shall include a
supplementary note to the effect said persons who are Policyholders Subject to Modify who have an objection should raise their objections within a set period of time.
(3) The period under the preceding paragraph cannot be less than one month. (4) Contract conditions shall not be modified when the number of Policyholders
Subject to Modify who have raise d objections within the period of time set forth in paragraph (2) exceeds one tenth of the total number of Policyholders Subject to Modify and the amount specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance as an amount equivalent to the sum of
the claims pertaining to the insurance contracts of Policyholders Subject to
Modify who have raise d such objections exceeds one tenth of the total amount of that amount of Policyholders Subject to Modify.
(5) When the number of Policyholders Subject to Modify who have raised their objections within the period of time set forth in paragraph (2) or the amount specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance belonging to those Policyholders as set forth in the preceding
paragraph does not exceed the percentage specified in that paragraph, all of said Policyholders Subject to Modify shall be deemed to have approved said Modification of Contract Conditions.
(Public Notice, etc., of Modification of Contract Conditions)
Article 255-5 (1) A Modified Company shall, without delay after the Modification of Contract Conditions, make a public notice of the fact a Modification of
Contract Conditions has been made and of matters specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance. The same shall apply even when a Modification of Contract Conditions is not made.
(2) A Modified Company shall, within three months after the Modification of
Contract Conditions, notify the Insurance Policyholders pertaining to said
Modification of Contract Conditions of the content of the rights and duties of
Insurance Policyholders after said Modification of Contract Conditions.
Section 3 Order, etc. for Implementation of Procedure of Merger, etc. (Designation of the Other Party in Consultation of Merger, etc.)
Article 256 (1) The Prime Minister may, when an Insurance Company (including
a Foreign Insurance Company, etc.; hereinafter the same shall apply in this Chapter, except in Article 260, paragraph (1), item (ii), Article 260, paragraph (6), and Article 260, paragraph (8), item (ii), and Article 270-6) falls under the
category of a Bankrupt Insurance Company (referring to a Bankrupt Insurance
Company as prescribed in Article 260, paragraph (2); hereinafter the same shall apply in this Section) and he/she finds it necessary, designate another Insurance Company or Insurance Holding Company, etc., as the other party with which that Bankrupt Insurance Company shall hold a consultation
pertaining to a Merger, etc., and recommend that other Insurance Company or
Insurance Holding Company, etc. to agree to participate in the consultation. (2) The Prime Minister may, when he/she finds it necessary for making the
recommendation set forth in the preceding paragraph, within the limit of that
necessity, deliver material related to the status of the business or property of a
Bankrupt Insurance Company or an Insurance Company recognized as having a high probability of becoming a Bankrupt Insurance Company to another
Insurance Company or Insurance Holding Company, etc., and make any other
necessary preparations for said recommendation.
(3) The Prime Minister may, request necessary cooperation, concerning the
recommendation set forth in the paragraph (1) or the preparations set forth in the preceding paragraph, from the Policyholders Protection Corporation to
which the Bankrupt Insurance Company or the Insurance Company recognized as having a high probability of becoming a Bankrupt Insurance Company has
entered as a member.
(Mediation of the Conditions of Merger, etc.)
Article 257 (1) The Prime Minister may, when no agreement is reached in the case set forth in paragraph (1) of the preceding Article, hear in advance the
opinions of the Bankrupt Insurance Company pertaining to the
recommendation set forth in that paragraph and the opinions of the other
Insurance Company or Insurance Holding Company, etc., that received the recommendation set forth in that paragraph, indicate the conditions and conduct necessary mediation.
(2) The provisions of paragraph (2) and paragraph (3) of the preceding Article, shall apply mutatis mutandis to the mediation set forth in the preceding
paragraph. In this case, the term "Bankrupt Insurance Company or an
Insurance Company recognized as having a high probability of becoming a
Bankrupt Insurance Company" in paragraph (2) in that Article shall be deemed to be replaced with "Bankrupt Insurance Company."
(Order to Implement Proceedings of Merger, etc.)
Article 258 (1) The Prime Minister may, in the case set forth in paragraph (1) of the preceding Article, when the other Insurance Company or Insurance
Holding Company, etc., of that paragraph has consented to the conditions
pertaining to the mediation, order the Bankrupt Insurance Company
pertaining to the mediation set forth in that paragraph to conduct the
proceedings necessary to execute the Merger, etc., in accordance with said conditions.
(2) The provisions of Article 245 shall apply mutatis mutandis in the case set forth in the preceding paragraph (excluding the case where a Disposition
Ordering Management has been received). In this case, the term "Insurance Administrator" in the proviso of that Article shall be deemed to be replaced with "said Bankrupt Insurance Company."
Section 4 Financial Assistance, etc., Provided by Policyholders Protection
Corporation
Subsection 1 Policyholders Protection Corporation
Division 1 General Rules
(Purpose)
Article 259 The purpose of a Policyholders protection corporation (hereinafter
referred to as "Corporation" in this Section, the following Section, Part IV, and
Part V) is to protect Insurance Policyholders, etc., by providing financial
assistance in the transfer, etc., of insurance contracts pertaining to a Bankrupt
Insurance Company, providing executive management for the succeeding
Insurance Company, underwriting insurance contracts, providing financial assistance pertaining to the payment of Covered Insurance Claims, and
purchasing the Right to Insurance Claims, etc., thereby maintaining credibility in the Insurance Business.
(Definitions)
Article 260 (1) The term "Transfer, etc., of Insurance Contracts" as used in this
Section refers to the following:
(i) The transfer, between a Bankrupt Insurance Company and another
Insurance Company, of insurance contracts pertaining to all or some of the insurance contracts pertaining to a Bankrupt Insurance Company;
(ii) The survival, by a merger of a Bankrupt Insurance Company (excluding a Foreign Insurance Company, etc.) and another Insurance Company, of that other Insurance Company;
(iii) That which is performed in order to execute matters specified by the Prime
Minister and the Minister of Finance as necessary to ensure the sound and
appropriate operation of the business of a Bankrupt Insurance Company (in the case of Foreign Insurance Companies, etc., business in Japan;
hereinafter the same shall apply in the following paragraph and the
following Subsection) and protect Insurance Policyholders, etc., by the
acquisition of the shares of that Bankrupt Insurance Company under another
Insurance Company or Insurance Holding Company, etc.
(2) The term "Bankrupt Insurance Company" as used in this Section means the following:
(i) A company that will likely suspend the payment of insurance claims or that has suspended the payment of insurance claims in the light of the status of its business or property (in the case of Foreign Insurance Companies, etc.,
property located in Japan; hereinafter the same shall apply in the following item);
(ii) A company that is unable to satisfy its obligations with its property or a company at which a situation will likely arise in which it is unable to satisfy its obligations with its property.
(3) The term "Relief Insurance Company" as used in this Section means a
company that is not a Bankrupt Insurance Company among Insurance
Companies that conduct a Transfer, etc., of Insurance Contracts; the term
"Relief Insurance Holding Company, etc." means an Insurance Holding
Company, etc. that acquires the shares specified in paragraph (1), item (iii).
(4) The term "Financial Assistance" as used in this Section means the donation of money, the purchase of assets, or the Securing of Damage.
(5) The term "Securing of Damage" as used in this Section means, in the case
where a loss is caused by the collection of the assets specified in the following items at amounts that fall below their book value or by any other reason, the making up of all or part of the amount of said loss to the company specified in each of the items based on a contract that was concluded in advance:
(i) Assets assumed by a Relief Insurance Company, a Reassuming Insurance
Company (refers to an Insurance Company that reassumes insurance
contracts and is not an Succeeding Insurance Company; the same shall apply hereinafter), or a Re-transferee Company (refers to an Insurance Company to which insurance contracts will be re-transferred; the same shall apply
hereinafter) by the transfer of insurance contracts as prescribed in
paragraph (1), item (i), paragraph (8), item (i), or paragraph (11) or by a merger as prescribed in paragraph (1), item (ii) or paragraph (8), item (ii): That Relief Insurance Company, Reassuming Insurance Company, or Re-
transferee Company.
(ii) The assets of an Insurance Company whose shares were acquired as prescribed in paragraph (1), item (iii) or paragraph (8), item (iii): That Insurance Company.
(6) The term "Succeeding Insurance Company" as used in this Section refers to
an Insurance Company, the main purpose of which is to take over the
insurance contracts of a Bankrupt Insurance Company by a transfer of
insurance contracts or merger and to manage and dispose of said taken over
insurance contracts, that is formed as a Subsidiary Company of a Corporation
(referring to a company of which the Corporation holds voting rights exceeding fifty hundredths of the voting rights of all shareholders; the same shall apply
hereinafter).
(7) The term "Succession of Insurance Contracts" as used in this Section means the taking over, by an Succeeding Insurance Company, of the insurance
contracts of a Bankrupt Insurance Company by a transfer of insurance
contracts or merger and the management and disposition of said taken over insurance contracts.
(8) The term "Reassumption of Insurance Contracts" as used in this Section refers to the following:
(i) The transfer, between an Succeeding Insurance Company and another
Insurance Company, of insurance contracts pertaining to all or part of the insurance contracts pertaining to the Succeeding Insurance Company;
(ii) The survival, by a merger between an Succeeding Insurance Company and another Insurance Company, of that other Insurance Company;
(iii) That which is performed in order to execute matters specified by the Prime
Minister and the Minister of Finance as necessary to ensure the sound and appropriate operation of the business of an Succeeding Insurance Company and protect Insurance Policyholders, etc., by the acquisition of the shares of that Succeeding Insurance Company under another Insurance Company or
Insurance Holding Company, etc.
(9) The term "Underwriting Insurance Contracts" as used in this Section refers to the receiving of a transfer of insurance contracts pertaining to all or a part of
the insurance contracts of a Bankrupt Insurance Company pursuant to a contract between a Corporation and that Bankrupt Insurance Company.
(10) The term "Management and Disposition of Insurance Contracts" as used in this Section refers to the acceptance of Insurance Premiums and the payment
of insurance claims, refunds, or any other benefit based on insurance contracts,
the utilization of money accepted as Insurance Premiums under insurance
contracts and any other assets, the conclusion of reinsured insurance contracts pertaining to insurance contracts, the transfer of insurance contracts to
Insurance Companies, and any other matter specified by a Cabinet Office
Ordinance or Ordinance of the Ministry of Finance as pertaining to insurance contracts.
(11) The term "Re-transfer of Insurance Contracts" as used in this Section refers to, the transfer, between a Corporation that has underwritten insurance
contracts and an Insurance Company, of insurance contracts pertaining to all
or part of the insurance contracts taken over by the underwriting of said insurance contracts.
(Juridical Personality)
Article 261 A protection Corporation shall be a juridical person.
(Kinds of Corporations)
Article 262 (1) A Corporation shall, for each kind of license pertaining to the Insurance Business, accept as membership insurance companies that have received a license that falls under that Kind of License.
(2) The Kinds of Licenses set forth in the preceding paragraph shall be the following two kinds:
(i) Life insurance business license, foreign life insurance business license, and specified life insurance business license;
(ii) Non-life insurance business license, foreign non-life insurance business
license, and specified non-life insurance business license.
(Name)
Article 263 (1) A Corporation shall use the term "Hoken Keiyakusha Hogo Kiko" (which means "Policyholders Protection Corporation") in its name.
(2) No person other than a Corporation shall use any term "Policyholders
Protection Corporation" in its name.
(Registration)
Article 264 (1) A Corporation must complete its registration pursuant to the provisions of a Cabinet Order.
(2) No matters that should be registered pursuant to the provisions of the
preceding paragraph may be duly asserted against a third party prior to the registration.
(Application mutatis mutandis, of the Act on General Incorporated Association and General Incorporated Foundation)
Article 265 The provisions of Article 4 (Address) and Article 78 (Liability for damages as to the acts of representative persons) of the Act on General
Incorporated Association and General Incorporated Foundation shall apply
mutatis mutandis to a Corporation.
Division 2 Membership
(Qualification, etc., of Membership)
Article 265-2 (1) Those holding the qualification for membership in a
Corporation shall be limited to Insurance Companies (excluding Insurance Companies specified by a Cabinet Order; hereinafter the same shall apply in the following Article).
(2) A Corporation shall not refuse entry to those who hold the qualification for
membership nor set unreasonable conditions with respect to that entry.
(Entry Obligations, etc.)
Article 265-3 (1) An Insurance Company shall enter as a member one
Corporation that accepts as memberships insurance companies that have
received the license falling under the kind of license prescribed in Article 262, paragraph (2) (hereinafter referred to as "Kind of License" in the following
paragraph) that is the same as its license.
(2) Those who intend to receive a license set forth in Article 3, paragraph (1), Article 185, paragraph (1), or Article 219, paragraph (1) (excluding those
specified by a Cabinet Order) shall, at the time of application for that license,
undertake the procedure to enter one Corporation that accepts as memberships insurance companies that are to receive the license falling under the Kind of
License that is the same as that license, pursuant to the provision of a Cabinet
Office Ordinance or Ordinance of the Ministry of Finance.
(3) Those who have undertaken the procedure to enter a Corporation pursuant to the provision of the preceding paragraph will become a membership of said
Corporation upon receiving the license set forth in that paragraph.
(4) A Corporation shall, when an Insurance Company has become a membership of said Corporation pursuant to the provision of the preceding paragraph,
promptly report that fact to the Prime Minister and the Minister of Finance.
(Withdrawal, etc.)
Article 265-4 (1) A membership shall withdraw for the following reasons: (i) Rescission of license;
(ii) Expiration of license.
(2) A membership may not withdraw from a Corporation, except in the cases
occurring under the reasons listed in the items of the preceding paragraph or in the case where the membership receives approval from the Prime Minister and Minister of Finance and becomes a membership of another Corporation.
(3) In the case where a membership withdraws from a Corporation, when there
are expenses incurred by said Corporation to perform obligations pertaining to the following listed borrowing of funds, the membership shall assume the
obligation to pay as a assessment an amount calculated by said Corporation
pursuant to the provision of a Cabinet Office Ordinance or Ordinance of the
Ministry of Finance as an expense amount that should be borne by the membership:
(i) The borrowing of funds performed pursuant to the provision of Article 265-
42 in order to implement the business listed in Article 265-28, paragraph (1), items (iii) to (vii) inclusive and Article 265-28, paragraph (2), items (i) to (iii) inclusive that said Corporation has decided to carry out by the day of that
withdrawal;
(ii) The borrowing of funds that will be performed pursuant to the provision of
Article 265-42 in order to implement the business listed in Article 265-28,
paragraph (1), items (iii) to (vii) inclusive and Article 265-28, paragraph (2), items (i) to (iii) inclusive that said Corporation has decided to carry out by
the day of that withdrawal.
(4) When an application for the approval set forth in paragraph (2) has been submitted, the Prime Minister and Minister of Finance shall not give that approval unless the membership pertaining to the application meets the following requirements:
(i) Said membership has satisfied the obligations it bears as a membership of
the Corporation it intends to withdraw from;
(ii) Said membership appears certain to perform the obligation to pay as a
assessment the amount calculated as prescribed in the preceding paragraph pursuant to the provision of that paragraph;
(iii) Said membership has undertaken the procedure to enter another
Corporation as a member.
(Fine for Default of Membership)
Article 265-5 A Corporation may, pursuant to the provisions specified by the
articles of incorporation, impose a fine for default on a membership that has violated a provision of this Section or the Corporation's articles of
incorporation or any other rules.
Division 3 Establishment
(Founders)
Article 265-6 In order to form a Corporation, ten or more insurance companies that intend to become its memberships must become the founders.
(Organizational Meeting)
Article 265-7 (1) The founders shall, after preparing articles of incorporation and a business plan, invite those who intend to become memberships, make a
public notice of these together with the time and location at least two weeks
before the date the meeting shall be held, and hold an Organizational Meeting. (2) Approval of the articles of incorporation and business plan and the decision
on any other matters necessary for the incorporation of a corporation shall
depend on a resolution of the Organizational Meeting.
(3) The business of the Organizational Meeting set forth in the preceding
paragraph shall be decided by two-thirds or more of the votes held by those in attendance, where one half or more of the founders and those who have the
qualification for membership and have notified the founders in writing by the date of the Organizational Meeting of their intention to become memberships are present.
(4) The following matters and any other matters necessary for the management of business in the business year including the date of incorporation of the
Corporation may be decided by the resolution of the Organizational Meeting, notwithstanding the provisions of Article 265-25 and Article 265-34, paragraph (3):
(i) The preparation of business rules;
(ii) The decision of the budget and financial plan for the business year including the date of incorporation of the Corporation;
(iii) The decision of the assessment rate prescribed in Articles 265-34, paragraph (1), items (i) and (ii).
(5) The provision of Article 265-26, paragraph (2) shall apply mutatis mutandis in the case where the matters prescribed in the preceding paragraph are made the business of the Organizational Meeting pursuant to the provision of that paragraph. In this case, the term "items (i), (iii), and (v) of the preceding
Article," shall be deemed to be replaced with "Article 265-7, paragraph (4), item (i)."
(6) The provisions of Article 265-27-4 and Article 265-27-5 shall apply mutatis mutandis to the resolutions of the Organizational Meeting.
(Application for Authorization for Establishment)
Article 265-8 (1) The founders shall, without delay after the end of the
Organizational Meeting, apply for approval for incorporation by submitting to
the Prime Minister and Minister of Finance an approval application that states the following matters:
(i) Name;
(ii) Office address;
(iii) Names of the officers and memberships.
(2) Documents that state the articles of incorporation, business plan, and any other matters specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance shall be attached to the application for approval set forth in the preceding paragraph.
(Approval for Establishment)
Article 265-9 (1) The Prime Minister and Minister of Finance shall, in the case where an application for approval has been submitted under the provision in paragraph (1) of the preceding Article, examine whether that application
conforms to the following criteria:
(i) The procedure of incorporation and the content of the articles of
incorporation and business plan conform to the provisions of laws and regulations;
(ii) There are no false statements in the articles of incorporation and business plan.
(iii) There are no persons among the officers who fall under any of the items
listed in Article 265-16;
(iv) It is deemed certain that the management of business will be undertaken appropriately;
(v) The organization of the Corporation pertaining to the application conforms to the provisions of this Act.
(2) The Prime Minister and Minister of Finance shall, when they find as a result
of the examination pursuant to the provision of the preceding paragraph that the application conforms to the criteria of that paragraph, authorize the
incorporation.
(Succession of Affairs)
Article 265-10 When an approval for incorporation has been granted, the founders shall, without delay, hand over the affairs to the president of the Corporation.
(Period of Establishment, etc.)
Article 265-11 (1) The Corporation shall be established upon completing the registration of its incorporation at the location of its principal office.
(2) The Corporation shall, when it has completed the registration of its
incorporation as set forth in the preceding paragraph, notify the Prime
Minister and Minister of Finance to that effect without delay.
Division 4 Management
(Articles of Incorporation)
Article 265-12 (1) The Corporation's articles of incorporation shall state the following matters:
(i) Purpose; (ii) Name;
(iii) Office address;
(iv) Matters related to memberships; (v) Matters related to officers;
(vi) Matters related to the management committee and the evaluation examination board;
(vii) Matters related to the General Meeting;
(viii) Matters related to business and its execution; (ix) Matters related to assessments;
(x) Matters related to finances and accounting;
(xi) Matters related to dissolution;
(xii) Matters related to an amendment in the articles of incorporation; (xiii) Method of Public Notices.
(2) Modifications to the Corporation's articles of incorporation shall be null and void without the approval of the Prime Minister and Minister of Finance.
(Decision of Officers and Business)
Article 265-13 (1) The Corporation shall have one president, two or more directors, and one or more auditors as officers.
(2) The business of the Corporation shall be decided by a majority of the
president and directors, unless otherwise provided for in the articles of
incorporation.
(Duties and Authority of Officers)
Article 265-14 (1) The president shall represent the Corporation and preside over its business.
(2) The directors shall, as determined by the president, represent the
Corporation, assist the president in administering the business of the
Corporation, act on behalf of the president when he/she has had an accident, and perform the duties of the president when his/her position is vacant.
(3) The auditors shall audit the state of the Corporation's business and
accounting, and report the results of those audits to the General Meeting.
(4) The auditors may, when it is found necessary based on the results of audits, submit opinions to the president or to the Prime Minister and Minister of
Finance.
(Appointment, Dismissal, and Term of Office of Officers)
Article 265-15 (1) Officers shall be appointed or dismissed at General Meetings pursuant to the provisions of the articles of incorporation; provided, however, that the officers at the time of incorporation shall be appointed at the
Organizational Meeting.
(2) The appointment and dismissal of officers under the provision of the
preceding paragraph shall be null and void without the approval of the Prime
Minister and Minister of Finance,
(3) The term of office of officers shall be a period of time within two years as specified by the articles of incorporation; provided, however, that the term of office of officers at the time of incorporation shall be a period of time within
two years as specified at the Organizational Meeting.
(4) Officers may be reappointed.
(Grounds for Disqualification of Officers)
Article 265-16 Persons who fall under any of the following items may not become officers:
(i) In the case where a Corporation had its approval for incorporation rescinded
pursuant to the provision of Article 265-47, a person who was an officer
within the 30 days prior to the date of that rescission, where five years have not elapsed from the date of that rescission;
(ii) An adult ward or a person under curatorship or a bankrupt who has not obtained a restoration of rights;
(iii) A person who has been sentenced to imprisonment without work or severer
punishment, where five years have not elapsed from the date that execution finished or the date he/she became no longer subject to that execution;
(iv) A person who has been sentenced to punishment by fine pursuant to the provision of this Act, where five years have not elapsed from the date that execution finished or the date he/she became no longer subject to that
execution.
(Prohibition of Concurrent Holding of Posts by Auditors)
Article 265-17 No auditor shall concurrently hold the post of president, director, management committee member, evaluation examination board member, or employee of the Corporation.
(Restrictions on Authority of Representation)
Article 265-18 With regard to matters in which there exists conflict of interests between the Corporation and the president or directors, these persons shall not have authority of representation. In this case, the auditor shall represent the Corporation, pursuant to the provisions specified by the articles of
incorporation.
Article 265-18-2 The president may appoint, from among the employees of the Corporation, an agent who has the authority to undertake all judicial or non- judicial acts relating to a portion of the business of the Corporation.
(Management Committee)
Article 265-19 (1) The Corporation shall have a management committee
(hereinafter referred to as "Committee" in this Chapter).
(2) The Committee shall respond to consultation by the president and deliberate important matters relating to the management of the business of the
Corporation (excluding matters relating to the evaluation of the property of a
Bankrupt Insurance Company as prescribed in paragraph (2) of the following
Article) in addition to dealing with the matters belonging to its authority pursuant to this Act.
(3) The Committee may state its opinion to the president as to the management of the business of the Corporation.
(4) Members of the Committee shall be appointed by the president, having
received the approval of the Prime Minister and Minister of Finance, from among persons with relevant knowledge and experience needed for appropriate operation of the business of the Corporation.
(5) In addition to what is provided for in the preceding paragraphs, necessary
matters regarding the organization and management of the Committee shall be specified by a Cabinet Office Ordinance or Ordinance of the Ministry of
Finance.
(Evaluation Examination Board)
Article 265-20 (1) The Corporation shall have an evaluation examination board
(hereinafter referred to as "Examination Board").
(2) The Examination Board shall respond to consultation by the president and deliberate necessary matters relating to the evaluation of the property of a
Bankrupt Insurance Company (in the case of Foreign Insurance Companies,
etc., property located in Japan) that is a membership of the Corporation in
addition to dealing with the matters belonging to its authority pursuant to the provisions of the following Subsection.
(3) Members of the Examination Board shall be appointed by the president, having received the approval of the Prime Minister and Minister of Finance, from among persons with relevant knowledge and experience or expert
knowledge regarding insurance or evaluation of property.
(4) In addition to what is provided for in the preceding three paragraphs, necessary matters regarding the organization and management of the
Examination Board shall be specified by a Cabinet Office Ordinance or
Ordinance of the Ministry of Finance.
(Confidentiality Obligation, etc., of Officers, etc.)
Article 265-21 The Corporation's officers (referring to officers as set forth in
Article 265-13, paragraph (1); hereinafter the same shall apply) or employees, members of the Committee, members of the Examination Board, or those who held these positions, shall not divulge or misappropriate any secret learned regarding their duties.
(Status of Officers, etc., as Public Officers)
Article 265-21-2 With regard to the application of the Penal Code (Act No. 45 of
1907) and any other penal provisions, the Corporation's officers and employees, members of the Committee, and members of the Examination Board shall be
deemed employees engaged in public service pursuant to laws and regulations.
(Public Inspection, etc., of the List of Membership)
Article 265-22 The Corporation shall, pursuant to the provisions of a Cabinet Office Ordinance or Ordinance of the Ministry of Finance, prepare a list of memberships, submit this to the Prime Minister and Minister of Finance, and make it available for public inspection.
Division 5 General Meeting
(Calling of General Meeting)
Article 265-23 (1) The president shall, pursuant to the provisions of the articles
of incorporation, call an ordinary General Meeting once every business year. (2) The president may, when he/she finds it necessary, call an extraordinary
General Meeting.
(Attendance of Designated Employees at General Meeting)
Article 265-24 Employees designated by the Prime Minister and Minister of
Finance, respectively, may attend a General Meeting and state their opinions.
(Matters to be Decided at General Meeting)
Article 265-25 In addition to matters specified elsewhere in this Act, the following matters shall be subject to resolution of the General Meeting: (i) an amendment in the articles of incorporation;
(ii) Decisions on or modifications to the budget and financial plan;
(iii) Preparation of or modifications to business rules; (iv) Settlement of accounts;
(v) Dissolution;
(vi) Any other matters specified by the articles of incorporation.
(Business of General Meeting)
Article 265-26 (1) A General Meeting may not open a meeting and make a
decision without the attendance of one half or more of the total memberships. (2) Decisions of a General Meeting shall be made by majority of the voting rights
of those present, and the chairperson shall make decisions in the event of a tie; provided, however, that decisions pertaining to matters listed in items (i), (iii), and (v) of the preceding Article, are decided by two thirds or more of the voting rights of those present.
(3) The chairperson shall be governed by the provisions specified in the articles of
incorporation.
(Extraordinary General Meeting)
Article 265-27 The president shall call an extraordinary General Meeting when a demand indicating the matters that are the purpose of the meeting is
presented from one fifth or more of the total memberships; provided, however,
that a percentage that differs with the percentage of one fifth of the total memberships can be specified by the articles of incorporation.
(Calling of General Meeting)
Article 265-27-2 A notice of calling of a General Meeting shall be made in
accordance with the method specified by the articles of incorporation at least five days prior to the day of the General Meeting, and shall indicate the
matters that are the purpose of that General Meeting.
(Matters to be Resolved at General Meeting)
Article 265-27-3 Only the matters for which notice was given in advance
pursuant to the provision of the preceding Article may be resolved at a General
Meeting; provided, however, that this shall not apply when otherwise provided for in the articles of incorporation.
(Voting Rights of Membership)
Article 265-27-4 (1) The voting rights of memberships shall be equal.
(2) Members who do not attend a General Meeting may vote in writing or through a proxy.
(3) The provisions of the preceding two paragraphs shall not apply in the case
where they are otherwise provided for in the articles of incorporation.
(Case of No Voting Rights)
Article 265-27-5 When a decision is to be made regarding the relationship
between the Corporation and a certain membership, that membership shall have no voting rights.
Division 6 Business
(Business)
Article 265-28 (1) The Corporation shall conduct the following business in order to accomplish the purpose specified in Article 259:
(i) The business of an Insurance Administrator or Insurance Administrator
Representative under the provision of Article 243, paragraph (3);
(ii) The receipt and management of assessments under the provisions of the following Division;
(iii) Financial Assistance in the Transfer, etc., of Insurance Contracts, the
Succession of Insurance Contracts, the Reassumption of Insurance Contracts, and the Re-Transfer of Insurance Contracts under the provisions of the
following Subsection;
(iv) Business pertaining to the provision of executive management for the Succeeding Insurance Company and any other Succession of Insurance Contracts under the provisions of the following Subsection;
(v) The Underwriting of Insurance Contracts pertaining to a Bankrupt
Insurance Company and the Management and Disposition of Insurance
Contracts pertaining to the Underwriting of Insurance Contracts under the provisions of the following Subsection;
(vi) Financial Assistance pertaining to the payment of Covered Insurance
Claims under the provisions of the following Subsection;
(vii) Purchasing the Right to Insurance Claims, etc. under the provisions of
Subsection 3;.
(viii) The submission of a list of Insurance Policyholders under the provisions of Chapter IV, Section 6 (Authority, etc., of Policyholders Protection
Corporations) and Chapter VI, Section 4 (Authority of Policyholders
Protection Corporations) of the Act on Special Treatment of Corporate
Reorganization Proceedings, etc. and Other Insolvency Proceedings of
Financial Institutions, etc., and any other business under these provisions; (ix) Business incidental to the business listed in the preceding items.
(2) In addition to the business listed in the items of the preceding paragraph, the Corporation may conduct the following business within the limit that it does not interfere with the performance of the business listed in items (iii) to (vii)
inclusive of that paragraph:
(i) Loan of funds to its memberships;
(ii) Loan of funds to Insurance Policyholders, etc., of a Bankrupt Insurance
Company;
(iii) Purchase of the property of Liquidating Insurance Companies (referring to
Insurance Companies pertaining to liquidation; hereinafter the same shall apply in Article 270-8-2 and Article 270-8-3) under the provisions of
Subsection 4;
(iv) Business incidental to the business listed in the preceding three items.
(Entrustment of Business)
Article 265-29 (1) The Corporation may not entrust its business to another party, except in the following cases:
(i) The case where the Corporation entrusts the acceptance of Insurance
Premiums and any other business specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance among the business pertaining to the Management and Disposition of Insurance Contracts (hereinafter referred to as the "Business of Insurance Premiums Acceptance, etc." in this Article) to
an Insurance Company or any other party;
(ii) The case where the Corporation receives the approval of the Prime Minister and Minister of Finance in advance and entrusts business other than the
Business of Insurance Premiums Acceptance, etc., to an Insurance Company or any other party.
(2) An Insurance Company, having received entrustment from the Corporation of
the Business of Insurance Premiums Acceptance, etc., or business that has received the approval set forth in item (ii) of the preceding paragraph, may conduct these businesses, notwithstanding the provisions of Article 100
(including the cases where it is applied mutatis mutandis pursuant to Article
199).
(Business Rules)
Article 265-30 (1) With regard to the business listed in each of the items of
Article 265-28, paragraph (1) and Article 265-28, paragraph (2) (hereinafter referred to as "Business of Financial Assistance, etc."), the Corporation shall prepare business rules related to the implementation of the Business of
Financial Assistance, etc., and receive the approval of the Prime Minister and
Minister of Finance before beginning that Business of Financial Assistance, etc. The same shall apply when the organization intends to modify these rules.
(2) The business rules set forth in the preceding paragraph shall specify matters related to Financial Assistance, matters related to the Succession of Insurance Contracts, matters related to the Underwriting of Insurance Contracts,
matters related to the receipt of assessments, matters related to purchasing
the Right to Insurance Claims, etc. and any other matters specified by a
Cabinet Office Ordinance or Ordinance of the Ministry of Finance.
(3) The Prime Minister and Minister of Finance may, when they find that the
business rules approved as set forth in paragraph (1) are inappropriate in the proper and reliable operation of the Business of Financial Assistance, etc.,
order their modification.
(Request for Submission of Material, etc.)
Article 265-31 (1) The Corporation may request its memberships to submit
material when it is necessary for it to conduct its business, except in the cases where the submission of material is requested pursuant to other provisions of
this Section.
(2) Memberships who have been requested to submit material pursuant to the
provision of the preceding paragraph shall submit that material without delay. (3) The Prime Minister may, when he/she finds it to be particularly necessary for the execution of the Corporation's business, in the case where there has been a
request from the Corporation, deliver material to the Corporation or have the
Corporation inspect that material.
Division 7 Assessment
(Insurance Policyholders Protection Funds)
Article 265-32 (1) The organization shall establish Insurance Policyholders Protection Funds as funds to be allocated for covering expenses incurred in implementing the Business of Financial Assistance, etc.
(2) The Insurance Policyholders Protection Funds may not be used except in the
case where it is allocated for covering expenses incurred in implementing the
Business of Financial Assistance, etc.
(Payment of Contribution)
Article 265-33 (1) Memberships shall pay a assessment to the Corporation,
pursuant to the provisions of the articles of incorporation, during each of the Corporation's business years, to be allocated for covering expenses incurred in implementing the Business of Financial Assistance, etc.; provided, however,
that this shall not apply with regard to the next business year after a business
year in which the balance of Insurance Policyholders Protection Funds at the end of that business year of the Corporation reaches an amount calculated
pursuant to the provisions of the articles of incorporation as a sufficient
amount in light of the estimated amount of expenses the Corporation will incur in implementing the Business of Financial Assistance, etc.
(2) The Corporation may, in the cases listed in the following items, exempt from assessments memberships corresponding to the Insurance Companies specified in each of the items pursuant to the provisions of the articles of incorporation, notwithstanding the provisions of the main clause of the preceding paragraph: (i) When authorization has been granted by the Prime Minister as set forth in
Article 268, paragraph (1): the Bankrupt Insurance Company pertaining to
said authorization;
(ii) When a supplementary note has been included by the Prime Minister as set forth in Article 269, paragraph (1): the Bankrupt Insurance Company
pertaining to said supplementary note;
(iii) When authorization has been granted by the Prime Minister as set forth in Article 270, paragraph (1): the Bankrupt Insurance Company pertaining to said authorization;
(iv) When a Succeeding Insurance Company has been formed: that Succeeding
Insurance Company.
(Amount of Assessment)
Article 265-34 (1) The amount of the assessments that memberships should pay
during each of the Corporation's business years shall be the total amount of the following amounts (in the case where a minimum amount for the contributions
has been set by the articles of incorporation, an amount equivalent to that
minimum amount when that total amount is less than that minimum amount; hereinafter referred to as "Annual Contribution Amount" in this paragraph) for each membership; provided, however, that the amount of the assessment that
should be paid by memberships in the business year including the day of
incorporation of the Corporation shall be an amount obtained by dividing the Annual Contribution Amount by 12 and multiplying this by the number of months in the business year including the day of incorporation of the
Corporation:
(i) An amount obtained by multiplying a assessment rate by an amount calculated pursuant to the provision of a Cabinet Office Ordinance or
Ordinance of the Ministry of Finance as the amount of Insurance Premiums received over the year by each membership;
(ii) An amount obtained by multiplying a assessment rate by an amount calculated pursuant to the provision of a Cabinet Office Ordinance or
Ordinance of the Ministry of Finance as the amount of liabilities that should be reserved to be allocated to the payment of policy reserve and any other
Insurance Claims, etc., by each membership at the end of the business year.
(2) The number of months set forth in the provision of the proviso to the
preceding paragraph shall be one month when a fraction of less than one month results when calculated according to the calendar.
(3) The assessment rates set forth in the items of paragraph (1) shall be established by the Corporation after resolution by General Meeting.
(4) The Corporation shall obtain the approval of the Prime Minister and Minister
of Finance when it establishes the assessment rates set forth in the items of paragraph (1) or when it intends to modify these rates.
(5) The assessment rates set forth in the items of paragraph (1) shall be
established such that they conform to the following criteria:
(i) The rate is such that the Corporation's long-term finances will be balanced in light of the estimated amount of expenses the Corporation will incur in
implementing the Business of Financial Assistance, etc.;
(ii) The rate is such that certain memberships are not subject to discriminatory treatment (excluding what is done according to the soundness of the
memberships' operation).
(6) When the soundness of a membership's operation becomes unable to be maintained due to the payment of assessments under the case where the
assessment rate is established such that it conforms to the criteria listed in
item (i) of the preceding paragraph, the provisions of that paragraph shall not be interpreted as preventing the temporary incorporation of a assessment that does not conform to said criteria.
(Late Payment Charge)
Article 265-35 (1) Members shall pay a late payment charge to the Corporation
in the case where they do not pay a assessment by the deadline established in the articles of incorporation.
(2) The amount of the late payment charge shall be an amount calculated by multiplying the unpaid assessment by 14.5% a year in accordance with the
number of days from the day after the deadline to the day of payment inclusive.
Division 8 Finance and Accounting
(Business Year)
Article 265-36 The Corporation's business year shall be from 1 April to 31 March of the following year inclusive; provided, however, that the business year
including the day of incorporation of the Corporation shall be from the day of that incorporation to the first March 31 thereafter inclusive.
(Budget, etc.)
Article 265-37 (1) A Corporation that accepts as memberships Insurance
Companies that have received a license that falls under the Kind of License
described in Article 262, paragraph (2), item (i) (hereinafter referred to as "Life
Insurance Policyholders Protection Corporation" in this paragraph and in
Article 265-42-2) shall, every business year, prepare a budget and financial plan and receive the approval of the Prime Minister and Minister of Finance before the start of that business year (in the business year that includes the
day of incorporation of the Life Insurance Policyholders Protection Corporation,
without delay after incorporation). The same shall apply when the Corporation intends to modify these.
(2) A Corporation that accepts as memberships Insurance Companies that have
received a license that falls under the Kind of License described in Article 262, paragraph (2), item (ii) (hereinafter referred to as "Non-Life Insurance
Policyholders Protection Corporation" in this paragraph) shall, every business year, prepare a budget and financial plan and submit these to the Prime
Minister and Minister of Finance before the start of that business year (in the
business year that includes the day of incorporation of the Non-Life Insurance Policyholders Protection Corporation, without delay after incorporation). The same shall apply when the Corporation has modified these.
(Approval, etc., of Financial Statements, etc.)
Article 265-38 (1) Every business year, the president shall prepare an inventory of property, balance sheet, and profit and loss statement, and a business report and statement of accounts according to the budget classifications for that business year (referred to as "Financial Statements, etc." in the following
paragraph and following Article) and submit these to the auditor at least four
weeks prior to the first ordinary General Meeting to be called after the end of that business year.
(2) The president shall attach the written opinion of the auditor to the Financial
Statements, etc., set forth in the preceding paragraph, submit these to the
ordinary General Meeting set forth in that paragraph, and request its approval. Article 265-39 (1) Every business year, the Corporation shall, within three
months of the end of that business year, submit the Financial Statements, etc., that received the approval of the ordinary General Meeting set forth in
paragraph (2) of the preceding Article, to the Prime Minister and Minister of
Finance and receive their approval.
(2) The Corporation shall, when it submits Financial Statements, etc., to the
Prime Minister and Minister of Finance pursuant to the provision of the
preceding paragraph, attach to these the written opinion of the auditor on the
Financial Statements, etc.
(3) The Corporation shall without delay, when it has received the approval of the
Prime Minister and Minister of Finance under the provision of paragraph (1), give public notice of the inventory of property, balance sheet, and profit and
loss statement in the Official Gazette, and shall keep the Financial Statements,
etc., annexed detailed statement, and the written opinion of the auditor set
forth in the preceding paragraph at each office, and provide these for public inspection for a period of time specified by a Cabinet Office Ordinance or
Ordinance of the Ministry of Finance.
(Separate Accounting)
Article 265-40 With regard to accounting related to business pertaining to the
Management and Disposition of Insurance Contracts pertaining to the
Underwriting of Insurance Contracts (including business incidental to this), the Corporation shall arrange Special Accounts, separate from other
accounting (hereinafter referred to as "Special Insurance Accounts") for each Bankrupt Insurance Company pertaining to the Underwriting of Insurance Contracts.
(Abolition of Special Insurance Accounts)
Article 265-41 (1) The Corporation shall, in the case where it has underwritten insurance contracts pertaining to a Bankrupt Insurance Company that is its membership, abolish the Special Insurance Account established for said
Bankrupt Insurance Company when there is no longer a need to manage any of
the insurance contracts pertaining to the Underwriting of Insurance Contracts due to termination, transfer, or any other reason.
(2) The Corporation shall, when it has abolished a Special Insurance Account under the provision of the preceding paragraph, vest the property and debt
belonging to said Special Insurance Account to a general account (referring to
accounts other than the Corporation's Special Insurance Accounts (including
Special Accounts prescribed in Article 118, paragraph (1) as applied by
deeming the Corporation as an Insurance Company pursuant to the provision of Article 270-6, paragraph (2)); the same shall apply in Article 270-5)).
(Borrowings)
Article 265-42 The Corporation may, when it finds it necessary for conducting the Business of Financial Assistance, etc., receive the approval of the Prime Minister and Minister of Finance and borrow funds (including refinancing),
within the amount specified by a Cabinet Order, from an Insurance Company
or financial institution specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance.
(Government Guarantee)
Article 265-42-2 The government may guarantee an obligation pertaining to the borrowing set forth in the preceding Article of a Life Insurance Policyholders
Protection Corporation within the amount approved by a Diet resolution,
notwithstanding the provision of Article 3 of the Act on Limitations of
Government Financial Assistance to Juridical Persons (Act No. 24 of 1946).
(Investment of Surplus Funds)
Article 265-43 Surplus funds occurring in the course of business of the
Corporation, excluding those belonging to Special Insurance Accounts, shall be invested by the following methods:
(i) Retention in national government bonds or any other securities designated by the Prime Minister and Minister of Finance;
(ii) Deposit in financial institutions designated by the Prime Minister and
Minister of Finance;
(iii) Any other method specified by a Cabinet Office Ordinance or Ordinance of the Ministry of Finance.
(Delegation to Cabinet Office Ordinance or Ordinance of the Ministry of
Finance)
Article 265-44 Necessary matters related to the Corporation's finances and accounting, in addition to what is provided for in Article 265-36 to the
preceding Article inclusive, shall be specified by a Cabinet Office Ordinance or
Ordinance of the Ministry of Finance.
Division 9 Supervision
(Supervision)
Article 265-45 (1) The Corporation shall be supervised by the Prime Minister and Minister of Finance.
(2) The Prime Minister and Minister of Finance may, when they find it necessary
for the enforcement of the provisions of this Section, issue orders necessary for supervision to the Corporation.
(3) The Prime Minister and Minister of Finance may, when an officer of the
Corporation commits an act that violates this Act, orders based on this Act or dispositions based on these, or the articles of incorporation or business rules, order said Corporation to dismiss that officer. In this case, when the
Corporation has dismissed said officer after obtaining a resolution of the
General Meeting, that dismissal shall take effect when there has been a
resolution of the General Meeting, notwithstanding the provision of Article
265-15, paragraph (2).
(Report and On-Site Inspections)
Article 265-46 The Prime Minister and Minister of Finance may, within the limit necessary for the enforcement of the provisions of this Section, order the
Corporation to submit a report or material related to its business or property,
or have a relevant employee enter the Corporation's office and inspect the state of its business or property or its books and documents or any other objects, or
have him/her question relevant persons.
(Rescission of Establishment Approval)
Article 265-47 The Prime Minister and Minister of Finance may, when the Corporation falls under any of the following items, rescind the approval of incorporation set forth in Article 265-9, paragraph (2):
(i) When it has violated this Act, orders based on this Act or the articles of
incorporation or business rules of said Corporation;
(ii) When it has violated dispositions under the provisions of Article 265-30, paragraph (3) or Article 265-45, paragraph (2) or the first sentence of
paragraph (3);
(iii) When it is found that the continuation of its business would be difficult due to the state of its business or property;
(iv) When it has committed an act that harms public interest.
Division 10 Miscellaneous Provision
(Dissolution)
Article 265-48 (1) The Corporation shall dissolve due to the following reasons: (i) Resolution of a General Meeting;
(ii) Rescission of approval of incorporation under the provision of the preceding
Article.
(2) Dissolution under the reason given in item (i) of the preceding paragraph
shall be null and void without the approval of the Prime Minister and Minister of Finance.
(3) The Corporation shall, when there are residual assets after it has performed
its obligations in the case of dissolution, vest said residual assets, pursuant to the provisions of a Cabinet Office Ordinance or Ordinance of the Ministry of Finance, in the other Corporations that its memberships join.
(4) Requisite measures related to the dissolution of the Corporation, in addition to what is provided for in the preceding paragraph, may be specified by a
Cabinet Order, within the scope deemed reasonably necessary.
Subsection 2 Financial Assistance, etc.
Division 1 Offer for Financial Assistance, etc.
(Offer for Financial Assistance pertaining to Transfer, etc. of Insurance
Contracts)
Article 266 (1) The Relief Insurance Company or the Relief Insurance Holding Company, etc. may, in conjunction with the Bankrupt Insurance Company, make an offer to the Corporation of which that Bankrupt Insurance Company
is a member (hereinafter referred to as "Participating Corporation" in this and
the following Subsections) that said Participating Corporation extend Financial
Assistance with regard to the transfer, etc. of insurance contracts.
(2) The Participating Corporation may, when it finds it necessary in the case referred to in the preceding paragraph, request the Relief Insurance Company or the Relief Insurance Holding Company, etc. that made the offer in that
paragraph, and the Bankrupt Insurance Company or other relevant persons,
for the submission of materials.
(3) Within the Financial Assistance prescribed in paragraph (1), the purchase of the property shall be conducted pertaining to the property of the Bankrupt
Insurance Company pertaining to the transfer, etc. of insurance contracts.
(Offer for Succession, etc. of Insurance Contracts)
Article 267 (1) The Bankrupt Insurance Company may, if the transfer, etc. of
insurance contracts is specified as difficult by a Cabinet Office Ordinance and
Ordinance of the Ministry of Finance because, among other reasons, there is no prospect to find a Relief Insurance Company or Relief Insurance Holding
Company, etc., make an offer for the Succession of Insurance Contracts or
Underwriting of Insurance Contracts (hereinafter referred to as "Succession, etc. of Insurance Contracts"), to the Participating Corporation.
(2) The Bankrupt Insurance Company shall, in the case of making the offer of the
preceding paragraph, submit, to the Participating Corporation, materials which illustrate the content of the negotiation with the other Insurance
Company or Insurance Holding Company, etc. on the transfer, etc. of insurance
contracts, and other materials specified by a Cabinet Office Ordinance and
Ordinance of the Ministry of Finance.
(3) The Bankrupt Insurance Company may, when making an offer for the
Succession of Insurance Contracts under the provision of paragraph (1), also make an offer to the Participating Corporation that said Participating
Corporation extend Financial Assistance with regard to the Succession of
Insurance Contracts (limited to donation of money or purchase of property). (4) The provisions of paragraphs (2) and (3) of the preceding Article shall apply
mutatis mutandis to the Financial Assistance of the preceding paragraph. In this case, the term "the Relief Insurance Company or the Relief Insurance
Holding Company, etc. that made the application in that paragraph, and the
Bankrupt Insurance Company" in paragraph (2) of that Article shall be deemed to be replaced with "the Bankrupt Insurance Company."
(Authorization of Eligibility for Transfer, etc. of Insurance Contracts) Article 268 (1) In the case referred to in Article 266, paragraph (1), the
Bankrupt Insurance Company and Relief Insurance Company, or the Bankrupt
Insurance Company and Relief Insurance Holding Company, etc. which carry out the transfer, etc. of insurance contracts shall obtain the authorization of
the Prime Minister for the transfer, etc. of insurance contracts by the time that
the offer of that paragraph is made.
(2) The offer for authorization of the preceding paragraph shall jointly be made among the Bankrupt Insurance Company and Relief Insurance Company or
Bankrupt Insurance Company and Relief Insurance Holding Company, etc. of that paragraph.
(3) The Prime Minister may give the authorization of paragraph (1), only in cases
that fall under all of the following requirements:
(i) The transfer, etc. of insurance contracts contributes to the protection of
Policyholders, etc.;
(ii) The extension of Financial Assistance by the Participating Corporation is indispensable to the smooth conduct of the transfer, etc. of insurance
contracts; and
(iii) There is a risk of loss of credibility in the Insurance Business in the case that all of the business of the Bankrupt Insurance Company pertaining to
the transfer, etc. of insurance contracts is abolished or the Bankrupt
Insurance Company is dissolved, without a transfer of insurance contracts, etc.
(4) The Prime Minister shall, when he/she has given the authorization of
paragraph (1), notify the Participating Corporation to that effect.
(5) The Participating Corporation shall, when it receives the notice under the provision of the preceding paragraph, promptly report to the Minister of
Finance to that effect.
(6) The Prime Minister may not, if the company attempting to acquire shares of
the Bankrupt Insurance Company is making an offer for the approval under
Article 271-18, paragraph (1) to become a Holding Company with the Insurance
Company being made its Subsidiary Company by the acquisition of shares (hereinafter referred to as "Holding Company Approval" in this paragraph), give the authorization under the provision of paragraph (1) until after the
Holding Company Approval has been given for that company.
(Special Provisions on Authorization of Eligibility for Transfer, etc. of
Insurance Contracts)
Article 269 (1) The Prime Minister may, only in cases that fall under all of the following requirements, make a supplementary note in the recommendation of Article 256, paragraph (1), notwithstanding the provision of paragraph (1) of
the preceding Article, that the offer of Article 266, paragraph (1) may be made:
(i) The abolition of all business of the Bankrupt Insurance Company or the dissolution of the Bankrupt Insurance Company pertaining to the
recommendation of Article 256, paragraph (1) falls under the requirements listed in paragraph (3), item (iii) of the preceding Article; and
(ii) The extension of Financial Assistance by the Participating Corporation is
indispensable to the transfer, etc. of insurance contracts pertaining to said recommendation.
(2) The provision of paragraphs (4) and (5) of the preceding Article shall apply
mutatis mutandis to cases in which the supplementary note of the preceding paragraph was made.
(Authorization of Eligibility for Succession, etc. of Insurance Contracts) Article 270 (1) In the case referred to in Article 267, paragraph (1), the
Bankrupt Insurance Company shall obtain the authorization of the Prime
Minister for the Succession, etc. of Insurance Contracts of that paragraph by the time that the offer of that paragraph is made.
(2) The Prime Minister may give the authorization of the preceding paragraph,
only in cases that fall under all of the following requirements:
(i) The Succession, etc. of Insurance Contracts contributes to the protection of
Policyholders, etc.;
(ii) There is a risk of loss of credibility in the Insurance Business in the case
that all of the business of the Bankrupt Insurance Company that is making
an offer to the Participating Corporation for the Succession, etc. of Insurance
Contracts is abolished or the Bankrupt Insurance Company is dissolved, without the Succession, etc. of Insurance Contracts; and
(iii) In the case that an offer is made for Financial Assistance under the
provision of Article 267, paragraph (3), the extension of said Financial
Assistance is indispensable to the smooth conduct of the Succession of
Insurance Contracts.
(3) The Prime Minister shall, when he/she has given the authorization of paragraph (1), notify the Participating Corporation to that effect.
(4) The Participating Corporation shall, when it receives the notice under the provision of the preceding paragraph, promptly report to the Minister of
Finance to that effect.
(Evaluation of Property of Bankrupt Insurance Company)
Article 270-2 (1) The Bankrupt Insurance Company making the offer of Article
266, paragraph (1) or Article 267, paragraph (1) shall seek the confirmation of the Participating Corporation regarding the appropriateness of the evaluation the company made of its property (for a Foreign Insurance Company, etc.,
property in Japan; hereinafter the same shall apply in this Subsection) without
delay at the same time that the offer was made or after the offer was made
(referred to as "Property Self-Evaluation" in the next paragraph and paragraph
(4)).
(2) The Participating Corporation shall, when it determines upon discussions of the Examination Board that the Property Self-Evaluation of which
confirmation of the preceding paragraph was sought is appropriate, notify the
Bankrupt Insurance Company which made said offer that the Property Self- valuation was confirmed to be appropriate.
(3) The Participating Corporation may, when it finds it necessary for making the determination of the preceding paragraph, conduct a study to evaluate the
property of the Bankrupt Insurance Company that made said offer.
(4) The Participating Corporation shall, when it determines upon discussions of the Examination Board that the Property Self-Evaluation of which
confirmation of paragraph (1) was sought is not appropriate, notify the
Bankrupt Insurance Company which made said offer, as well as conduct a study to evaluate the property of that Bankrupt Insurance Company.
(5) The Participating Corporation shall, after confirming upon discussions of the
Examination Board that the evaluation based on the study under the provision of the preceding paragraph is appropriate, notify the content of the evaluation to the Bankrupt Insurance Company which made said offer.
(6) The Participating Corporation shall, when it makes the notification of
paragraph (2) or the preceding paragraph, immediately report the matters
pertaining to the notification to the Prime Minister and Minister of Finance.
(Financial Assistance pertaining to Transfer, etc. of Insurance Contracts) Article 270-3 (1) The Participating Corporation shall, after making the
notification of paragraph (2) or paragraph (5) of the preceding Article to the
Bankrupt Insurance Company which made the offer of Article 266, paragraph
(1), without delay make a ruling, upon discussions of the Committee, on whether to extend the Financial Assistance pertaining to said offer.
(2) The amount of the Financial Assistance under the provision of the preceding paragraph (limited to donation of money) shall be an amount equivalent to the amount obtained by adding the amount listed in item (iii) to the amount
remaining after the deduction of the amount listed in item (ii) from the amount
listed in item (i) with regard to the Bankrupt Insurance Company pertaining to said Financial Assistance:
(i) The amount specified by a Cabinet Office Ordinance and Ordinance of the
Ministry of Finance as the amount of liabilities that should be reserved to be allocated to the payment of policy reserve and any other insurance claim, etc. (referred to as the "Specified Policy Reserve, etc." in the following item and
Article 270-5, paragraph (2)) pertaining to the insurance contracts pertaining
to that Bankrupt Insurance Company, which falls under the insurance contract specified by a Cabinet Office Ordinance and Ordinance of the
Ministry of Finance (hereinafter referred to as "Covered Insurance Contract"), multiplied by the rate specified by a Cabinet Office Ordinance and Ordinance
of the Ministry of Finance by taking into consideration the kind of Covered
Insurance Contract, expected interest rate, other content, etc.;
(ii) The amount of the asset value of that Bankrupt Insurance Company--based on the evaluation of property confirmed under the provision of paragraph (2) or paragraph (5) of the preceding Article (referred to as "Confirmed
Evaluation of Property" in Article 270-5, paragraph (2))--which has been
calculated as per Cabinet Office Ordinance and Ordinance of the Ministry of
Finance as being the amount which corresponds to the Specified Policy
Reserve, etc. pertaining to the Covered Insurance Contract; and
(iii) The amount of expense, which has been approved by the Participating
Corporation as being necessary for the smooth transfer, etc. of the insurance contracts pertaining to said Financial Assistance, among the expenses that
fall under those specified by a Cabinet Office Ordinance and Ordinance of the
Ministry of Finance as expenses which are deemed necessary for the transfer, etc. of insurance contracts pertaining to that Bankrupt Insurance Company.
(3) The Participating Corporation shall, when it has made the ruling of
paragraph (1), immediately report the matters specified by a Cabinet Office
Ordinance and Ordinance of the Ministry of Finance, as pertaining to the ruling, to the Prime Minister and Minister of Finance.
(4) The Participating Corporation shall, when it makes a ruling to extend
Financial Assistance under the provision of paragraph (1), conclude a contract concerning said Financial Assistance with the Insurance Company or
Insurance Holding Company, etc. which made the offer for said Financial
Assistance that becomes the party of said Financial Assistance.
(5) When damage security is included in the Financial Assistance pertaining to
the contract of the preceding paragraph, the Relief Insurance Company or the
Relief Insurance Holding Company, etc. pertaining to that contract, under that contract, shall, if profits are accrued from the assets pertaining to said damage security, commit in that contract that it shall pay all or part of said profits to
the Participating Corporation pertaining to that contract, or, as one that will
possess said assets from the transfer, etc. of insurance contracts, to take
measures for making payment to the Participating Corporation pertaining to that contract.
Division 2 Succession of Insurance Contracts
(Succession of Insurance Contracts)
Article 270-3-2 (1) The Participating Corporation may, when it finds it necessary in the case of receiving an offer for the Succession of Insurance Contracts
under the provision of Article 267, paragraph (1), make a request to the Prime
Minister that the measures under the provision of Article 256, paragraph (1)
are taken before making the rulings listed in items (i) and (ii) of paragraph (6)
pertaining to said offer.
(2) The Prime Minister shall, without delay, notify the Participating Corporation, when the measures under the provision of Article 256, paragraph (1) pursuant to the provision of the preceding paragraph are requested, of whether said
measures may be taken, and, in the case that said measures shall be taken, of the content of the measures which shall be taken.
(3) The Participating Corporation shall, when the content of the notification of the Prime Minister under the provision of the preceding paragraph is to the
effect that the measures under the provision of Article 256, paragraph (1) shall
be taken, stay the implementation of the procedure pertaining to the ruling
listed in paragraph (6), items (i) and (ii); provided, however, that this shall not apply to the confirmation procedure under the provision of Article 270-2.
(4) In the case that the Prime Minister takes the measures under the provision of
Article 256, paragraph (1) under the provision of paragraph (1), the Bankrupt
Insurance Company which applied for the Succession of Insurance Contracts under the provision of Article 267, paragraph (1) shall, when that Bankrupt
Insurance Company has reached an agreement pertaining to Merger, etc., without delay, withdraw said offer.
(5) In the case prescribed in the preceding paragraph, when no agreement
pertaining to Merger, etc. is reached, the Bankrupt Insurance Company of that paragraph shall, without delay, notify the Participating Corporation to that
effect.
(6) The Participating Corporation shall, when it finds it unnecessary to make the
request under the provision of paragraph (1) to the Prime Minister, when the content of the notification of the Prime Minister under the provision of
paragraph (2) is to the effect that the measures under the provision of Article
256, paragraph (1) cannot be taken, or when the notification under the
provision of the preceding paragraph is made, promptly, upon discussions of the Committee, make the ruling listed in items (i) and (ii) pertaining to the offer of paragraph (1) or the ruling listed in item (ii):
(i) Ruling to the effect that the Participating Corporation will incorporate, as its Subsidiary Company, the Succeeding Insurance Company, which will
carry out a transfer of insurance contracts from the Bankrupt Insurance Company or merge with that company to take over the insurance contracts from that company; and
(ii) Ruling to the effect that the Succeeding Insurance Company shall carry out
a transfer of insurance contracts from the Bankrupt Insurance Company or merge with that company to take over the insurance contracts from that
company.
(7) The Participating Corporation shall, when making a ruling of the preceding paragraph on the Succession of Insurance Contracts pertaining to an offer in
the case of receiving the offer of Article 267, paragraph (3), also make a ruling, upon discussions of the Committee, on whether to extend the Financial
Assistance pertaining to said offer.
(8) The provision of paragraph (2) of the preceding Article shall apply mutatis mutandis to the amount of Financial Assistance under the provision of the
preceding paragraph (limited to donation of money), the provision of paragraph
(3) of that Article shall apply mutatis mutandis in the case that the
Participating Corporation makes a ruling of the preceding two paragraphs, and the provision of paragraph (4) of that Article shall apply mutatis mutandis in
the case that the Participating Corporation makes a ruling to extend Financial
Assistance pursuant to the provision of the preceding paragraph. In this case,
the term "transfer, etc. of insurance contracts" in paragraph (2) of that Article shall be deemed to be replaced with "Succession of Insurance Contracts," and
the term "Insurance Company or Insurance Holding Company, etc. which made the application for said Financial Assistance that becomes the party of said
Financial Assistance" in paragraph (4) of that Article shall be deemed to be replaced with "Bankrupt Insurance Company which made the application for said Financial Assistance."
(9) The Bankrupt Insurance Company pertaining to the offer of paragraph (1)
may, when the Participating Corporation makes a ruling listed in paragraph
(6), items (i) and (ii), carry out a transfer of insurance contracts pertaining to
all or part of the insurance contracts from the Succeeding Insurance Company pertaining to the ruling, or a merge with that company.
(Incorporation of Succeeding Insurance Company, etc.)
Article 270-3-3 (1) The Participating Corporation shall, when it makes a ruling listed in paragraph (6), item (i) of the preceding Article, upon discussions of the Committee on the content of the contribution pertaining to the ruling, become
the incorporator for the incorporation of the Stock Company which will be the
Succeeding Insurance Company, and make a contribution for the incorporation of the Stock Company, of which it became the incorporator for said
incorporation, as its Subsidiary Company.
(2) In addition to the case prescribed in the preceding paragraph, the
Participating Corporation shall, when it intends to make a contribution to the
Succeeding Insurance Company, go through the discussions of the Committee. (3) The Participating Corporation shall, when it makes the contribution
prescribed in the preceding two paragraphs, promptly report the content of the contribution to the Prime Minister and Minister of Finance about the content.
(Managing the Succeeding Insurance Company)
Article 270-3-4 (1) The corporation shall manage the Succeeding Insurance Company (limited to those incorporated by said corporation; hereinafter the same shall apply in this Article, Article 270-3-6, and Article 270-3-10) to enable its optimal implementation of the following matters:
(i) When the ruling listed in Article 270-3-2, paragraph (6), item (ii) is made,
the transfer of insurance contracts or merger shall be carried out to take over the insurance contracts from the Bankrupt Insurance Company that was the
subject of the ruling; and
(ii) In managing and disposing the insurance contracts or in implementing
other business, the guideline of the following paragraph shall be adhered. (2) The corporation shall create a guideline on the management and disposition
of the insurance contracts of the Succeeding Insurance Company and other business, and, upon obtaining the approval of the Prime Minister, make the guideline public.
(3) The corporation may, to the Succeeding Insurance Company, offer guidance and advice necessary for its management.
(4) The corporation shall, when it assigns the shares of the Succeeding Insurance Company or makes other dispositions, promptly report to the Prime Minister and Minister of Finance to that effect.
(Non-Offer of Article 467 of the Companies Act)
Article 270-3-5 The provision of Article 467, paragraph (1), item (v) of the Companies Act (Approvals of Assignment of Business) shall not apply to the property confirmed under the provision of Article 270-2, paragraph (2) or
Article 270-2, paragraph (5), in the case that the corporation owns all of the issued shares of the Succeeding Insurance Company.
(Succession Agreement)
Article 270-3-6 (1) The corporation shall conclude an agreement with the Succeeding Insurance Company that will include the following matters (hereinafter referred to as "Succession Agreement"):
(i) The Succeeding Insurance Company that concludes the Succession
Agreement (hereinafter referred to as "Agreement-Succeeding Insurance Company") shall implement the matters listed in Article 270-3-4, paragraph (1), items (i) and (ii);
(ii) The Agreement-Succeeding Insurance Company may make an offer to the
corporation that the corporation purchase the assets of that Agreement- Succeeding Insurance Company; and
(iii) The Agreement-Succeeding Insurance Company shall, when it intends to
conclude a contract concerning the borrowing of the funds that fall under the guaranteed obligation prescribed in Article 270-3-8, paragraph (1), obtain the approval of the corporation on the content of that contract to be concluded.
(2) The corporation shall, when it concludes a Succession Agreement,
immediately report the content of the agreement to the Prime Minister and
Minister of Finance.
(Purchase of Property)
Article 270-3-7 (1) The corporation shall, when it receives the offer of paragraph
(1), item (ii) of the preceding Article, without delay make a ruling, upon discussions of the Examination Board and the Committee, on whether to purchase the property pertaining to said offer.
(2) The corporation shall, when it makes a ruling under the provision of the
preceding paragraph, immediately report to the Prime Minister and Minister of
Finance the matters pertaining to the ruling.
(3) The corporation shall, when it makes a ruling to purchase the property under the provision of paragraph (1), conclude a contract concerning the purchase of
the property with the Agreement-Succeeding Insurance Company which offered
the purchase of the property.
(Loan of Funds and Obligation Guarantee)
Article 270-3-8 (1) The corporation may, when it finds it necessary in the case of receiving an offer from the Agreement-Succeeding Insurance Company for an
obligation guarantee pertaining to the loan of funds deemed necessary for the
smooth implementation of the business of the Agreement-Succeeding Insurance
Company or the borrowing of the funds by the Agreement-Succeeding
Insurance Company, extend, upon the discussions of the Committee, said loan or obligation guarantee.
(2) The corporation shall, when it concludes a contract pertaining to the loan or obligation guarantee of the preceding paragraph with the Agreement-
Succeeding Insurance Company pursuant to the provision of that paragraph, immediately report to the Prime Minister and Minister of Finance the content of the contract.
(Compensation for Loss)
Article 270-3-9 The corporation may, when an amount has been accounted
pursuant to what is specified by a Cabinet Order for the amount of loss accrued by the Agreement-Succeeding Insurance Company by the implementation of
the businesses under the specifications of the Succession Agreement, give
compensation for said loss, upon the discussions of the Committee, within the scope of that amount.
(Request for Report)
Article 270-3-10 The corporation may, when it is necessary for the
implementation of the businesses under the provisions of this Division, request the Succeeding Insurance Company to report on the status of the
implementation of the Succession Agreement or the finance.
(Offer for Financial Assistance pertaining to Re-succession of Insurance
Contracts)
Article 270-3-11 (1) The Re-succeeding Insurance Company or Re-succeeding
Insurance Holding Company, etc. (referring to Insurance Holding Companies, etc. that carry out the Re-succession of Insurance Contracts; the same shall
apply hereinafter) may make an offer to the corporation which incorporated the Succeeding Insurance Company pertaining to the insurance contracts to be re- succeeded (hereinafter referred to as "Incorporating Corporation") that said
Incorporating Corporation jointly extend Financial Assistance for the Re-
succession of Insurance Contracts (limited to damage security) with the
Succeeding Insurance Company.
(2) The Incorporating Corporation may, when it finds it necessary in the case referred to in the preceding paragraph, request the Re-succeeding Insurance Company or Re-succeeding Insurance Holding Company, etc., which made the offer of that paragraph, and the Succeeding Insurance Company and other
relevant persons to submit materials.
(Authorization, etc. of Eligibility for Re-Succession of Insurance Contracts) Article 270-3-12 (1) In the case referred to in paragraph (1) of the preceding
Article, the Succeeding Insurance Company and Re-succeeding Insurance
Company, which carry out the Re-succession of Insurance Contracts, or
Succeeding Insurance Company and Re-succeeding Insurance Holding
Company, etc., shall obtain the authorization of the Prime Minister for the Re- succession of Insurance Contracts by the time that the offer of that paragraph
is made.
(2) The provisions of Article 268, paragraph (2) to Article 268, paragraph (6)
inclusive (except for paragraph (3), item (iii)) shall apply mutatis mutandis to
the authorization of the preceding paragraph. In this case, the term "Bankrupt
Insurance Company and Relief Insurance Company or Bankrupt Insurance
Company and Relief Insurance Holding Company, etc." in paragraph (2) of that Article shall be deemed to be replaced with "Succeeding Insurance Company and Re-succeeding Insurance Company or Succeeding Insurance Company and Re-succeeding Insurance Holding Company, etc.," the term "transfer, etc. of
insurance contract" in paragraph (3) of that Article shall be deemed to be
replaced with "Re-Succession of Insurance Contracts," the term "Participating Corporation" shall be deemed to be replaced with "Incorporating Corporation," the term "Participating Corporation" in paragraphs (4) and (5) of that Article shall be deemed to be replaced with "Incorporating Corporation," and the term "Bankrupt Insurance Company" in paragraph (6) of that Article shall be
deemed to be replaced with "Succeeding Insurance Company."
(3) The provision of Article 270-2 shall apply mutatis mutandis to the case that the offer of paragraph (1) of the preceding Article is made. In this case, the term "Bankrupt Insurance Company" in Article 270-2 shall be deemed to be replaced with "Succeeding Insurance Company" the term "Participating
Corporation" shall be deemed to be replaced with "Incorporating Corporation," and the term "its property (for a Foreign Insurance Company, etc., property in Japan; hereinafter the same shall apply in this Subsection)" in paragraph (1) of that Article shall be deemed to be replaced with "its property."
(Designation of Other Party of Consultation on Re-Succession of Insurance
Contracts, etc.)
Article 270-3-13 (1) The Prime Minister may designate another Insurance
Company or Insurance Holding Company, etc. as the other party with which
the Succeeding Insurance Company shall hold a consultation pertaining to the
Re-succession of Insurance Contracts and recommend that other Insurance
Company or Insurance Holding Company, etc. to participate in the consultation. (2) The provisions of Article 256, paragraphs (2) and (3) and Article 257 shall
apply mutatis mutandis to the recommendation of the preceding paragraph. In
this case, the term "Bankrupt Insurance Company or an Insurance Company recognized as having a high probability of becoming a Bankrupt Insurance
Company" in Article 256, paragraph (2) shall be deemed to be replaced with
"Succeeding Insurance Company of that paragraph," the term "Policyholders
Protection Corporation to which the Bankrupt Insurance Company or the
Insurance Company recognized as having a high probability of becoming a
Bankrupt Insurance Company has entered as a membership" in Article 256, paragraph (3) shall be deemed to be replaced with "Policyholders Protection Corporation which incorporated the Succeeding Insurance Company of Article
270-3-13, paragraph (1)," and the term "Bankrupt Insurance Company" in Article 257, paragraph (1) shall be deemed to be replaced with "Succeeding Insurance Company."
(3) The Prime Minister may, only when he/she finds that the extension of
Financial Assistance by the Incorporating Corporation is indispensable for the
Re-succession of Insurance Contracts pertaining to the recommendation of paragraph (1), make a supplementary note in said recommendation,
notwithstanding the provision of paragraph (1) of the preceding Article, that
the offer of Article 270-3-11, paragraph (1) may be made.
(4) The provision of Article 268, paragraph (4) and Article 268, paragraph (5)
shall apply mutatis mutandis to the case that the supplementary note of the preceding paragraph is made.
(Financial Assistance pertaining to Re-Succession of Insurance Contracts)
Article 270-3-14 (1) The Incorporating Corporation shall, without delay after making the notification of Article 270-2, paragraph (2) or (5), as applied mutatis mutandis pursuant to Article 270-3-12, paragraph (3) to the
Succeeding Insurance Company which made the offer of Article 270-3-11,
paragraph (1), make a ruling, upon discussions of the Committee, on whether to extend the Financial Assistance pertaining to said offer.
(2) The provision of Article 270-3, paragraph (3) shall apply mutatis mutandis in the case that the Incorporating Corporation makes the ruling of the preceding paragraph, the provision of paragraph (4) of that Article shall apply mutatis
mutandis in the case that the Incorporating Corporation makes a ruling to
extend Financial Assistance pursuant to the provision of the preceding
paragraph, and the provision of paragraph (5) of that Article shall apply
mutatis mutandis to the Re-succeeding Insurance Company or Re-succeeding
Insurance Holding Company, etc. which concludes the contract of paragraph (4)
of that Article, as applied mutatis mutandis pursuant to this paragraph. In
this case, the term "transfer, etc. of insurance contracts" in paragraph (5) of that Article shall be deemed to be replaced with "Re-succession of Insurance Contracts," and the term "Participating Corporation" shall be deemed to be replaced with "Incorporating Corporation."
Division 3 Underwriting of Insurance Contract
(Underwriting of Insurance Contracts)
Article 270-4 (1) The Participating Corporation may, when it finds it necessary
in the case of receiving an underwriting offer for the insurance contracts under the provision of Article 267, paragraph (1), make a request to the Prime
Minister that the measures under the provision of Article 256, paragraph (1)
are taken before underwriting the insurance contracts pertaining to said offer. (2) The Prime Minister shall, without delay, notify the Participating Corporation, when the measures under the provision of Article 256, paragraph (1) pursuant
to the provision of the preceding paragraph are requested, of whether said
measures may be taken, and, in the case that said measures shall be taken, of the content of the measures which shall be taken.
(3) The Participating Corporation shall, when the content of the notification of the Prime Minister under the provision of the preceding paragraph is to the
effect that the measures under the provision of Article 256, paragraph (1) shall be taken, stay the implementation of the procedure pertaining to the
Underwriting of Insurance Contracts; provided, however, that this shall not
apply to the confirmation procedure under the provision of Article 270-2.
(4) In the case that the Prime Minister takes the measures under the provision of
Article 256, paragraph (1) under the provision of paragraph (1), the Bankrupt
Insurance Company which applied for the Underwriting of Insurance Contracts under the provision of Article 267, paragraph (1) shall, when that Bankrupt
Insurance Company has reached an agreement pertaining to Merger, etc.,
without delay, withdraw said offer.
(5) In the case prescribed in the preceding paragraph, when no agreement
pertaining to Merger, etc. is reached, the Bankrupt Insurance Company of that paragraph shall, without delay, notify the Participating Corporation to that
effect.
(6) The Participating Corporation shall, when it finds it unnecessary to make the request under the provision of paragraph (1) to the Prime Minister, when the content of the notification of the Prime Minister under the provision of
paragraph (2) is to the effect that the measures under the provision of Article
256, paragraph (1) cannot be taken, or when the notification under the
provision of the preceding paragraph is made, promptly, upon discussions of
the Committee, make a ruling listed in items (i) and (ii) pertaining to the offer of paragraph (1) or the ruling listed in item (ii).
(7) The provision of Article 270-3, paragraph (3) shall apply mutatis mutandis to the case that the Participating Corporation makes the ruling of the preceding
paragraph.
(8) The Bankrupt Insurance Company pertaining to the offer of paragraph (1)
may, when the Participating Corporation makes a ruling under the provision of paragraph (6), transfer the insurance contracts pertaining to all or part of the
insurance contracts to said Participating Corporation pursuant to the contract with the Participating Corporation concerning the Underwriting of Insurance Contracts.
(9) The provisions of Article 135, paragraphs (2) to (4) inclusive, Article 136 to
140 inclusive, Article 155, Article 210, and Article 250 to 253 inclusive shall apply mutatis mutandis to the transfer of insurance contracts from the
Bankrupt Insurance Company pertaining to the Underwriting of Insurance
Contracts to the Participating Corporation. In this case, the term "paragraph (1)" in Article 135, paragraphs (3) and (4) shall be deemed to be replaced with "Article 270-4, paragraph (8)," the term "paragraph (1) of the preceding Article" "Transferor Company and the Transferee Company (other than a Foreign
Insurance Company, etc.)," and "hereinafter in this Chapter, as well as in Chapter VIII and X" in Article 136, paragraph (1) shall be deemed to be replaced with "Article 270-4, paragraph (8)," "Transferor Company," and
"Article 250, paragraph (4)," respectively. The term "Transferor Company and the Transferee Company" and "paragraph (1) of the preceding Article," in
Article 136, paragraph (3) shall be deemed to be replaced with "Transferor
Company" and "Article 270-4, paragraph (8)," respectively. The term "Article
135, paragraph (1)" and "Transferee Company" in Article 137, paragraph (1)
shall be deemed to be replaced with "Article 270-4, paragraph (8)" and
"Policyholders Protection Corporation of which that Insurance Company is a member (referred to as "Participating Corporation" in Articles 140, 155 and
252)," respectively. The term "the following criteria" in Article 139, paragraph
(2) shall be deemed to be replaced with "criteria listed in items (i) and (iii)." The terms "Transferee Company," "Article 135, paragraph (1)," and "Article
135, paragraph (4)" in Article 140, paragraph (2) shall be deemed to be
replaced with "Participating Corporation," "Article 270-4, paragraph (8)," and
"Article 135, paragraph (4) as applied mutatis mutandis pursuant to paragraph
(9) of that Article," respectively. The terms "Article 135, paragraph (1)" and
"Transferee Company" in Article 140, paragraph (3) shall be deemed to be
replaced with "Article 270-4, paragraph (8)" and "Participating Corporation," respectively. The term "minutes of the Shareholders Meeting, etc. of the
Transferee Company (other than a Foreign Insurance Company, etc.) set forth in Article 135, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 272-29)" in Article 155, item (i) shall be deemed to be replaced with "minutes of the General Meeting of Participating
Corporation." The term "written agreement concluded under Article 135,
paragraph (1) (hereinafter referred to as "Transfer Agreement" in this Section)" in Article 210, paragraph (1) shall be deemed to be replaced with "contract
concluded under Article 270-4, paragraph (8) (hereinafter referred to as
"Transfer Contract" in this Section)." The term "Article 135, paragraph (1)
(including the cases where it is applied mutatis mutandis pursuant to Article
210, paragraph (1) and Article 272-29)," "Article 268, paragraph (1) or Article
270, paragraph (1)," and "Relief Insurance Company as prescribed in Article
260, paragraph (3)" in Article 250, paragraph (1) shall be deemed to be
replaced with "Article 270-4, paragraph (8)," "Article 270, paragraph (1)," and
"Policyholders Protection Corporation of which that Bankrupt Insurance
Company is a member," respectively. The term "Article 135, paragraph (1)" in Article 250, paragraph (4) shall be deemed to be replaced with "Article 270-4, paragraph (8)." The terms "Article 135, paragraph (1) (including the cases
where it is applied mutatis mutandis pursuant to Article 210, paragraph (1)
and Article 272-29; hereinafter the same shall apply in this Article)" and
"Transferee Company prescribed in Article 135, paragraph (1)" in Article 252 shall be deemed to be replaced with "Article 270-4, paragraph (8)" and
"Participating Corporation," respectively. Any other technical change in interpretation required shall be specified by a Cabinet Order.
(Transfer to Insurance Special Account pertaining to Underwriting of
Insurance Contracts, etc.)
Article 270-5 (1) The Participating Corporation shall, when it underwrites the insurance contracts pursuant to the provision of the preceding Article,
incorporate the property of the Bankrupt Insurance Company pertaining to the
Underwriting of Insurance Contracts, which it inherited with the transfer of insurance contracts pertaining to the Underwriting of Insurance Contracts,
into the insurance Special Account created for the purpose of that Bankrupt
Insurance Company.
(2) The Participating Corporation shall, when it underwrites the insurance
contracts pursuant to the provision of the preceding Article, transfer, from the general account to the insurance Special Account created for the purpose of
that Bankrupt Insurance Company, the amount equivalent to the amount
remaining after the deduction of the amount listed in item (ii) from the amount listed in item (i) with regard to the Bankrupt Insurance Company pertaining to said assumption of insurance contracts:
(i) The amount of Specified Policy Reserve, etc. pertaining to the Covered
Insurance Contract pertaining to that Bankrupt Insurance Company,
multiplied by the rate specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance by taking into consideration the kind of that
Covered Insurance Contract, expected interest rate, other content, etc.; and
(ii) The amount of the asset value of that Bankrupt Insurance Company, based on the Confirmed Evaluation of Property, which has been calculated as per
Cabinet Office Ordinance and Ordinance of the Ministry of Finance as being the amount which corresponds to the Specified Policy Reserve, etc.
pertaining to the Covered Insurance Contract.
(3) The Participating Corporation shall, when it underwrites the insurance contracts pursuant to the provision of the preceding Article, take over the
documents of the Bankrupt Insurance Company pertaining to said assumption
of insurance contracts listed in Article 4, paragraph (2), items (ii) to (iv)
inclusive.
(4) The Participating Corporation may, when an amount has been accounted
pursuant to what is specified by a Cabinet Order for the amount of loss accrued by the insurance Special Account by the implementation of the businesses
pertaining to the Management and Disposition of Insurance Contracts
pertaining to the assumption of insurance contracts under the provision of the preceding Article (including incidental businesses), transfer the amount from
the general account to that insurance Special Account, upon the discussions of
the Committee, within the scope of that amount.
(Application of this Act in the Case of Corporation Carrying On Insurance
Business)
Article 270-6 (1) The corporation may, notwithstanding the provision of Article 3, paragraph (1), carry on Insurance Business to the extent necessary for the
Management and Disposition of Insurance Contracts which were transferred pursuant to the contract concerning the Underwriting of Insurance Contracts concluded under the provision of Article 270-4, paragraph (8).
(2) The application of this Act in the case that the corporation carries on
Insurance Business pursuant to the provision of the preceding paragraph shall be prescribed as follows:
(i) For the purpose of applying the provisions of Article 9, paragraph (1) (limited to the sections pertaining to item (i)), Article 97, Article 97-2,
paragraphs (1) and (2), Article 98, Chapter V of Part II (except for Articles
109, 113, and 114), Article 123 to 125 inclusive, Article 131, Sections 1 and 3 of Chapter VII of that part, and Article 309 (including the penal provisions
pertaining to the provisions), the corporation shall be deemed to be the
Insurance Company. In this case, the term "Article 3, paragraph (2)" in
Article 97, paragraph (1) shall be deemed to be replaced with "Bankrupt
Insurance Company prescribed in Article 260, paragraph (2) pertaining to the assumption of insurance contracts prescribed in paragraph (9) of that
Article," the term "the following businesses and other businesses" in Article
98, paragraph (1) shall be deemed to be replaced with "businesses listed in
items (i) and (ii)," the term "board of directors" in Article 120, paragraph (1)
and Article 121, paragraphs (1) and (2) shall be deemed to be replaced with
"president of the Policyholders Protection Corporation," the term "or General
Meeting of Members (or General Meeting, where the company has such meeting) (referred to as "Shareholders Meeting, etc." hereinafter in this Chapter, as well as in Chapter VIII and X)" in Article 136, paragraph (1) shall be deemed to be replaced with ", General Meeting of Members (or
General Meeting, where the company has such meeting) or General Meeting
of the Policyholders Protection Corporation (referred to as "Shareholders Meeting, etc." in Article 144, paragraph (2) and Article 149, paragraph (1)," the terms "director (or, in a company with Committees, executive officers) of the Transferor Company" and "from two weeks before the date of the
Shareholders Meeting, etc. set forth in paragraph (1) of the preceding
Article" in Article 136-2, paragraph (1) shall be deemed to be replaced with
"director of the Policyholders Protection Corporation," and "from the date of the General Meeting of the Policyholders Protection Corporation of
paragraph (1) of the preceding Article as applied with relevant changes in
interpretation pursuant to the provision of Article 270-6, paragraph (2), item
(i)," respectively.
(ii) For the purpose of applying the provisions of Article 101 to 105 inclusive
(including the penal provisions pertaining to the provisions), the corporation shall be deemed to be the Non-Life Insurance Company in the case that the
license which had been received by the Bankrupt Insurance Company
pertaining to the Underwriting of Insurance Contracts which was a membership of said corporation falls under the Kinds of Licenses listed in Article 262, paragraph (2), item (ii); and
(iii) For the purpose of applying the provision of Article 114, the corporation
shall be deemed to be the Stock Company that is the Insurance Company. (3) In the case that the corporation carries on Insurance Business pursuant to
the provision of paragraph (1), said corporation shall, with regard to the application of the Automobile Liability Security Act and other laws and regulations specified by a Cabinet Order, be deemed to be the Insurance
Company, or, according to the kind of membership license, the Life Insurance
Company or Non-Life Insurance Company pursuant to the provisions of a
Cabinet Order.
(Offer for Financial Assistance pertaining to Re-Transfer of Insurance
Contracts)
Article 270-6-2 (1) The Insurance Company to which the re-transfer is being made may make an offer to the corporation which underwrote the insurance contracts pertaining to the Re-Transfer of Insurance Contracts (hereinafter
referred to as "Underwriting Corporation") that the Underwriting Corporation
extend Financial Assistance with regard to the Re-Transfer of Insurance
Contracts (limited to damage security).
(2) The Underwriting Corporation may, when it finds it necessary in the case referred to in the preceding paragraph, request the Insurance Company to
which the re-transfer is being made that made the offer in that paragraph and other relevant persons to submit materials.
(Authorization of Eligibility for Re-Transfer of Insurance Contracts)
Article 270-6-3 (1) In the case referred to in paragraph (1) of the preceding
Article, the Underwriting Corporation and the Insurance Company to which the re-transfer is being made, which carry out the Re-Transfer of Insurance Contracts, shall obtain the authorization of the Prime Minister for the Re-
Transfer of Insurance Contracts by the time that the offer of that paragraph is
made.
(2) The provisions of Article 268, paragraphs (2) to (5) inclusive (except for
paragraph (3), item (iii)) shall apply mutatis mutandis to the authorization of
the preceding paragraph. In this case, the term "Bankrupt Insurance Company and Relief Insurance Company or Bankrupt Insurance Company and Relief
Insurance Holding Company, etc." in paragraph (2) of that Article shall be
deemed to be replaced with "Underwriting Corporation and Insurance
Company to which the re-transfer is being made," the term "transfer, etc. of insurance contracts" in paragraph (3) of that Article shall be deemed to be replaced with "Re-Transfer of Insurance Contracts," the term "Participating
Corporation" shall be deemed to be replaced with "Underwriting Corporation," and the term "Participating Corporation" in paragraphs (4) and (5) of that
Article shall be deemed to be replaced with "Underwriting Corporation."
(Designation of Other Party of Consultation on Re-Transfer of Insurance
Contracts, etc.)
Article 270-6-4 (1) The Prime Minister may designate an Insurance Company as the other party with which the assumption corporation shall hold a
consultation pertaining to the Re-Transfer of Insurance Contracts and
recommend that that Insurance Company participate in the consultation. (2) The provisions of Article 256, paragraphs (2) and (3) and Article 257 shall
apply mutatis mutandis to the recommendation of the preceding paragraph. In this case, the term "Bankrupt Insurance Company or Insurance Company
recognized as having a high probability of becoming a Bankrupt Insurance
Company" in Article 256, paragraph (2) shall be deemed to be replaced with
"Underwriting Corporation of that paragraph," the term "another Insurance
Company or Insurance Holding Company, etc." shall be deemed to be replaced with "Insurance Company," the term "Bankrupt Insurance Company or
Policyholders Protection Corporation of which the Insurance Company
recognized as having a high probability of becoming a Bankrupt Insurance Company has entered as a membership" in Article 256, paragraph (3) shall be deemed to be replaced with "Underwriting Corporation of Article 270-6-4,
paragraph (1)," the term "Bankrupt Insurance Company" in Article 257,
paragraph (1) shall be deemed to be replaced with "Underwriting Corporation," and the term "other Insurance Company or Insurance Holding Company, etc." shall be deemed to be replaced with "Insurance Company."
(3) The Prime Minister may, only when he/she finds that the extension of
Financial Assistance by the Underwriting Corporation is indispensable for the
Re-Transfer of Insurance Contracts pertaining to the recommendation of paragraph (1), make a supplementary note in said recommendation,
notwithstanding the provision of paragraph (1) of the preceding Article, that
the offer of Article 270-6-2, paragraph (1) may be made.
(4) The provision of Article 268, paragraph (4) and Article 268, paragraph (5)
shall apply mutatis mutandis to the case that the supplementary note of the preceding paragraph is made.
(Financial Assistance pertaining to Re-Transfer of Insurance Contracts)
Article 270-6-5 (1) The Underwriting Corporation shall, when it receives the
offer under the provision of Article 270-6-2, paragraph (1), without delay make a ruling, upon discussions of the Examination Board and the Committee, on
whether to extend the Financial Assistance pertaining to said offer.
(2) The provision of Article 270-3, paragraph (3) shall apply mutatis mutandis to the case that the Underwriting Corporation makes a ruling of the preceding
paragraph, and the provision of paragraph (4) of that Article shall apply mutatis mutandis in the case that the Underwriting Corporation makes a ruling to extend Financial Assistance pursuant to the provision of the
preceding paragraph. In this case, the term "Insurance Company or Insurance
Holding Company, etc. which made the offer for said Financial Assistance that becomes the party of said Financial Assistance" in paragraph (4) of that Article shall be deemed to be replaced with "Insurance Company for re-transfer."
(3) The Insurance Company for re-transfer which concludes the contract of
Article 270-3, paragraph (4), as applied mutatis mutandis pursuant to the
preceding paragraph, shall, if profits are accrued from the assets pertaining to said damage security pertaining to that contract, commit in that contract that
it shall pay all or part of said profits to the Underwriting Corporation
pertaining to that contract.
Division 4 Financial Assistance for Payment of Covered Insurance
Claims
(Offer for Financial Assistance pertaining to Payment of Covered Insurance
Claims)
Article 270-6-6 (1) The following Insurance Companies (referred to as "Specified
Insurance Company" under Subsection 4) may make an offer to the
Participating Corporation that said Participating Corporation extend Financial
Assistance pertaining to the payment of Covered Insurance Claims (limited to gifts of money):
(i) An Insurance Company which has been ordered to suspend all or part of its business pursuant to the provision of Article 241, paragraph (1), or which has suspended its business and is suspending its payments pertaining to the insurance contract pursuant to the provisions of Article 245 (including the
cases where it is applied mutatis mutandis pursuant to Article 258,
paragraph (2)), Article 250, paragraph (5) (including the cases where it is
applied mutatis mutandis pursuant to Article 270-4, paragraph (9)), Article
254, paragraph (4) or Article 255-2, paragraph (3); and
(ii) An Insurance Company whose bankruptcy proceedings or reorganization proceedings are pending before the court and which is suspending its
payments pertaining to the insurance contract.
(2) The Participating Corporation may, when it finds it necessary in the case referred to in the preceding paragraph, request the Specified Insurance
Company that made the offer in that paragraph and other relevant persons to
submit materials.
(Financial Assistance pertaining to Payment of Covered Insurance Claims) Article 270-6-7 (1) The Participating Corporation shall, when it receives the
offer of paragraph (1) of the preceding Article, without delay make a ruling, upon discussions of the Committee, on whether to extend the Financial
Assistance pertaining to the payment of the Covered Insurance Claims pertaining to said offer.
(2) The Participating Corporation shall, when it has made the ruling of the
preceding paragraph, immediately report on the matters pertaining to the ruling to the Prime Minister and Minister of Finance.
(3) The Participating Corporation shall, when it has made the ruling to extend
Financial Assistance pertaining to the payment of the Covered Insurance
Claims pursuant to the provision of paragraph (1), conclude a contract
concerning the Financial Assistance pertaining to the payment of the Covered
Insurance Claims with the Specified Insurance Company which made said offer.
Subsection 3 Purchase of Right to Insurance Claim, etc. (Purchase of Right to Insurance Claim, etc.)
Article 270-6-8 (1) The Participating Corporation may, in the case that the
Specified Insurance Company has suspended all of its payments pertaining to the insurance contract, make a ruling, upon discussions of the Committee, to
purchase Right to Insurance Claims pertaining to the Covered Insurance
Contract and other rights specified by a Cabinet Order (limited to those whose purpose is not security interest; hereinafter referred to as "Right to Insurance Claim, etc." in this Subsection).
(2) The purchase under the preceding paragraph shall be made in such a way that the Right to Insurance Claim, etc. under the preceding paragraph is
purchased based on the request of the creditor pertaining to the Right to
Insurance Claim, etc., within the period during which all payments pertaining to the insurance contract are suspended, at the amount of the insurance claim
of the Covered Insurance Contract and of other benefits, multiplied by the rate specified by a Cabinet Office Ordinance and Ordinance of the Ministry of
Finance by taking into consideration what is the kind of that Covered
Insurance Contract, the expected interest rate, other content, the time when the insured event pertaining to that request took place, etc. (hereinafter
referred to as "Purchase Amount"); provided, however, that the Participating
Corporation shall, in the case that it called for the Right to Insurance Claim,
etc. pertaining to the purchase and when the amount which was collected from the calling deducted by the amount specified by a Cabinet Office Ordinance
and Ordinance of the Ministry of Finance as the cost of said purchase exceeds the Purchase Amount pertaining to said purchase, pay this excess amount to
the creditor pertaining to said Right to Insurance Claim, etc.
(3) The Participating Corporation shall, when it has made the ruling under
paragraph (1), immediately report on the matters pertaining to the ruling to the Prime Minister and Minister of Finance.
(Public Notice, etc. of Purchase)
Article 270-6-9 (1) The Participating Corporation shall, when it has made the
ruling under paragraph (1) of the preceding Article, promptly provide for the
purchase location pertaining to the purchase of the Right to Insurance Claim, etc. of that paragraph, the payment method for the Purchase Amount, and
other matters specified by a Cabinet Office Ordinance and Ordinance of the
Ministry of Finance, and give public notice thereof.
(2) The Participating Corporation shall, when it makes the payment under the provision of the proviso of paragraph (2) of the preceding Article, in advance,
upon discussions of the Committee, provide for the payment amount, payment period, and other matters specified by a Cabinet Office Ordinance and
Ordinance of the Ministry of Finance, and give public notice thereof.
(3) The provision of paragraph (3) of the preceding Article shall apply mutatis
mutandis to cases in which the matters prescribed in the preceding paragraph are provided.
(Concerning Taxation)
Article 270-6-10 (1) In the case that a person entitled to the Right to Insurance
Claim, etc. receives payment of the Purchase Amount pertaining to the
purchase under the provision of Article 270-6-8, paragraph (2) with regard to
said Right to Insurance Claim, etc., said payment of Purchase Amount received
(in the case that the person who received the payment of that Purchase Amount receives payment for the Right to Insurance Claim, etc. pertaining to that Purchase Amount under the provision of the proviso of that paragraph,
that amount of payment received is included) shall be deemed to be the amount
of the insurance claim and of other benefits based on the Covered Insurance Contract pertaining to said Right to Insurance Claim, etc., and the provisions of the Income Tax Act (Act No. 33 of 1965) and other laws and regulations
concerning income tax shall apply.
(2) In the case that the provision of the preceding paragraph shall apply, necessary matters concerning the application of the special provisions of the
proviso of Article 4-2 and Article 4-3 of the Act on Special Measures concerning Taxation (Act No. 26 of 1957) and other provisions of that paragraph shall be specified by a Cabinet Order.
(3) For the purpose of applying the provisions of the Inheritance Tax Act (Act No.
73 of 1950) and other laws and regulations concerning inheritance tax or gift tax pertaining to the payment of the Purchase Amount received in the case
that payment of the Purchase Amount pertaining to the purchase of the Right to Insurance Claim, etc. under the provision of Article 270-6-8, paragraph (2)
(in the case that the payment of said Right to Insurance Claim, etc. pertaining
to the Purchase Amount is received within three years of the occurrence of the insured event pertaining to said Right to Insurance Claim, etc. under the
provision of the proviso of that paragraph, that amount of payment received is
included; hereinafter the same shall apply in this paragraph) is received, the term "insurance claim (mutual aid money)" in Article 3, paragraph (1), item (i) of that Act shall be deemed to be "insurance claim (the Purchase Amount
prescribed in Article 270-6-10, paragraph (2) of the Insurance Business Act
(Act No. 105 of 1995); referred to as "Purchase Amount" in Article 5, paragraph
(2)) and mutual aid money," the term "said insurance claim recipient" shall be deemed to be "said insurance claim recipient (any person who received
payment of said Purchase Amount and," and the term "its equivalent" in Article 5, paragraph (2) of that Act shall be deemed to be "its equivalent (including the Purchase Amount; hereinafter the same shall apply)."
Subsection 4 Miscellaneous Provision
(Loans to Memberships)
Article 270-7 (1) The loan of funds of Article 265-28, paragraph (2), item (i), within the extent of the amount it is found necessary, may be made in the
following cases, based on the application thereof, limited to those in which it is
found that the loan is necessary and appropriate for the smooth payment of
insurance claims and other benefits by the membership of the corporation (for a Foreign Insurance Company, etc., insurance claim and other benefits
pertaining to the insurance contract in Japan; hereinafter the same shall apply in this paragraph):
(i) In the case that the membership of the corporation delays payment of the
insurance claim or other benefits, or there is a risk of the membership delaying payment, due to a temporary financial circumstance; and
(ii) In the case that the membership of the corporation that is the Specified
Insurance Company concluded a contract under the provision of Article 270-
6-7, paragraph (3) with said corporation.
(2) The loan of funds of item (i) of the preceding paragraph shall comply with the requirement that the calling of loan claims pertaining to the loan of funds is
found to be certain and with other requirements specified by a Cabinet Office
Ordinance and Ordinance of the Ministry of Finance.
(3) The corporation shall, if an offer is made for a loan of assets under the
provision of paragraph (1), make a ruling, upon discussions of the Committee, on whether to extend the loan of funds.
(4) The corporation shall, when it has made a ruling to loan the funds of paragraph (1) pursuant to the provision of the preceding paragraph,
immediately report on the matters pertaining to the ruling to the Prime
Minister and Minister of Finance.
(Loans to Policyholders, etc.)
Article 270-8 (1) Limited to cases in which the membership of the corporation is a Specified Insurance Company, the loan of funds of Article 265-28, paragraph (2), item (ii) may be made to any person who is a Policyholder, etc. pertaining to the insurance contract specified by a Cabinet Office Ordinance and
Ordinance of the Ministry of Finance of the membership, etc. and who is a
person entitled to the Right to Insurance Claims and other rights specified by a
Cabinet Office Ordinance and Ordinance of the Ministry of Finance
(hereinafter referred to as "Qualified Person" in this Article), within the extent of the amount specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance as the amount which they deem said Qualified Person will receive based on said rights, based on the application of said Qualified Person.
(2) The loan of funds of the preceding paragraph shall comply with the finding
that the Qualified Person will certainly pay the debt pertaining to the loan of funds through payments of insurance claims and other benefits it will receive based on the rights of that paragraph, and with other requirements specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance.
(3) The corporation shall, when its memberships become a Specified Insurance
Company, make a ruling, upon discussions of the committee, on whether to extend a loan of funds to the Qualified Person of the member.
(4) The corporation shall, when it has made the ruling to loan the funds of
paragraph (1) pursuant to the provision of the preceding paragraph,
immediately report on the matters pertaining to the ruling to the Prime
Minister and Minister of Finance, and promptly, upon discussions of the
Committee, provide for the enquiry location pertaining to the loan of said funds, loan method, and other matters specified by a Cabinet Office Ordinance and
Ordinance of the Ministry of Finance, and give public notice thereof.
(Offer for Purchase of Assets of Liquidating Insurance Company)
Article 270-8-2 (1) The Liquidating Insurance Company may make an offer to
the corporation (limited to that of which that Liquidating Insurance Company was a membership) that said corporation purchases the assets of that
Liquidating Insurance Company.
(2) The corporation may, when it finds it necessary in the case referred to in the preceding paragraph, request the Liquidating Insurance Company that made
the offer in that paragraph and other relevant persons to submit materials.
(Purchase of Assets of Liquidating Insurance Company)
Article 270-8-3 (1) The corporation shall, when it receives the offer under
paragraph (1) of the preceding Article, without delay make a ruling, upon discussions of the Examination Board and the committee, on whether to
purchase the assets pertaining to said offer.
(2) The corporation shall, when it has made the ruling under the provision of the preceding paragraph, immediately report on the matters pertaining to the
ruling to the Prime Minister and Minister of Finance.
(3) The corporation shall, when it has made the ruling to purchase the assets
pursuant to the provision of paragraph (1), conclude a contract concerning the purchase of said assets with the Liquidating Insurance Company which made an offer to purchase said assets.
(Special Provisions on Taxation)
Article 270-9 (1) The registration and license tax shall not be imposed for the registration under the provision of Article 244 (including the cases where it is
applied mutatis mutandis pursuant to Article 248, paragraph (2)).
(2) The corporation, in the case that it has accepted insurance contracts
pertaining to a membership Bankrupt Insurance Company pursuant to the provision of Article 270-4, when it has acquired the right to real estate or movables from the transfer of property of that Bankrupt Insurance Company that accompanies the acceptance of that insurance contract prescribed in the
contract concerning the acceptance of insurance contracts concluded pursuant
to the provision of Article 270-4, paragraph (8), the registration and license tax shall not be imposed for the registration of the transfer of said right to real estate or movables, limited to those which will be registered within one year
after the acquisition pursuant to the provision of the Ordinance of the Ministry of Finance.
(3) The Succeeding Insurance Company, in the case that it has acquired the right to real estate pursuant to the transfer of insurance contracts of the Bankrupt
Insurance Company or a merger with that Bankrupt Insurance Company
(referred to as "Transfer, etc. of Insurance Contracts Based on Ruling" in the following paragraph) that had been recognized as being qualified under the
provision of Article 270, paragraph (1) based on the ruling listed in Article 270-
3-2, paragraph (6), item (ii) under the provision of Article 270-3-2, paragraph
(6), the registration and license tax shall not be imposed for the registration of the transfer of said right to real estate, limited to that which will be registered within one year after the acquisition pursuant to the provision of the
Ordinance of the Ministry of Finance.
(4) The assignment of land or rights attached to the land, which the Succeeding
Insurance Company acquired by the transfer of insurance contracts based on
the ruling, etc. (the assignment prescribed in Article 62-3, paragraph (2), item
(i), (a) of the Act on Special Measures concerning Taxation), shall not fall under the assignment of land, etc. prescribed in Article 62-3, paragraph (2), item (i) of that Act, with regard to the application of the provisions of that
Article and Articles 63, 68-68, and 68-69 of that Act pertaining to the
Succeeding Insurance Company.
Section 5 Miscellaneous Provision
(Opinion of Prime Minister, etc. on Liquidation Procedure, etc.)
Article 271 (1) The court may seek the opinion of or request an inspection or investigation from the Prime Minister regarding the liquidation procedure, bankruptcy procedure, rehabilitation procedure, reorganization procedure or approval assistance procedure of an Insurance Company, etc. or Foreign
Insurance Company, etc.
(2) The Prime Minister may, when he/she finds it necessary, state his/her opinion
to the court on the procedures prescribed in the preceding paragraph.
(3) The provisions of Article 129, paragraph (1), Article 201, paragraph (1), Article 227, paragraph (1) and Article 272-23, paragraph (1) shall apply
mutatis mutandis to cases where the Prime Minister has received a request for inspection or investigation from court pursuant to the provision of paragraph
(1).
(Special Provisions pertaining to Assignment of Revolving Mortgage)
Article 271-2 (1) When the Company Being Managed intends to assign a
revolving mortgage together with all of the claims it shall guarantee before the principal is established, through the assigning of property which will be
carried out in conjunction with the assignment of insurance contracts to the
Succeeding Insurance Company (referring to the Succeeding Insurance
Company prescribed in Article 260, paragraph (6); the same shall apply in
paragraph (5) and Article 271-2-3, paragraph (1), item (iii)), other insurance companies, or the corporation that will underwrite (referring to the
Underwriting of Insurance Contract prescribed in Article 260, paragraph (9);
the same shall apply in paragraph (5)) the insurance contracts of that
Company Being Managed (hereinafter referred to as "Succeeding Insurance
Company, etc." in this Article), that Company Being Managed and that
Succeeding Insurance Company, etc. may give public notice to the effect that the revolving mortgagor with an objection shall raise its objections to that
Company Being Managed with regard to the following matters within a certain period, or make the demand thereof:
(i) The fact that the revolving mortgage shall be assigned from that Company
Being Managed to that Succeeding Insurance Company, etc. and the date thereof; and
(ii) The fact that the revolving mortgage shall guarantee said claim even after the revolving mortgage is assigned.
(2) The period referred to in the preceding paragraph shall not be less than two
weeks.
(3) When the revolving mortgagor pertaining to the public notice or demand of
paragraph (1) does not raise its objections to the matters listed in the items of that paragraph within the period referred to in that paragraph, it shall be
deemed that the revolving mortgagor consents to the matter listed in item (i) of that paragraph and that the revolving mortgagor and the Succeeding
Insurance Company, etc. pertaining to the public notice or demand of that paragraph agree on the matter listed in item (ii) of that paragraph,
respectively.
(4) When the revolving mortgagor raises its objections to part of the matters listed in the items of paragraph (1), it shall be deemed that it has raised
objections to all of the matters listed in the items of that paragraph.
(5) The provisions of all preceding paragraphs shall apply mutatis mutandis to the case that the Succeeding Insurance Company or corporation that
underwrote the insurance contracts intends to assign the revolving mortgage together with all of the claims it shall guarantee before the principal is
established, through the assigning of property which will be carried out in
conjunction with the assignment of insurance contracts to another Insurance
Company.
(Special Provisions on Application Procedure for Registration, etc. of Revolving
Mortgage Transfer)
Article 271-2-2 (1) To apply for the registration of the revolving mortgage transfer in the case referred to in paragraph (3) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to
paragraph (5) of that Article), information proving that public notice or
demand was given and that the revolving mortgagor did not raise its objections within the period referred to in paragraph (1) of that Article (including the
cases where it is applied mutatis mutandis pursuant to paragraph (5) of that
Article) shall be provided with the application information.
(2) The registration of a change in the revolving mortgage to the effect of adding claims pertaining to the assignment to the scope of claims which shall be
guaranteed by the revolving mortgage in the case set forth in paragraph (3) of
the preceding Article (including the cases where it is applied mutatis mutandis pursuant to paragraph (5) of that Article) may be applied for only by the
revolving mortgagor when the information prescribed in the preceding paragraph is provided along with the application information.
(Special Provisions on Continuation of Business)
Article 271-2-3 (1) Any person listed in the following items may, in the case that it succeeded, through the transfer of an insurance contract or merger
prescribed in the items, the rights and duties pertaining to a contract referring to businesses it cannot engage in pursuant to the laws and regulations
concerning their operations or a contract restricting its engagement in these
businesses, continue the businesses that concern these contracts until the expiration date for those contracts which prescribe a period, and, for those
which do not prescribe a period, for a period limited to within two years from
the date of succession:
(i) An Insurance Company which has received the recommendation set forth in
Article 256, paragraph (1), Article 270-3-13, paragraph (1), or Article 270-6-4, paragraph (1): transfer of insurance contract pertaining to said
recommendation or merger;
(ii) A Relief Insurance Company, Re-succeeding Insurance Company, or
Insurance Company for re-transfer, which has received the authorization set forth in Article 268, paragraph (1), Article 270-3-12, paragraph (1), or Article
270-6-3, paragraph (1) : transfer of insurance contract pertaining to said authorization or merger; and
(iii) A Succeeding Insurance Company or corporation, which carries out the
transfer of insurance contracts pertaining to the authorization set forth in
Article 270, paragraph (1) from, or the merge with, the Bankrupt Insurance
Company which has received said authorization (referring to the Bankrupt
Insurance Company prescribed in Article 260, paragraph (2)): transfer of that insurance contract or merger.
(2) Persons prescribed in the preceding paragraph may, in the case that there is
a special circumstance in light of the convenience, etc. of the user of the
businesses concerning the contracts prescribed in that paragraph, create a plan for managing said businesses for a specified period, and when said plan is
approved by the Prime Minister, continue said businesses within the extent that the total amount of that contract of the day of the transfer of the
insurance contract or merger is not exceeded, and, in accordance with said plan,
renew the contract whose period set forth in that paragraph has expired or by exceeding the period set forth in that paragraph.
Chapter XI Shareholder
Section 1 General Rules
(Submission of Written Notice Pertaining to Holding of Voting Rights of
Insurance Company, etc.)
Article 271-3 (1) A person who holds voting rights that exceed five hundredths of the Voting Rights by All of the Shareholders of a single Insurance Company or voting rights that exceed five hundredths of the Voting Rights Held by All of
the Shareholders of a single Insurance Holding Company (such person shall
exclude the State, local public entity, or any juridical person specified by a
Cabinet Order as one equivalent thereto (referred to as the "State, etc." in
Article 271-10) shall, pursuant to the provisions of a Cabinet Office Ordinance, submit a written notice containing the following matters (hereinafter referred
to in this Chapter as "Written Notice of Holding the Insurance's Voting
Rights") to the Prime Minister within five days (Sundays and other holidays specified by a Cabinet Order shall not included in the number of days ; the same shall apply in paragraph (1) of the next Article) from the day on which he/she became a Major Holder of the Insurance Voting Rights (within the number of days specified by a Cabinet Office Ordinance in the where the
number of voting rights held has not increased or in any other case specified by
a Cabinet Office Ordinance):
(i) Matters concerning the Proportion of Voting Rights Held (meaning the
proportion obtained by dividing the number of voting rights of the Insurance
Company or Insurance Holding Company held by the Major Holder of the
Insurance Company's Voting Rights, where that Major Holder of the
Insurance Company's Voting Rights holds voting rights that exceed five hundredths of the Voting Rights Held by All of the Shareholders, by the number of Voting Rights Held by All of the Shareholders of that Insurance Company or Insurance Holding Company; hereinafter the same shall apply
in this Chapter), matters concerning funds for the acquisition, the purpose of
holding the voting rights, and any other matters specified by a Cabinet Office Ordinance as important matters concerning the holding of voting rights of an Insurance Company or Insurance Holding Company:
(ii) The trade name or name and address;
(iii) In the case of a juridical person, the amount of its capital (including the
total amount of contribution) and the name of its representative person; and
(iv) In the case where the person engages in business, the name and location of the business office and the type of the business.
(2) The provisions of Article 2, paragraph (15) shall apply mutatis mutandis to
the voting rights held by a Major Holder of Insurance Voting Rights in the case referred to in the preceding paragraph.
(Submission of Change Report Concerning Written Notice of Holding the
Insurance Company's Voting Rights)
Article 271-4 (1) A Major Holder of the Insurance Company's Voting Rights shall, in the case where any matters listed in the items of paragraph (1) of the
preceding Article have been changed (in the case of a change in the Proportion
of Voting Rights Held, it shall be limited to a case where the proportion has increased or decreased by one hundredth or more) after the day on which
he/she became a holder of voting rights that exceed five hundredths of the
Voting Rights Held by All of the Shareholders of a single Insurance Company
or voting rights that exceed five hundredths of the Voting Rights Held by All of the Shareholders of a single Insurance Holding Company, he/she shall,
pursuant to the provisions of a Cabinet Office Ordinance, submit a report
pertaining to that change (hereinafter referred to as a "Change Report" in this
Article and the next Article) to the Prime Minister within five days from that day (within the number of days specified by a Cabinet Office Ordinance in the case where the number of voting rights held has not increased or in any other case specified by a Cabinet Office Ordinance); provided, however, that this
shall not apply to the case where a Change Report has already been submitted
based on a decrease in the Proportion of Voting Rights Held by one hundredth
or more and the Proportion of Voting Rights Held stated in that Change Report is five hundredths or less, or to any other case specified by a Cabinet Office
Ordinance.
(2) A person submitting a Change Report based on a decrease in the Proportion of
Voting Rights Held shall, in a case that satisfies the requirements specified by a Cabinet Order for a case where a large number of voting rights have been
transferred within a short period, also state matters concerning the party to whom the voting rights were transferred and the Consideration received in
that Change Report, pursuant to the provisions of a Cabinet Office Ordinance.
(3) When circumstances that compel a person to submit another Change Report have arisen by the day preceding the day of submission of a Written Notice of Holding the Insurance Company's Voting Rights or a Change Report
(hereinafter referred to as "Documents Required" in this Section), that Change
Report shall be submitted to the Prime Minister at the same time as the submission of that Documents Required that have yet to be submitted, notwithstanding the provisions of the main clause of paragraph (1).
(4) A person who has submitted Documents Required shall, when he/she finds
that the contents stated in that Documents Required differ from the actual fact or that the statement of the matters to be stated or facts necessary for avoiding misunderstanding is insufficient or lacking, submit a correction report to the
Prime Minister.
(5) The provisions of Article 2, paragraph (15) shall apply mutatis mutandis to
the voting rights held by a Major Holder of Insurance Voting Rights in the case referred to in paragraphs (1) and (2).
(Special Provisions on Written Notice, etc. of Insurance Holding Company's
Voting Rights)
Article 271-5 (1) Notwithstanding the provisions of Article 271-3, paragraph (1), A Written Notice of Holding the Bank's Voting Rights pertaining to voting
rights held by a Bank, Financial Instruments Business Operator (limited to
one that conducts Securities-Related Business), trust company, or any other person specified by a Cabinet Office Ordinance who has notified the Prime Minister of a Reference date, where the purpose of holding such voting rights is not for controlling the business activities of the Insurance Company or
Insurance Holding Company that has issued the shares relating to that voting rights (excluding the case where the Proportion of Voting Rights Held has
exceeded the number specified by a Cabinet Office Ordinance and any case specified by a Cabinet Office Ordinance by taking into consideration the
manner in which they are held and other circumstances; hereinafter referred to
as "Voting Rights Subject to Special Provisions" in this Act) shall be submitted to the Prime Minister by stating matters that relate to the status of holding
that voting rights as of the Reference Date on which the Proportion of Voting Rights Held exceeded five hundredths for the first time and that are specified by a Cabinet Office Ordinance, by the fifteenth day of the month following the
month containing said Reference Date, pursuant to the provisions of a Cabinet
Office Ordinance.
(2) A Change Report pertaining to Voting Rights Subject to Special Provisions
(excluding one pertaining to a change where that voting rights become those
that are not Voting Rights Subject to Special Provisions) shall be submitted to the Prime Minister by the days respectively prescribed in the following items for the categories of cases listed in those items, pursuant to the provisions of a Cabinet Office Ordinance:
(i) A case where the Proportion of Voting Rights Held on a Reference Date that
comes after the Reference Date pertaining to the Written Notice of Holding
the Insurance Company's Voting Rights set forth in the preceding paragraph increased or decreased by one hundredth or more from the Proportion of
Voting Rights Held that was stated in that Written Notice of Holding the
Insurance Company's Voting Rights or any other case where there was an
important change to matters specified by a Cabinet Office Order prescribed in that paragraph: The fifteenth day of the month following the month
containing said later Reference Date;
(ii) A case where the circumstances came to satisfy the requirements specified by a Cabinet Office Ordinance for a case in which the Proportion of Voting
Rights Held considerably increased or decreased by the last day of any month after the month containing the Reference Date pertaining to Written Notice
of Holding the Insurance Company's Voting Rights: The fifteenth day of the month following the month containing said last day;
(iii) A case where the Proportion of Voting Rights Held on a Reference Date
that comes after the Reference Date pertaining to the Change Report
increased or decreased by one hundredth or more from the Proportion of
Voting Rights Held that was stated in that Change Report or any other case where there was an important change to matters specified by a Cabinet
Office Order prescribed in the preceding paragraph: The fifteenth day of the month following the month containing that later reference date; and
(iv) A case specified by a Cabinet Office Ordinance as a case equivalent to any
of the preceding three items: The day specified by a Cabinet Office Ordinance. (3) The Reference Date set forth in the preceding two paragraphs means the last
day of the month in which a person specified by a Cabinet Office Ordinance prescribed in paragraph (1) notified the Prime Minister pursuant to the
provisions of a Cabinet Office Ordinance and that of every three months
thereafter.
(4) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the
Voting Rights Subject to Special Provisions held by a Major Holder of the
Insurance Company's Voting Rights in the case referred to in paragraphs (1)
and (2).
(Order to Submit Correction Report)
Article 271-6 In the case where Documents Required have been submitted pursuant to the provisions of Article 271-3, paragraph (1), Article 271-4,
paragraph (1) or (3), or paragraph (1) or (2) of the preceding Article, the Prime
Minister may, when he/she finds that there is a formal deficiency in that
Documents Required or that the statement of the important matters among the matters that should be stated in that Documents Required is insufficient, order the person who has submitted that Documents Required to submit a correction report. In this case, a hearing shall be carried out irrespective of the categories of procedures for hearing statements under Article 13, paragraph (1)
(Procedures Prerequisite for Adverse Dispositions) of the Administrative
Procedure Act (Act No. 88 of 1993).
Article 271-7 The Prime Minister may, when he/she has discovered that there is a false statement with regard to an important matter or a lack of statement of any important matter among the matters that should be stated or any facts necessary for avoiding misunderstanding in the Documents Required, order the person who has submitted that Documents Required, at any time, to submit a correction report. In this case, a hearing shall be carried out irrespective of the categories of procedures for hearing statements under Article 13, paragraph (1) (Procedures Prerequisite for Adverse Dispositions) of the Administrative
Procedure Act.
(Submission of Reports or Materials by Major Holder of Insurance Voting
Rights)
Article 271-8 The Prime Minister may, when he/she finds a possibility that there is a false statement with regard to an important matter or a lack of statement
of any important matter among the matters that should be stated or any facts necessary for avoiding misunderstanding in the Documents Required, order the Major Holder of the Insurance Company's Voting Rights who has submitted
that Documents Required to submit reports or materials that would be helpful concerning the matters that should be stated in that Documents Required or facts necessary for avoiding misunderstanding.
(On-site Inspection of Major Holder of Insurance Voting Rights)
Article 271-9 (1) The Prime Minister may, when he/she finds a possibility that there is a false statement with regard to an important matter or a lack of
statement of any important matter among the matters that should be stated or any facts necessary for avoiding misunderstanding in the Documents Required, have his/her officials enter an office or any other facility of the Major Holder of the Insurance Company's Voting Rights who has submitted that Documents
Required, ask questions concerning the matters that should be stated in that Documents Required or facts necessary for avoiding misunderstanding, or inspect books and documents or other objects of that Major Holder of the
Insurance Company's Voting Rights.
(2) The official that carries out the entry, questioning, or inspection under the provision of the preceding paragraph shall indicate the reason for the entry, questioning, or inspection to the other Party.
Section 2 Special Provisions Pertaining to Major Shareholder of
Insurance Company
Subsection 1 General Rules
(Authorization, etc. to Be Obtained by Major Shareholder of Insurance
Company of Insurance)
Article 271-10 (1) A person who intends to become a holder of voting rights of an Insurance Company which amounts to the Major Shareholder Threshold or more or a person who intends to establish a company or any other juridical
person that is a Holder of Voting Rights of an Insurance Company which
amounts to the Major Shareholder Threshold or more (excluding the State, etc., a company that intends to become a Holding company as prescribed in Article
271-18, paragraph (1), the person prescribed in that paragraph, and an
Insurance Holding Company that intends to make the Insurance Company its Subsidiary Company) through any of the following transactions or acts shall obtain authorization from the Prime Minister in advance:
(i) Acquisition of voting rights of the Insurance Company by the person who
intends to become the holder of such voting rights (excluding acquisition of shares through exercise of security rights or acquisition of voting rights by any other cause specified by a Cabinet Office Ordinance);
(ii) Acquisition of license set forth in Article 3, paragraph (1) by a company
whose voting rights amounting to the Major Shareholder Threshold or more are held by the person who intends to become a holder of said voting rights; or
(iii) Any other transactions or acts specified by a Cabinet Order.
(2) A person who became a Holder of Voting Rights of a Insurance Company
which amounts to the Major Shareholder Threshold or more by a cause other than the transactions or acts listed in the items of the preceding paragraph (excluding the State, etc., a Insurance Holding Company, and a Specified
Holding Company prescribed in Article 271-18, paragraph (2); hereinafter
referred to "Specified Major Shareholder" in this Article and Article 333) shall take necessary measures for becoming a person who is no longer a Holder of Voting Rights of the Insurance Company which amounts to the Major
Shareholder Threshold or more by the day on which one year has elapsed from the end of the Business Year of that Insurance Company including the date on which said cause arose (hereinafter referred to as the "Last Day of the Grace Period" in this paragraph and paragraph (4)); provided, however, that this shall not apply to the cases where that Specified Major Shareholder has
obtained authorization from the Prime Minister to remain as a Holder of
Voting Rights of a Insurance Company which amounts to the Major
Shareholder Threshold or more even after the Last Day of the Grace Period.
(3) A Specified Major Shareholder shall, when he/she becomes a person who is no longer a Holder of Voting Rights of an Insurance Company which amounts to
the Major Shareholder Threshold or more by a measure required under the
preceding paragraph, notify it to the Prime Minster to that effect without delay. The same shall apply in the case where a Specified Major Shareholder becomes
a person who is no longer a Holder of Voting Rights of an Insurance Company
which amounts to the Major Shareholder Threshold or more without taking said measure.
(4) The Prime Minister may order a person who became a Holder of Voting Rights
of an Insurance Company which amounts to the Major Shareholder Threshold or more or a company or any other juridical person established as a Holder of Voting Rights of an Insurance Company which amounts to the Major
Shareholder Threshold or more through any of the transactions or acts listed in
the items of paragraph (1) without obtaining the authorization set forth in that paragraph or a person who remains as a Holder of Voting Rights of an
Insurance Company which amounts to the Major Shareholder Threshold or more even after the Last Day of the Grace Period without obtaining the
authorization set forth in the proviso to paragraph (2), to take necessary
measures for becoming a person who is no longer a Holder of Voting Rights of
the Insurance Company which amounts to the Major Shareholder Threshold or more.
Article 271-11 When an application for the authorization set forth in paragraph
(1) of the preceding Article or the proviso to paragraph (2) of the preceding
Article is filed, the Prime Minister shall examine whether the following requirements are satisfied:
(i) In the case where the person who applied for the authorization (hereinafter
referred to in this Article as "Applicant") is a company or any other juridical person, or in the case where a company or any other juridical person is to be
established under the authorization, the following requirements shall be satisfied:
(a) In light of the matters concerning funds for the acquisition, the purpose of holding the voting rights, or any other matters concerning the Holding of Voting Rights of the Insurance Company which amounts to the Major
Shareholder Threshold or more by that Applicant or the company or any
other juridical person to be established under the authorization
(hereinafter referred to as the "Juridical Person Applicant, etc." in this item), there shall be no risk of impairment of sound and appropriate
management of the business of the Insurance Company for which that Juridical Person Applicant, etc. is or will become a holder of the voting rights which amounts to the Major Shareholder Threshold or more;
(b) In light of the status of property and income and expenditure of the
Juridical Person Applicant, etc. and its Subsidiary Companies (including any company that will become a Subsidiary Company), there shall be no risk of impairment of sound and appropriate management of the business
of the Insurance Company for which that Juridical Person Applicant, etc. is or will become a Holder of the Voting Rights which amounts to the Major
Shareholder Threshold or more;
(c) In light of such matters as its personnel structure, etc., the Juridical
Person Applicant, etc. must have sufficient understanding concerning the public nature of the Insurance Business and must have sufficient social
credibility; and
(ii) In cases other than the cases listed in the preceding items, the following requirement shall be satisfied:
(a) In light of the matters concerning funds for the acquisition, the purpose of holding the voting rights, or any other matters concerning the Holding of Voting Rights of the Insurance Company which amounts to the Major
Shareholder Threshold or more by that Applicant, there shall be no risk of impairment of sound and appropriate management of the business of the
Insurance Company for which that Applicant is or will become a holder of the voting rights which amounts to the Major Shareholder Threshold or
more
(b) In light of the status of the property of the Applicant (including the status of income and expenditure in the case where that Applicant is a person
engaging in business), there shall be no risk of impairment of sound and
appropriate management of the business of the Insurance Company for
which that Applicant is or will become a holder of the voting rights which amounts to the Major Shareholder Threshold or more; and
(c) That Applicant has sufficient understanding of the public nature of the
Insurance Business and holds sufficient social credibility.
Subsection 2 Supervision
(Submission of Reports or Materials by Major Shareholder of Insurance
Company)
Article 271-12 The Prime Minister may, when he/she finds it particularly necessary to protect Policyholders, etc. by ensuring the sound and appropriate management of an Insurance Company in the case where he/she requests the
Insurance Company to submit reports or materials pursuant to the provision of
Article 128, paragraph (1), request an Major Shareholder of Insurance
Company, who is a person holding the voting rights of the Insurance Company which amounts to the Major Shareholder Threshold or more, to, upon
indicating the reason, submit reports or materials that shall be helpful
concerning the status of the business or property of that Insurance Company, within the limit necessary.
(On-site Inspection of Major Shareholder of Insurance Company)
Article 271-13 (1) The Prime Minister may, when and to the extent that he/she finds it particularly necessary to protect Policyholders, etc. by ensuring the sound and appropriate management of an Insurance Company in the case of
carrying out the entry, questioning, or inspection of the Insurance Company
under the provision of Article 129, paragraph (1), assign an official to enter an office or any other facility of a Major Shareholder of that Insurance Company
who is a Holder of Voting Rights of that Insurance Company which amounts to
the Major Shareholder Threshold or more, ask questions concerning the status of the business or property of the Insurance Company or Major Shareholder of Insurance Company, or inspect books and documents and other items of the Major Shareholder of Insurance Company.
(2) The official that carries out the entry, questioning, or inspection pursuant to
the provision of the preceding paragraph shall indicate the reason for the entry, questioning, or inspection to the other Party.
(Order for Major Shareholder of Insurance Company to Take Measures) Article 271-14 The Prime Minister may, when an Major Shareholder of
Insurance Company no longer satisfies the requirement listed in the items of Article 271-11 (in the case where conditions are imposed on the authorization set forth in Article 271, paragraph (1) or the proviso to Article 271, paragraph (2) pertaining to that Major Shareholder of Insurance Company, based on the provisions of Article 310, paragraph (1), such criteria shall include that
conditions), order that Major Shareholder of Insurance Company to take
necessary measures for satisfying that requirements by designating the time
limit for taking the measures.
(Request for Submission of Improvement Plan by Major Shareholder of
Insurance Company, etc.)
Article 271-15 (1) The Prime Minister may, when and to the extent that he/she finds it particularly necessary to protect Policyholders, etc. by ensuring sound and appropriate management of the business of a Insurance Company in light of the status of business or property (in the case that the Major Shareholder of Insurance Company is a company or any other juridical person, it shall include the status of property of Subsidiary Companies of that Major Shareholder of
the Insurance Company or any other companies that have a special
relationship as specified by a Cabinet Office Ordinance with that Major
Shareholder of Insurance Company) of the Major Shareholder of Insurance Company (limited to a person who holds more than five hundredths of the Voting Rights Held by All of the Shareholders of the Insurance Company;
hereinafter the same shall apply in this Article), request the Major
Shareholder of Insurance Company to submit an improvement plan for
securing the soundness in management of the Insurance Company or order amendment of the submitted improvement plan by designating matters for
which measures should be taken and the time limit therefore, or may order, to the extent necessary, measures necessary for the purpose of supervision.
(2) Where the Prime Minister has given the Major Shareholder of Insurance
Company an order under the preceding paragraph, if he/she finds it necessary in light of the state of implementation of the measures under that order, he/she may order the Insurance Company for which the Major Shareholder of the
Insurance Company holds more than fifty hundredths of the Voting Rights
Held by All of its Shareholders to take measures necessary for ensuring sound and appropriate management of the business of the Insurance Company.
(Rescission of Authorization Granted to Major Shareholder of Insurance
Company, etc.)
Article 271-16 (1) The Prime Minister may, when a Major Shareholder of
Insurance Company has violated any laws and regulations or a disposition given by the Prime Minister based on any laws and regulations or has
committed an act that harms the public interest, order that Major Shareholder of the Insurance Company to take necessary measures for the purpose of
supervision, or rescind the authorization set forth in Article 271-10, paragraph (1) or the proviso to Article 271-10, paragraph (2) for that Major Shareholder of the Insurance Company. In this case, the authorization set forth in paragraph (1) of that Article that pertains to establishment shall be deemed to be granted to the Major Shareholder of Insurance Companies, which is the company or any
other juridical person that has been established under the authorization. (2) A Major Shareholder of Insurance Company shall, when authorization set
forth in Article 271-10, paragraph (1) or the proviso to Article 271-10,
paragraph (2) has been rescinded pursuant to the provisions of the preceding paragraph, take necessary measures for becoming a person who is no longer a Holder of Voting Rights of the Insurance Company which amounts to the Major Shareholder Threshold or more within a period designated by the Prime
Minister.
Subsection 3 Miscellaneous Provision
(Application of this Act to Foreign Insurance Major Shareholder)
Article 271-17 Any special provisions and technical replacement of terms for
applying this Act to a Holder of Voting Rights of an Insurance Company which amounts to the Major Shareholder Threshold or more that is a foreign national or a foreign juridical person (hereinafter referred to as a "Foreign Insurance Major Shareholder" in this Article) and any other necessary matters
concerning application of the provisions of this Act to Foreign Major
Shareholder of a Insurance Company shall be specified by a Cabinet Order.
Section 3 Special Provisions Pertaining to Insurance Holding Company
Subsection 1 General Rules
(Authorization to be Obtained by Insurance Holding Company, etc.)
Article 271-18 (1) A company which intends to become a Holding Company having an Insurance Company as its Subsidiary Company, or a person who intends to establish such a Holding Company through any of the following
transactions or acts shall obtain the authorization from the Prime Minister in
advance:
(i) Acquisition of Voting Rights of the Insurance Company by the company or
its Subsidiary Companies(excluding acquisition of shares through exercise of security rights or acquisition of voting rights by any other cause specified by a Cabinet Office Ordinance);
(ii) Acquisition of the license set forth in Article 3, paragraph (1) by its
Subsidiary Company; or
(iii) Any other transaction or acts specified by a Cabinet Order.
(2) When a company becomes a Holding Company having an Insurance Company as its Subsidiary Company by a cause other than the transactions or acts listed in the items of the preceding paragraph (hereinafter referred to as "Specified
Holding Company") it shall notify the Prime Minister of the fact that it has
become a Holding Company having an Insurance Company as its Subsidiary
Company and of other matters specified by a Cabinet Office Ordinance, within three months after the end of the relevant Business Year including the day on which said cause arose.
(3) A Specified Holding Company shall take necessary measures for becoming a
company which is no longer a Holding Company having an Insurance Company as its Subsidiary Company by the day on which one year has elapsed from the
end of the Business Year including the day on which the cause referred to in
the preceding paragraph arose( hereinafter referred to as the "Last Day of the
Grace Period" in this paragraph and paragraph (5)); provided, however, that this shall not apply to the cases where said Specified Holding Company has obtained authorization from the Prime Minister to remain as a Holding
Company having an Insurance Company as its Subsidiary Company even after
the Last Day of the Grace Period.
(4) A Specified Holding Company shall, when it becomes a company which is no longer a Holding Company having an Insurance Company as its Subsidiary Company by the measures required under the preceding paragraph, notify the
Prime Minister to that effect without delay. The same shall in the case where a Specified Holding Company becomes a company which is no longer a Holding Company having an Insurance Company as its Subsidiary Company not as a
result of such measures.
(5) The Prime Minister may order a company which became a Holding Company having an Insurance Company as its Subsidiary Company or a person who
established such a Holding Company following any of the transactions or acts listed in the items of paragraph (1) without obtaining the authorization set
forth in that paragraph, or a company which remains as a Holding Company
having an Insurance Company as its Subsidiary Company even after the Last
Day of the Grace Period without obtaining the authorization set forth in the
proviso to paragraph (3), to take necessary measures for becoming a company which is no longer a Holding Company having an Insurance Company as its
Subsidiary Company.
Article 271-19 (1) When an application for the authorization set forth in
paragraph (1) or the proviso to paragraph (3) of the preceding Article is filed,
the Prime Minister shall examine whether the following the requirements are satisfied:
(i) The company which files an application for the authorization or which is to
be established under the authorization (hereinafter referred to as the
"Applicant, etc." in this Article) and its Subsidiary Companies (including
companies scheduled to become its Subsidiary Companies; hereinafter the same shall apply in the following item.) must have good prospects for income and expenditure of the business;
(ii) In light of such matters as its personnel structure, etc., the Applicant, etc. must have the knowledge and experience that will enable the Applicant, etc. to carry out the business management of its subsidiary Insurance Company
or an Insurance Company intended to become its Subsidiary Company appropriately and fairly and must have sufficient social credibility.
(iii) The business content of the Subsidiary Company of the Applicant, etc. does
not fall under Article 271-22, paragraph (3), item (i) or (ii).
(2) An Insurance Holding Company (excluding one established in accordance with the laws and regulations of the foreign state) shall be a stock company shall
have the following organs: (i) Board of directors;
(ii) Board of company auditors or committees; and
(iii) Accounting auditors.
(Qualification, etc. for Directors, etc. of Insurance Holding Company)
Article 271-19-2 (1) A person who has become subject to the ruling of the
commencement of bankruptcy proceedings and has not had restored his/her rights, or a person who is treated the same as such a person under the laws and regulations of a foreign state, may not be appointed as a director,
executive officer or auditor of an Insurance Holding Company.
(2) The following provisions of the Companies Act shall not apply to an Insurance
Holding Company: the proviso to Article 331, paragraph (2) (Qualifications of Directors) (including the cases where it is applied mutatis mutandis pursuant to Article 335, paragraph (1) (Qualifications of Company Auditors) of that Act), Article 332, paragraph (2) (Directors' Terms of Office) (including the cases
where it is applied mutatis mutandis pursuant to Article 334, paragraph (1)
(Accounting Advisors' Terms of Office) of that Act), Article 336, paragraph (2)
(Company Auditors' Terms of Office) and the proviso to Article 402, paragraph
(5) (Election of Executive Officers).
(3) An Insurance Holding Company may not become an unlimited partner or partners who execute the business of a membership company.
(Application mutatis mutandis, of Provision Pertaining to Major Shareholder of
Insurance Company)
Article 271-20 The provision of Article 271-17 shall apply mutatis mutandis to a
Holding Company which has an Insurance Company as its Subsidiary
Company and was established in accordance with the laws and regulations of a foreign state.
Subsection 2 Business and Subsidiary Company
(Scope of Business of Insurance Holding Company, etc.)
Article 271-21 (1) An Insurance Holding Company may not conduct business
other than managing the operation of its subsidiary Insurance Company and
any of the companies listed in the following Article, paragraph (1), items (ii)-2 to (xiv) inclusive, and any other company that has become its Subsidiary
Company with the approval of the Prime Minister under Article 271-22,
paragraph (1) or the proviso to Article 271-22, paragraph (4), or any other business incidental thereto.
(2) An Insurance Holding Company shall endeavor to ensure sound and
appropriate management of its subsidiary Insurance Company's business.
(Scope of Subsidiaries of Insurance Holding Company, etc.)
Article 271-22 (1) An Insurance Holding Company shall receive in advance the approval of the Prime Minister, when it intends to include in its subsidiary
companies any company other than:
(i) a Life Insurance Company;
(ii) a Non-Life Insurance Company;
(ii)-2 Small Amount and Short Term Insurance Provider; (iii) a bank;
(iv) a Long Term Credit Bank;
(v) a Company Specialized in Securities Business;
(vi) a Company Specialized in Securities Intermediary Services; (vii) a Company Specialized in Trust Business;
(viii) a foreign company which engages in the Insurance Business;
(ix) Foreign companies which engage in Banking Business (other than a company falling under the preceding item);
(x) a foreign company which engages in any securities-related business (other
than a company falling under either of the preceding two items);
(xi) Foreign companies which engage in the trust business (other than a company falling under any of the preceding three items);
(xii) Companies which exclusively engage in the following business (limited, in case of those engaging in the business specified in (a) below, to companies
that engage in such business mainly for business conducted by the Insurance
Holding Company, it Subsidiary Companies( limited to companies carrying on such business principally for the business of the Insurance Holding
Company that fall under any of the categories in items (i), (ii) and (viii); the
same shall apply in paragraph (5)) or other entities specified by a Cabinet
Office Ordinance as being similar to those):
(a) Business specified by a Cabinet Office Ordinance as those being dependent on the business of an Insurance Company or any of the
companies listed in item (iii) to the preceding item inclusive (referred to as
"Dependent Business" in paragraph (5)); or
(b) the finance-related business listed in Article 106, paragraph (2), item (ii); (xiii) Companies specified by a Cabinet Office Ordinance as those exploring
new business fields (limited to a company in which the total votes held by the company listed in the preceding item and to be specified by a Cabinet Office
Ordinance exceed the number obtained by multiplying the Voting Rights of
All Shareholders, etc. in the company by a proportion to be specified by a
Cabinet Office Ordinance); or
(xiv) a Holding Company whose Subsidiary Companies only include companies listed in the preceding items and to be specified by a Cabinet Office
Ordinance (including a company which is scheduled to become such Holding
Company).
(2) An Insurance Holding Company that intends to receive the approval set forth in the preceding paragraph shall submit to the Prime Minister a written
application describing the business content, amount of capital and human
resource structure of the company covered by the application for approval, as well as other matters to be specified by a Cabinet Office Ordinance.
(3) The Prime Minister shall, when an application was made for the approval set
forth in paragraph (1), give such approval, unless the content of the business carried on or to be carried on by the company covered by the application:
(i) poses the risk of undermining the social credibility of the subsidiary
Insurance Company of the applying Insurance Holding Company because: (a) may harm the public policy and good morals; or
(b) may preclude the stable lives of the citizenry or sound development of the
national economy; or
(ii) is likely to damage the soundness in management of the company covered
by the application in light of the amount of capital, human resource structure, etc. of the company, and any such damage to its managerial soundness in
turn poses the risk of damaging the soundness in the management of the subsidiary Insurance Company of the applying Insurance Holding Company.
(4) The provision of paragraph (1) shall not apply where a company other than
those listed in the items of the same paragraph becomes a Subsidiary Company of the Insurance Holding Company as a result of the acquisition of shares or
equity interests through the exercise of a security rights by the Insurance
Holding Company or any of its Subsidiary Companies, or any other justifiable event to be specified by a Cabinet Office Ordinance; provided, however, that
the Insurance Holding Company shall, unless the Prime Minister approves that such company continue to be its Subsidiary Company, take necessary measures for ensuring that the company will cease to be its Subsidiary
Company within one year from the date of such event.
(5) In the case referred to in paragraph (1), item (xii), the Prime Minister shall
set the criteria to determine whether a company primarily carries on a
Dependent Business to the business carried on by the Insurance Holding
Company, any of its subsidiary companies or any other similar company to be specified by a Cabinet Office Ordinance.
(6) The relevant provisions of the Banking Act or the Long Term Credit Bank Act shall apply in lieu of the provisions of the preceding paragraphs to any
Insurance Holding Company that intends to become a bank holding company
(referring to a Bank Holding Company as defined in Article 2, paragraph (13) (Definitions, etc.) of the Banking Act; the same shall apply hereafter in this
paragraph as well as in Article 272-39, paragraph (6)) or a Long Term Credit
Bank holding company (referring to a Long Term Credit Bank holding company as defined in Article 16-4, paragraph (1) (Scope of Subsidiary Companies, etc.)
of the Long Term Credit Bank Act; the same shall apply hereafter in this
paragraph as well as in Article 272-39, paragraph (6)) by making a bank or Long Term Credit Bank its Subsidiary Company, or that already is a Bank Holding Company or Long Term Credit Bank holding company.
Subsection 3 Accounting
(Business Year of Insurance Holding Company)
Article 271-23 The business year of an Insurance Holding Company shall run from 1 April to 31 March of the next year.
(Business Report, etc. of Insurance Holding Company)
Article 271-24 (1) An Insurance Holding Company shall, for each business year, prepare for submission to the Prime Minister an interim business report and business report describing in a consolidated manner the status of business or
property of the Insurance Holding Company, and its Subsidiary Companies and
any other company to be specified by a Cabinet Office Ordinance as having a special relationship with the Insurance Holding Company (referred to as
"Subsidiary Companies, etc." hereafter in this Subsection as well as in the following Subsection)
(2) The matters to be described in the interim business report and business
report, their submission dates and other necessary matters regarding those reports shall be specified by a Cabinet Office Ordinance.
(Public Inspection, etc. of Explanatory Documents on the Status of Business and Property Pertaining to Insurance Holding Company)
Article 271-25 (1) An Insurance Holding Company shall, for each business year,
prepare explanatory documents describing, with regard to the Insurance
Holding Company and its Subsidiary Companies, etc., the matters to be
specified by a Cabinet Office Ordinance as pertaining to the status of the business and property of the Insurance Company and the Subsidiary
Companies, etc. in a consolidated manner, and keep them for public inspection in the head office and branch offices of the subsidiary Insurance Company of
the Insurance Holding Company or any other equivalent place to be specified by a Cabinet Office Ordinance.
(2) The explanatory documents set forth in the preceding paragraph may be prepared in the form of electromagnetic record.
(3) Where the explanatory documents set forth in paragraph (1) are prepared in
the form of electromagnetic record, the Insurance Holding Company may take the measures to be specified by a Cabinet Office Ordinance as measures to
ensure that the information recorded on the electromagnetic record is available
to many and unspecified persons by electromagnetic means at the head office and branch offices of its subsidiary Insurance Company or any other equivalent place to be specified by a Cabinet Office Ordinance. In this case, the
explanatory documents set forth in that paragraph shall be deemed to be kept
for public inspection pursuant to the provision of that paragraph.
(4) In addition to what is provided in the preceding three paragraphs, the period for making the documents set forth in paragraph (1) available for public
inspection and any other necessary matters concerning the application of these provisions of preceding paragraphs shall be specified by a Cabinet Office
Ordinance.
(5) An Insurance Holding Company shall endeavor to disclose, in addition to the matters set forth in paragraph (1), any matter that would be helpful for the Policyholders and other customers of the Insurance Holding Company's
subsidiary Insurance Company to know the status of the business and property of the Insurance Holding Company and its Subsidiary Companies, etc.
(Matters to Be Described in Business Report, etc. of Insurance Holding
Company)
Article 271-26 A Cabinet Office Ordinance shall prescribe the matters to be
described in the business report and supplementary schedules prepared by an
Insurance Holding Company pursuant to the provision of Article 435,
paragraph (2) (Preparation and Retention of Financial Statements, etc.) of the
Companies Act.
Subsection 4 Supervision
(Submission of Reports or Materials by Insurance Holding Company, etc.)
Article 271-27 (1) In requesting an Insurance Company to submit a report or materials pursuant to the provision of Article 128, paragraph (1), the Prime
Minister may, when he/she finds it particularly necessary to protect
Policyholders, etc. by ensuring the sound and appropriate management of the
Insurance Company, request the Insurance Holding Company of which the
Insurance Company is a Subsidiary Company, any Subsidiary, etc. of the
Insurance Holding Company (referring to a subsidiary of the Insurance
Holding Company or any other person to be specified by a Cabinet Office
Ordinance as a juridical person whose management is controlled by the
Insurance Holding Company; the same shall apply in the following paragraph, and paragraphs (2) and (4) of the following Article), or any subcontractor of the Insurance Holding Company, to submit a report or materials that should serve as reference regarding the status of the business or property of the Insurance Company, by indicating the reason therefore.
(2) Any Subsidiary, etc. or subcontractor of an Insurance Holding Company, may
refuse to submit reports or materials under the preceding paragraph if there are justifiable grounds.
(On-Site Inspection of Insurance Holding Company, etc.)
Article 271-28 (1) In making an entry, asking questions, or conducting
inspection in an Insurance Company pursuant to the provision of Article 129, paragraph (1), the Prime Minister may, when he/she finds it particularly necessary to protect Policyholders, etc. by ensuring the sound and appropriate management of the Insurance Company, direct the personnel in charge, within the limit necessary, to enter an office or any other facility of the Insurance
Holding Company of which the Insurance Company is a subsidiary to ask
questions on the status of the business or property of the Insurance Company or Insurance Holding Company, or inspect the books and documents and other materials of the Insurance Holding Company.
(2) In making an entry, asking questions, or conducting inspection in an
Insurance Company pursuant to the provision of Article 129, paragraph (1), the
Prime Minister may, when he/she finds it particularly necessary to protect
Policyholders, etc. by ensuring the sound and appropriate management of the
Insurance Company, direct the personnel in charge, within the limit necessary, to enter a business office or any other facility of a Subsidiary, etc. of the
Insurance Holding Company of which the Insurance Company is a subsidiary or a business office or any other facility of a subcontractor of the Insurance Holding Company to ask questions of the Insurance Company or on necessary matters for inspection, or inspect books and documents and other materials.
(3) The personnel who make an entry, ask questions or conduct inspection under the preceding two paragraphs shall indicate to the other party the reason for such entry, questioning or inspection.
(4) The provision of paragraph (2) of the preceding Article shall apply mutatis
mutandis to the questioning and inspection of a Subsidiary, etc. or
subcontractor of an Insurance Holding Company under paragraph (2).
(Request for Submission of Improvement Plan, etc. by Insurance Holding
Company, etc.)
Article 271-29 (1) The Prime Minister may, when he/she finds it necessary to protect Policyholders, etc. by ensuring the soundness in management of the subsidiary Insurance Company of an Insurance Holding Company in light of the condition of the business or property of the Insurance Holding Company
and its Subsidiary, etc., request the Insurance Holding Company to submit an
improvement plan for securing soundness in management of the Insurance Company by designating matters for which measures should be taken and the time limit thereof, or may order, to the extent necessary, measures necessary for the purpose of supervision.
(2) In giving an order to an Insurance Holding Company under the preceding
paragraph (including the request for submission of an improvement plan), the
Prime Minister may, when he/she finds it particularly necessary in light of conditions regarding the implementation of the ordered measures, order the subsidiary Insurance Company of the Insurance Holding Company to take
necessary measures for ensuring the sound and appropriate management of its business.
(Rescission of Authorization Pertaining to Insurance Holding Company, etc.) Article 271-30 (1) The Prime Minister may, when an Insurance Holding
Company has violated a law or regulation, its articles of incorporation or any disposition of the Prime Minister pursuant to a law or regulation, or has
committed any act that harms the public interest, order the Insurance Holding
Company to dismiss its directors, executive officers, accounting advisors or
company auditors or to take necessary measures for the purpose of supervision, rescind the authorization given to the Insurance Holding Company under
Article 271-18, paragraph (1) or the proviso to Article 271-18, paragraph (3), or order the subsidiary Insurance Company of the Insurance Holding Company to suspend its business in whole or in part. In this case, the authorization set
forth in paragraph (1) of that Article that was granted for establishment of the
Insurance Holding Company shall be deemed to be granted to the Insurance
Holding Company established under the authorization.
(2) An Insurance Holding Company shall, when the authorization set forth in
Article 271-18, paragraph (1) or the proviso to Article 271-18, paragraph (3) is rescinded pursuant to the provision of the preceding paragraph, take necessary measures for ensuring that it will cease to be a Holding Company having an
Insurance Company as its Subsidiary Company within a period designated by
the Prime Minister.
(3) When the measures prescribed in the preceding paragraph have been taken, the day on which such measures were taken shall be deemed as the date of
occurrence of the event set forth in Article 171-10, paragraph (2) for the purpose of applying the provision of the preceding paragraph where the
company that has taken such measures continues to hold a number of votes
that amounts to the Major Shareholder Threshold or more, in the Insurance
Company.
(4) The Prime Minister may, when he/she finds it necessary, order an Insurance Company that is a subsidiary of a Holding Company to suspend its business in whole or in part, where the Holding Company having an Insurance Company
as its Subsidiary Company:
(i) has become a Holding Company with an Insurance Company as its
Subsidiary Company through any of the transactions or acts listed in the
items of that paragraph without the authorization required in Article 271-18, paragraph (1);
(ii) was established as a Holding Company with an Insurance Company as its
Subsidiary Company without the authorization required in Article 271-18, paragraph (1);
(iii) continues to be a Holding Company with an Insurance Company as its
Subsidiary Company even after the Last Day of the Grace Period set forth in
Article 271-18, paragraph (3) without the authorization set forth in the proviso thereto; or
(iv) has had the authorization under Article 271-18, paragraph (1) or the
proviso to Article 271-18, paragraph (3) rescinded pursuant to the provision of paragraph (1), and continues to be a Holding Company with an Insurance Company as its Subsidiary Company after expiration of the period
designated by the Prime Minister under paragraph (2) without taking the
measures set forth in that paragraph.
Subsection 5 Miscellaneous Provision
(Authorization of Merger, Company Split, or Transfer of Business Involving
Insurance Holding Company)
Article 271-31 (1) Any Merger involving an Insurance Holding Company or
Insurance Holding Companies (limited to a merger as a result of which a
company that was an Insurance Holding Company before the merger survives as an Insurance Holding Company) shall not be effective without authorization of the Prime Minister.
(2) No company split of which an Insurance Holding Company is party (limited to
the case where the Insurance Holding Company which had its business
succeeded by another party through the company split or the Insurance
Holding Company which succeeded to another party's business through the company split continues to exist as a Insurance Holding Company even after the company split) shall be effective without authorization of the Prime Minister, except for the cases specified by a Cabinet Order.
(3) No transfer of business where an Insurance Holding Company transfers or
receives the whole or part of its or any other party's business (limited to the case where the Insurance Holding Company which transferred or received
transfer of its or any other party's business continues to exist as an Insurance
Holding Company even after the transfer or the receipt) shall be effective
without authorization of the Prime Minister, except for the cases specified by a
Cabinet Order.
(4) The provision of Article 271-19, paragraph (1) shall when an application for the authorization set forth in the preceding three paragraphs is filed.
Section 4 Miscellaneous Provisions
(Matters to Be Notified)
Article 271-32 (1) An Major Shareholder of Insurance Company (including a former Major Shareholder of Insurance Company) shall, when it falls under any of the following items, notify the Prime Minister of the relevant fact
pursuant to the provisions of a Cabinet Office Ordinance if and when:
(i) When the holder becomes a Major Shareholder of Insurance Company under the authorization set forth in Article 271-10, paragraph (1) or is formed as a Major Shareholder of Insurance Company subject to such authorization;
(ii) it comes to hold a number of votes exceeding fifty hundredths of the voting rights of all shareholders in an Insurance Company;
(iii) When the holder ceases to hold voting rights that equals or exceeds the Major Shareholder Threshold in an Insurance Company (excluding the case referred to in item (v));
(iv) When the holder ceases to hold voting rights exceeding fifty hundredths of
the voting rights of all shareholders in an Insurance Company (excluding the cases referred to in the preceding and following items);
(v) it dissolves (including when a judgment nullifying its formation, share
transfer, merger (limited to a merger for forming a company or any other
juridical person that holds a number of votes equaling or exceeding the Major Shareholder Threshold in an Insurance Company) or incorporation-type split has become final and binding);
(vi) When the holder's voting rights that exceed five hundredths of the Voting
Rights Held by All of its Shareholders are acquired or come to be held by a single shareholder; or
(vii) When the holder falls under any other case specified by a Cabinet Office
Ordinance.
(2) An Insurance Holding Company (including a former Insurance Holding
Company) shall, when it falls under any of the following items, notify the
Prime Minister of the relevant fact pursuant to the provisions of a Cabinet
Office Ordinance if and when:
(i) it becomes an Insurance Holding Company subject to the authorization set forth in Article 271-18, paragraph (1) or is established as an Insurance
Holding Company subject to such authorization;
(ii) When it ceases to be a Holding Company having an Insurance Company as its Subsidiary Company (excluding the case referred to in item (v));
(iii) it intends to make any of the companies listed in the items of Article 271-
22, paragraph (1) (except when it intends to merge, Split or acquire a business with the authorization set forth in Article 271-31, paragraph (1), (2) or (3)) its Subsidiary Company;
(iv) When such Subsidiary Company ceases to be its Subsidiary Company
(except when it splits or assigns a business with the authorization set forth in Article 271-31, paragraph (2) or (3), and the case referred to in item (ii));
(v) it dissolves (including when a judgment nullifying its incorporation, share transfer, merger (limited to a merger for incorporating a Holding Company with subsidiaries including an Insurance Company) or incorporation-type split has become final and binding);
(vi) it intends to modify the amount of capital;
(vii) When the holder's voting rights that exceed five percent of the Voting Rights Held by All of its Shareholders are acquired or come to be held by a single shareholder; or
(viii) When the holder falls under any other case specified by a Cabinet Office
Ordinance.
(3) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to those voting rights in an Major Shareholder of Insurance Company or
Insurance Holding Company which were acquired or have come to be held by the single shareholder set forth in paragraph (1), item (vi) or the preceding
paragraph, item (vii).
(Expiration of Authorization)
Article 271-33 (1) The authorization set forth in Article 271-10, paragraph (1)
shall lose its effect when it falls under any of the following items; and the
authorization set forth in the proviso to Article 271-10, paragraph (2) shall lose its effect when it falls under item (ii) or (iii):
(i) The matters covered by the authorization were not implemented within six months from the date of such authorization (except when the Prime Minster
had given approval thereto for any compelling reason);
(ii) An insurance major shareholder subject to the authorization, ceases to hold voting rights equaling or exceeding the Major Shareholder Threshold in an
Insurance Company; or
(iii) An Major Shareholder of Insurance Company subject to the authorization has received the authorization set forth in Article 271-18, paragraph (1) or
the proviso to Article 271-18, paragraph (3) to make the Insurance Company subject to the authorization of its Subsidiary Company.
(2) The authorization set forth in Article 271-18, paragraph (1) shall lose its
effect when it falls under any of the following items; and the authorization set
forth in the proviso to Article 271-18, paragraph (3) shall lose its effect when it falls under item (ii):
(i) The matters covered by the authorization were not implemented within six months from the date of such authorization (except when the Prime Minster had given approval thereto for any compelling reason); or
(ii) An Insurance Holding Company subject to the authorization has ceased to
be a Holding Company with subsidiary companies including an Insurance
Company.
Chapter XII Special Provisions for Small Amount and Short Term
Insurance Provider
Section 1 General Rules
(Registration)
Article 272 (1) A person registered with the Prime Minister may,
notwithstanding the provision of Article 3, paragraph (1), carry on the Small
Amount and Short Term Insurance Business.
(2) A Small Amount and Short Term Insurance Provider shall be a small-scale
entrepreneur (referring to an entrepreneur receiving insurance premiums in an amount not exceeding the relevant threshold to be specified by a Cabinet Office Ordinance; the same shall apply in Article 272-26, paragraph (1), item (iii)).
(Application Procedure for Registration)
Article 272-2 (1) An Applicant for the registration set forth in paragraph (1) of
the preceding Article shall submit to the Prime Minister a written application for registration describing:
(i) its trade name or name;
(ii) the amount of capital or the total amount of funds;
(iii) the names of directors and company auditors (or, in a company with
Committees, directors and executive officers);
(iv) in a company with accounting advisors, the names of accounting advisors;
(v) when it carries on any other business than Small Amount and Short Term
Insurance, the content of such business; and
(vi) the addresses of its head office and other offices.
(2) The following documents, as well as other documents to be specified by a
Cabinet Office Ordinance, shall be attached to the written application set forth in the preceding paragraph:
(i) Articles of incorporation;
(ii) Statement of business procedures; (iii) General policy conditions; and
(iv) Statement of calculation procedures for insurance premiums and policy reserve.
(3) The provision of Article 4, paragraph (3) shall apply mutatis mutandis to the
attachment of the articles of incorporation set forth in paragraph (2), item (i)
pursuant to the provision of the preceding paragraph.
(4) The documents listed in paragraph (2), items (ii) to (iv) inclusive shall describe the matters to be specified by a Cabinet Office Ordinance.
(Registration to Registry)
Article 272-3 (1) The Prime Minister shall, when an application for registration was made under Article 272, paragraph (1), register the following matters to
the registry of Small Amount and Short Term Insurance Providers, except
when he/she refuses such registration pursuant to the provision of paragraph
(1) of the following Article:
(i) The matters listed in the items of paragraph (1) of the preceding Article;
and
(ii) The date and number of registration.
(2) The Prime Minister shall make the registry of Small Amount and Short Term
Insurance Providers available for public inspection.
(Refusal of Registration)
Article 272-4 (1) The Prime Minister shall refuse an application for registration if the Applicant falls under any of the following items, or if the written
application or a document attached thereto includes any misrepresentation or
non-disclosure of a material fact:
(i) A person that is not a Stock Company or Mutual Company (limited to a
company that falls under any of the following sub-items as the case may be): (a) A Stock Company or Mutual Company (hereinafter referred to as "Stock Company, etc." in this paragraph) whose capital or total funds (including
the reserve for redemption of funds set forth in Article 56; the same shall
apply in the following item) is less than the amount to be specified by a
Cabinet Order: a company with a board of directors and company auditors
or Committees; or
(b) Any other Stock Company, etc. than the Stock Company, etc. listed in (a):
a company with a board of directors and board of company auditors or
Committees, and accounting auditors;
(ii) A Stock Company, etc. whose capital or total funds is less than the amount to be specified by a Cabinet Order as necessary and appropriate for the
protection of Policyholders, etc.;
(iii) A Stock Company, etc. whose net assets are less than the amount set forth in the preceding item to be specified by a Cabinet Order;
(iv) A Stock Company, etc. whose articles of incorporation include any provision that does not conform to laws and regulations.
(v) A Stock Company, etc., whose documents listed in Article 272-2, paragraph
(2), items (ii) and (iii) include any matter that does not conform to the following requirements:
(a) Its insurance contracts do not include any stipulation that poses a risk to
the protection of Policyholders, etc.;
(b) Its insurance contracts do not include any stipulation that constitutes undue discriminatory treatment against specific persons;
(c) Its insurance contracts do not include any stipulation that poses the risk of facilitating or inducing an act with prejudice to the public policy and
good morals;
(d) Its insurance contracts do not include any stipulation that entails
acceptance of excessive risk in light of the solvency of the Stock Company, etc.; and
(e) The stipulations of its insurance contracts, including on the rights and obligations of Policyholders, etc., are clear and plain to Policyholders, etc.;
(vi) A Stock Company, etc. whose calculation procedures for insurance
premiums and policy reserve as described in the document listed in Article
272-2, paragraph (2), item (iv) have not been confirmed by the actuary as reasonable and appropriate based on actuarial science.
(vii) A Stock Company, etc. whose license under Article 3, paragraph (1) was rescinded pursuant to the provision of Article 133 or 134, whose registration under Article 272, paragraph (1) was canceled pursuant to the provision of
Article 272-26, paragraph (1) or Article 272-27 or whose registration under
Article 276 or 286 was canceled pursuant to the provision of Article 307, paragraph (1), or against which a similar type of license or registration
under the relevant provision of a foreign law or regulation equivalent to this
Act (including any permission or other administrative disposition similar to such license or registration) was canceled in the foreign state concerned,
without five years having elapsed since the date of such cancellation;
(viii) A Stock Company, etc. sentenced to a fine (including any equivalent
punishment under a foreign law or regulation) for violating the provision of this Act, the Act concerning Regulation, etc. of Receiving of Capital
Subscription, Deposits, Interest on Deposits, etc. (Act No. 195 of 1954) or an equivalent foreign law or regulation, without five years having elapsed since the execution of the sentence was terminated or since it was no longer
subject to the execution of the sentence;
(ix) A Stock Company, etc. that carries on any other business than the
businesses set forth in the proviso to Article 272-11, paragraph (2) to be specified by a Cabinet Office Ordinance, or is found to pose the risk of
obstructing the appropriate and secure operation of its Small Amount and
Short Term Insurance Business;
(x) A Stock Company, etc. whose directors, executive officers, accounting advisors or company auditors include any person:
(a) who was subject to a ruling for the commencement of bankruptcy
proceedings and whose rights have not been restored, or who is receiving any similar treatment under a foreign law or regulation;
(b) who was sentenced to imprisonment without work or severer punishment
(including any equivalent punishment under a foreign law or regulation), without five years having elapsed since the execution of the sentence was terminated or since he/she was no longer subject to the execution of the
sentence;
(c) whose license under Article 3, paragraph (1) was rescinded pursuant to the provision of Article 133 or 134, whose license under Article 185,
paragraph (1) was canceled pursuant to the provision of Article 205 or 206,
whose license under Article 219, paragraph (1) was canceled pursuant to the provision of Article 231 or 232, whose registration under Article 272, paragraph (1) was canceled pursuant to the provision of Article 272-26,
paragraph (1) or Article 272-27 or whose registration under Article 276 or
286 was canceled pursuant to the provision of Article 307, paragraph (1), or against whom a similar type of license or registration under the relevant
provision of a foreign law or regulation equivalent to this Act (including
any permission or other administrative disposition similar to such license or registration) was canceled in the foreign state concerned, and who had been a director, executive officer, accounting advisor or company auditor, or the Representative Person in Japan (including any similar post) of the company at any time during the 30 (thirty) days prior to the date of the
cancellation, without five years having elapsed since the date of such
cancellation;
(d) whose registration under Article 276 or 286 was rescinded pursuant to
the provision of Article 307, paragraph (1) or against whom a similar type of registration under the relevant provision of a foreign law or regulation
equivalent to this Act (including any permission or other administrative disposition similar to such registration) was canceled, without five years having elapsed since the date of such cancellation;
(e) who was subject to an order for dismissal as director, executive officer,
accounting advisor or company auditor pursuant to the provision of Article
133, an order for dismissal as Representative Person in Japan pursuant to the provision of Article 205 or 231, an order for dismissal as director,
executive officer, accounting advisor or company auditor pursuant to the
provision of Article 272-26, paragraph (2), or order for dismissal as director, executive officer, accounting advisor or company auditor or Representative Person in Japan (including any similar post) under the relevant provision
of a foreign law or regulation equivalent to this Act, without five years
having elapsed since the date of such disposition; or
(f) who was sentenced to a fine (including any equivalent punishment under a foreign law or regulation) for violating a provision of any of the Acts set
forth in item (viii) or the Act to Prevent Unjust Acts by Organized Crime
Group Members, etc. (Act No. 77 of 1991), or a provision of any foreign law or regulation equivalent to those Acts, or for committing a crime under the Penal Code or the Act on Punishment of Physical Violence and Other
Related Matters (Act No. 60 of 1926), without five years having elapsed since the execution of the sentence was terminated or since he/she was no longer subject to the execution of the sentence;
(xi) A Stock Company, etc. without sufficient human resource structure to carry on the Small Amount and Short Term Insurance Business in an
appropriate manner; or
(xii) An Insurance Company.
(2) The amount of net assets set forth in item (iii) of the preceding paragraph shall be calculated pursuant to the provisions of a Cabinet Office Ordinance.
(Deposit)
Article 272-5 (1) A Small Amount and Short Term Insurance Provider shall deposit the amount of money to be specified by a Cabinet Order as necessary and appropriate for the protection of Policyholders, etc. with the deposit office located nearest to its head office or principal office.
(2) The Prime Minister may, when he/she finds it necessary for the protection of Policyholders, etc., order a Small Amount and Short Term Insurance Provider to deposit, in addition to the amount of money set forth in the preceding
paragraph to be specified by a Cabinet Order, the amount of money that he/she finds appropriate prior to the commencement of its Small Amount and Short Term Insurance Business operation.
(3) A Small Amount and Short Term Insurance Provider may, when it has
concluded an agreement stipulating that a required amount of deposit be
lodged for the Small Amount and Short Term Insurance Provider by order of the Prime Minister pursuant to the provisions of a Cabinet Order and has notified the Prime Minister thereof, withhold in whole or in part the deposit under the preceding two paragraphs regarding the amount to be deposited under said agreement (hereinafter referred to as the "Agreed Amount" in this Article), so long as the agreement remains in effect.
(4) The Prime Minister may, when he/she finds it necessary for the protection of
Policyholders, etc., order a person who has concluded with a Small Amount and
Short Term Insurance Provider the agreement set forth in the preceding
paragraph or the Small Amount and Short Term Insurance Provider concerned to lodge a deposit in an amount corresponding to the whole or part of the
Agreed Amount.
(5) A Small Amount and Short Term Insurance Provider shall not commence the
Small Amount and Short Term Insurance Business operation, unless it has
lodged the deposit under paragraph (1) (including any deposit lodged pursuant to the provision of paragraph (2) following an order for deposit of money under
that paragraph) or concluded the agreement set forth in paragraph (3), and has
notified the Prime Minister thereof.
(6) The Policyholders, insured or beneficiaries pertaining to insurance contracts shall, with regard to any credit arising out of the insurance contracts, have a
priority claim over other creditors on the deposit pertaining to the Small
Amount and Short Term Insurance Provider.
(7) Any necessary matter in enforcing a claim under the preceding paragraph shall be specified by a Cabinet Order.
(8) A Small Amount and Short Term Insurance Provider shall, if and when the amount of its deposit (including the Agreed Amount) falls below the amount set forth in paragraph (1) to be specified by a Cabinet Order for reasons such as
the enforcement of a claim under paragraph (6), compensate for the shortfall or conclude the agreement set forth in paragraph (3) (simply referred to as "Make a Deposit" in Article 319, item (xi)) within two weeks from the date specified by a Cabinet Office Ordinance, and notify the Prime Minister thereof without
delay.
(9) A national government bond, local government bond or any other securities to be specified by a Cabinet Office Ordinance may be lodged in lieu of the deposit
set forth in paragraph (1), (2) or the preceding paragraph.
(10) The deposit lodged pursuant to the provision of paragraph (1), (2), (4) or (8) may be recovered pursuant to the provisions of a Cabinet Order, if and when: (i) the registration made under Article 272, paragraph (1) is canceled pursuant
to the provision of Article 272-26, paragraph (1) or Article 272-27; or
(ii) the registration made under Article 272, paragraph (1) loses its effect
pursuant to the provision of Article 273, paragraph (1) or (3).
(11) In addition to what is specified for in the preceding paragraphs, any
necessary matter relating to the deposit shall be prescribed by a Cabinet Office
Ordinance/Ordinance of the Ministry of Justice.
(Small Amount and Short Term Insurance Providers Liability Insurance
Contract)
Article 272-6 (1) A Small Amount and Short Term Insurance Provider that has concluded a Small Amount and Short Term Insurance Provider's liability
insurance contract pursuant to the provisions of a Cabinet Order may, with the
Prime Minister's approval, withhold part of the deposit to be lodged under the preceding Article, paragraph (1), (2) or (8), or choose not to conclude the
agreement set forth in paragraph (3) of the same Article, depending on the amount insured by the contract, so long as the contract remains in effect.
(2) The Prime Minister may, when he/she finds it necessary for the protection of
Policyholders, etc., order a Small Amount and Short Term Insurance Provider that has concluded the Small Amount and Short Term Insurance Provider's
liability insurance contract set forth in the preceding paragraph to lodge in
whole or in part that part of the deposit under the preceding Article, paragraph (1), (2) or (8) which the insurer may withhold or for which it may choose not to conclude the agreement set forth in paragraph (3) of the same Article.
(3) In addition to what is prescribed in the preceding two paragraphs, any
necessary matter relating to Small Amount and Short Term Insurance
Provider's liability insurance contracts shall be specified by a Cabinet Office
Ordinance.
(Notification of Change)
Article 272-7 (1) If the case of any change in the matters listed in any of the items of Article 272-2, paragraph (1), The Small Amount and Short Term
Insurance Provider shall notify the Prime Minister of the change within two
weeks from the day when the change occurs.
(2) The Prime Minister shall register any notification received under the preceding paragraph to the registry of Small Amount and Short Term Insurance Providers.
(Posting of Sign, etc.)
Article 272-8 (1) A Small Amount and Short Term Insurance Provider shall, at a conspicuous location in each of its offices, post a sign in the form to be specified by a Cabinet Office Ordinance.
(2) Any person other than a Small Amount and Short Term Insurance Provider
shall not post the sign set forth in the preceding paragraph or any similar sign
thereto.
(3) For the purpose of applying the provision of Article 7, paragraph (2) to a
Small Amount and Short Term Insurance Provider, the term "letters that run
the risk of mistaking the entity for an Insurance Company" shall be deemed to be replaced with "letters that run the risk of mistaking the entity for an
Insurance Company (excluding the letters to be specified by a Cabinet Office
Ordinance as indicating that the entity is a Small Amount and Short Term
Insurance Provider)."
(Prohibition of Name Lending)
Article 272-9 A Small Amount and Short Term Insurance Provider shall not have another person engage in the Small Amount and Short Term Insurance
Business in the name of the Small Amount and Short Term Insurance Provider.
(Restriction on Concurrent Holding of Posts by Director, etc.)
Article 272-10 (1) A director (in the case of a company with committees,
executive officer) engaging in the ordinary business of a Small Amount and Short Term Insurance Provider shall not engage in the ordinary business of another company, except when authorized by the Prime Minister.
(2) The Prime Minister shall authorize any application for the authorization set forth in the preceding paragraph, unless he/she finds that the matters
pertaining to the application pose the risk of interfering with the sound and appropriate management of the Small Amount and Short Term Insurance
Provider.
Section 2 Business, etc. (Scope of Business)
Article 272-11 (1) A Small Amount and Short Term Insurance Provider may
carry on the Small Amount and Short Term Insurance Business and any other business incidental thereto.
(2) A Small Amount and Short Term Insurance Provider may not carry on any
other business than that carried on pursuant to the provision of the preceding
paragraph; provided however, that this shall not apply when the Small Amount and Short Term Insurance Provider has received the approval of the Prime Minister pursuant to the provisions of a Cabinet Office Ordinance for any of
those businesses to be specified by a Cabinet Office Ordinance as related to the
Small Amount and Short Term Insurance Business which are found to pose no risk to the insurer in carrying on its Small Amount and Short Term Insurance Business in an appropriate and secure manner.
(3) Where a written application for the registration set forth in Article 272,
paragraph (1) contains a statement to the effect that the Applicant intends to carry on any other business than that carried on pursuant to the provision of
paragraph (1), the Applicant shall be deemed to have received the approval set forth in the proviso to the preceding paragraph for carrying on such business if its application for registration is accepted.
(Method of Investment)
Article 272-12 A Small Amount and Short Term Insurance Provider shall invest money received as insurance premiums and other assets by any of the following methods:
(i) Deposit with any of the banks or financial institutions specified by a
Cabinet Office Ordinance;
(ii) Acquisition of national government bonds or any other securities specified by a Cabinet Office Ordinance as equivalent thereto; or
(iii) Any other method specified by a Cabinet Office Ordinance as equivalent to
the methods listed in the preceding two items.
(Insurance Amount Pertaining to One Policyholder, etc.)
Article 272-13 (1) A Small Amount and Short Term Insurance Provider shall not, with regard to any one single Policyholder, underwrite policies whose total
amount of insurance exceeds the amount specified by a Cabinet Order.
(2) The provisions of Article 100-2 to 100-4 inclusive shall apply mutatis
mutandis to a Small Amount and Short Term Insurance Provider. In this case, the terms "Major Shareholder of Insurance Company" and "Insurance Holding Company" in Article 100-3 shall be deemed to be replaced with "Small Amount and Short Term Insurance Major Shareholder as defined in Article 272-34,
paragraph (1)" and "Small Amount and Short Term Insurance Holding
Company as defined in Article 272-37, paragraph (2)," respectively.
(Scope of Small Amount and Short Term Insurance Provider Subsidiary
Companies, etc.)
Article 272-14 (1) A Small Amount and Short Term Insurance Provider shall not have any Subsidiary Company other than a company carrying on any business subservient to its own business, or any other businesses specified by a Cabinet Office Ordinance as incidental or related thereto.
(2) A Small Amount and Short Term Insurance Provider shall, when it intends to
have as its subsidiary a company specialized in any of the businesses set forth in the preceding paragraph specified by a Cabinet Office Ordinance, receive in advance the approval of the Prime Minister, unless it receives the
authorization for business acquisition, merger or company split set forth in
Article 142 as applied mutatis mutandis pursuant to Article 272-30, paragraph
(1), or in Article 167, paragraph (1) or Article 173-6, paragraph (1).
Section 3 Accounting
(Business Year)
Article 272-15 The business year of a Small Amount and Short Term Insurance
Provider shall run from 1 April to 31 March of the next year.
(Business Report, etc.)
Article 272-16 (1) A Small Amount and Short Term Insurance Provider shall, for each business year, prepare a business report describing the status of its
business and property for submission to the Prime Minister.
(2) A Small Amount and Short Term Insurance Provider that is also a Stock
Company, etc. falling under Article 272-4, paragraph (1), item (i), (b) (referred to as "Specified Small Amount and Short Term Insurance Provider" in the
following paragraph and the following Article) shall, in addition to the business report set forth in the preceding paragraph, prepare an interim business report for submission to the Prime Minister.
(3) The provision of Article 110, paragraph (2) shall apply mutatis mutandis
where a Specified Small Amount and Short Term Insurance Provider has any
Subsidiary Company or any other person specified by a Cabinet Office
Ordinance as having a special relationship with the Specified Small Amount and Short Term Insurance Provider (referred to as "Subsidiary Company, etc."
in the following Article and Article 272-25, paragraph (1)); and the provision of
Article 110, paragraph (3) shall apply mutatis mutandis to a Small Amount
and Short Term Insurance Provider. In this case, the term "the preceding two paragraphs" in Article 110, paragraph (3) shall be deemed to be replaced with "Article 272-16, paragraphs (1) and (2), and the preceding paragraph."
(Explanatory Documents on Business and Property Status)
Article 272-17 The provisions of Article 111, paragraph (1) and paragraphs (3) to
(6) inclusive shall apply mutatis mutandis to a Small Amount and Short Term Insurance Provider; and the provision of Article 111, paragraph (2) shall apply mutatis mutandis to a Specified Small Amount and Short Term Insurance
Provider with any Subsidiary Company, etc.
(Application mutatis mutandis, of Provisions on Amortization of Business
Expenditures, etc.)
Article 272-18 The provisions of Article 113, Article 115, Article 116, paragraphs
(1) and (3), Article 117, and Article 120 to 122 inclusive shall apply mutatis mutandis to a Small Amount and Short Term Insurance Provider; and the
provision of Article 114 shall apply mutatis mutandis to a Stock Company that is also a Small Amount and Short Term Insurance Provider. In this case, the term "the preceding two paragraphs" in Article 116, paragraph (3) shall be
deemed to be replaced with "paragraph (1)"; and the term "policy reserve
pertaining to the insurance contracts specified by a Cabinet Office Ordinance has been funded according to a sound actuarial practice" in Article 121,
paragraph (1), item (i) shall be deemed to be replaced with "insurance
premiums pertaining to the insurance contracts specified by a Cabinet Office
Ordinance are calculated using a reasonable and relevant method based on
actuarial science, and whether the policy reserve pertaining thereto has been funded using a reasonable and relevant method based on actuarial science."
Section 4 Supervision
(Modification of Matters Prescribed in Statement of Business Procedures, etc.) Article 272-19 (1) A Small Amount and Short Term Insurance Provider shall,
when it intends to modify any of the matters prescribed in the documents listed in Article 272-2, paragraph (2), items (ii) to (iv) inclusive, give advance
notification thereof to the Prime Minister.
(2) Where the notification prescribed in the preceding paragraph pertains to the modification of any matter prescribed in the document listed in Article 272-2,
paragraph (2), item (iv), the Small Amount and Short Term Insurance Provider shall submit a written opinion confirming the actuary's finding that the
method of calculating the insurance premiums and policy reserve prescribed in
the document is reasonable and relevant based on actuarial science.
(3) The necessary matters regarding the written opinion set forth in the preceding paragraph shall be specified by a Cabinet Office Ordinance.
(Notification, etc. of Modification in Matters Prescribed in Statement of
Business Procedures, etc.)
Article 272-20 (1) Where a notification was made under the preceding Article,
the modification pertaining to such notification shall be deemed as made on the day when sixty days have passed since the day following the date of receipt by
the Prime Minister of the notification (or, on the day following the date of receipt of such notification, where the notification solely pertains to a
modification in any of the matters prescribed in the document listed in Article
272-2, paragraph (2), item (iv)).
(2) The Prime Minister may, when he/she finds that the matters pertaining to a notification under the preceding Article (other than a notification solely
pertaining to a modification in any of the matters prescribed in the document
listed in Article 272, paragraph (2), item (iv)) conform to the criterion listed in
Article 272-4, paragraph (1), item (v), shorten the period prescribed in the
preceding paragraph to any period of time that he/she finds reasonable. In this case, the Prime Minister shall, without delay, give notice of the shortened
period of time to the person that made the notification.
(3) The Prime Minister may, when there is reasonable ground to believe that a reasonable period of time is required to examine whether the matters
pertaining to a notification under the preceding Article conform to the criterion listed in Article 272-4, paragraph (1), item (v), and that such examination will
not be completed within the period of time prescribed in paragraph (1), extend
the period of time to any period that he/she finds reasonable. In this case, the Prime Minister shall, without delay, give notice of the extended period of time and the reason for the extension to the person that made the notification.
(4) The Prime Minister may, when he/she finds that the matters pertaining to a
notification under the preceding Article do not conform to the criterion listed in
Article 272-4, paragraph (1), item (v), order the person that made the
notification to modify any of the matters pertaining to the notification within a specified period time, or to revoke the notification, provided that such order be issued within sixty days from the day following the date of receipt of such notification (or within any extended period of time pursuant to the provision of the preceding paragraph).
(Matters to Be Notified)
Article 272-21 (1) A Small Amount and Short Term Insurance Provider shall,
when it falls under any of the following items, notify the Prime Minister to that effect pursuant to the provisions of a Cabinet Office Ordinance if and when:
(i) it starts its Small Amount and Short Term Insurance Business operation; (ii) When such Subsidiary Companies ceases to be its Subsidiary Company
(except when it assigns its business or splits with the authorization set forth in Article 142 as applied mutatis mutandis pursuant to Article 272-30,
paragraph (1), or Article 173-6, paragraph (1));
(iii) it intends to increase the amount of capital or the total amount of funds; (iv) it modifies its articles of incorporation;
(v) When the holder's voting rights that exceed five percent of the Voting
Rights Held by All of its Shareholders are acquired or come to be held by a single shareholder; or
(vi) When it falls under any of the other cases specified by a Cabinet Office
Ordinance (or Cabinet Office Ordinance/Ordinance of the Ministry of Finance in the cases pertaining to the financial bankruptcy processing system and
financial crisis management).
(2) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the voting rights in a Small Amount and Short Term Insurance Provider acquired
or held by the single shareholder set forth in item (v) of the preceding paragraph.
(Submission of Reports or Materials)
Article 272-22 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. by ensuring the sound and appropriate management of a Small Amount and Short Term Insurance Provider, request the Small
Amount and Short Term Insurance Provider to submit a report or materials concerning the condition of its business or property.
(2) The Prime Minister may, when he/she finds it particularly necessary to
protect Policyholders, etc. by ensuring the sound and appropriate management of a Small Amount and Short Term Insurance Provider, request a Subsidiary, etc. of the Small Amount and Short Term Insurance Provider (referring to a
Subsidiary Company or any other juridical person whose management is deemed to be controlled by the Small Amount and Short Term Insurance Provider under a Cabinet Office Ordinance; the same shall apply in the
following paragraph and paragraphs (2) and (3) of the following Article) or any subcontractor of the Small Amount and Short Term Insurance Provider to
submit a report or materials that should serve as reference concerning the condition of the business or property of the Small Amount and Short Term Insurance Provider, within the limit necessary.
(3) A Subsidiary, etc. or subcontractor of a Small Amount and Short Term
Insurance Provider may refuse to submit reports or materials required under the preceding paragraph if there are justifiable grounds.
(On-Site Inspection)
Article 272-23 (1) The Prime Minister may, when he/she finds it necessary to
protect Policyholders, etc. by ensuring the sound and appropriate management of a Small Amount and Short Term Insurance Provider, direct the personnel in
charge, within the limit necessary, to enter a business office, any other office or
any other facility of the Small Amount and Short Term Insurance Provider to ask questions on the status of its business or property, or inspect books and
documents and other materials.
(2) The Prime Minister may, when he/she finds it particularly necessary in making an entry, asking questions or conducting inspection pursuant to the provision of the preceding paragraph, direct the personnel in charge, within
the limit necessary, to enter a facility of any Subsidiary, etc. or subcontractor
of a Small Amount and Short Term Insurance Provider to ask questions of the Small Amount and Short Term Insurance Provider or on necessary matters for inspection, or inspect books and documents and other materials.
(3) Any Subsidiary, etc. or subcontractor of a Small Amount and Short Term
Insurance Provider may, when there are justifiable grounds, refuse the questioning and inspection set forth in the preceding paragraph.
(Order to Modify Regarding Matters Prescribed in Statement of Business
Procedures, etc.)
Article 272-24 (1) The Prime Minister may, when he/she finds that the matters prescribed by a Small Amount and Short Term Insurance Provider in the
document listed in Article 272-2, paragraph (2), item (iv) falls under any of the following items, order the Small Amount and Short Term Insurance Provider to modify any of the matters prescribed in the document listed in that item within a specified period of time:
(i) The method of calculating insurance premiums is not found to be reasonable
and relevant based on actuarial science, in light of the ratio of Insurance Claims, etc. (referring to the proportion obtained by dividing the amount of the insurance claims and other benefits (including any other payment
specified by a Cabinet Office Ordinance as equivalent thereto) which became
payable under insurance contracts within the business year concerned) by
the amount of insurance premiums specified by a Cabinet Office Ordinance as received under the insurance contracts; or
(ii) The method of calculating the policy reserve is not found to be reasonable and relevant based on actuarial science.
(2) In addition to the cases prescribed in the preceding paragraph, the Prime Minister may, when he/she finds it necessary, in light of the status of the business or property of a Small Amount and Short Term Insurance Provider or changing circumstances, to protect Policyholders, etc. by ensuring the sound and appropriate management of the Small Amount and Short Term Insurance Provider, order the Small Amount and Short Term Insurance Provider, within
the limit necessary, to modify any of the matters prescribed in the documents
listed in Article 272-2, paragraph (2), items (ii) to (iv) inclusive.
(Order for Business Improvement)
Article 272-25 (1) The Prime Minister may, when he/she finds it necessary, in light of the status of the business or property of a Small Amount and Short Term Insurance Provider or the status of the property of its Subsidiary
Company, etc., to protect Policyholders, etc. by ensuring the sound and
appropriate management of the Small Amount and Short Term Insurance
Provider, request the Small Amount and Short Term Insurance Provider to submit an improvement program for ensuring the soundness of its
management by specifying matters for which measures should be taken as well
as a time limit or order the modification of the submitted improvement program, or order necessary measures for the purpose of supervision.
(2) Any order under the preceding paragraph that is deemed necessary in light of the conditions regarding the capital adequacy of a Small Amount and Short
Term Insurance Provider to support the payment of Insurance Claims, etc., shall be the order to be specified by a Cabinet Office Ordinance/Ordinance of the Ministry of Finance according to the categories of condition pertaining to
the capital adequacy of the Small Amount and Short Term Insurance Provider
to support the payment of Insurance Claims, etc.
(Cancellation of Registration, etc.)
Article 272-26 (1) The Prime Minister may order the total or partial suspension of the business of a Small Amount and Short Term Insurance Provider for a specified period of time, or cancel the registration set forth in Article 272,
paragraph (1), if and when the Small Amount and Short Term Insurance
Provider:
(i) falls under any of Article 272-4, paragraph (1), items (i) to (iv) inclusive, item (vii), (viii) or (xi);
(ii) obtains the registration set forth in Article 272, paragraph (1) by wrongful means;
(iii) ceases to be a small-scale entrepreneur or violates any other provision of a law or regulation;
(iv) violates any disposition by the Prime Minister pursuant to a law or
regulation or any of the particularly important matters prescribed in the documents listed in the items of Article 272-2, paragraph (2); or
(v) commits any act with prejudice to the public interest.
(2) If and when any director, executive officer, accounting advisor or company auditor of a Small Amount and Short Term Insurance Provider falls under any of Article 272-4, paragraph (1), item (x), (a) to (f) inclusive, violates any
provision of a law or regulation, or commits any act falling under item (iv) or
(v) of the preceding paragraph, the Prime Minister may order the Small
Amount and Short Term Insurance Provider to dismiss the director, executive officer, accounting advisor or company auditor.
Article 272-27 The Prime Minister may, when he/she finds that a Small Amount and Short Term Insurance Provider should not, due to a extreme deterioration
in the status of its property, carry on the Small Amount and Short Term
Insurance Business from the viewpoint of protecting Policyholders, etc., cancel
the registration of such small amount and short term insurance provider under
Article 272, paragraph (1).
(Application mutatis mutandis, of Provisions on Standard of Soundness)
Article 272-28 The provision of Article 130 shall apply mutatis mutandis to a
Small Amount and Short Term Insurance Provider.
Section 5 Comprehensive Transfer, etc. of Insurance Contracts
(Application mutatis mutandis, of Provisions on Comprehensive Transfer of
Insurance Contracts)
Article 272-29 The provisions of Chapter VII, Section 1 shall apply mutatis
mutandis to the transfer of insurance contracts of a Small Amount and Short
Term Insurance Provider. In this case, the term "Foreign Insurance Company,
etc." in Article 135, paragraph (1) shall be deemed to be replaced with "Foreign
Insurance Company, etc. or Small Amount and Short Term Insurance
Provider."
(Application mutatis mutandis, of Provisions on Assignment or Acquisition of
Business, and Entrustment of Activity and Property)
Article 272-30 (1) The provision of Article 142 shall apply mutatis mutandis to
the assignment or acquisition of business involving a Small Amount and Short
Term Insurance Provider or Small Amount and Short Term Insurance
Providers.
(2) The provisions of Chapter VII, Section 3 shall apply mutatis mutandis to the entrustment by a Small Amount and Short Term Insurance Provider of the
administration of its business and property. In this case, the term "Foreign
Insurance Company, etc. (unless otherwise specified by a Cabinet Office
Ordinance)" in Article 144, paragraph (1) shall be deemed to be replaced with
"Foreign Insurance Company, etc. (unless otherwise specified by a Cabinet
Office Ordinance) or Small Amount and Short Term Insurance Provider."
Section 6 Shareholder
Subsection 1 Major Shareholder of Small Amount and Short Term
Insurance Provider
(Approval Pertaining to Holder of Votes Equaling or Exceeding Major
Shareholder Threshold in Small Amount and Short Term Insurance Provider, etc.)
Article 272-31 (1) Any person who intends to, through any of the following
transactions or acts, hold a number of votes equaling or exceeding the Major
Shareholder Threshold in a Small Amount and Short Term Insurance Provider or form a company or juridical person that holds a number of votes equaling or
exceeding the Major Shareholder Threshold in a Small Amount and Short Term
Insurance Provider (other than the State, etc. set forth in Article 271-10,
paragraph (1), the company set forth in Article 272-35, paragraph (1) that
intends to become a Holding Company, the person set forth in that paragraph or the Small Amount and Short Term Insurance Holding Company set forth in Article 272-37, paragraph (2) that intends to make a Small Amount and Short Term Insurance Provider its subsidiary) shall obtain the approval of the Prime Minister in advance:
(i) Acquisition of voting rights in a Small Amount and Short Term Insurance
Provider by the person that intends to hold the number of votes (except for
those obtained by the acquisition of shares through the exercise of a security interest or due to any other event to be specified by a Cabinet Office
Ordinance);
(ii) An act by a company in which the person intending to hold the number of votes holds a number of votes that equals or exceeds the Major Shareholder Threshold to obtain the registration set forth in Article 272, paragraph (1); or
(iii) Any other transaction or act to be specified by a Cabinet Order.
(2) Any person that has come to hold voting rights equaling or exceeding the Major Shareholder Threshold in a Small Amount and Short Term Insurance Provider due to any other event than the transactions or acts listed in the
items of the preceding paragraph (other than the National Government, etc. set
forth in Article 271-10, paragraph (1), the Specified Small Amount and Short
Term Insurance Holding Company set forth in Article 272-35, paragraph (2) or the Specified Small Amount and Short Term Insurance Holding Company set
forth in Article 272-37, paragraph (2); referred to as "Specified Small Amount
and Short Term Insurance Major Shareholder" hereafter in this Article as well as in Article 333) shall take necessary measures for ensuring that it will cease to hold a number of votes equaling or exceeding the Major Shareholder
Threshold in the Small Amount and Short Term Insurance Provider by the
date which is one year after the last day of the Small Amount and Short Term Insurance Provider's business year in which the event occurred (referred to as "Grace Deadline" hereafter in this paragraph as well as in paragraph (4));
provided, however, that this shall not apply where the Specified Small Amount
and Short Term Insurance Major Shareholder has received the approval of the Prime Minister for continuing to hold a number of votes equaling or exceeding the Major Shareholder Threshold in the Small Amount and Short Term
Insurance Provider after the Grace Deadline.
(3) A Specified Small Amount and Short Term Insurance Major Shareholder shall, when it has ceased to hold voting rights equaling or exceeding the Major
Shareholder Threshold in a Small Amount and Short Term Insurance Provider by taking the measures set forth in the preceding paragraph, notify thereof to
the Prime Minister without delay. The same shall apply when it has ceased to
hold a number of votes equaling or exceeding the Major Shareholder Threshold in a Small Amount and Short Term Insurance Provider without taking such
measures.
(4) The Prime Minister may order a person who has come to hold voting rights equaling or exceeding the Major Shareholder Threshold in a Small Amount and Short Term Insurance Provider through any of the transactions or acts listed
in the items of paragraph (1) or a company or any other juridical person formed as the holder of a number of votes equaling or exceeding the Major Shareholder Threshold in a Small Amount and Short Term Insurance Provider, without
receiving the approval set forth in paragraph (1), or a person that continues to hold, even after the Grace Deadline, a number of votes equaling or exceeding
the Major Shareholder Threshold in a Small Amount and Short Term
Insurance Provider without receiving the approval set forth in the proviso to paragraph (2), to take necessary measures for ensuring that it will cease to
hold a number of votes equaling or exceeding the Major Shareholder Threshold in the Small Amount and Short Term Insurance Provider.
(5) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the
voting rights held by the holder of a number of votes equaling or exceeding the
Major Shareholder Threshold in a Small Amount and Short Term Insurance
Provider, in the cases referred to in the preceding paragraphs.
(Application Procedure for Approval)
Article 272-32 (1) Any person that intends to receive the approval set forth in the preceding Article, paragraph (1) or the proviso to paragraph (2) shall submit to the Prime Minister a written application for approval describing:
(i) matters concerning the voting right holding ratio(referring to the ratio
obtained by dividing the number of votes held by the Applicant for approval in the Small Amount and Short Term Insurance Provider pertaining to the
approval by the total number of votes held by all shareholders of the Small
Amount and Short Term Insurance Provider; the same shall apply in Article
272-36, paragraph (1) and Article 272-42, paragraph (1)), matters concerning the funds used to acquire the voting rights, the purpose of holding the voting rights, and other matters to be specified by a Cabinet Office Ordinance as
important matters concerning the holding of voting rights in a Small Amount and Short Term Insurance Provider;
(ii) its trade name, name, and address;
(iii) for a juridical person, the amount of capital or contribution and the name of its representative person; and
(iv) for a business entity, the names and addresses of its business offices and the type of its business.
(2) The written application for approval set forth in the preceding paragraph
shall be attached with a document containing a pledge that the application does not fall under paragraph (1), item (i), (c) or item (ii), (c) of the following
Article as well as any other document specified by a Cabinet Office Ordinance. (3) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the
voting rights held by the person submitting the written application for approval in the case referred to in paragraph (1).
Article 272-33 (1) The Prime Minister shall, when an application for approval
was made under Article 272-31, paragraph (1) or the proviso to Article 272-31, paragraph (2), approve such application unless it falls under any of the
following items:
(i) Where the person that made the application for approval (hereinafter
referred to as "Applicant" in this Article) is a company or any other juridical person, or where a company or any other juridical person is to be formed with the approval, any of the following applies:
(a) In light of the matters concerning the funds used for acquiring the voting rights, the purpose of holding the voting rights or any other matter
concerning the holding of a number of votes equaling or exceeding the
Major Shareholder Threshold in a Small Amount and Short Term
Insurance Provider by the company or any other juridical person to be formed with the approval (hereinafter referred to as "Juridical Person
Applicant, etc." in this item), the application poses a risk to the sound and appropriate management of the Small Amount and Short Term Insurance
Provider in which the Juridical Person Applicant, etc. holds, or will hold, a number of votes equaling or exceeding the Major Shareholder Threshold;
(b) In light of the condition of the property and balance of payment of the
Juridical Person Applicant, etc. and its subsidiary companies (including any prospective Subsidiary Company), the application poses a risk to the sound and appropriate management of the Small Amount and Short Term Insurance Provider in which the Juridical Person-Applicant, etc. holds, or will hold, a number of votes equaling or exceeding the Major Shareholder Threshold; or
(c) The Juridical Person Applicant, etc. falls under any of the following
points:
1. A person whose license under Article 3, paragraph (1) was canceled
pursuant to the provision of Article 133 or 134, whose license under
Article 185, paragraph (1) was canceled pursuant to the provision of
Article 205 or 206, whose license under Article 219, paragraph (1) was canceled pursuant to the provision of Article 231 or 232, whose
registration under Article 272, paragraph (1) was canceled pursuant to the provision of Article 272-26, paragraph (1) or Article 272-27 or
whose registration under Article 276 or 286 was canceled pursuant to the provision of Article 307, paragraph (1), or whose license or
registration of a similar type obtained under a foreign law or
regulation equivalent to this Act (including any permission or other
administrative disposition similar to such license or registration) was canceled in the foreign state concerned, without five years having
elapsed since the date of such cancellation.
2. A person sentenced to a fine (including any equivalent punishment
under a foreign law or regulation) for violating a provision of any of the acts set forth in Article 272-4, paragraph (1), item (viii) or any foreign
law or regulation equivalent thereto, without five years having elapsed
since the execution of the sentence was terminated or since it was no longer subject to the execution of the sentence;
3. A person whose officers include the person listed in Article 331,
paragraph (1), item (ii) of the Companies Act (Qualifications of
Directors) or Article 331, paragraph (1), item (iii) of that Act as applied with relevant changes in interpretation pursuant to the provision of
Article 12, paragraph (1), or a person falling under any of Article 272-4, paragraph (1), item (x), (a) to (f) inclusive; or
(ii) In any other case than that listed in the preceding item, any of the
following applies:
(a) In light of the matters concerning the funds used for acquiring the voting rights, the purpose of holding the voting rights or any other matter
concerning the holding of a number of votes equaling or exceeding the
Major Shareholder Threshold in a Small Amount and Short Term
Insurance Provider by the Applicant, the application poses a risk to the sound and appropriate management of the Small Amount and Short Term
Insurance Provider in which the Applicant holds, or will hold, a number of votes equaling or exceeding the Major Shareholder Threshold;
(b) In light of the status of the property of the Applicant (including the
condition of balance of payment, where the Applicant is a business entity), the application poses a risk to the sound and appropriate management of
the Small Amount and Short Term Insurance Provider in which the
Applicant holds, or will hold, a number of votes equaling or exceeding the
Major Shareholder Threshold; or
(c) The Applicant falls under any of the following points:
1. An adult ward or person under curatorship, or any other person
receiving a similar treatment under a foreign law or regulation, whose statutory representative falls under Article 331, paragraph (1), item
(ii) of the Companies Act or Article 331, paragraph (1), item (iii) of that
Act as applied with relevant changes in interpretation pursuant to the provision of Article 12, paragraph (1), or any of Article 272-4,
paragraph (1), item (x), (a) to (f) inclusive; or
2. A person falling under Article 331, paragraph (1), item (ii) of the
Companies Act or Article 331, paragraph (1), item (iii) of that Act as applied with relevant changes in interpretation pursuant to the
provision of Article 12, paragraph (1), or any of Article 272-4, paragraph (1), item (x), (a) to (f) inclusive.
(2) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the
voting rights held by the Applicant in the case referred to in the preceding paragraph.
(Application mutatis mutandis, of Provisions on Supervision)
Article 272-34 (1) The provisions of Article 271-12 to 271-14 inclusive and 271-16 shall apply mutatis mutandis to a Major Shareholder of Small Amount and
Short Term Insurance Provider that holds a number of votes equaling or
exceeding the Major Shareholder Threshold in a Small Amount and Short Term
Insurance Provider (referring to a person that has received the approval to
hold such voting rights following any of the transactions or acts listed in items of Article 272-31, paragraph (1), was formed with the approval set forth in the same paragraph, or has received the approval set forth in the proviso to
paragraph (2) of the same Article; the same shall apply hereinafter). In this
case, the term "Article 128, paragraph (1)" in Article 271-12 shall be deemed to be replaced with "Article 272-22, paragraph (1)"; the term "Article 129,
paragraph (1)" in Article 271-13 shall be deemed to be replaced with "Article
272-23, paragraph (1)"; the terms "the items of Article 271-11" and
"authorization set forth in the proviso of Article 271, paragraph (1) or (2)" in
Article 271-14 shall be deemed to be replaced with "Article 272-33, paragraph
(1), items (i) and (ii)" and "approval set forth in Article 272-31, paragraph (1)
or the proviso to Article 272-31, paragraph (2)," respectively; the terms
"authorization of the insurance major shareholder set forth in the proviso of
Article 271-10, paragraph (1) or (2)," "authorizations set forth in Article 271-10, paragraph (1)" and "said authorization" in Article 271-16, paragraph (1) shall
be deemed to be replaced with "approval of the insurance major shareholder set forth in Article 272-31, paragraph (1) or the proviso to Article 272-31,
paragraph (2)," "approvals set forth in Article 272-31, paragraph (1)," and "said
approval," respectively; and the term "authorization set forth in the proviso of Article 271-10, paragraph (1) or (2)" in Article 271-16, paragraph (2) shall be deemed to be replaced with "approval set forth in Article 272-31, paragraph (1) or the proviso to Article 272-31, paragraph (2)."p
(2) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to the voting rights held by a person who holds a number of votes equaling or
exceeding the Major Shareholder Threshold in a Small Amount and Short Term
Insurance Provider in the case referred to in the preceding paragraph.
Subsection 2 Small Amount and Short Term Insurance Holding
Company
(Approval Pertaining to Small Amount and Short Term Insurance Holding
Company, etc.)
Article 272-35 (1) Any company that intends to become a Holding Company of subsidiary companies including a Small Amount and Short Term Insurance
Provider through any of the following transactions or acts, or any person that
intends to incorporate a Holding Company with subsidiaries including a Small
Amount and Short Term Insurance Provider shall receive in advance the approval of the Prime Minister:
(i) Acquisition of voting rights in the Small Amount and Short Term Insurance
Provider by the company or any of its subsidiary companies (excluding
through the acquisition of shares by the exercise of a security interest or any other event specified by a Cabinet Office Ordinance);
(ii) Any act by a subsidiary of the company to obtain the registration set forth in Article 272, paragraph (1); or
(iii) Any other transaction or act specified by a Cabinet Order.
(2) Any company that has become a Holding Company with subsidiary companies including a Small Amount and Short Term Insurance Provider following any other event than the transactions or acts listed in items of the preceding
paragraph (hereinafter referred to as "Specified Small Amount and Short Term Insurance Holding Company") shall, within three months from the end of the business year in which the event occurred, notify the Prime Minister of the fact that the company has become a Holding Company with subsidiary companies
including a Small Amount and Short Term Insurance Provider, as well as other
matters specified by a Cabinet Office Ordinance.
(3) A Specified Small Amount and Short Term Insurance Holding Company shall take necessary measures to ensure that it will cease to be a Holding Company with subsidiary companies including a small amount and short term insurance
provider by the date which is one year after the last day of the business year in which the event set forth in the preceding paragraph occurred (referred to as
"Grace Deadline" hereafter in this paragraph as well as in paragraph (5));
provided, however, that this shall not apply where the Prime Minister
approves that the Specified Small Amount and Short Term Insurance Holding Company continue as a Holding Company with subsidiary companies including a small amount and short term insurance provider after the Grace Deadline.
(4) A Specified Small Amount and Short Term Insurance Holding Company shall,
when it has ceased to be a Holding Company with subsidiary companies
including a Small Amount and Short Term Insurance Provider following the
measures taken under the preceding paragraph, notify the Prime Minister thereof without delay. The same shall apply where it has ceased to be a
Holding Company with subsidiary companies including a small amount and short term insurance provider without taking such measures.
(5) The Prime Minister may order any company that has become a Holding
Company with subsidiary companies including a Small Amount and Short
Term Insurance Provider following any of the transactions or acts listed in the items of paragraph (1) or was incorporated as a Holding Company with
subsidiary companies including a Small Amount and Short Term Insurance
Provider, without the approval set forth in paragraph (1), or any company that continues as a Holding Company with subsidiary companies including a Small
Amount and Short Term Insurance Provider after the Grace Period without the
approval set forth in the proviso to paragraph (3), to take necessary measures to ensure that it will cease to be a Holding Company with subsidiary
companies including a Small Amount and Short Term Insurance Provider.
Article 272-36 (1) An Applicant for the approval set forth in the preceding
Article, paragraph (1) or the proviso to paragraph (3) shall submit to the Prime
Minister a written application for approval describing:
(i) matters concerning the voting right holding ratio, matters concerning the funds used to acquire the voting rights, the purpose of holding the voting rights, and other matters specified by a Cabinet Office Ordinance as
important matters concerning the holding of voting rights in a Small Amount and Short Term Insurance Provider:
(ii) its trade name;
(iii) the amount of capital;
(iv) the names of its directors and company auditors (or, in a company with
Committees, directors and executive officers); and
(v) the names and addresses of its head office and other offices.
(2) The written application for approval set forth in the preceding paragraph shall be attached with the articles of incorporation, the balance sheet, the
profit and loss statement, a document containing a pledge that the application does not fall under paragraph (1), item (iii) of the following Article, and other documents specified by a Cabinet Office Ordinance.
Article 272-37 (1) The Prime Minister shall approve any application made under
Article 272-35, paragraph (1) or the proviso to Article 272-35, paragraph (3)
unless:
(i) in light of the status of the property and balance of payment of the company that made the application for approval or the company to be incorporated
with the approval (hereinafter referred to as "Applicant, etc." in this Article)
and its subsidiary companies (including any prospective Subsidiary
Company), the Applicant, etc. poses a risk to the sound and appropriate
management of the Small Amount and Short Term Insurance Provider that is, or will be its Subsidiary Company;
(ii) in light of its human resource structure, etc., the Applicant, etc. does not have the necessary knowledge and experience for ensuring the appropriate and fair management of the Small Amount and Short Term Insurance
Provider that is, or will be, its Subsidiary Company;
(iii) the Applicant, etc. falls under Article 272-33, paragraph (1), item (i), (c); or
(iv) the business content of any Subsidiary Company of the Applicant, etc. falls under item of Article 272-39, paragraph (3).
(2) A Small Amount and Short Term Insurance Holding Company (referring to a
Holding Company with subsidiary companies including a Small Amount and
Short Term Insurance Provider that has received the approval to hold the
relevant voting rights following any of the transactions or acts listed in items of Article 272-35, paragraph (1), was incorporated with the approval set forth in Article 272-35, paragraph (1), or has received the approval set forth in the
proviso to Article 272-35, paragraph (3); the same shall apply hereinafter) shall
be a Stock Company that has the following organs, unless it was incorporated in accordance with the laws and regulations of the foreign state:
(i) Board of directors;
(ii) Board of company auditors or Committees; and
(iii) Accounting auditors.
(Qualification, etc. for Directors, etc. of Small Amount and Short Term
Insurance Holding Company)
Article 272-37-2 (1) The following provisions in the Companies Act shall not apply to a Small Amount and Short Term Insurance Holding Company: the
proviso to Article 331, paragraph (2) (Qualifications of Directors) (including the cases where it is applied mutatis mutandis pursuant to Article 335, paragraph (1) (Qualifications of Company Auditors) of that Act), Article 332, paragraph
(2) (Directors' Terms of Office) (including the cases where it is applied mutatis mutandis pursuant to Article 334, paragraph (1) (Accounting Advisors' Terms
of Office) of that Act), Article 336, paragraph (2) (Company Auditors' Terms of
Office) and the proviso to Article 402, paragraph (5) (Election of Executive
Officers).
(2) A Small Amount and Short Term Insurance Holding Company may not become a an unlimited partner or partners who execute the business of a membership company.
(Scope of Business of Small Amount and Short Term Insurance Holding
Company, etc.)
Article 272-38 (1) A Small Amount and Short Term Insurance Holding Company may not conduct business other than managing the operation of any company falling under items of paragraph (1) of the following Article and any other
company that has become its Subsidiary Company with the approval of the
Prime Minister set forth in Article 272-39, paragraph (1) or the proviso to
Article 272-39, paragraph (4), or any other business incidental thereto. (2) A Small Amount and Short Term Insurance Holding Company shall, in
carrying on its business, endeavor to ensure the sound and appropriate
management of its subsidiary Small Amount and Short Term Insurance
Provider.
(Scope of Subsidiary Companies of Small Amount and Short-Term Insurance
Holding Company, etc.)
Article 272-39 (1) A Small Amount and Short Term Insurance Holding Company shall receive in advance the approval of the Prime Minister, when it intends to make any company other than the companies which falls under any of the
categories specified in the following items its Subsidiary Company:
(i) A Small Amount and Short Term Insurance Provider; or
(ii) A company specialized in a business subservient to that carried on by a
Small Amount and Short Term Insurance Provider, or any of the businesses specified by a Cabinet Office Ordinance as incidental or related thereto.
(2) A Small Amount and Short Term Insurance Holding Company that intends to receive the approval set forth in the preceding paragraph shall submit to the
Prime Minister a written application describing the business content, amount of capital and human resource structure of the company covered by the
application for approval, as well as other matters specified by a Cabinet Office
Ordinance.
(3) The Prime Minister shall, when an application was made for the approval set forth in paragraph (1), give such approval, unless the content of the business
carried on or to be carried on by the company covered by the application: (i) may harm the public policy and good morals; or
(ii) is likely to damage the soundness in management of the company covered
by the application in light of the amount of capital, human resource structure, etc. of the company, and any such damage to its managerial soundness in
turn poses the risk of damaging the soundness in the management of the
subsidiary Small Amount and Short Term Insurance Provider of the applying
Small Amount and Short Term Insurance Holding Company.
(4) The provision of paragraph (1) shall not apply where a company not falling
under paragraph (1), item (i) or (ii) becomes a subsidiary of the Small Amount and Short Term Insurance Holding Company following the acquisition of
shares or equity interests through the exercise of security interest by the Small Amount and Short Term Insurance Holding Company or any of its subsidiary companies, or any other justifiable event specified by a Cabinet Office
Ordinance; provided, however, that the Small Amount and Short Term
Insurance Holding Company shall, unless the Prime Minister approves that
such company continue to be its Subsidiary Company, take necessary measures to ensure that the company will cease to be its subsidiary within one year from the date of such event.
(5) The provision of Article 271-22 shall apply in lieu of the provisions of
paragraph (1) of the preceding Article and the preceding paragraphs to any Small Amount and Short Term Insurance Holding Company that intends to become an Insurance Holding Company by making an Insurance Company its subsidiary, or any Small Amount and Short Term Insurance Holding Company that already is an Insurance Holding Company.
(6) The relevant provisions of the Banking Act or the Long Term Credit Bank Act
shall apply in lieu of the provisions of paragraph (1) of the preceding Article and paragraphs (1) to (4) inclusive to any Small Amount and Short Term
Insurance Holding Company that intends to become a Bank Holding Company
or Long Term Credit Bank holding company by making a bank or Long Term Credit Bank its subsidiary, or any Small Amount and Short Term Insurance Holding Company that already is a Bank Holding Company or Long Term
Credit Bank Holding Company.
(Application mutatis mutandis, of Provisions on Accounting, Supervision, etc.) Article 272-40 (1) The provision of Article 271-23 shall apply mutatis mutandis
to the business year of a Small Amount and Short Term Insurance Holding
Company; the provision of Article 271-24 shall apply mutatis mutandis to an
interim business report or business report describing in a consolidated manner the status of the business and property of a Small Amount and Short Term
Insurance Holding Company, its subsidiary companies and any other company
specified by a Cabinet Office Ordinance as having a special relationship with the Small Amount and Short Term Insurance Holding Company (hereinafter referred to as "Subsidiary Companies, etc." in this Article); the provisions of
Article 271-25, paragraphs (1) to (4) inclusive shall apply mutatis mutandis to
explanatory documents describing the matters specified by a Cabinet Office
Ordinance as pertaining to the status of the business and property of a Small
Amount and Short Term Insurance Holding Company and its Subsidiary Companies, etc. in a consolidated manner with regard to the Small Amount and Short Term Insurance Holding Company and its Subsidiary Companies, etc.; the provision of Article 271-25, paragraph (5) shall apply mutatis
mutandis to a Small Amount and Short Term Insurance Holding Company; and
the provision of Article 271-26 shall apply mutatis mutandis to the matters to be described in the business report and annexed detailed statements of a Small Amount and Short Term Insurance Holding Company.
(2) The provision of Article 271-27 shall apply mutatis mutandis to a Small
Amount and Short Term Insurance Holding Company with subsidiary
companies including a Small Amount and Short Term Insurance Provider, any
Subsidiary, etc. of the Small Amount and Short Term Insurance Holding
Company (referring to a Subsidiary Company or any other person to be prescribed by a Cabinet Office Ordinance as a juridical person whose
management is controlled by the Small Amount and Short Term Insurance Holding Company; hereinafter the same shall apply in this Article), or any subcontractor of the Small Amount and Short Term Insurance Holding
Company; the provision of Article 271-28, paragraph (1) shall apply mutatis
mutandis to a Small Amount and Short Term Insurance Holding Company with subsidiary companies including a Small Amount and Short Term Insurance
Provider; the provisions of Article 271-28, paragraphs (2) and (4) shall apply mutatis mutandis to any Subsidiary, etc. or subcontractor of a Small Amount and Short Term Insurance Holding Company; the provision of Article 271-28, paragraph (3) shall apply mutatis mutandis to the personnel who make an
entry, ask questions or conduct inspection under those provisions; the
provision of Article 271-29, paragraph (1) shall apply mutatis mutandis to a
Small Amount and Short Term Insurance Holding Company; the provision of Article 271-29, paragraph (2) shall apply mutatis mutandis to the subsidiary Small Amount and Short Term Insurance Provider of a Small Amount and
Short Term Insurance Holding Company; and the provision of Article 271-30
shall apply mutatis mutandis to a Small Amount and Short Term Insurance
Holding Company or a subsidiary small amount and short term insurance
provider of a Small Amount and Short Term Insurance Holding Company. In
this case, the term "Article 128, paragraph (1)" in Article 271-27, paragraph (1)
shall be deemed to be replaced with "Article 272-22, paragraph (1)"; the term "Article 129, paragraph (1)" in Article 271-28, paragraphs (1) and (2) shall be deemed to be replaced with "Article 272-23, paragraph (1)"; the terms
"authorization given to the Insurance Holding Company under Article 271-18,
paragraph (1) or the proviso to Article 271-18, paragraph (3)," "authorization set forth in Article 271-18, paragraph (1)" and "said authorization" in Article
271-30, paragraph (1) shall be deemed to be replaced with "approval given to
the Insurance Holding Company under Article 272-35, paragraph (1) or the
proviso to Article 272-35, paragraph (3)," "approval set forth in Article 272-35, paragraph (1)" and "said approval," respectively; the term "authorization set
forth in Article 271-18, paragraph (1) or the proviso to Article 271-18,
paragraph (3)" in Article 271-30, paragraph (2) shall be deemed to be replaced
with "approval set forth in Article 272-35, paragraph (1) or the proviso to
Article 272-35, paragraph (3)"; the term "Article 271-10, paragraph (2)" in
Article 271-30, paragraph (3) shall be deemed to be replaced with "Article 272-
31, paragraph (2)"; the term "authorization set forth in Article 271-18,
paragraph (1)" in Article 271-30, paragraph (4), items (i) and (ii) shall be deemed to be replaced with "approval set forth in Article 272-35, paragraph
(1)"; the term "Article 271-18, paragraph (3) without the authorization set forth in the proviso thereto" in Article 271-30, paragraph (4), item (iii) shall be
deemed to be replaced with "Article 272-35, paragraph (3) without the approval
set forth in the proviso thereto"; and the term "authorization under Article
271-18, paragraph (1) or the proviso to Article 271-18, paragraph (3)" in Article
271-30, paragraph (4), item (iv) shall be deemed to be replaced with "approval under Article 272-35, paragraph (1) or the proviso to Article 272-35, paragraph (3)."
Subsection 3 Miscellaneous Provisions
(Application of this Act to Major Shareholder of Foreign Small Amount and Short Term Insurance Provider or Foreign Small Amount and Short Term Insurance Holding Company)
Article 272-41 A Cabinet Order shall prescribe special provisions and technical
changes in interpretation in applying this Act to a foreign national or foreign
juridical person that holds a number of votes equaling or exceeding the Major
Shareholder Threshold in a Small Amount and Short Term Insurance Provider or a Holding Company incorporated in accordance with the laws and
regulations of a foreign state with subsidiary companies including a Small
Amount and Short Term Insurance Provider (hereinafter referred to as "Major
Shareholder of Foreign Small Amount and Short Term Insurance Provider, etc." in this Article), as well as any other matter necessary for applying the provisions of this Act to a Major Shareholder of Foreign Small Amount and Short Term Insurance Provider, etc.
(Matters to Be Notified)
Article 272-42 (1) A Major Shareholder of Small Amount and Short Term
Insurance Provider (including a former Major Shareholder of Small Amount and Short Term Insurance Provider) shall notify the Prime Minister of the relevant fact pursuant to the provisions of a Cabinet Office Ordinance if and when:
(i) the holder becomes a Major Shareholder of Small Amount and Short Term
Insurance Provider subject to the approval set forth in Article 272-31,
paragraph (1) or is formed as a Major Shareholder of Small Amount and
Short Term Insurance Provider subject to such approval;
(ii) any of the matters listed in the items of Article 272-32, paragraph (1) are modified (excluding any modification in the voting right holding ratio;
(iii) it comes to hold a number of votes exceeding 50 percent of the voting rights of all shareholders in a Small Amount and Short Term Insurance Provider;
(iv) it ceases to hold voting rights that equals or exceeds the Major Shareholder
Threshold in a Small Amount and Short Term Insurance Provider (excluding the case referred to in item (vi));
(v) it ceases to hold a number of votes exceeding fifty hundredths of the voting
rights of all shareholders in a Small Amount and Short Term Insurance Provider (excluding the cases referred to in the preceding and following items);
(vi) the holder dissolves (including the case where a court judgment nullifying
the establishment, share transfer, Merger (limited to a Merger having
resulted in establishment of a company or any other juridical person that holds voting rights equaling or exceeding the Major Shareholder Threshold
in a Small Amount and Short Term Insurance Provider) or an Incorporation- Type Split pertaining to the holder has become final and binding);
(vii) the holder's voting rights that exceed fifty hundredths of the Voting Rights
Held by All of its Shareholders are acquired or come to be held by a single shareholder; or
(viii) the holder falls under any other case specified by a Cabinet Office
Ordinance.
(2) A Small Amount and Short Term Insurance Holding Company (including a former Small Amount and Short Term Insurance Holding Company) shall,
when it falls under any of the following items, notify the Prime Minister of the relevant fact pursuant to the provisions of a Cabinet Office Ordinance if and
when:
(i) it becomes a Small Amount and Short Term Insurance Holding Company subject to the approval set forth in Article 272-35, paragraph (1) or is
incorporated as a Small Amount and Short Term Insurance Holding
Company subject to such approval;
(ii) it ceases to be a Holding Company with subsidiary companies including a
Small Amount and Short Term Insurance Provider (excluding the case referred to in item (v));
(iii) it intends to make any of the companies listed in items of Article 272-39,
paragraph (1) its Subsidiary Company;
(iv) such Subsidiary Company ceases to be its Subsidiary Company (excluding the case referred to in item (ii));
(v) the holder dissolves (including the case where a court judgment nullifying the establishment, share transfer, Merger (limited to a Merger for
incorporating a Holding Company to make a Small Amount and Short Term
Insurance Provider its Subsidiary Company) or Incorporation-Type Split has become final and binding);
(vi) it intends to modify the amount of capital;
(vii) the holder's voting rights that exceed five hundredths of the Voting Rights
Held by All of its Shareholders are acquired or come to be held by a single shareholder; or
(viii) the holder falls under any other case specified by a Cabinet Office
Ordinance.
(3) The provision of Article 2, paragraph (15) shall apply mutatis mutandis to those voting rights in a Major Shareholder of Small Amount and Short Term Insurance Provider or Small Amount and Short Term Insurance Holding Company which were acquired or have come to be held by the single
shareholder set forth in paragraph (1), item (vii) or the preceding paragraph, item (vii).
(Expiration of Approval)
Article 272-43 The provision of Article 271-33, paragraph (1) shall apply mutatis mutandis to the approval given to a Major Shareholder of Small Amount and
Short Term Insurance Provider under Article 272-31, paragraph (1) or the
proviso to Article 272-31, paragraph (2); and the provision of Article 271-33, paragraph (2) shall apply mutatis mutandis to the approval given to a Small Amount and Short Term Insurance Holding Company under Article 272-35,
paragraph (1) or the proviso to Article 272-35, paragraph (3).
Chapter XIII Miscellaneous Provisions
(Expiration of License or Registration)
Article 273 (1) The license set forth Article 3, paragraph (1) or Article 185,
paragraph (1), or the registration set forth in Article 272, paragraph (1) shall lose its effect for an Insurance Company (including a Foreign Insurance
Company, etc.) or a Small Amount and Short Term Insurance Provider falling under any of the following items (item (i) or (iv) for a Foreign Insurance
Company, etc.):
(i) It has abolished its Insurance Business (for a Foreign Insurance Company, etc., its Insurance Business in Japan; the same shall apply in item (iv);
(ii) It has dissolved (including when a judgment nullifying its incorporation, share transfer, merger (limited to a merger for incorporating an Insurance Company) or an incorporation-type split has become final and binding);
(iii) A Stock Company carrying on the Insurance Business has transferred all
of its insurance contracts;
(iv) A Stock Company carrying on the Insurance Business has carried out a company split, effectively transferring all of its insurance contracts; or
(v) It does not start its Insurance Business within six months from the date of
obtaining such license or registration (except when it received in advance the approval of the Prime Minister for any compelling reason).
(2) When a notification was made under Article 209 following any of the events
listed in Article 209, items (v) to (viii) inclusive (for a notification under Article
209, item (v), limited to the notification of a merger through which the Foreign
Insurance Company, etc. will become extinct, a company split resulting in the
transfer in whole of the business of the Foreign Insurance Company, etc. or an assignment of the whole business), the license granted by the Prime Minister
to the notifying Foreign Insurance Company, etc. under Article 185, paragraph
(1) shall lose its effect.
(3) The registration set forth in Article 272, paragraph (1) shall lose its effect when the Small Amount and Short Term Insurance Provider obtains the
license set forth in Article 3, paragraph (1).
(Public Notice by Prime Minister)
Article 274 In the following cases, the Prime Minister shall give public notice in the Official Gazette where thereof:
(i) When he/she orders suspension of the whole or part of the business (for a
Foreign Insurance Company, etc., its business in Japan) pursuant to the
provision of Article 132, paragraph (1), Article 133, Article 204, paragraph
(1), Article 205, Article 241, paragraph (1) or Article 272-26, paragraph (1); (ii) he/she has canceled the license set forth in Article 3, paragraph (1) or
Article 185, paragraph (1), or the registration set forth in Article 272,
paragraph (1), pursuant to the provision of Article 133, Article 134, Article
205, Article 206, Article 272-26, paragraph (1) or Article 272-27;
(iii) he/she has made a disposition ordering the administration of business and property by the Insurance Administrator pursuant to the provision of Article
241, paragraph (1) or issued an order pursuant to the provision of Article 258, paragraph (1);
(iv) When the license granted under Article 3, paragraph (1) or Article 185,
paragraph (1) has loses effect pursuant to the provision of the preceding
Article;
(v) When he/she rescinds the authorization set forth in Article 271-10,
paragraph (1) or the proviso to Article 271-10, paragraph (2) pursuant to the provision of Article 271-16, paragraph (1);
(vi) When he/she rescinds the authorization set forth in Article 271-18,
paragraph (1) or the proviso to Article 271-18, paragraph (3) pursuant to the provision of Article 271-30, paragraph (1);
(vii) When he/she orders suspension of the whole or part of the business of an Insurance Company that is a subsidiary of an Insurance Holding Company pursuant to the provision of Article 271-30, paragraph (1);
(viii) When he/she orders suspension of the whole or part of the business of an
Insurance Company pursuant to the provision of Article 271-30, paragraph
(4); or
(ix) the authorization set forth in Article 271-10, paragraph (1) or the proviso to Article 271-10, paragraph (2) or in Article 271-18, paragraph (1) or the
proviso to Article 271-18, paragraph (3) has lost its effect pursuant to the
provision of Article 271-33.
Part III Insurance Solicitation
Chapter I General Rules
(Restrictions on Insurance Solicitation)
Article 275 (1) No person may solicit insurance except when a person who falls
under any of the following items carries out the Insurance Solicitation business defined in the relevant item.
(i) A Life Insurance Solicitor registered under the following Article: to act as an agent or intermediary for the Entrusting Insurance Company, etc. in
concluding an insurance contract (for a bank serving as an Life Insurance
Solicitor or any other person specified by a Cabinet Order (hereinafter
referred to as "Bank, etc." in this Article), or an director or employee thereof, this shall be limited to the cases specified by a Cabinet Office Ordinance as posing little risk to the protection of Policyholders, etc.)
(ii) An officer (other than an officer with authority of representation, or an
auditor or audit committee member; the same shall apply hereinafter in this
Article, as well as in Articles 283 and 302.) or an employee of a Non-Life
Insurance Company (including a Foreign Non-Life Insurance Company, etc.;
hereinafter the same shall apply in this Part.), or a Non-Life Insurance
Agent registered under the following Article or an officer or employee
thereof: to act as an agent or intermediary for the Entrusting Insurance Company, etc. in concluding an insurance contract (for a Bank, etc. serving as a Non-Life Insurance Agent, or an officer or employee thereof, this shall be limited to the cases specified by a Cabinet Office Ordinance as posing
little risk to the protection of Policyholders, etc.)
(iii) A specified Small Amount and Short Term Insurance Solicitor (meaning
any of the Small Amount and Short Term Insurance Solicitors dealing only in the class of insurance defined in Article 3, paragraph (5), item (i) or any
other class of insurance specified by a Cabinet Office Ordinance, other than a person entrusted with Insurance Solicitation activities on behalf of a Small
Amount and Short Term Insurance Provider; the same shall apply hereinafter.) or a Small Amount and Short Term Insurance Solicitor
registered under the following Article: to act as an agent or intermediary for the Entrusting Insurance Company, etc. in concluding an insurance contract (for a Bank, etc. serving as a Small Amount and Short Term Insurance
Solicitor, or an officer or employee thereof, this shall be limited to the cases
specified by a Cabinet Office Ordinance as posing little risk to the protection of Policyholders, etc.)
(iv) An Insurance Broker registered under Article 286, or an officer or
employee thereof: to act as an intermediary in concluding an insurance contract (where the insurer is a Foreign Insurer that is not a Foreign
Insurance Company, etc., this shall be limited to the cases specified by a
Cabinet Order; for a Bank, etc. serving as an Insurance Broker, or an officer or employee thereof, this shall be limited to the cases specified by a Cabinet Office Ordinance as posing little risk to the protection of Policyholders, etc.), excluding the mediation activities for the conclusion of an insurance contract carried out by a Life Insurance Solicitor, Non-Life Insurance Solicitor or
Small Amount and Short Term Insurance Solicitor for the Entrusting
Insurance Company, etc.
(2) Notwithstanding the provision of any other act, a Bank, etc. may carry out
Insurance Solicitation activities by way of registration under the following
Article or Article 286.
Chapter II Insurance Solicitor and Entrusting Insurance Company, etc.
Section 1 Insurance Solicitor
(Registration)
Article 276 A specified Insurance Solicitor (meaning a Life Insurance Solicitor, Non-Life Insurance Agent or Small Amount and Short Term Insurance
Solicitor (other than a Specified Small Amount and Short Term Insurance
Solicitor); the same shall apply hereinafter) shall be registered with the Prime
Minister pursuant to the provision of this Act.
(Application for registration)
Article 277 (1) A person applying for a registration under the preceding Article shall submit to the Prime Minister a written application indicating:
(i) Trade name or name and birth date; (ii) Name and location of the office;
(iii) Trade name, name of the Entrusting Insurance Company, etc.;
(iv) Any other type of business conducted by the Applicant; and
(v) Any other matter specified by a Cabinet Office Ordinance.
(2) The following documents shall be attached to the written application set forth in the preceding paragraph:
(i) A written statement pledging that the Applicant does not fall under any of
Article 279, paragraph (1), items (i) to (v) inclusive, item (vii) or (viii)
(excluding the reference to Article 279, paragraph (1), item (vi)), item (ix)
(excluding the reference to Article 279, paragraph (1), item (vi)), item (x) or
(xi);
(ii) Where the Applicant is a juridical person (including an association or foundation which is not a juridical person and has a designated
representative person or manager; hereinafter the same shall apply in this
Part), a written statement indicating the names and addresses of its officers
(including the representative person or manager of an association or
foundation that is not a juridical person; hereinafter the same shall apply in this Part except for Articles 283 and 302); and
(iii) In addition to what is listed in the preceding two items, any other
document specified by a Cabinet Office Ordinance.
(Registration process)
Article 278 (1) The Prime Minister shall, immediately after receiving an
application for registration under Article 276 above, record the following
matters on the registry of Life Insurance Solicitors, the registry of Non-Life
Insurance Agents or the registry of Small Amount and Short Term Insurance
Solicitors maintained at a location specified by a Cabinet Office Ordinance, except when he/she refuses the application pursuant to the provision of
paragraphs (1) to (3) inclusive of the following Article:
(i) Matters listed in items of paragraph (1) of the preceding Article; and
(ii) Date and number of registration.
(2) The Prime Minister shall notify without delay any registration made
pursuant to the provision of the preceding paragraph to the Applicant and
Entrusting Insurance Company, etc. concerned.
(Refusal of application)
Article 279 (1) The Prime Minister shall refuse an application for registration if the Applicant falls under any of the following items, or if the written
application or a document attached thereto includes any misrepresentation pertaining to an important matter or non-disclosure of a material fact:
(i) A bankrupt whose rights have not been restored or a person receiving any similar treatment under a foreign law or regulation;
(ii) A person sentenced to imprisonment or severer punishment (including any
equivalent punishment under a foreign law or regulation), without three years having elapsed since the execution of the sentence was terminated or
since he/she was no longer subject to the execution of the sentence;
(iii) A person sentenced to fine (including any equivalent punishment under a foreign law or regulation) for violating the provision of this Act or of an
equivalent foreign law or regulation, without three years having elapsed since the execution of the sentence was terminated or since he/she was no longer subject to the execution of the sentence;
(iv) A person whose registration under Article 276 above was cancelled
pursuant to the provision of Article 307, paragraph (1), without three years having elapsed since the date of the cancellation (including, where the
cancellation of registration was made against a juridical person, a person
who had been an officer of the juridical person at any time during the thirty days prior to the date of the cancellation, without three years having elapsed since that date); or a person against whom a similar registration under any
provision of a foreign law or regulation equivalent to this Act was cancelled in the foreign state concerned (including any permission or other
administrative measures similar to the registration; hereinafter referred to
as "Registration, etc." in this item), without three years having elapsed since
the date of the cancellation (including, where the cancellation of Registration, etc. was made against a juridical person, a person who had been an officer of
the juridical person at any time during the thirty days prior to the date of the cancellation, without three years having elapsed since that date);
(v) An adult ward or person under curatorship, or any other person receiving a similar treatment under a foreign law or regulation;
(vi) A person who had committed any extremely inappropriate act in connection
with Insurance Solicitation activities during the three years prior to the date of application;
(vii) An Insurance Broker, or any of its officers or any of its employees carrying
out Insurance Solicitation activities;
(viii) A minor who does not have the business capacity of an adult regarding sales and whose statutory representative falls under any of the preceding
items;
(ix) A juridical person whose officers include at least one person falling under any of items (i) to (vi) inclusive;
(x) An individual whose employees carrying out Insurance Solicitation activities include at least one person falling under item (vii); or
(xi) A juridical person whose officers or employees carrying out Insurance
Solicitation activities include at least one person falling under item (vii). (2) The Prime Minister shall, when he/she intends to refuse an application for
registration pursuant to the provision of the preceding paragraph, notify the
Applicant thereof in advance and require the appearance of the Applicant or his/her representative at an opinion hearing to be held by an official
designated by the Prime Minister in order to provide an opportunity to submit any further evidence in support of the application.
(3) In the case referred to in the preceding paragraph, the Prime Minister may refuse an application without hearing any opinion, if the person summoned for the hearing fails to appear without any justifiable ground.
(4) The Prime Minister shall notify to the Applicant without delay and in writing
any refusal of application pursuant to the provision of the preceding three paragraphs.
(Report, etc. of change, etc.)
Article 280 (1) When a specified Insurance Solicitor falls under any of the
following items, the person specified in the relevant item shall report to the
Prime Minister without delay to that effect:
(i) Any change in the matters listed in the items of Article 277, paragraph (1):
the specified Insurance Solicitor affected by the change;
(ii) Abolition of Insurance Solicitation business: the individual who served as the specified Insurance Solicitor or the officer representing the juridical
person that served as the specified Insurance Solicitor;
(iii) Death of any individual serving as the specified Insurance Solicitor:
his/her heir;
(iv) Decision of commencement of bankruptcy proceedings regarding any
juridical person serving as the specified Insurance Solicitor: its bankruptcy trustee;
(v) Extinction of any juridical person serving as the specified Insurance
Solicitor through merger (for an association or foundation that is not a
juridical person, any act equivalent to merger; the same shall apply in the following item): the person who served as the officer representing the
juridical person; or
(vi) Dissolution of any juridical person serving as the specified Insurance
Solicitor (for an association or foundation that is not a juridical person, any act equivalent to dissolution) for a reason other than merger or decision of commencement of bankruptcy procedures: its liquidator (for an association or foundation that is not a juridical person, its representative person or the
person who served as its manager).
(2) The Prime Minister shall, when he/she has received any report under the
preceding paragraph for the reason specified in item (i), record the reported matter on the registry of Life Insurance Solicitors, the registry of Non-Life
Insurance Agents or the registry of Small Amount and Short Term Insurance
Solicitors, and notify thereof to the Entrusting Insurance Company, etc.
(3) Registration of a specified Insurance Solicitor shall lose its effects if and when the solicitor falls under any of paragraph (1), items (ii) to (vi) inclusive.
(Registration and license tax and fees)
Article 281 An Applicant for registration under Article 276 (including a person who files a report under paragraph (1), item (i) of the preceding Article when such report is deemed as a new registration pursuant to the provision of item
(xxxvii) of Appended Table 1 of the Registration and License Tax Act (Act No.
35 of 1967)) shall pay the registration and license tax pursuant to the
provisions of that Act in the case of item (i), or a fee in an amount specified by
a Cabinet Order taking the actual cost into consideration in the case of item (ii) (i) Any application for registration under Article 277, paragraph (1) (including
a report filed under paragraph (1), item (i) of the preceding Article above
when such report is deemed as a new registration pursuant to the provision of Article 34 of the Registration and License Tax Act) submitted upon
entrustment by the Entrusting Insurance Company, etc. (excluding any
entrustment for a limited time based on temporary needs and specified as such by a Cabinet Office Ordinance); or
(ii) Any application which does not fall under the preceding item.
(Restriction on Life Insurance Solicitors)
Article 282 (1) A Life Insurance Company (including a Foreign Life Insurance
Company, etc.; hereinafter the same shall apply in this Part) shall not entrust a Life Insurance Solicitor of another Life Insurance Company with any
Insurance Solicitation business on its own behalf.
(2) A Life Insurance Solicitor may neither serve as an officer or employee of another Life Insurance Company, or as an employee of any such person, nor solicit insurance upon entrustment by another Life Insurance Company, or as an officer or employee of a person soliciting insurance upon entrustment by another Life Insurance Company
(3) The provision of the preceding two paragraphs shall not apply to a Life
Insurance Solicitor affiliated to two or more Entrusting Insurance Companies, etc. if specified by a Cabinet Order as posing little risk to the protection of
Policyholders, etc. in light of the person's capacity to carry on Insurance
Solicitation business and other conditions.
Section 2 Entrusting Insurance Company, etc. (Liability of Entrusting Insurance Company, etc.)
Article 283 (1) An Entrusting Insurance Company, etc. shall be liable for any damage caused by an Insurance Solicitor to a Policyholder in carrying out
Insurance Solicitation activities.
(2) The provision of the preceding paragraph shall not apply when
(i) With regard to Insurance Solicitation activities carried out by an Insurance Solicitor who is an officer of the Entrusting Insurance Company, etc. (for a Life Insurance Company, including a Life Insurance Solicitor who is an employee of such officer), the Entrusting Insurance Company, etc. used due
care in appointing the officer and has made reasonable efforts in relation to
Insurance Solicitation activities by such person to prevent the damage caused to the Policyholder;
(ii) With regard to Insurance Solicitation activities carried out by an Insurance
Solicitor who is an employee of the Entrusting Insurance Company, etc. (for a Life Insurance Company, including a Life Insurance Solicitor who is an employee of such employee), the Entrusting Insurance Company, etc. used
due care in recruiting the employee (other than an employee of a Life
Insurance Company's employee) and has made reasonable efforts in relation to Insurance Solicitation activities by such person to prevent the damage
caused to the Policyholder; or
(iii) With regard to Insurance Solicitation activities carried out by a specified
Insurance Solicitor upon entrustment by the Entrusting Insurance Company, etc., or an officer or employee thereof, the Entrusting Insurance Company,
etc. used due care in entrusting the specified Insurance Solicitor with such activities and has made reasonable efforts in relation to Insurance
Solicitation activities by such person to prevent the damage caused to the
Policyholder.
(3) The provision of paragraph (1) shall not prevent the Entrusting Insurance Company, etc. to exercise its right to obtain reimbursement from the Insurance Solicitor concerned.
(4) The provision of Article 724 of the Civil Code (Time limit for seeking
compensation for damage caused by tort) shall apply mutatis mutandis to any claim under paragraph (1).
(Application for Registration, etc. through Entrusting Insurance Company, etc. as Agent)
Article 284 A specified Insurance Solicitor or a person falling under any of
Article 280, paragraph (1), items (ii) to (vi) inclusive may appoint the
Entrusting Insurance Company, etc. as his/her agent in applying for a
registration under Article 277, paragraph (1), or in filing a report under Article
280, paragraph (1) or Article 302.
(Registry of Specified Insurance Solicitors)
Article 285 (1) An Entrusting Insurance Company, etc. shall, pursuant to the provisions of a Cabinet Office Ordinance, maintain a registry of specified
Insurance Solicitors acting on its behalf at its head office or principal office, or
at one of its branch offices or secondary offices (for a Foreign Insurance
Company, etc., at its branch office, etc. set forth in Article 185, paragraph (1)). (2) Any interested person may require the Entrusting Insurance Company, etc.
as necessary to provide access to the registry set forth in the preceding paragraph for inspection.
Chapter III Insurance Broker
(Registration)
Article 286 An Insurance Broker shall be registered with the Prime Minister pursuant to the provisions of this Act.
(Application for Registration)
Article 287 (1) A person applying for a registration under the preceding Article shall submit to the Prime Minister a written application indicating:
(i) Trade name, name and address; (ii) Name and location of the office;
(iii) Class(es) of insurance contract to be dealt in;
(iv) Any other type of business conducted by the Applicant; and
(v) Any other matter specified by a Cabinet Office Ordinance.
(2) The following documents shall be attached to the written application set forth in the preceding paragraph:
(i) A written statement pledging that the Applicant does not fall under any of
Article 289, paragraph (1), items (i) to (v) inclusive, item (vii) or (viii)
(excluding the reference to Article 289, paragraph (1), item (vi)), item (ix)
(excluding the reference to Article 289, paragraph (1), item (vi)) or item (x); (ii) In the case where the person is juridical person, a written statement
indicating the names and addresses of its officers; and
(iii) In addition to what is listed in the preceding two items, any other document specified by a Cabinet Office Ordinance.
(Registration Process)
Article 288 (1) The Prime Minister shall, immediately after receiving an
application for registration under Article 286 above, record the following
matters on the registry of Insurance Brokers maintained at a location specified by a Cabinet Office Ordinance, except when he/she refuses the application
pursuant to the provision of paragraphs (1) to (3) inclusive of the following
Article:
(i) Matters listed in items of paragraph (1) of the preceding Article; and
(ii) Date and number of registration.
(2) The Prime Minister shall notify without delay any registration made
pursuant to the provision of the preceding paragraph to the Applicant concerned.
(3) The Prime Minister shall make the registry of Insurance Brokers available for public inspection.
(Refusal of Application)
Article 289 (1) The Prime Minister shall refuse an application for registration if the Applicant falls under any of the following items, or if the written
application or a document attached thereto includes any misrepresentation
regarding an important matter or non-disclosure of a material fact
(i) A bankrupt whose rights have not been restored or a person receiving any similar treatment under a foreign law or regulation;
(ii) A person sentenced to imprisonment or severer punishment (including any equivalent punishment under a foreign law or regulation), without three
years having elapsed since the execution of the sentence was terminated or
since he/she was no longer subject to the execution of the sentence;
(iii) A person sentenced to fine (including any equivalent punishment under a foreign law or regulation) for violating the provision of this Act or of an
equivalent foreign law or regulation, without three years having elapsed since the execution of the sentence was terminated or since he/she was no longer subject to the execution of the sentence;
(iv) A person whose registration under Article 286 was cancelled pursuant to
the provision of Article 307, paragraph (1), without three years having
elapsed since the date of the cancellation (including, where the cancellation of registration was made against a juridical person, a person who had been an officer of the juridical person at any time during the thirty days prior to
the date of the cancellation, without three years having elapsed since that
date), or a person against whom a similar registration under the provision of a foreign law or regulation equivalent to this Act was canceled in the foreign state concerned (including any permission or other administrative measures similar to the registration; hereinafter referred to as "Registration, etc." in
this item), without three years having elapsed since the date of the
cancellation (including, where the cancellation of Registration, etc. was made against a juridical person, a person who had been an officer of the juridical
person at any time during the thirty days prior to the date of the cancellation, without three years having elapsed since that date);
(v) An adult ward or person under curatorship, or any other person receiving a similar treatment under a foreign law or regulation;
(vi) A person who had committed any extremely inappropriate act in connection
with Insurance Solicitation activities during the three years prior to the date of application;
(vii) An Insurance Company, etc. or Foreign Insurance Company, etc., any of its officers (other than an officer who is also an Insurance Solicitor), or an
Insurance Solicitor (for an employee of a Non-Life Insurance Agent, limited to those carrying out Insurance Solicitation activities);
(viii) An individual whose employees carrying out Insurance Solicitation
activities include at least one person falling under any of the preceding items;
(ix) A juridical person whose officers or employees carrying out Insurance
Solicitation activities include at least one person falling under any of items
(i) to (vii) inclusive; or
(x) A person who does not have sufficient capacity to carry on Insurance
Solicitation business in an appropriate manner.
(2) The Prime Minister shall, when he/she intends to refuse an application for
registration pursuant to the provision of the preceding paragraph, notify the Applicant thereof in advance and require the appearance of the Applicant or his/her representative at an opinion hearing to be held by an official
designated by the Prime Minister in order to provide an opportunity to produce any further evidence in support of the application.
(3) In the case referred to in the preceding paragraph, the Prime Minister may refuse an application without hearing any opinion, if the person summoned for the hearing fails to appear without any justifiable ground.
(4) The Prime Minister shall notify to the Applicant without delay and in writing
any refusal of application pursuant to the provision of the preceding three paragraphs.
(Report, etc. of Change, etc.)
Article 290 (1) When an Insurance Broker falls under any of the following items, the person specified in the relevant item shall file a report with the Prime
Minister without delay to that effect:
(i) Any change in the matters listed in the items of Article 287, paragraph (1):
the Insurance Broker affected by the change;
(ii) Abolition of Insurance Solicitation business: the individual who served as the Insurance Broker or the officer representing the juridical person that served as the Insurance Broker;
(iii) Death of any individual serving as the Insurance Broker: his/her heir; (iv) Decision of commencement of bankruptcy proceedings regarding any
juridical person serving as an Insurance Broker: its bankruptcy trustee;
(v) Extinction of any juridical person serving as an Insurance Broker through merger (for an association or foundation that is not a juridical person, any
act equivalent to merger; the same shall apply in the following item): the person who served as the officer representing the juridical person; or
(vi) Dissolution of any juridical person serving as an Insurance Broker (for an association or foundation that is not a juridical person, any act equivalent to dissolution) for a reason other than merger or decision of commencement of
bankruptcy procedures: its liquidator (for an association or foundation that is not a juridical person, its representative person or the person who served as
its manager).
(2) The Prime Minister shall, when he/she has received any report under the
preceding paragraph for the reason provided in item (i), record the reported matter on the registry of Insurance Brokers.
(3) Registration of an Insurance Broker shall lose its effects if and when the broker falls under any of paragraph (1), items (ii) to (vi) inclusive.
(Security Deposit)
Article 291 (1) An Insurance Broker shall lodge a security deposit with the deposit office located nearest to its principal office.
(2) The security deposit as set forth in the preceding paragraph shall be in an amount specified by a Cabinet Order, taking into consideration the business characteristics of the Insurance Broker and the necessity of protecting
Policyholders, etc.
(3) An Insurance Broker may, when he/she has concluded a contract stipulating that a required amount of security deposit be lodged for the Insurance Broker by order of the Prime Minister pursuant to the provisions of a Cabinet Order and has notified the Prime Minister thereof, withhold in whole or in Part the
security deposit under paragraph (1) regarding the amount to be deposited
under said contract (hereinafter referred to as the "Contract Amount" in this
Article), so long as the contract remains in effect.
(4) The Prime Minister may, when he/she finds it necessary for the protection of
Policyholders, etc., order a person who has concluded with an Insurance Broker a contract as set forth in the preceding paragraph or the Insurance Broker
concerned to lodge a deposit in an amount corresponding to the whole or Part
of the Contract Amount.
(5) An Insurance Broker shall not act as an intermediary in concluding an insurance contract, unless he/she has lodged the security deposit under
paragraph (1) (including the conclusion of a contract under paragraph (3)) and has notified the Prime Minister thereof.
(6) A Policyholder who entrusted an Insurance Broker with act as an
intermediary s in concluding an insurance contract, the insured covered by the insurance contract or the Beneficiary of the insurance contract shall, with
regard to any credit arising out of any such acting as an intermediary in
concluding the insurance contract, have a priority claim over other creditors on the security deposit lodged by the Insurance Broker.
(7) Any other necessary matter in enforcing a claim as set forth in the preceding paragraph shall be specified by a Cabinet Order.
(8) An Insurance Broker shall, when the amount of his/her security deposit
(including the Contract Amount; the same shall apply in paragraph (10)) falls
below the amount specified by a Cabinet Order under paragraph (2) for reasons such as the enforcement of a claim under paragraph (6), compensate for the
shortfall within two weeks from the date specified by a Cabinet Office
Ordinance (including the conclusion of a contract under paragraph (3); the same shall apply in Article 319, item (xii)), and notify the Prime Minister
thereof without delay.
(9) The security deposit to be lodged pursuant to the provision of paragraph (1) or the preceding paragraph may be in the form of a national government bond,
local government bond or any other securities specified by a Cabinet Office
Ordinance.
(10) The security deposit lodged pursuant to the provision of paragraph (1), (4) or (8) may be fully or Partly recovered with the Prime Minister's authorization, if and when:
(i) Any of the items (ii) to (vi) inclusive of paragraph (1) of the preceding
Article applies;
(ii) The relevant registration is canceled pursuant to the provision of Article
307, paragraph (1) or (2) ; or
(iii) The security deposit exceeds the amount specified by a Cabinet Order under paragraph (2) for reasons such as changing business characteristics.
(11) The Prime Minister may, in giving an authorization as set forth in the
preceding paragraph, designate a period for the recovery and the recoverable
amount of the security deposit, within the limit that he/she finds necessary for ensuring the payment of any claim that has arisen out of the acting as an
intermediary in concluding an insurance contract.
(12) In addition to what is provided for in the preceding paragraphs, any
necessary matter relating to security deposits shall be specified by a Cabinet
Office Ordinance/Ordinance of the Ministry of Justice.
(Insurance Brokers Liability Insurance Contract)
Article 292 (1) An Insurance Broker who has concluded an Insurance Broker's
liability insurance contract pursuant to the provisions of a Cabinet Order may, with the Prime Minister's authorization, withhold in whole or in Part the
security deposit to be lodged under paragraph (1) of the preceding Article
(including the conclusion of a contract under paragraph (3) of that Article; the same shall apply in the following paragraph) depending on the amount insured by the contract, so long as the contract remains in effect.
(2) The Prime Minister may, when he/she finds it necessary for the protection of
Policyholders, etc., order an Insurance Broker who has concluded an Insurance
Broker's liability insurance contract as set forth in the preceding paragraph to lodge in whole or in Part that Part of the security deposit under paragraph (1) of the preceding Article which may be withheld.
(3) In addition to what is provided for in the preceding two paragraphs, any
necessary matter relating to Insurance Brokers liability insurance contracts shall be specified by a Cabinet Office Ordinance.
(Application mutatis mutandis of the Commercial Code)
Article 293 The provisions of Articles 543, 544 and 546 to 550 inclusive
(Brokerage Business) of the Commercial Code shall apply mutatis mutandis to the acting as an intermediary by an Insurance Broker in concluding an
insurance contract in which the insurer is supposed to be a Mutual Company
(including a Foreign Mutual Company).
Chapter IV Business
(Explanation to Customer)
Article 294 An Insurance Solicitor shall, when he/she intends to carry out any
Insurance Solicitation business, clearly communicate in advance the following matters to customers:
(i) Trade name or name of the Entrusting Insurance Company, etc.;
(ii) Whether he/she will act as an agent of the Entrusting Insurance Company, etc. or as an intermediary in concluding an insurance contract; and
(iii) Any other matter specified by a Cabinet Office Ordinance.
(Prohibition of Self-Contract)
Article 295 (1) A Non-Life Insurance Agent or Insurance Broker shall not make it his/her primary business purpose to carry out Insurance Solicitation
activities for insurance contracts in which he/she or his/her employer is the
Policyholder or the insured (for an Insurance Broker, limited to those contracts specified by a Cabinet Office Ordinance; referred to as "Self-Contracts" in the
following paragraph).
(2) For the purpose of applying the provision of the preceding paragraph, a Non- Life Insurance Agent or Insurance Broker shall be deemed to have made it
his/her primary business purpose to carry out Insurance Solicitation activities
for Self-Contracts, when the total amount of insurance premiums for the Self- Contracts solicited by the Non-Life Insurance Agent or Insurance Broker, as
calculated pursuant to the provisions of a Cabinet Office Ordinance, exceeds
fifty hundredths of the total amount of insurance premiums for all contracts solicited by the Non-Life Insurance Agent or Insurance Broker, as calculated
pursuant to the provisions of a Cabinet Office Ordinance.
(Clear Indication of Name, etc. of Insurance Broker)
Article 296 (1) An Insurance Broker shall, when he/she intends to act as an
intermediary in concluding an insurance contract, deliver to the customer a
written statement indicating the following matters pursuant to the provisions of a Cabinet Office Ordinance:
(i) Trade name, name and address of the Insurance Broker; (ii) Matters related to the authority of the Insurance Broker;
(iii) Matters related to the liability of the Insurance Broker; and
(iv) In addition to what is listed in the preceding three items, any matter specified by a Cabinet Office Ordinance.
(2) In lieu of the delivery of a written statement under the preceding paragraph, an Insurance Broker may, with the authorization of the customer pursuant to
the provisions of a Cabinet Order, communicate the information to be provided
in the written statement by a method using an electronic data processing
system or any other method using information and communications technology pursuant to the provisions of a Cabinet Office Ordinance. In this case, the
Insurance Broker shall be deemed to have delivered the written statement.
(Information to be Disclosed by Insurance Broker)
Article 297 An Insurance Broker shall, upon request of a customer, disclose the amount of commission, reward or any other consideration that he/she receives for acting as an intermediary in concluding the insurance contract, or any
other matter specified by a Cabinet Office Ordinance.
(Entries in Closing Document)
Article 298 For the purpose of applying the provision of Article 546, paragraph
(1) of the Commercial Code (Obligation to Prepare and Deliver Closing
Document) (including the cases where it is applied mutatis mutandis pursuant to Article 293) to an Insurance Broker, the term "its outline" in the paragraph shall be deemed to be replaced with "the matters specified by a Cabinet Office Ordinance."
(Insurance Broker's Obligation of Good Faith)
Article 299 An Insurance Broker shall act in good faith for the benefit of the customer in acting as an intermediary for the conclusion of an insurance contract.
(Prohibited Acts Pertaining to Conclusion of Insurance Contract or Insurance
Solicitation)
Article 300 (1) An Insurance Company, etc. or Foreign Insurance Company, etc., any officer thereof (other than an officer who is an Insurance Solicitor), an
Insurance Solicitor, or an Insurance Broker or any officer or employee thereof shall not commit any of the following acts in relation to the conclusion of an
insurance contract or Insurance Solicitation activities (for the conclusion of a specified insurance contract provided in the following Article and related act as an agent or intermediary, excluding the non-disclosure of any important
matter stipulated in the insurance contract contained in the provision of item
(i) and the act specified in item (ix):
(i) Make a false statement, or not disclose any important matter stipulated in the insurance contract to the Policyholder or the insured;
(ii) Encourage the Policyholder or the insured to make a false statement on any
important matter to an Insurance Company, etc. or Foreign Insurance
Company, etc.;
(iii) Prevent or discourage the Policyholder or the insured from telling a
material fact to an Insurance Company, etc. or Foreign Insurance Company, etc.;
(iv) Induce the Policyholder or the insured to apply for a new insurance
contract without telling any fact that will work to his/her disadvantage by terminating an already effected insurance contract, or terminate an already effected insurance contract by inducing the Policyholder or the insured to
apply for a new contract;
(v) Promise to offer, or actually offer, to the Policyholder or the insured a
discount or rebate on insurance premiums, or any other special advantage;
(vi) Tell or indicate to the Policyholder or the insured, or any other unspecified person a misleading message regarding the features of an insurance contract in comparison with other contracts;
(vii) Make a conclusive statement, or tell or indicate a misleading message to
the Policyholder, the insured, or an unspecified person so that he/she may believe that a certain amount of money will be obtained in the future as a dividend to Policyholders, dividend of surplus to members or any other
benefit whose amount is specified as uncertain by a Cabinet Office Ordinance. (viii) Induce the Policyholder or the insured to apply for an insurance contract,
knowing that a specified person concerned with the Insurance Company, etc.
or Foreign Insurance Company, etc. (meaning a specified person concerned as set forth in Article 100-3 (including the cases where it is applied mutatis
mutandis pursuant to Article 272-13, paragraph (2); the same shall apply in Article 301) or a specified person concerned as set forth in Article 194, other than an Insurance Holding Company or Small Amount and Short Term
Insurance Holding Company of which the Insurance Company, etc. or
Foreign Insurance Company, etc. is a subsidiary (referred to as "Insurance
Holding Company, etc." hereinafter in this Article as well as in Article 301-2), a subsidiary company of the Insurance Holding Company, etc. (other than an
Insurance Company, etc. or Foreign Insurance Company, etc.), or a person
carrying on Insurance Business) has promised to offer, or actually offered, a special advantage to the Policyholder or the insured.
(ix) In addition to what is listed in the preceding items, any other act specified
by a Cabinet Office Ordinance as posing risk to the protection of
Policyholders, etc.
(2) The provision of the preceding paragraph, item (v) shall not apply where an
Insurance Company, etc. or Foreign Insurance Company, etc. makes such offer based on a document listed in any of the items of Article 4, paragraph (2), the
items of Article 187, paragraph (3) or the items of Article 272-2, paragraph (2).
(Application mutatis mutandis, of the Financial Instruments and Exchange
Act)
Article 300-2 The provision of Chapter III, Section 1, Subsection 5 (excluding
Article 34-2, paragraphs (6) to (8) inclusive (Cases Where a Professional
Investor Will be Deemed to be a Customer Other than Professional Investor) and Article 34-3, paragraphs (5) and (6) (Cases Where a Juridical Person who Is a Customer Other Than Professional Investor Will Be Deemed to Be a
Professional Investor)) (Professional Investor) and Article 45 (excluding items
(iii) and (iv)) (Miscellaneous Provision) of the Financial Instruments and
Exchange Act shall apply mutatis mutandis to the conclusion of a specified insurance contract (meaning an insurance contract specified by a Cabinet
Office Ordinance as entailing the risk of loss due to any change in interest rates, currency values, financial instruments market prices as set forth in
Article 2, paragraph (14) of that Act or any other indicator (meaning the risk
that the total amount of insurance premiums to be paid by the customer
following the conclusion of the insurance contract may exceed the total amount of insurance claims, reimbursements and other benefits to be paid out to the
customer following the conclusion of the contract); hereinafter the same shall apply in this Article) effected by an Insurance Company, etc. or Foreign
Insurance Company, etc., or a contract stipulating any specific act as an
intermediary for the benefit of a customer in concluding a specified insurance contract; the provision of Section 2, Subsection 1 of the same Chapter
(excluding Article 35 to 36-4 inclusive (Scope of Business for Persons Who
Engage in Type 1 Financial Instruments Transaction Business or Investment
Management Business, Scope of Subsidiary Businesses of Persons Who Only
Engage in Type II Financial Instruments Business or Investment Advisory and
Agency Business, Duty of Good Faith to Customers, Posting of Signs,
Prohibition of Name-Lending and Prohibition of Administration of Company
Bonds, etc.), Article 37, paragraph (1), item (ii) (Regulation of Advertising, etc.), Article 37-2 (Obligation to Clarify Conditions of Transactions in Advance),
Article 37-3, paragraph (1), items (ii) and (vi) and Article 37-3, paragraph (3)
(Delivery of Document Prior to Conclusion of Contract), Article 37-5 (Delivery of Document Pertaining to Receipt of Security Deposit), Article 37-6
(Cancellation by a Written Statement), Article 38, items (i) and (ii) and Article
38-2 (Prohibited Acts), the proviso of Article 39, paragraph (3) and Article 39, paragraph (5) (Prohibition of Loss Compensation, etc.), Article 40-2 (Best
Execution Policy, etc.), and Article 40-3 (Prohibition of Sales and Purchase, etc.
Where Separate Management Is not Ensured) (General Rules)) shall apply mutatis mutandis to the conclusion of a specified insurance contract by an
Insurance Company, etc., Foreign Insurance Company, etc., Insurance Solicitor
or Insurance Broker and related act as an agent or intermediary. In this case, the terms "financial instruments transaction contract" and "financial
instruments transaction business" in those provisions shall be deemed to be
replaced with "specified insurance contract, etc.," and "the conclusion of a
specified insurance contract, or any related act as an agent or intermediary," respectively; in Article 34 of that Act, the term "contract to conduct Acts of
Financial Instruments Transaction (meaning acts listed in the items of Article
2, paragraph (8); the same shall apply hereinafter) with a customer as the other party or on behalf of a customer" shall be deemed to be replaced with "effecting a specified insurance contract (meaning a specified insurance
contract provided in Article 300-2 of the Insurance Business Act; the same shall apply hereinafter) or acting as an intermediary for the benefit of a
customer in concluding a specified insurance contract"; in Article 37,
paragraph (2) of that Act, the term "carrying out Financial Instruments and
Exchange Activities" shall be deemed to be replaced with "concluding specified
insurance contracts"; in Article 37-3, paragraph (1) of that Act, the term "when it intends to conclude a financial instruments transaction contract" shall be
deemed to be replaced with "when it intends to conclude a financial
instruments transaction contract or acts as an agent or intermediary in
concluding a specified insurance contract" and the term "the following matters" with "the following matters and any other important matter stipulated by an
insurance contract provided in Article 300, paragraph (1), item (i) of the
Insurance Business Act"; in Article 37-3, paragraph (1), item (i) of that Act, the term "Financial Instruments Business Operators, etc." shall be deemed to be replaced with "Insurance Company, etc. (meaning an Insurance Company, etc. as defined in Article 2-2, paragraph (1) of the Insurance Business Act), Foreign Insurance Company, etc. (meaning a Foreign Insurance Company, etc. as defined in Article 2, paragraph (7) of that Act) or Insurance Broker (meaning
an Insurance Broker as defined in paragraph (25) of the same Article)
concluding a specified insurance contract, etc."; in Article 37-3, paragraph (1), item (v) of that Act, the term "financial instruments transaction business
carried out" shall be deemed to be replaced with "specified insurance contract concluded"; in Article 38, paragraph (1) of that Act, the term "employee" shall be deemed to be replaced with "employee (excluding an Insurance Solicitor as defined in Article 2, paragraph (23) of the Insurance Business Act; the same shall apply in Article 39, paragraph (3))"; in Article 39, paragraph (1), item (i) of that Act, the term "sales and purchase and any other transaction of
Securities (excluding sales and purchase on condition of repurchase for which
the repurchase price is set in advance and other transactions specified by a
Cabinet Order) or of Derivative Transactions (hereinafter referred to as "Sales and Purchase or Other Transaction of Securities, etc." in this Article)" shall be deemed to be replaced with "the conclusion of a specified insurance contract",
the term "securities or derivative transaction (hereinafter referred to as
"securities, etc." in this Article)" with "specified insurance contract," the term
"customer (in the case where a Trust Company, etc. (meaning a trust company or financial institution that has obtained authorization under Article 1,
paragraph (1) of the Act on Provision, etc. of Trust Business by Financial
Institutions; the same shall apply hereinafter) conducts sales and purchase of Securities or Derivative Transactions for the account of the person who sets a trust under a trust contract, including said person who sets the trust;
hereinafter the same shall apply in this Article)" with "the customer," the term
"loss" with "loss (meaning, where the total amount of insurance premiums to be paid by the customer following the conclusion of the specified insurance
contract exceeds the total amount of insurance claims, reimbursements and other benefits to be paid out to the customer following the conclusion of the
contract, the total amount of premium payment subtracted by the total amount
of insurance claims, reimbursements and other benefits; hereinafter the same
shall apply in this Article)," and the term "to supplement" with "to supplement, outside the stipulations of the specified insurance contract"; in Article 39,
paragraph (1), items (ii) and (iii) of that Act, the term "securities sales
transaction, etc." shall be deemed to be replaced with "the conclusion of a specified insurance contract," the term "securities, etc." with "specified
insurance contract," and the term "to add to" with "to add to, outside the
stipulations of the specified insurance contract"; in Article 39, paragraph (2) of that Act, the term "securities sales transaction, etc." shall be deemed to be
replaced with "the conclusion of a specified insurance contract"; in Article 39,
paragraph (3) of that Act, the term "determined by a Cabinet Office Ordinance as a potential cause" shall be deemed to be replaced with "a potential cause"; in Article 40, item (i) of that Act, the term "financial instruments transaction
business" with "the conclusion of a specified insurance contract, etc."; in Article
45, item (ii) of that Act, the term "Article 37-2 to 37-6 inclusive, Article 40-2, paragraph (4) and Article 43-4" shall be deemed to be replaced with "Articles
37-3 (as far as any of the matters listed in the items of Article 37-3, paragraph
(1) is concerned, excluding Article 37-3, paragraph (1), items (ii) and (vi) and
Article 37-3, paragraph (3)) and 37-4"; and any other necessary technical replacement of terms shall be specified by a Cabinet Order.
Article 301 An Insurance Company, etc. or Foreign Insurance Company, etc. shall not commit or carry out any of the following acts or transactions in
relation to the conclusion of an insurance contract by a specified person concerned with it (meaning a specified person concerned as defined in
Article100-3 (limited to a person carrying on Insurance Business) or, in the
case of a Foreign Insurance Company, etc., a specified person concerned as defined in Article 194 (limited to a person carrying on Insurance Business);
hereinafter the same shall apply in this Article) or any Insurance Solicitation
business pertaining to a specified person concerned with it:
(i) Promise to offer, or actually offer, any special advantage to the Policyholder or the insured in an insurance contract where the specified person concerned is the insurer; or
(ii) Commit or carry out an act or transaction with the specified person
concerned, or with the Policyholder or the insured in an insurance contract
where the specified person concerned is the insurer, provided that the act or transaction is equivalent to that listed in the preceding item and is specified by a Cabinet Office Ordinance as posing a risk of harming the fairness of
Insurance Solicitation activities
Article 301-2 An Insurance Holding Company, etc. and any Subsidiary Company
thereof (other than an Insurance Company, etc. or Foreign Insurance Company, etc.) shall not commit or carry out any of the following acts or transactions in
relation to the conclusion of an insurance contract by any Insurance Company,
etc. or Foreign Insurance Company, etc. which is a Subsidiary Company of the
Insurance Holding Company, etc., or to any Insurance Solicitation business
pertaining to the Insurance Company, etc. or Foreign Insurance Company, etc.: (i) Promise to offer, or actually offer, any special advantage to the Policyholder or the insured in an insurance contract where the Insurance Company, etc.
or Foreign Insurance Company, etc. is the insurer; or
(ii) Commit or carry out an act or transaction with the Policyholder or the insured in an insurance contract where the Insurance Company, etc. or Foreign Insurance Company, etc. is the insurer, provided that the act or
transaction is equivalent to that listed in the preceding item and is specified
by a Cabinet Office Ordinance as posing a risk of harming the fairness of
Insurance Solicitation.
Chapter V Supervision
(Notification Pertaining to Directors and Employees)
Article 302 A Non-Life Insurance Agent, Small-Claims and Short-Term
Insurance Solicitor or Insurance Broker shall, when it intends to appoint any of its officers or employees to act as an Insurance Solicitor (limited to a
specified Small Amount and Short Term Insurance Solicitor for an officer or
employee of a Small Amount and Short Term Insurance Solicitor), notify the person's name and birth date to the Prime Minister. The same shall apply to
any change in the matters thus notified, the cessation of Insurance Solicitation
activities by any of the officers or employees covered by the notification, and the death of any such person.
(Preservation of Books and Documents)
Article 303 An Insurance Broker shall, pursuant to the provisions of a Cabinet
Office Ordinance, prepare at each of its offices books and documents pertaining to its business, and record for each Policyholder the date of an insurance
contract and any other matter specified by a Cabinet Office Ordinance for preservation.
(Submission of Business Report)
Article 304 An Insurance Broker shall, pursuant to the provisions of a Cabinet
Office Ordinance, prepare a business report for each business year and submit it to the Prime Minister within three months from the end of the previous
business year.
(On-Site Inspection, etc.)
Article 305 The Prime Minister may, within the limit necessary for the enforcement of this Act, order a specified Insurance Solicitor or Insurance Broker to submit any report or data that should serve as a reference on its
business or property, or direct the personnel in charge to enter an office of the
specified Insurance Solicitor or Insurance Broker to inspect the condition of its business or property or books and documents and other materials, or to ask
questions of relevant persons.
(Order for Improvement of Business Operation)
Article 306 When the Prime Minister finds, with regard to the business of a
specified Insurance Solicitor or Insurance Broker, any fact that might harm the interest of Policyholders, etc., he/she may order, within the limit necessary for
the protection of Policyholders, etc., the specified Insurance Solicitor or
Insurance Broker to take necessary measures to improve its business.
(Cancellation of Registration, etc.)
Article 307 (1) The Prime Minister may cancel the registration of a specified Insurance Solicitor or Insurance Broker under Article 276 or 286 above, or order total or Partial suspension of its business for a period not exceeding six months when:
(i) The specified Insurance Solicitor falls under any of Article 279, paragraph
(1), items (i) to (iii) inclusive, item (iv) (limited to the segment referring to any provision of a foreign law or regulation equivalent to this Act), item (v), (vii), (viii) (excluding the reference to Article 279, paragraph (1), item (vi)),
item (ix) (excluding the reference to Article 279, paragraph (1), item (vi)),
item (x) or (xi), or the Insurance Broker falls under any of Article 289,
paragraph (1), items (i) to (iii) inclusive, item (iv) (limited to the segment referring to "any provision of a foreign law or regulation equivalent to this
Act"), item (v), (vii), (viii) (excluding the reference to Article 279, paragraph
(1), item (vi)), item (ix) (excluding the reference to Article 279, paragraph (1), item (vi)) or item (x);
(ii) The registration under Article 276 or 286 was obtained by wrongful means;
or
(iii) The specified Insurance Solicitor or Insurance Broker violates any
provision of this Act or any measures made by the Prime Minister under this Act, or is found to have committed any other extremely inappropriate act in soliciting insurance.
(2) The Prime Minister may, when he/she cannot ascertain the location of the office of a specified Insurance Solicitor or Insurance Broker, or the
whereabouts of a specified Insurance Solicitor or Insurance Broker (in the case of a juridical person, the whereabouts of the director who represents the
juridical person), publicly notify that fact and cancel the registration of the
specified Insurance Solicitor or Insurance Broker if the person does not report
within thirty days from the date of the public notice, pursuant to the provisions of a Cabinet Office Ordinance.
(3) The provision of Chapter III of the Administrative Procedure Act (Adverse
Dispositions) shall not apply to any measures under the preceding paragraph.
(Deregistration, etc.)
Article 308 (1) The Prime Minister shall deregister a specific Insurance Solicitor or Insurance Broker when
(i) He/she has canceled, pursuant to the provision of paragraph (1) or (2) of the preceding Article above, any registration under Article 276 or 286 above; or
(ii) Any registration under Article 276 has lost its effect pursuant to the
provision of Article 280, paragraph (3), or any registration under Article 286 has lost its effect pursuant to the provision of Article 290, paragraph (3).
(2) The Prime Minister shall, when he/she has deregistered a specified Insurance Solicitor pursuant to the provision of the preceding paragraph, notify thereof to the Entrusting Insurance Company, etc. of the specified Insurance Solicitor. In
this case, the Entrusting Insurance Company, etc. shall delete the entries
pertaining to the specified Insurance Solicitor from the registry stipulated in
Article 285, paragraph (1).
Part IV Miscellaneous Provisions
(Revocation of Application for Insurance Contract, etc.)
Article 309 (1) Any person that has made an application for an insurance
contract to an Insurance Company, etc. or a Foreign Insurance Company, etc., or any of the Policyholders of such company (hereinafter referred to as
"Applicant, etc." in this Article) may revoke or cancel the application in writing
(hereinafter referred to as "Revocation of Application, etc." in this Article), unless:
(i) Where a document describing the matters concerning the Revocation of
Application, etc. for an insurance contract was issued to the Applicant, etc. pursuant to the provisions of a Cabinet Office Ordinance, eight days have
elapsed counting from the issue date of such document or the date of application, whichever is later;
(ii) The Applicant, etc. has made the application to conclude an insurance contract for the purpose of, or on behalf of, its operation or business;
(iii) The application was made by a general incorporated association or general
incorporated foundation, a juridical person formed under a special Act, a
non-incorporated association or foundation with a designated representative or administrator, or the national government or a local government;
(iv) The insurance contract has an insurance period of one year or less;
(v) The Applicant, etc. is required to take out the insurance contract by a law or regulation; or
(vi) The Applicant, etc. applied for the insurance contract at a business office or any other office or facility of the Insurance Company, etc., Foreign
Insurance Company, etc., specified insurance solicitor or Insurance Broker,
or the whole situation falls under any of the other cases to be specified by a
Cabinet Order as posing no risk to the protection of the Applicant, etc.
(2) In the case referred to in item (i) of the preceding paragraph, an Insurance Company, etc. or Foreign Insurance Company, etc. may, in lieu of issuing of the document set forth in that item, provide the matters to be described in the
document by a method using an electronic data processing system or any other method using information and communication technology to be specified by a
Cabinet Office Ordinance, pursuant to the provisions of a Cabinet Order and with the approval of the Applicant, etc. In this case, the Insurance Company, etc. or Foreign Insurance Company, etc. shall be deemed to have issued that document.
(3) Where the method set forth in the first sentence of the preceding paragraph
(other than the method to be specified by a Cabinet Office Ordinance) is used
in lieu of issuing the document set forth in paragraph (1), item (i), the matters to be described in that document shall be deemed to have arrived to the
Applicant, etc. when they are recorded on a file stored in the computer used by the Applicant, etc.
(4) The Revocation of Application, etc. for an insurance contract shall take effect when the document pertaining to the Revocation of Application, etc. is issued.
(5) In the case of Revocation of Application, etc. for an insurance contract, the
Insurance Company, etc. or Foreign Insurance Company, etc. may not demand from the Applicant, etc. payment of any damage, penalty or other money for
the Revocation of Application, etc.; provided, however, that this shall not apply,
in the case of revocation of an insurance contract under paragraph (1), to the amount of money specified by a Cabinet Office Ordinance as equivalent to the insurance premium for the period leading to the date of such revocation.
(6) In the case of Revocation of Application, etc. for an insurance contract, the
Insurance Company, etc. or Foreign Insurance Company, etc. shall promptly refund to the Applicant, etc. any money received in connection with the
insurance contract; provided, however, that this shall not apply, in the case of revocation of an insurance contract under paragraph (1), to that part of the money received as prepayment of the insurance premium pertaining to the
insurance contract which corresponds to the amount set forth in the preceding
paragraph specified by a Cabinet Office Ordinance.
(7) In the case of Revocation of Application, etc. for an insurance contract, the specified insurance solicitor or any other person carrying out Insurance
Solicitation activity shall promptly refund to the Applicant, etc. any money received in connection with the insurance contract.
(8) An Insurance Broker or any other person carrying out Insurance Solicitation activity that has paid to the Insurance Company, etc. or Foreign Insurance Company, etc. any damage or other money for the Revocation of Application,
etc. for an insurance contract may not, in connection with such payment,
demand from the person who made the Revocation of Application, etc. payment of any damage or other money.
(9) The Revocation of Application, etc. for an insurance contract shall not take effect where any event that gives rise to an insurance claim has occurred by
the time of such Revocation of Application, etc.; provided, however, that this shall not apply where the person who made the Revocation of Application, etc. knew that an event giving rise to an insurance claim had occurred by the time of such Revocation of Application, etc.
(10) Any special provision in an insurance contract that violates any of the
provisions of paragraphs (1) and (4) to (9) inclusive shall be null and void if it is disadvantageous to the Applicant, etc.
(Condition for Authorization, etc.)
Article 310 (1) The Prime Minister, or the Prime Minister and the Minister of
Finance, may impose conditions on any authorization, permission or approval
(referred to as "Authorization, etc." in the following paragraph and Article 312)
prescribed in this Act or change them.
(2) The conditions set forth in the preceding paragraph shall, in light of the
purpose of the Authorization, etc., be the minimum necessary for ensuring assured implementation of matters pertaining to the Authorization, etc..
(Carrying and Showing of Identification card by Inspecting Personnel, etc.) Article 311 (1) The personnel who make an entry, ask questions or conduct
inspection under Article 122-2, paragraph (4), Article 129 (including the cases where it is applied mutatis mutandis pursuant to Article 179, paragraph (2) and Article 271, paragraph (3)), Article 201 (including the cases where it is
applied mutatis mutandis pursuant to Article 212, paragraph (6) and Article
271, paragraph (3)), Article 227 (including the cases where it is applied mutatis mutandis pursuant to Article 235, paragraph (5) and Article 271, paragraph
(3)), Article 265-46, Article 271-9, Article 271-13 (including the cases where it
is applied mutatis mutandis pursuant to Article 272-34, paragraph (1)), Article
271-28 (including the cases where it is applied mutatis mutandis pursuant to Article 272-40, paragraph (2)), Article 272-23 (including the cases where it is applied mutatis mutandis pursuant to Article 179, paragraph (2) and Article
271, paragraph (3)) or Article 305 shall carry their identification cards with
them and show it on the request of a relevant person.
(2) The authority to make an entry, ask questions or conduct inspection
prescribed in the preceding paragraph shall not be construed as given for any criminal investigation.
(Consultation with Minister of Finance)
Article 311-2 (1) The Prime Minister shall, when he/she gives any of the
following dispositions against an Insurance Company, etc., a Foreign Insurance
Company, etc. or a licensed specified juridical person poses the risk of making a serious impact on the maintenance of the credibility of the Insurance
Business, consult in advance with the Minister of Finance on the necessary measures for maintaining the credibility of the Insurance Business:
(i) An order for total or partial suspension of business under Article 132,
paragraph (1), Article 133, Article 204, paragraph (1), Article 205, Article
230, paragraph (1), Article 231, Article 241, paragraph (1), Article 271-30, paragraph (1) or (4) (including the cases where it is applied mutatis
mutandis pursuant to Article 272-40, paragraph (2)), or Article 272-26, paragraph (1);
(ii) An order for suspension of business under Article 240-3;
(iii) Cancellation of the license set forth in Article 3, paragraph (1), Article 185, paragraph (1) or Article 219, paragraph (1), or the registration set forth in
Article 272, paragraph (1) under Article 133, Article 134, Article 205, Article
206, Article 231, Article 232, Article 272-26, paragraph (1) or Article 272-27;
or
(iv) A disposition ordering the administration of business and property by an
Insurance Administrator under Article 241, paragraph (1).
(2) The Prime Minister shall, when he/she finds that if a Corporation carried on any of the businesses listed in the following items pursuant to his/her
disposition listed in the relevant item, the condition of the funds available to
the Corporation would deteriorate extremely, thus posing the risk of making a serious impact on the maintenance of the credibility of the Insurance Business, consult in advance with the Minister of Finance on the necessary measures for maintaining the credibility of the Insurance Business:
(i) The authorization set forth in Article 268, paragraph (1), Article 270,
paragraph (1), Article 270-3-12, paragraph (1) or Article 270-6-3, paragraph
(1), or the supplementary note set forth in Article 269, paragraph (1), Article
270-3-13, paragraph (3) or Article 270-6-4, paragraph (3): the Financial
Assistance set forth in Article 265-28, paragraph (1), item (iii) for transfer, etc. of insurance contracts (referring to the transfer, etc. of insurance
contracts set forth in Article 260, paragraph (1)), succession of insurance
contracts (referring to the succession of insurance contracts set forth in
Article 260, paragraph (7)), re-succession of insurance contracts (referring to the re-succession of insurance contracts set forth in Article 260, paragraph
(8)) or retransfer of insurance contracts (referring to the retransfer of insurance contracts set forth in Article 260, paragraph (11)); or
(ii) The authorization set forth in Article 270, paragraph (1): the Underwriting
of Insurance Contracts set forth in Article 265-28, paragraph (1), item (v).
(Notice to Minister of Finance)
Article 311-3 (1) The Prime Minister shall, when he/she has made any of the following dispositions, promptly notify thereof to the Minister of Finance:
(i) The license set forth in Article 3, paragraph (1), Article 185, paragraph (1)
or Article 219, paragraph (1), or the registration set forth in Article 272, paragraph (1);
(ii) The authorization or approval set forth in Article 106, paragraph (4)
(limited to the cases where the applicant intends to make a subsidiary of an Insurance Company that falls under the category of Bankrupt Insurance Company as defined in Article 260, paragraph (2) or any other Insurance Company specified by a Cabinet Office Ordinance/Ordinance of the Ministry of Finance), Article 139, paragraph (1) (including the cases where it is
applied mutatis mutandis pursuant to Article 272-29), Article 142 (including
the cases where it is applied mutatis mutandis pursuant to Article 272-30,
paragraph (1)), Article 153, paragraph (1), Article 167, paragraph (1), Article
208, Article 233, Article 271-10, paragraph (1), the proviso to Article 271-10, paragraph (2), Article 271-18, paragraph (1), the proviso to Article 271-18,
paragraph (3), Article 271-31, paragraphs (1) to (3) inclusive, Article 272-31,
paragraph (1), the proviso to Article 272-31, paragraph (2), Article 272-35, paragraph (1) or the proviso to Article 272-35, paragraph (3);
(iii) Giving of an order (including any request for the submission of an
improvement program) set forth in Article 132, paragraph (1), Article 133, Article 204, paragraph (1), Article 205, Article 230, paragraph (1), Article
231, Article 240-3, Article 241, paragraph (1), Article 247, paragraph (5),
Article 258, paragraph (1), Article 271-6, Article 271-7, Article 271-10,
paragraph (4), Article 271-14 (including the cases where it is applied mutatis mutandis pursuant to Article 272-34, paragraph (1)), Article 271-15, Article
271-16, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 272-34, paragraph (1), Article 271-18,
paragraph (5), Article 271-29 or Article 271-30, paragraph (1) or (4)
(including the cases where any of those provisions is applied mutatis mutandis pursuant to Article 272-40, paragraph (2)), Article 272-25,
paragraph (1), Article 272-26, paragraph (1) or (2), Article 272-31, paragraph
(4), or Article 272-35, paragraph (5);
(iv) Rescission of the license set forth in Article 3, paragraph (1), Article 185, paragraph (1) or Article 219, paragraph (1) pursuant to the provision of
Article 133, 134, 205, 206, 231 or 232, or cancellation of the registration set
forth in Article 272, paragraph (1) pursuant to the provision of Article 272-26, paragraph (1) or Article 272-27;
(v) Rescission of the authorization set forth in Article 271-10, paragraph (1) or the proviso to Article 271-10, paragraph (2) pursuant to the provision of
Article 271-16, paragraph (1), rescission of the authorization set forth in
Article 271-18, paragraph (1) or the proviso to Article 271-18, paragraph (3)
pursuant to the provision of Article 271-30, paragraph (1), rescission of the
approval set forth in Article 272-31, paragraph (1) or the proviso to Article
272-31, paragraph (2) pursuant to the provision of Article 271-16, paragraph (1) as applied mutatis mutandis pursuant to Article 272-34, paragraph (1), or rescission of the approval set forth in Article 272-35, paragraph (1) or the
proviso to Article 272-35, paragraph (3) pursuant to the provision of Article
271-30, paragraph (1) as applied mutatis mutandis pursuant to Article 272-
40, paragraph (2);
(vi) Any disposition ordering the administration of business and property by an
Insurance Administrator under Article 241, paragraph (1); or
(vii) The approval set forth in Article 247, paragraph (2) or (4).
(2) The Prime Minister shall, when a notification was made under any of the
following provisions (for a notification made under the provision listed in item
(i) or (iv), limited to a notification pertaining to the cases specified by a
Cabinet Office Ordinance/Ordinance of the Ministry of Finance), promptly notify thereof to the Minister of Finance:
(i) Article 127, paragraph (1) (limited to the segment pertaining to item (viii) of that paragraph);
(ii) Article 209 (limited to the segment pertaining to items (v) to (viii) inclusive
of that Article);
(iii) Article 234 (limited to the segment pertaining to items (iv) to (vii) inclusive of that Article); or
(iv) Article 272-21, paragraph (1) (limited to the segment pertaining to item
(vi)).
(Submission of Materials to Minster of Finance, etc.)
Article 311-4 (1) The Minister of Finance shall, when he/she finds it necessary for planning or drafting a system pertaining to the Insurance Business in
connection with the financial bankruptcy processing system and financial crisis management under his/her jurisdiction, request to the Prime Minister
submission of materials and provision of explanation necessary.
(2) The Minister of Finance may, when he/she finds it particularly necessary for designing or planning a system pertaining to the Insurance Business in
connection with the financial bankruptcy processing system and financial crisis
management under his/her jurisdiction, request an Insurance Company, etc., a
Foreign Insurance Company, etc., the general agent of a licensed specified juridical person (referring to the general agent set forth in Article 219,
paragraph (1)), an insurance major shareholder, an Insurance Holding
Company, a Major Shareholder of Small Amount and Short Term Insurance
Provider, a Small Amount and Short Term Insurance Holding Company or any other relevant person to submit materials or to provide explanations or other
cooperation.
(Delegation to Cabinet Office Ordinance, etc.)
Article 312 In addition to what is prescribed in this Act, the procedures for
application and submission of documents for Authorization, etc. under this Act and any other matter required for implementing this Act shall be specified by a Cabinet Office Ordinance (or Cabinet Office Ordinance/Ordinance of the
Ministry of Finance for any matter pertaining to a Corporation and its
business).
(Delegation of Authority)
Article 313 (1) The Prime Minister shall delegate his/her authority under this
Act (excluding those specified by a Cabinet Order) to the Commissioner of the
Financial Services Agency
(2) The Commissioner of the Financial Services Agency may, pursuant to the provisions of a Cabinet Order, delegate part of the authority that has been delegated pursuant to the provisions of the preceding paragraph to the
Director-Generals of Local Finance Bureaus or Local Finance Branch Offices.
(Transitional Measures)
Article 314 When enacting, revising or abolishing an order pursuant to this Act, necessary transitional measures (including transitional measures concerning penal provisions) may be provided for by that order, to the extent considered reasonably necessary for its enactment, revision or abolition.
Part V Penal Provisions
Article 315 Any person who falls under any of the following items shall be
punished by imprisonment with work for not more than three years or a fine of not more than three million yen, or both:
(i) A person who has conducted Insurance Business without obtaining the
license of the Prime Minister, in violation of the provisions of Article 3, paragraph (1);
(ii) A person who had another person conduct Insurance Business in violation
of Article 7-2 (including the cases where it is applied mutatis mutandis pursuant to Article 199);
(iii) A person who has obtained the registration set forth in Article 272,
paragraph (1) by wrongful means;
(iv) A person who had another person to conduct Small Amount and Short
Term Insurance Business in violation of Article 272-9; and
(v) Any person who has violated the provision of Article 39, paragraph (1) of
the Financial Instruments and Exchange Act, as applied mutatis mutandis
pursuant to Article 300-2.
Article 315-2 In any of the following cases of violation, a person who has
committed the violation shall be punished by imprisonment with work for not more than two years or a fine of amount more than three million yen, or both: (i) When a person has, without obtaining the authorization of the Prime
Minister under the provision of Article 271-18, paragraph (1), by any of the
trades or acts listed in the items of the same paragraph, become a holding
company of which an Insurance Company is a subsidiary, or incorporated a holding company of which an Insurance Company is a subsidiary;
(ii) When the person had been, in violation of Article 271-18, paragraph (3), a holding company of which an Insurance Company is a Subsidiary Company beyond the Grace Deadline prescribed in the same paragraph;
(iii) When the person had been a holding company of which an Insurance
Company is a Subsidiary Company in violation of the order under the
provision of Article 271-18, paragraph (5), or when the person had been, in violation of Article 271-30, paragraph (2), a holding company of which an
Insurance Company is a Subsidiary Company beyond the period of time
designated by the Prime Minister prescribed in the same paragraph;
(iv) When the person has, without obtaining the approval of the Prime Minister under the provision of Article 272-35, paragraph (1), by any of the trades or
acts listed in the items of the same paragraph, become a holding company of which a Small Amount and Short Term Insurance Provider is a Subsidiary Company, or incorporated a holding company of which a Small Amount and
Short Term Insurance Provider is a Subsidiary Company;
(v) When the person had been, in violation of Article 272-35, paragraph (3), a holding company of which a Small Amount and Short Term Insurance
Provider is a Subsidiary Company beyond the Grace Deadline prescribed in the same paragraph; and
(vi) When the person had been a holding company of which a Small Amount
and Short Term Insurance Provider is a Subsidiary Company in violation of the order under the provision of Article 272-35, paragraph (5), or when the
person had been, in violation of the provision of Article 271-30, paragraph (2),
as applied mutatis mutandis pursuant to Article 272-40, paragraph (2), a holding company of which a Small Amount and Short Term Insurance
Provider is a Subsidiary Company beyond the period of time designated by
the Prime Minister prescribed in the same paragraph.
Article 316 Any person who falls under any of the following items shall be
punished by imprisonment with work for not more than two years or a fine of not more than three million yen, or both:
(i) Any person who has violated the conditions imposed pursuant to the
provisions of Article 5, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 187, paragraph (5)) or Article 221,
paragraph (2);
(ii) Any person who has violated the order for the whole or partial suspension
of the business under the provision of Article 132, paragraph (1), Article 133, Article 204, paragraph (1), Article 205, Article 230, paragraph (1), Article
231, Article 241, paragraph (1), Article 271-30, paragraph (1) or (4)
(including the cases where it is applied mutatis mutandis pursuant to Article
272-40, paragraph (2)), or Article 272-26, paragraph (1);
(iii) Any person who has violated the order for suspension of the business under the provision of Article 240-3;
(iv) Any person who has violated the provision of Article 186, paragraph (1); (v) Any person who has violated the conditions imposed pursuant to the
provision of Article 188, paragraph (1);
(vi) Any person who has violated the provision of Article 190, paragraph (5), Article 223, paragraph (5), or Article 272-5, paragraph (5); and
(vii) Any person who has conducted business in violation of Article 245
(including the cases where it is applied mutatis mutandis pursuant to Article
258, paragraph (2)), Article 250, paragraph (5) (including the cases where it is applied mutatis mutandis pursuant to Article 270-4, paragraph (9)),
Article 254, paragraph (4), or Article 255-2, paragraph (3).
Article 316-2 Any person who falls under any of the following items shall be
punished by imprisonment with work for not more than one year or a fine of not more than three million yen, or both:
(i) Any person who, in violation of the provision of Article 24, paragraph (1),
item (i), (iii), or (iv) of the Trust Business Act, as applied mutatis mutandis
pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis pursuant to Article 199), has engaged in the acts listed in
the provisions;
(ii) Any person who has violated the provision of Article 29, paragraph (2) of
the Trust Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis
pursuant to Article 199);
(iii) Any person who has failed to submit the report or materials under the
provisions of Article 42, paragraphs (1) to (3) inclusive of the Trust Business
Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8)
(including the cases where it is applied mutatis mutandis pursuant to Article
199), or has submitted a false report or materials; and
(iv) Any person who has failed to answer the questions asked by the officials
under the provisions of Article 42, paragraphs (1) to (3) inclusive of the Trust Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis pursuant to
Article 199) or has made a false answer, or has refused, obstructed, or avoided the inspection under the provisions.
Article 317 A person who falls under any of the following items shall be
punished by imprisonment with work for not more than one year or a fine of not more than three million yen:
(i) Any person who, in violation of Article 110, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 199) or
paragraph (2) (including the cases where it is applied mutatis mutandis
pursuant to Article 272-16, paragraph (3)), Article 195, Article 271-24,
paragraph (1) (including the cases where it is applied mutatis mutandis
pursuant to Article 272-40, paragraph (1)), or Article 272-16, paragraph (1)
or (2), has failed to submit the document or electromagnetic record
prescribed in the provisions, or has submitted a document or electromagnetic record in which the person failed to state or record the matters required to be stated or recorded in the document or electromagnetic record or made a false
statement or record;
(i)-2 Any person who, in violation of Article 111, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 199 and
Article 272-17) or paragraph (2) (including the cases where it is applied
mutatis mutandis pursuant to Article 272-17), or Article 271-25, paragraph
(1) (including the cases where it is applied mutatis mutandis pursuant to
Article 272-40, paragraph (1)), has failed to make the document prescribed in the provisions available for public inspection, or who, in violation of Article
111, paragraph (4) (including the cases where it is applied mutatis mutandis pursuant to Article 199 and Article 272-17) or Article 271-25, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article
272-40, paragraph (1)), has failed to take the measure specified by a Cabinet
Office Ordinance which makes the information recorded in the
electromagnetic record prescribed in Article 111, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article 199 and
Article 272-17) or Article 271-25, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 272-40, paragraph (1))
available to many and unspecified persons by electromagnetic means, or who, in violation of these provisions, has made documents that fail to state the
matters required to be stated or that make a false statements available for
public inspection, or has failed to record the matters required to be recorded in the electromagnetic record or made a false record and took a measure
which makes the information recorded in the electromagnetic record
available to many and unspecified persons by electromagnetic means;
(ii) Any person who has failed to submit the reports or materials under the
provisions of Article 128, paragraph (1) or (2), Article 200, paragraph (1) or (2), Article 226, paragraph (1) or (2), Article 271-8, Article 271-12 (including the cases where it is applied mutatis mutandis pursuant to Article 272-34,
paragraph (1)), Article 271-27, paragraph (1) (including the cases where it is
applied mutatis mutandis pursuant to Article 272-40, paragraph (2)), or
Article 272-22, paragraph (1) or (2), or has submitted false reports or materials;
(iii) Any person who has failed to answer the questions under the provision of
Article 129, paragraph (1) or (2), Article 201, paragraph (1) or (2), Article 227, paragraph (1) or (2), Article 271-9, paragraph (1), Article 271-13, paragraph
(1) (including the cases where it is applied mutatis mutandis pursuant to
Article 272-34, paragraph (1)), Article 271-28, paragraph (1) or (2) (including the cases where it is applied mutatis mutandis pursuant to Article 272-40,
paragraph (2)), or Article 272-23, paragraph (1) or (2), or has made a false answer, or has refused, obstructed, or avoided the inspection under the
provisions;
(iv) Any person who has violated the order under the provision of Article 179, paragraph (1) (including the cases where it is applied mutatis mutandis
pursuant to Article 212, paragraph (5) and Article 235, paragraph (5)); (v) Any person who has failed to submit the reports or materials under the
provision of Article 128, paragraph (1) or Article 272-22, paragraph (1), as
applied mutatis mutandis pursuant to Article 179, paragraph (2), the provision of Article 200, paragraph (1), as applied mutatis mutandis
pursuant to Article 212, paragraph (5), or the provision of Article 226,
paragraph (1), as applied mutatis mutandis pursuant to Article 235, paragraph (5), or has submitted false reports or materials;
(vi) Any person who has failed to answer any question under the provision of
Article 129, paragraph (1) or Article 272-23, paragraph (1), as applied
mutatis mutandis pursuant to Article 179, paragraph (2), the provision of
Article 201, paragraph (1), as applied mutatis mutandis pursuant to Article
212, paragraph (5), the provision of Article 227, paragraph (1), as applied mutatis mutandis pursuant to Article 235, paragraph (5), or Article 129,
paragraph (1), Article 201, paragraph (1), Article 227, paragraph (1), or
Article 272-23, paragraph (1), as applied mutatis mutandis pursuant to Article 271, paragraph (3), or has made a false answer, or has refused, obstructed, or avoided the inspection under the provisions;
(vii) Any person who has violated the order (except for orders for the dismissal
of the director, executive officer, accounting advisor, or company auditor, or
for the full or partial suspension of business) under the provision of Article
271-30, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 272-40, paragraph (2)); and
(viii) Any person who has violated any condition attached pursuant to the provision of Article 310, paragraph (1) (limited to those pertaining to the
authorization under the provision of the proviso of Article 271-18, paragraph
(1) or (3), or the approval under the provision of the proviso of Article 272-35, paragraph (1) or (3)).
Article 317-2 Any person who falls under any of the following items shall be
punished by imprisonment with work for not more than one year or a fine of not more than one million yen, or both:
(i) Any person who, in violation of the provision of Article 11, paragraph (5) of
the Trust Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis
pursuant to Article 199), has commenced an Insurance Claim Trust
Business;
(ii) Any person who has violated the provision of Article 24-2 of the Trust
Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph
(8) (including the cases where it is applied mutatis mutandis pursuant to Article 199), or the provision of Article 39, paragraph (2) of the Financial Instruments and Exchange Act, as applied mutatis mutandis pursuant to Article 300-2.
(iii) Any person who has made false statements and submitted the written
application for registration set forth in Article 272-2, paragraph (1) or document set forth in the same Article, paragraph (2);
(iv) Any person who is not any of the persons listed in the items of Article 275,
paragraph (1) and has engaged in Insurance Solicitation;
(v) A person who has obtained the registration set forth in Article 276 or
Article 286 by wrongful means;
(vi) Any person who has violated the provision of Article 291, paragraph (5);
(vii) Any person who, in violation of Article 300, paragraph (1), has engaged in the acts listed in items (i) to (iii) inclusive of the same paragraph;
(viii) Any person who, in violation of Article 37-3, paragraph (1) (except for
items (ii) and (vi)) of the Financial Instruments and Exchange Act, as applied mutatis mutandis pursuant to Article 300-2, has failed to deliver a document, or has delivered a document that does not state the matters prescribed in the same paragraph or with making a false statements; and
(ix) Any person who has violated the order for the full or partial suspension of
business under the provision of Article 307, paragraph (1).
Article 317-3 In the case referred to in item (ii) in the preceding Article, the property interest received by the offender or a third person who knows the circumstances shall be confiscated. Where it is not possible to confiscate the whole or part of it, the value thereof shall be collected.
Article 318 Any person who has violated the provision of Article 240-10, Article
247-3, or Article 265-21 shall be punished by imprisonment with work for not more than one year or a fine of not more than five hundred thousand yen.
Article 318-2 (1) When the director, executive officer, accounting advisor, company auditor, accounting auditor, or manager or other employee of a Company Being Investigated, or any person who has resigned from these positions has failed to make a report under the provision of Article 240-9,
paragraph (1), or has made a false report, or has refused, obstructed, or evaded the inspection under the provision of the same paragraph, he/she shall be
punished by imprisonment with work for not more than one year or a fine of not more than five hundred thousand yen.
(2) When the director, executive officer, accounting advisor, company auditor,
accounting auditor, or manager or other employee of a Company Being
Managed, or any person who has resigned from these positions has failed to make a report under the provision of Article 247-2, paragraph (1), or has made a false report, or has refused, obstructed, or avoided the inspection under the
provision of the same paragraph, he/she shall be punished by imprisonment with work for not more than one year or a fine of not more than five hundred thousand yen.
Article 319 Any person who falls under any of the following items shall be
punished by imprisonment with work for not more than six months or a fine of not more than five hundred thousand yen, or both:
(i) Any person who, in violation of the provision of Article 11, paragraph (8) of
the Trust Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis
pursuant to Article 199), has failed to Make a Deposit;
(ii) Any person who has failed to indicate the matters prescribed in the
provision of Article 24, paragraph (2) of the Trust Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis pursuant to Article 199), or the
provision of paragraph (1) or Article 37, paragraph (1) (except for item (ii)) of the Financial Instruments and Exchange Act, as supplied mutatis mutandis
pursuant to Article300-2, or has indicated false matters;
(iii) Any person who has violated the provision of Article24-2of the Trust
Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph
(8) (including the cases where it is applies mutatis mutandis pursuant to Article 199), or the provision of Article 37, paragraph (2) of the Financial Instruments and Exchange Act, as applied mutatis mutandis pursuant to Article 300-2;
(iv) Any person who, in violation of the provision of Article 37-3, paragraph (1)
(except for items (ii) to (iv) inclusive and item (vi)) of the Financial
Instruments and Exchange Act, as applied mutatis mutandis pursuant to
Article 24-2 of the Trust Business Act, as applied mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis pursuant to Article 199), has failed to deliver a document, or has
delivered a document that does not state the matters prescribed in the same
paragraph or a document that make false statements;
(v) Any person who has failed to deliver a document under the provision of
Article 26, paragraph (1) of the Trust Business Act, as applied mutatis
mutandis pursuant to Article 99, paragraph (8) (including the cases where it
is applied mutatis mutandis pursuant to Article 199), or has delivered a false document;
(vi) Any person who has failed to deliver a report under the provision of Article
27, paragraph (1) of the Trust Business Act, as applied mutatis mutandis
pursuant to Article 99, paragraph (8) (including the cases where it is applied mutatis mutandis pursuant to Article 199), or has delivered a report that makes a false statement;
(vii) Any person who has failed to deliver a document under the provision of
Article 29, paragraph (3) of the Trust Business Act, as applied mutatis
mutandis pursuant to Article 99, paragraph (8) (including the cases where it
is applied mutatis mutandis pursuant to Article 199), or has delivered a false document;
(viii) Any person who, in violation of Article 190, paragraph (8), has failed to
Make a Deposit for the shortfall set forth in the same paragraph;
(ix) Any person who, in violation of Article 223, paragraph (9), has failed to
Make a Deposit for the shortfall set forth in the same paragraph;
(x) Any person who has made a false statement and submitted a written application for approval set forth in Article 272-36, paragraph (1) or
document set forth in paragraph (2) of the same Article;
(xi) Any person who, in violation of Article 272-5, paragraph (8), has failed to
Make a Deposit for the shortfall set forth in the same paragraph;
(xii) Any person who, in violation of Article 291, paragraph (8), has failed to
deposit the security deposit for the shortfall set forth in the same paragraph;
and
(xiii) Any person who has failed to deliver the document under the provision of
Article 37-4, paragraph (1) of the Financial Instruments and Exchange Act, as applied mutatis mutandis pursuant to Article 300-2, or has delivered a document that makes a false statement.
Article 319-2 A person who falls under any of the following items shall be punished by a fine of not more than five hundred thousand yen:
(i) Any person who has failed to submit the report or materials under the
provision of Article 265-46, or has submitted a false report or materials; (ii) Any person who has failed to answer any question under the provision of
Article 265-46, or has made a false answer, or has refused, obstructed, or avoided the inspection under the provision of the same Article;
(iii) Any person who has failed to make a report under the provision of Article
270-3, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article 270-3-2, paragraph (8), Article 270-3-14,
paragraph (2), Article 270-4, paragraph (7), and Article 270-6-5, paragraph
(2)), Article 270-3-3, paragraph (3), Article 270-3-4, paragraph (4), Article
270-3-6, paragraph (2), Article 270-3-7, paragraph (2), Article 270-3-8,
paragraph (2), Article 270-6-7, paragraph (2), Article 270-6-8, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article
270-6-9, paragraph (3)), Article 270-7, paragraph (4), Article 270-8,
paragraph (4), or Article 270-8-3, paragraph (2), or has made a false report;
and
(iv) Any person who has failed to make a report under the provision of Article
270-3-10, or has made a false report.
Article 320 A person who falls under any of the following items shall be punished by a fine of not more than three hundred thousand yen:
(i) Any person who, without obtaining authorization, has engaged in matters
which require authorization under the provision of Article 102, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article
199);
(i)-2 Any person who has failed to make a report under the provision of Article
122-2, paragraph (4) or has made a false report, or has refused, obstructed, or avoided the inspection under the provision of the same paragraph;
(i)-3 Any person who has failed to submit the materials under the provision of Article 265-31, paragraph (1), Article 266, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 267, paragraph (4)), Article 267, paragraph (2), Article 270-3-11, paragraph (2), Article 270-6-2,
paragraph (2), Article 270-6-6, paragraph (2), and Article 270-8-2, paragraph
(2), or has submitted false materials;
(ii) Any person who has made a false statement and submitted a written
application for registration set forth in Article 277, paragraph (1) or document set forth in the same Article, paragraph (2) or a written
application for registration set forth in Article 287, paragraph (1) or document set forth in the same Article, paragraph (2);
(iii) Any person who has, in violation of Article 303, has failed to keep books
and documents, failed to state the matters prescribed in the same Article in
the books and documents or has made a false statement, or failed to preserve the books and documents;
(iv) Any person who has, in violation of Article 304, failed to submit the
documents prescribed in the same Article, or submitted documents that fail to state the matters required to be stated or that make a false statement;
(v) Any person who has failed to submit the report or materials under the
provision of Article 305, or has submitted false reports or materials;
(vi) Any person who has failed to answer any question under the provision of
Article 305 or has made a false answer, or has refused, obstructed, or avoided the inspection under the provision of the same Article; and
(vii) Any person who has violated the order under the provision of Article 306.
Article 321 (1) When the representative person or agent of a juridical person (including an association or foundation that is not a juridical person and has provisions on representative persons or administrators; hereinafter the same shall apply in this paragraph) or representative, employee or other worker of a juridical person or individual has engaged in the violation set forth in the
provisions listed in the following items with regard to the business or property
of said juridical person or individual, not only the offender shall be punished but also said juridical person shall be punished by the fine prescribed
respectively in those items, and said individual shall be punished by the fine
prescribed in the respective Articles:
(i) Article 315, item (v), or Article 316, items (i) to (iii) inclusive, item (vi) or
(vii); a fine of not more than three hundred million yen;
(ii) Article 316-2, or Article 317, items (i) to (iii) inclusive, items (vii) or (viii); a fine of not more than two hundred million yen;
(iii) Article 317-2, item (ii); a fine of not more than one hundred million yen;
and
(iv) Article 315 (except for item (v)), Article 315-2, Article 316, item (iv) or (v), Article 317, items (iv) to (vi) inclusive, Article 317-2 (except for item (ii)), or Article 318-2 to the preceding Article inclusive; a fine prescribed in the
respective Articles.
(2) In the case where the provision of the preceding paragraph applies to an association or foundation that is not a juridical person, its representative
person or administrator shall represent the association or foundation that is
not a juridical person in its procedural act, and the provisions of the Acts
concerning criminal procedure in the cases where a juridical person is the accused or a suspect shall be applied mutatis mutandis.
(Special Breach of Trust Crime of Director, etc.)
Article 322 (1) When any of the following persons, for the purpose of promoting
his/her own interest or the interest of a third party, or inflicting damage on an Insurance Company etc., commits an act in breach of his/her duty and causes financial loss to the Insurance Company, etc., he/she shall be punished by
imprisonment with work for not more than ten years or a fine of not more than
ten million yen, or both:
(i) Insurance administrator or actuary of an Insurance Company, etc.; (ii) Incorporator of a Mutual Company;
(iii) Director or company auditor of a Mutual Company at the time of its incorporation;
(iv) Director, executive officer, accounting advisor or company auditor of a
Mutual Company;
(v) Acting director, executive officer or auditor of a Mutual Company who has been appointed pursuant to the provisional disposition order prescribed in
Article 56 of the Civil Provisional Relief Act;
(vi) Any person who shall carry out the duties of a temporary director,
accounting advisor, company auditor, representative director, committee member, executive officer or representative executive officer who has been appointed pursuant to the provision of Article 53-15, paragraph (2) of the Companies Act, as applied mutatis mutandis pursuant to Article 53-15,
Article 401, paragraph (3) of that Act, as applied mutatis mutandis pursuant to Article 53-25, paragraph (2) (including the cases where it is applied
mutatis mutandis pursuant to Article 53-27, paragraph (3)) or Article 401, paragraph (3) of that Act, as applied mutatis mutandis pursuant to Article
420, paragraph (3) of that Act, as applied mutatis mutandis pursuant to
Article 53-32;
(vii) Manager of a Mutual Company;
(viii) Employee of a Mutual Company who has been delegated a type of or specific matter concerning its business; and
(ix) Inspector (limited to those pertaining to a Mutual Company).
(2) When any of the following persons, for the purpose of promoting his/her own interest or the interest of a third party, or inflicting damage on a liquidating mutual company, commits an act in breach of his/her duty and causes financial loss to the liquidating mutual company, the same punishment as in the
preceding paragraph shall apply:
(i) Liquidator of a liquidating mutual company;
(ii) Acting liquidator of a liquidating mutual company who has been appointed pursuant to the provisional disposition order prescribed in Article 56 of the Civil Provisional Relief Act;
(iii) Any person who shall carry out the duties of a temporary liquidator or Representative Liquidator of a liquidating mutual company who has been appointed pursuant to the provision of Article 53-12, paragraph (2), as
applied mutatis mutandis pursuant to Article 180-5, paragraph (4), or the
provision of Article 351, paragraph (2) of the Companies Act, as applied mutatis mutandis pursuant to Article 180-9, paragraph (5);
(iv) Representative for a liquidator of a liquidating mutual company;
(v) Supervising committee member of a liquidating mutual company; and
(vi) Examination committee member of a liquidating mutual company. (3) Any person who has attempted a crime set forth in the preceding two
paragraphs shall be punished.
(Special Breach of Trust Crime of Representative Bondholder, etc.)
Article 323 (1) When a representative bondholder or resolution executor
(meaning a resolution executor prescribed in Article 737, paragraph (2) of the
Companies Act, as applied mutatis mutandis pursuant to Article 61-8,
paragraph (2); the same shall apply hereinafter) of a Mutual Company, for the purpose of promoting his/her own interest or the interest of a third party, or
inflicting damage on a bondholder, commits an act in breach of his/her duty and causes financial loss to the bondholder, he/she shall be punished by
imprisonment with work for not more than five years or a fine of not more than
five million yen, or both.
(2) Any person who has attempted the crime set forth in the preceding paragraph shall be punished.
(Crime of Endangerment to Corporate Assets)
Article 324 (1) In the case where an insurance administrator of a Stock Company operating an Insurance Business (hereinafter referred to in this Part as "Stock Company") or actuary falls under any of the following items, he/she shall be
punished by imprisonment with work for not more than five years or a fine of
not more than five million yen, or both:
(i) When he/she, regarding matters listed in Article 199, paragraph (1), item
(iii) or Article 236, paragraph (1), item (iii) of the Companies Act, has made a false statement or has concealed any fact from the court or shareholders
meeting or class shareholders meeting;
(ii) When he/she, irrespective of whether on behalf of him/herself or on
someone else's behalf, has wrongfully acquired shares or has obtained shares for the purpose of pledging them on the account of a Stock Company;
(iii) When he/she has made a dividend of surplus in violation of laws and regulations or articles of incorporation; and
(iv) When he/she has disposed the property of a Stock Company for the
objective of speculative trading outside the scope of the purpose of the Stock
Company.
(2) In the case where an insurance administrator of a Mutual Company, actuary, any person listed in Article 322, paragraph (1), items (ii) to (ix) inclusive, or
any person appointed pursuant to the provision of Article 94, paragraph (1) of the Companies Act, as applied mutatis mutandis pursuant to Article 30-11,
paragraph (2) or Article 79, paragraph (3), falls under any of the following items, he/she shall be punished by the same punishment as that of the
preceding paragraph:
(i) When he/she, regarding the number of members, acceptance of the total amount of funds, or payment pertaining to the contribution of funds, or
matters listed in the items of Article 24, paragraph (1), in the case of the
incorporation of a Mutual Company, has made a false statement or has concealed any fact from the court or Organizational Meeting;
(ii) When he/she, in violation of laws and regulations or articles of
incorporation, has depreciated the funds, paid interest on the funds, or distributed the surplus; and
(iii) When he/she has disposed the property of a Mutual Company for the
objective of speculative trading outside the scope of the purpose of the
Mutual Company.
(3) When an insurance administrator of a Mutual Company, any of the persons listed in Article 322, paragraph (1), items (iv) to (vi) inclusive or item (ix), or any person who shall be the director, accounting advisor, company auditor or executive officer of a Stock Company, in the case of an Entity Conversion from a Mutual Company into a Stock Company, regarding the subscription or
payment of shares or delivery of non-monetary property or matters listed in
Article 92, item (iii) has made a false statement or has concealed any fact from the Prime Minister or court, or from the General Meeting of members or
General Meeting, he/she shall be punished by imprisonment with work for not more than three years or a fine of not more than three million yen, or both.
(4) When an insurance administrator, director, accounting advisor, company
auditor or executive officer of a Stock Company, an acting director, accounting
advisor, company auditor or executive officer of a Stock Company who has been appointed pursuant to the provisional disposition order prescribed in Article 56 of the Civil Provisional Relief Act, any person who shall carry out the duties of a temporary director, accounting advisor, company auditor, representative
director, committee member, executive officer or representative executive
officer who has been appointed pursuant to the provision of Article 346,
paragraph (2), Article 351, paragraph (2), or Article 401, paragraph (3) of the
Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 403, paragraph (3) and Article 420, paragraph (3)) or
inspector, or any person who shall be the director, accounting advisor, company auditor or executive officer of a Mutual Company, in the case of an Entity
Conversion from a Stock Company into a Mutual Company, regarding the
acceptance of the total amount of funds or payment pertaining to the
contribution of funds, has made a false statement or has concealed any fact
from the Policyholders meeting or General Meeting of Policyholders, the same punishment as in the preceding paragraph shall apply.
(Crime of Using False Document, etc.)
Article 325 (1) When any of the persons listed in Article 322, paragraph (1), items (i) to (viii) inclusive or any person who has been entrusted with the
solicitation of funds or subscribers to the bonds of a Mutual Company (meaning
bonds prescribed in Article 61), in soliciting subscribers for the shares, funds, share options, bonds (meaning bonds prescribed in Article 61 and bonds
prescribed in Article 2, item (xxiii) of the Companies Act; hereinafter the same
shall apply in this paragraph), or bonds with a share option, has used
materials explaining the business of an Insurance Company, etc. or other
matters or an advertisement or other documents relating to said subscription
which contain a false statement regarding a material matter, or has offered an electromagnetic record which contains a false statement regarding a material matter for carrying out affairs for said solicitation for subscription in the case
where an electromagnetic record has been created in lieu of the creation of said
documents, he/she shall be punished by imprisonment with work for not more than five years or a fine of not more than five million yen, or both.
(2) When any person who offers the bonds of a Mutual Company (meaning bonds prescribed in Article 61) has used a document concerning the secondary
distribution which contains a false statement regarding a material matter, or
has offered an electromagnetic record which contains a false statement regarding a material matter for carrying out affairs for said secondary
distribution in the case where an electromagnetic record has been created in
lieu of the creation of said document, the same punishment as in the preceding paragraph shall apply.
(3) When an insurance administrator of a Mutual Company or any persons listed
in Article 322, paragraph (1), items (iv) to (viii) inclusive, in the case of an
Entity Conversion from a Mutual Company into a Stock Company, in soliciting subscribers for the shares prescribed in Article 92, has used materials
explaining the business of the Stock Company following the Entity Conversion or other matters or an advertisement or other documents relating to said
subscription which contain a false statement regarding a material matter, or has offered an electromagnetic record which contains a false statement
regarding a material matter for carrying out affairs for said solicitation for
subscription in the case where an electromagnetic record has been created in lieu of the creation of said documents, the same punishment as in paragraph (1) shall apply.
(4) When an insurance administrator, director, accounting advisor, company
auditor or executive officer of a Stock Company, an acting director, company auditor or executive officer of a Stock Company who has been appointed
pursuant to the provisional disposition order prescribed in Article 56 of the Civil Provisional Relief Act, any person who shall carry out the duties of a temporary director, accounting advisor, company auditor, representative
director, committee member, executive officer or representative executive
officer who has been appointed pursuant to the provision of Article 346,
paragraph (2), Article 351, paragraph (2), or Article 401, paragraph (3) of the
Companies Act (including the cases where it is applied mutatis mutandis
pursuant to Article 403, paragraph (3) and Article 420, paragraph (3) of that
Act) or manager or an employee who has been entrusted with a type of or specific matter concerning its other operations, in soliciting the funds
prescribed in Article 78, paragraph (1), in the case of an Entity Conversion
from a Stock Company into a Mutual Company, has used an advertisement or other documents relating to the subscription of funds which contain a false
statement regarding a material matter, or has offered an electromagnetic record which contains a false statement regarding a material matter for
carrying out affairs for said solicitation for subscription in the case where an electromagnetic record has been created in lieu of the creation of said
documents, the same punishment as in paragraph (1) shall apply.
(Crime of Fake Payment)
Article 326 (1) When any of the persons listed in Article 322, paragraph (1),
items (i) to (viii) inclusive has made a fake payment to give a false appearance of payment pertaining to fund contributions or payment for shares, he/she
shall be punished by imprisonment with work for not more than five years or a
fine of not more than five million yen, or both. The same shall apply to any person who has acted as a party to such fake payment.
(2) When any of the persons prescribed in the preceding Article, paragraph (3), in
the case of an Entity Conversion from a Mutual Company into a Stock
Company, has made a fake payment to give a false appearance of payment for shares pertaining to subscription under the provision of Article 92, the same
punishment as in the preceding paragraph shall apply. The same shall apply to any person who has acted as a party to such fake payment.
(3) When any of the persons prescribed in the preceding Article, paragraph (4), in the case of an Entity Conversion from a Stock Company into a Mutual
Company, has made a fake payment to give a false appearance of payment set forth in Article 30-3, paragraph (1), as applied mutatis mutandis pursuant to
Article 78, paragraph (3), the same punishment as in paragraph (1) shall apply. The same shall apply to any person who has acted as a party to such fake
payment.
(Crime of Over Issuance of Shares)
Article 327 When an insurance administrator of a Stock Company has issued an aggregate number of shares exceeding the total number of shares that a Stock Company may issue, he/she shall be punished by imprisonment with work for not more than five years or a fine of not more than five million yen.
(Crime of Bribery of Director, etc.)
Article 328 (1) When any of the following persons has accepted, or requested or promised a property benefit based on an unlawful request concerning his/her
duties, he/she shall be punished by imprisonment with work for not more than
five years or a fine of not more than five million yen:
(i) Any person listed in the items of Article 322, paragraph (1) or the items of paragraph (2);
(ii) Any person prescribed in Article 323;
(iii) Accounting auditor of a Mutual Company or any person who shall carry out the duties of a temporary accounting auditor who has been appointed pursuant to the provision of Article 53-12, paragraph (4); and
(iv) Insurance inspector of an Insurance Company.
(2) Any person who has given, or offered or promised to give the benefit set forth in the preceding paragraph shall be punished by imprisonment with work for
not more than three years or a fine of not more than three million yen.
(Crime of Bribery Concerning Exercise of Rights of Members, etc.)
Article 329 (1) Any person who, concerning the following matters, has accepted,
or requested or promised a property benefit based on an unlawful request shall be punished by imprisonment with work for not more than five years or a fine
of not more than five million yen:
(i) The making of remarks or exercise of voting rights in a general meeting of members, General Meeting, Organizational Meeting, bondholders meeting or creditors meeting of a Mutual Company, policyholders meeting or General
Meeting of Policyholders in the case where a Stock Company shall carry out
the Entity Conversion set forth in Article 68, paragraph (1), or creditors meeting of a Foreign Mutual Company;
(ii) The exercise of rights of a member or general representative prescribed in
Article 38, paragraph (1) or (2), Article 39, Article 40, paragraph (1), Article
45, paragraph (1) or (2), Article 46, Article 47, paragraph (1), Article 50,
paragraph (1) or (2), Article 358, paragraph (1) (except for item (ii)) or Article
360, paragraph (1) of the Companies Act, as applied mutatis mutandis
pursuant to Article 53-15, Article 422, paragraph (1) of the same Act, as
applied mutatis mutandis pursuant to Article 53-32, Article 426, paragraph (5) of the same Act, as applied mutatis mutandis pursuant to Article 53-36, or Article 360, paragraph (1) of the same Act, as applied mutatis mutandis
pursuant to Article 180-5, paragraph (2) or Article 180-8, paragraph (4); or
the exercise of rights of a member or obligee prescribed in Article 511, paragraph (1) or Article 522, paragraph (1) of the same Act, as applied mutatis mutandis pursuant to Article 184; or the exercise of rights of an obligee prescribed in Article 547, paragraph (1) or (3) of the same Act, as applied mutatis mutandis pursuant to Article 184;
(iii) The exercise of rights of an aggregate number of members that corresponds
to five-thousandth, three-thousandth, one-thousandth or more of the total number of members or three thousand or one thousand or more members (in
the case of a Specified Mutual Company, the number of members specified by a Cabinet Order prescribed in Article 38, paragraph (1), Article 39,
paragraph (1) or Article 50, paragraph (1) or more), nine or three or more
general representatives, or a bondholder who holds bonds equivalent to one- tenth or more of the total amount (excluding the amount of bonds which have been redeemed) of bonds of a Mutual Company (meaning the bonds
prescribed in Article 61; hereinafter the same shall apply in this item);
(iv) The filing of a suit prescribed in this Act or the Companies Act, as applied mutatis mutandis pursuant to this Act (limited to those filed by a member or an obligee of a Mutual Company); and
(v) The intervention by a member under the provision of Article 849, paragraph
(1) of the Companies Act, as applied mutatis mutandis pursuant to this Act. (2) The same punishment as in the preceding paragraph shall apply to any
person who has given, or offered or promised to give the benefit set forth in the same paragraph.
(Confiscation and Collection of Equivalent Value)
Article 330 In the case referred to in Article 328, paragraph (1) or the preceding Article, paragraph (1), a benefit accepted by an offender shall be confiscated. When the whole or a part of the benefit cannot be confiscated, an equivalent
sum of money shall be collected.
(Crime of Benefit Sharing Concerning Exercise of Rights of Shareholder, etc.)
Article 331 (1) When an insurance administrator of an Insurance Company, etc., or any of the persons listed in Article 322, paragraph (1), items (iv) to (vii)
inclusive or other employee of a Mutual Company, concerning the exercise of rights of a shareholder or member or general representative, has given a
property benefit with regards to the account of the Insurance Company, etc. or its Subsidiary Company (meaning the Subsidiary Company prescribed in
Article 2, item (iii) of the Companies Act (its de facto Subsidiary Company in the case where the Insurance Company, etc. is a Mutual Company); the same shall apply in paragraph (3)), he/she shall be punished by imprisonment with
work for not more than three years or a fine of not more than three million yen.
(2) The same punishment as in the preceding paragraph shall apply to any
person who, with knowledge, has been given the benefit set forth in the same paragraph or has caused a third party to give such benefit.
(3) The same punishment as in paragraph (1) shall apply to any person who, concerning the exercise of rights of a shareholder or member or general
representative, has requested the person prescribed in the same paragraph to give the benefit set forth in the same paragraph to him/her or to a third party with regards to the account of the Insurance Company, etc. or its Subsidiary
Company.
(4) When any person who has committed a crime set forth in the preceding two
paragraphs has intimidated a person prescribed in paragraph (1) regarding the execution of the crime, he/she shall be punished by imprisonment with work for not more than five years or a fine of not more than five million yen.
(5) Imprisonment with work and fines may be imposed cumulatively, pursuant to
the circumstances, on any person who has committed a crime set forth in the preceding three paragraphs.
(6) When any person who has committed a crime set forth in paragraph (1) has
surrendered himself/herself to authorities, the punishment thereof may be reduced or remitted.
(Crimes Committed Outside Japan)
Article 331-2 (1) The crimes set forth in Article 322 to 324 inclusive, Article 326, Article 327, Article 328, paragraph (1), Article 329, paragraph (1) and the
preceding Article, paragraph (1) shall also apply to any person who has committed these crimes outside Japan.
(2) The crimes set forth in Article 328, paragraph (2), Article 329, paragraph (2),
and the preceding Article, paragraphs (2) to (4) inclusive shall be governed by
Article 2 of the Penal Code.
(Application of Penal Provisions to Juridical Person)
Article 332 When a person prescribed in Article 322 to 327 inclusive, Article 328,
paragraph (1), Article 329, paragraph (1), or Article 331, paragraph (1) is a
juridical person, said provisions and the provisions of Article 322, paragraph
(3) and Article 323, paragraph (2) shall respectively apply to the director, executive officer, other officer who executes business, or manager who has committed such acts.
(Crime of False Notification, etc.)
Article 332-2 Any person who, in violation of Article 955, paragraph (1) of the
Companies Act, as applied mutatis mutandis pursuant to Article 67-2 or
Article 217, paragraph (3), has failed to state the matters specified by an
Ordinance of the Ministry of Justice concerning the Investigation of Electronic
Public Notice prescribed in the same paragraph in the registry of studies, etc. (meaning the registry of studies, etc. prescribed in the same paragraph;
hereinafter the same shall apply in this Article), or has failed to make a record, or has made a false statement or record, or has not preserved the registry of
studies, etc. in violation of the same paragraph, shall be punished by a fine of not more than three hundred thousand yen.
(Dual Liability)
Article 332-3 When a representative person of a juridical person, or an agent, employee or other worker of a juridical person or individual, has engaged in
illegal conduct set forth in the preceding Article with regard to the business of said juridical person or individual, not only the offender shall be punished but also said juridical person or individual shall be punished by the punishment
prescribed in the same Article.
(Acts Which Shall be Punishable by Non-Penal Fine)
Article 333 (1) In the case where an incorporator of an Insurance Company, etc., director at the time of its incorporation, executive officer at the time of its
incorporation, company auditor at the time of its incorporation, director,
executive officer, accounting advisor or a member who shall carry out its duties, company auditor, accounting auditor or a member who shall carry out its
duties, liquidator, commissioned company prescribed in Article 144, paragraph
(1) (including the cases where it is applied mutatis mutandis pursuant to
Article 272-30, paragraph (2)), insurance administrator, insurance inspector, liquidator representative set forth in Article 525, paragraph (1) of the
Companies Act (including the cases where it is applied mutatis mutandis
pursuant to Article 184), supervising committee member set forth in Article
527, paragraph (1) of the same Act (including the cases where it is applied
mutatis mutandis pursuant to Article 184), examination committee member set forth in Article 533 of the same Act (including the cases where it is applied
mutatis mutandis pursuant to Article 184), acting director, executive officer, company auditor or liquidator who has been appointed pursuant to the
provisional disposition order prescribed in Article 56 of the Civil Provisional Relief Act, any person who shall carry out the duties of a temporary director, accounting advisor, company auditor, representative director, committee member, executive officer or representative executive officer prescribed in
Article 322, paragraph (1), item (vi) or Article 960, paragraph (1), item (v) of
the Companies Act, any person who shall carry out the duties of a temporary liquidator or Representative Liquidator prescribed in Article 322, paragraph (2), item (iii) or Article 960, paragraph (2), item (iii) of the same Act, any
person who shall carry out the duties of a temporary accounting auditor
prescribed in Article 328, paragraph (1), item (iii) or Article 967, paragraph (1), item (iii) of the same Act, inspector, administrator of shareholder registry,
administrator of bond registry, bond administrator, bond administrator who is succeeding the affairs, representative bondholder, resolution executor or
manager, a Representative Person in Japan of a foreign Insurance Company,
etc, liquidator, commissioned company prescribed in Article 144, paragraph (1), as applied mutatis mutandis pursuant to Article 211, insurance administrator,
insurance inspector or manager, any person who represents a license Specified
Juridical Person and subscription member in Japan, any person who has concluded a contract set forth in Article 190, paragraph (3) with a Foreign
Insurance Company, etc., any person who has concluded a contract set forth in
Article 223, paragraph (3) with a license Specified Juridical Person or any
person who has concluded a contract set forth in Article 272-5, paragraph (3)
with a small sum short-term insurer, officer of Policyholders protection
corporation, Large Holder of Insurance Voting Rights (when the Large Holder of Insurance Voting Rights is a juridical person (including organizations that are not juridical persons listed in Article 2-2, paragraph (1), item (i);
hereinafter the same shall apply in this paragraph except for items (lxv) and
(lxxi)), its director, executive officer, accounting advisor or a member who shall carry out its duties, company auditor, representative person, manager, member who executes the business, or liquidator, including former large holders of
insurance voting rights in the case where large holders of insurance voting
rights are no longer large holders of insurance voting rights), insurance major shareholder or Short Term Insurance Major Shareholder (when the insurance major shareholder or Short Term Insurance Major Shareholder is a juridical
person, its director, executive officer, accounting advisor or a member who
shall carry out its duties, company auditor, representative person, manager, member who executes the business, or liquidator, including former insurance major shareholders or Major Shareholder of Small Amount and Short Term Insurance Provider in the case where Major Shareholders of Insurance
Company or Short Term Insurance Major Shareholders are no longer Major
Shareholders of Insurance Company or Major Shareholder of Small Amount
and Short Term Insurance Provider), Specified Major Shareholder or specified
Major Shareholders of Insurance Company (when the Specified Major
Shareholder or specified Major Shareholders of Insurance Company is a
juridical person, its director, executive officer, accounting advisor or a member who shall carry out its duties, company auditor, representative person,
manager, member who executes the business, or liquidator, including former Specified Major Shareholders or specified Major Shareholders of Insurance Company in the case where Specified Major Shareholders or specified Major
Shareholders of Insurance Company are no longer holders of the voting rights of an Insurance Company, etc. which amount to not less than the Major
Shareholder Threshold), the director, executive officer, accounting advisor or a member who shall carry out its duties, company auditor, manager or liquidator of an Insurance Holding Company or Small Amount and Short Term Insurance Holding Company (including former insurance holding companies or Small
Amount and Short Term Insurance Holding Companies in the case where
insurance holding companies or Small Amount and Short Term Insurance
Holding Companies are no longer insurance holding companies or Small
Amount and Short Term Insurance Holding Companies), or the director,
executive officer, accounting advisor or a member who shall carry out its duties, company auditor, manager, member who executes the business or liquidator of
a Specified Holding Company or specified Small Amount and Short Term
Insurance Holding Company (including former specified holding companies or specified Small Amount and Short Term Insurance Holding Companies in the case where specified holding companies or specified Small Amount and Short
Term Insurance Holding Companies are no longer holding companies of which
an Insurance Company, etc. is a Subsidiary Company) falls under any of the
following items, he/she shall be punished by a non-penal fine of not more than one million yen; provided, however, that this shall not apply when a
punishment shall be given for the act:
(i) When he/she, in violation of Article 8, paragraph (1), has concurrently
served as a director, executive officer, accounting advisor or a member who
shall carry out its duties or company auditor (including director, auditor and other equivalent person) or employee of a financial institution or Financial
Instruments Business Operators (limited to those that engage in securities-
related businesses) prescribed in the same paragraph that falls under the specified person concerned prescribed in the same paragraph;
(ii) When he/she has engaged in the affairs of another company in violation of
Article 8, paragraph (2), Article 192, paragraph (5) or Article 272-10, paragraph (1);
(iii) When he/she has failed to complete his/her registration under the
provision of this Act or the Companies Act, as applied mutatis mutandis pursuant to this Act;
(iv) When he/she has failed to give public notice or notice under the provision of this Act or the Companies Act, as applied mutatis mutandis pursuant to
this Act, or has given an unauthorized public notice or notice;
(v) When he/she has failed to make a disclosure under the provision of this Act or the Companies Act, as applied mutatis mutandis pursuant to this Act;
(vi) When he/she, in violation of this Act or the Companies Act, as applied
mutatis mutandis pursuant to this Act after a deemed replacement, has rejected, without justifiable grounds, the inspection or making of copies of
the matters that are recorded in a document or electromagnetic record which
are indicated by a method specified by a Cabinet Office Ordinance, or the
issuance of a transcript or extract of a document, provision of the matters
that are recorded in an electromagnetic record by electromagnetic means, or issuance of a document that states such matters;
(vii) When he/she has refused, obstructed, or evaded the study under the
provision of this Act or the Companies Act, as applied mutatis mutandis pursuant to this Act;
(viii) When he/she, regarding matters prescribed in this Act or the Companies
Act, as applied mutatis mutandis pursuant to this Act, has made a false statement or has concealed any fact from a government agency, general meeting of members, General Meeting, Organizational Meeting,
policyholders meeting, General Meeting of Policyholders, bondholders
meeting, or creditors meeting;
(ix) When he/she has failed to state or record the matters required to be stated or recorded or made a false statement or record in the articles of
incorporation, minutes of general meeting of members, General Meeting,
Organizational Meeting, board of directors, committee on important property, Committees, board of company auditors, policyholders meeting, General
Meeting of Policyholders, bondholders meeting or creditors meeting, roster of members, accounting books, balance sheet, profit and loss statement, business report, annexed detailed statement of Article 494, paragraph (1) of
the Companies Act, as applied mutatis mutandis pursuant to Article 54-3,
paragraph (2) or Article 180-17, accounting advisory report, audit report,
accounting auditing report, statement of accounts, bond registry, inventory of property, business report, or document or electromagnetic record set forth in Article 682, paragraph (1) or Article 695, paragraph (1), Article 165-2,
paragraph (1), Article 165-9, paragraph (1), Article 165-13, paragraph (1),
Article 165-15, paragraph (1), Article 165-19, paragraph (1) or Article 165-21, paragraph (1) of the same Act, as applied mutatis mutandis pursuant to
Article 61-5;
(x) When he/she has failed to keep books or documents or a statement or
electromagnetic record in violation of this Act or the Companies Act, as applied mutatis mutandis pursuant to this Act;
(xi) When he/she, without justifiable grounds, has failed to give an explanation for the matters requested by a person who intends to be a member, member, general representative, or Policyholder, at the general meeting of members,
General Meeting, Organizational Meeting, policyholders meeting or General
Meeting of Policyholders;
(xii) When he/she, in violation of Article 15, Article 56 to 59 inclusive, Article
91, paragraph (3), Article 112, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 199) or Article 115 (including
the cases where it is applied mutatis mutandis pursuant to Articles 199 and
272-18), has failed to report any Reserves or reserve funds, or has failed to make Reserves, or has withdrawn from such Reserves;
(xiii) When he/she, in violation of Article 17, paragraph (2) or (4) (including the cases where the provisions are applied mutatis mutandis pursuant to Article
57, paragraph (4)), Article 70, paragraph (2) or (4) (including the cases where
it is applied mutatis mutandis pursuant to Article 165-7, paragraph (4)
(including the cases where it is applied mutatis mutandis pursuant to Article
165-12)), Article 77, paragraph (4), Article 88, paragraph (2)or (4) (including the cases where it is applied mutatis mutandis pursuant to Article 165-17,
paragraph (4) (including the cases where it is applied mutatis mutandis pursuant to Article 165-20)), Article 137, paragraphs (1) to (3) inclusive (including the cases where the provisions are applied mutatis mutandis pursuant to Article 210, paragraph (1) (including the cases where it is
applied mutatis mutandis pursuant to Article 270-4, paragraph (9)), Article
270-4, paragraph (9) and Article 272-29), Article 165-7, paragraph (2)
(including the cases where it is applied mutatis mutandis pursuant to Article
165-12), Article 165-17, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 165-20), Article 165-24, paragraph (2)
or (4), Article 173-4, paragraph (2) or (4) Article 240-12, paragraphs (1) to (3) inclusive, Article 251, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 270-4, paragraph (9)), Article 255,
paragraph (1), or Article 255-4, paragraphs (1) to (3) inclusive, has reduced
the amount of capital or reserves or withdrawn from depreciation reserve for redemption of funds, has made an Entity Conversion, established a General Meeting of Policyholders, transferred an insurance contract, conducted a
merger, split a company, amended the contract conditions prescribed in
Article 240-2, paragraph (1), or amended the contract conditions prescribed in Article 250, paragraph (1);
(xiv) When he/she, in violation of Article 28, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 78, paragraph (3)), Article 60-2, paragraph (2) or Article 93, paragraph (2), has failed to issue a
document, or has failed to state or record the matters required to be stated or recorded or made a false statement or record in that document or
electromagnetic record made by electromagnetic means set forth in Article 28,
paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article 60-2, paragraph (4) and Article 78, paragraph (3)) or Article 93, paragraph (3)
(xv) When he/she has failed to make matters pertaining to a request under
Article 39, paragraph (1) or Article 46, paragraph (1) the purpose of a general meeting of members or General Meeting in the case where such a request has been made;
(xvi) When he/she has failed to call a general meeting of members or General
Meeting in violation of a court order under the provision of Article 307,
paragraph (1), item (i) of the Companies Act, as applied mutatis mutandis pursuant to Article 40-2, paragraph (2) or Article 47, paragraph (2) or the provision of Article 359, paragraph (1), item (i) of the same Act, as applied
mutatis mutandis pursuant to Article 53-15, or Article 296, paragraph (1) of
the same Act, as applied mutatis mutandis pursuant to Article 41, paragraph
(1) or Article 49, paragraph (1);
(xvii) When he/she, in violation of the provision of Articles 301 or 302 of the
Companies Act, as applied mutatis mutandis pursuant to Article 41,
paragraph (1), or the provision of Article 48 or the provision of Article 54-5
(including the cases where it is applied mutatis mutandis pursuant to Article
54-10, paragraph (6)), has failed to issue a document or statement, or has
failed to provide information by electromagnetic means in giving a notice of calling of a general meeting of members or General Meeting;
(xviii) When he/she has failed to carry out the procedure for the appointment of a director, accounting advisor, company auditor, executive officer or
accounting auditor (including the appointment of any person who shall carry out the duties of a temporary accounting auditor) in the case where his/her number shall fall short of the number specified by this Act or the articles of
incorporation;
(xix) When he/she has failed to appoint half or more outside company auditors as company auditors in violation of Article 53-5, paragraph (3);
(xx) When he/she has failed to make matters pertaining to a request under
Article 343, paragraph (2) or Article 344, paragraph (2) of the Companies Act, as applied mutatis mutandis pursuant to Article 53-11 the purpose of a
general meeting of members or General Meeting in the case where such a
request has been made, or has failed to submit a proposal pertaining to such
a request to the general meeting of members or General Meeting;
(xxi) When he/she, in violation of the provision of Article 365, paragraph (2) of
the Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 419, paragraph (2) of the same Act, as applied mutatis mutandis pursuant to Article 53-32), as applied mutatis mutandis pursuant
to Article 53-15, or the provision of Article 365, paragraph (2) of the same Act,
as applied mutatis mutandis pursuant to Article 180-14, paragraph (9), has failed to make a report to a board of directors or board of liquidators, or has made a false report;
(xxii) When he/she has failed to select full-time company auditors in violation
of Article 53-19, paragraph (3);
(xxiii) When he/she has issued debenture shares prior to the date of the issuance of bonds (meaning bonds prescribed in Article 61);
(xxiv) When he/she has failed to issue debenture shares without delay in
violation of Article 696 of the Companies Act, as applied mutatis mutandis pursuant to Article 61-5;
(xxv) When he/she has failed to state the matters required to be stated in the debenture shares, or has made a false statement;
(xxvi) When he/she, in violation of Article 61-6, has issued bonds (meaning
bonds prescribed in Article61), or, in violation of Article 714, paragraph (1) of the Companies Act, as applied mutatis mutandis pursuant to Article 61-7,
paragraph (8), has failed to prescribe a bond administrator who shall succeed to the affairs;
(xxvii) When he/she, in violation of Article 941 of the Companies Act, as
applied mutatis mutandis pursuant to Article 67-2 or Article 217, paragraph
(3), has failed to seek the investigation set forth in the same Article;
(xxviii) When he/she has made an Entity Conversion in violation of Article 69, Article 78 or Article 86;
(xxix) When he/she, in violation of Article 98, paragraph (2) or Article 99,
paragraph (4), first sentence or paragraph (5) (including the cases where the provisions are applied mutatis mutandis pursuant to Article 199), has
engaged in the business prescribed in these provisions without obtaining
authorization, or, in violation of the proviso of Article 272-11, paragraph (2), has engaged in the business prescribed in the proviso of the same paragraph without obtaining approval;
(xxx) When he/she, in violation of Article 99, paragraph (4), second sentence
(including the cases w here it is applied mutatis mutandis pursuant to
Article 199; hereinafter the same shall apply in this item), has changed the content or method of the business prescribed in the second sentence of the same paragraph without obtaining authorization;
(xxxi) When he/she has operated any other business in violation of Article 100
(including the cases where it is applied mutatis mutandis pursuant to Article
199), Article 271-21, paragraph (1), Article 272-11, paragraph (2) or Article
272-38, paragraph (1);
(xxxii) When he/she, in violation of Article 100-4 (including the cases where it is applied mutatis mutandis pursuant to Article 272-13, paragraph (2)),
Article 271-19-2, paragraph (3), or Article 272-37-2, paragraph (2), has
become a member with unlimited liability or member who executes the business of a membership company;
(xxxiii) When he/she, in violation of Article 106, paragraph (1), has made a
company other than the Companies Eligible for Subsidiary Company prescribed in the same paragraph (except for the Japanese company
prescribed in Article 107, paragraph (1)) a Subsidiary Company, or, in
violation of Article 272-14, paragraph (1), has made a company other than the company that exclusively operates the business specified by a Cabinet Office Ordinance prescribed in the same paragraph as a Subsidiary
Company;
(xxxiv) When he/she has made an Insurance Company, etc. Eligible for
Subsidiary Company prescribed in Article 106, paragraph (4) a Subsidiary Company without obtaining the authorization of the Prime Minister under the provision of the same paragraph or has made a company listed in the
items of the same Article, paragraph (1) a Subsidiary Company that falls
under any of the companies listed in another of these items (limited to an
Insurance Company, etc. Eligible for Subsidiary Company. prescribed in the same Article, paragraph (4)) without obtaining the authorization of the
Prime Minister under the provision of the same Article, paragraph (4), as applied mutatis mutandis pursuant to the same Article, paragraph (6), or has made a company that exclusively operates the business specified by a Cabinet Office Ordinance prescribed in the same paragraph a Subsidiary Company without obtaining the approval of the Prime Minister under the provision of Article 272-14, paragraph (2);
(xxxv) When he/she has violated Article 107, paragraph (1) or the proviso of
paragraph (2);
(xxxvi) When he/she has violated the conditions imposed pursuant to the provision of Article 107, paragraph (3) or (5);
(xxxvii) When he/she, in violation of Articles 116 or 117 (including the cases
where the provisions are applied mutatis mutandis pursuant to Articles 199 and 272-18), has failed to reserve policy reserves or reserves for outstanding claims;
(xxxviii) When he/she has engaged in any of the acts listed in the items of
Article 118, paragraph (2) in violation of the same paragraph (including the cases where it is applied mutatis mutandis pursuant to Article 199);
(xxxix) When he/she, in violation of Article 120, paragraph (1) (including the
cases where it is applied mutatis mutandis pursuant to Articles 199 and 272-
18), has failed to carry out the procedures for the appointment of an actuary or has appointed a person who fails to fall under the requirements specified by a Cabinet Office Ordinance set forth in Article 120, paragraph (2)
(including the cases where it is applied mutatis mutandis pursuant to
Articles 199 and 272-18) to the position of actuary, or, in violation of Article
120, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Articles 199 and 272-18; hereinafter the same shall apply in this item), has failed to give the notification under the provision of the same
paragraph;
(xl) When he/she has violated the order under the provision of Article 122 (including the cases where it is applied mutatis mutandis pursuant to
Articles 199 and 272-18, Article 190, paragraph (4), Article 223, paragraph
(4), Article 242, paragraph (3), Article 258, paragraph (1) or Article 272-5,
paragraph (4), or the order under the provision of Article 132, paragraph (1), Article 204, paragraph (1), Article 230, paragraph (1), Article 240-3, Article
241, paragraph (1) or Article 272-25, paragraph (1) (including orders for the
submission of improvement programs, except orders for the whole or partial suspension of business);
(xli) When he/she has modified the matters prescribed in the documents
prescribed in the provision under Article 123, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 207) or
Article 225, paragraph (1) without obtaining the authorization under these
provisions;
(xlii) When he/she has failed to give the notification under the provision of
Article 123, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 207) or Article 225, paragraph (2), or has modified the matters specified by a Cabinet Office Ordinance set forth in
Article 123, paragraph (1) (including the cases where it is applied mutatis
mutandis pursuant to Article 207) or Article 225, paragraph (1)within a period of time prescribed in Article 125, paragraph (1) (the shortened or extended period of time in the case where said period of time has been
shortened or extended under the provision of Article 125, paragraph (2) or (3)
(including the cases where the provisions are applied mutatis mutandis
pursuant to Article 207 and Article 225, paragraph (3))) (including the cases
where it is applied mutatis mutandis pursuant to Article 207 and Article 225, paragraph (3));
(xliii) When he/she has violated the order for the revocation of change or
notification under the provision of Article 125, paragraph (4) (including the cases where it is applied mutatis mutandis pursuant to Article 207 and
Article 225, paragraph (3)) or Article 272-20, paragraph (4);
(xliv) When he/she has failed to give the notification under the provision of
Article 127, paragraph (1), Article 209, Article 218, paragraph (1), Article
234, Article 239, Article 271-32, paragraph (1) or (2), Article 272-21,
paragraph (1), or Article 272-42, paragraph (1) or (2), or has given a false notification;
(xlv) When he/she has violated the order under the provision of Article 131, Article 203, Article 229, or Article 272-24, paragraph (1) or (2);
(xlvi) When he/she, in violation of Article 136 (including the cases where it is
applied mutatis mutandis pursuant to Article 210, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 270-4,
paragraph (9); the same shall apply in the following item), Article 270-4,
paragraph (9) and Article 272-29), has carried out the procedure for the transfer of an insurance contract;
(xlvii) When he/she has concluded an insurance contract in violation of Article
138 (including the cases where it is applied mutatis mutandis pursuant to
Article 210, paragraph (1), Article 270-4, paragraph (9) and Article 272-29); (xlviii) When he/she, in violation of Article 176, has failed to submit a
document or statement or electromagnetic record, or has submitted said
document or statement or electromagnetic record in which he/she has failed
to state or record the matters required to be stated or recorded or has made a false statement or record;
(xlix) When he/she, in violation of Article 180-10, paragraph (1), has failed to file a petition for the commencement of bankruptcy proceedings, or, in
violation of Article 511, paragraph (2) of the Companies Act, as applied
mutatis mutandis pursuant to Article 184, has failed to file a petition for the commencement of special liquidation;
(l) When he/she has disposed of property in violation of Article 181;
(li) When he/she has unjustifiably prescribed the period of time set forth in
Article 499, paragraph (1) of the Companies Act, as applied mutatis mutandis pursuant to Article 181-2, for the purpose of delaying the completion of the liquidation;
(lii) When he/she has performed obligations in violation of the provision of
Article 500, paragraph (1) of the Companies Act, as applied mutatis mutandis pursuant to Article 181-2, or the provision of Article 537,
paragraph (1) of the same Act, as applied mutatis mutandis pursuant to
Article 184;
(liii) When he/she has distributed the property of a liquidating mutual
company in violation of Article 502 of the Companies Act, as applied mutatis mutandis pursuant to Article 181-2;
(liv) When he/she has violated Article 535, paragraph (1) of the Companies Act,
as applied mutatis mutandis pursuant to Article 184, or Article 536, paragraph (1);
(lv) When he/she has violated the temporary restraining order under the
provision of Article 540, paragraph (1) or (2) of the Companies Act, as applied mutatis mutandis pursuant to Article 184, or Article 542;
(lvi) When he/she, in violation of Article 197, has failed to hold assets in Japan
of an amount corresponding to the total amount prescribed in the same
Article;
(lvii) When he/she has violated a court order under the provision of Article 827, paragraph (1)of the Companies Act, as applied mutatis mutandis pursuant to Article 213;
(lviii) When he/she has failed to submit reports or materials under the
provision of Article 218, paragraph (2), or has submitted false reports or materials;
(lix) When he/she has failed to report the findings of the study by the due date
set forth in Article 240-8, paragraph (2);
(lx) When he/she, in violation of Article 241, paragraph (3), has failed to make a proposal, or has made a false proposal;
(lxi) When he/she has failed to transfer tasks to an insurance administrator
who has been appointed by the Prime Minister pursuant to the provision of
Article 242, paragraph (2);
(lxii) When he/she, without justifiable grounds, has refused to be an insurance administrator in violation of Article 243, paragraph (2);
(lxiii) When he/she has failed to transfer tasks to a director, executive officer or
liquidator of a Company Being Managed prescribed in Article 242, paragraph
(1), notwithstanding the rescission of the disposition that orders the
management prescribed in Article 248, paragraph (1) pursuant to the same paragraph;
(lxiv) When he/she has failed to make the submission or give the notification under the provision of Article 271-3, paragraph (1), Article 271-4, paragraph (1), (3) or (4), Article 271-5, paragraph (1) or (2), Article 271-6, Article 271-7, Article 271-10, paragraph (3), Article 271-18, paragraph (2) or (4), Article
272-31, paragraph (3), or Article 272-35, paragraph (2)or (4), or has made a
false submission or gave a false notification;
(lxv) When he/she, without obtaining authorization from the Prime Minister under Article 271-10, paragraph (1), become a holder of voting rights of an Insurance Company which amounts to the Major Shareholder Threshold or more or has established a company or any other juridical person that is a
holder of voting rights of an Insurance Company which amounts to the Major
Shareholder Threshold or more through any of the transactions or acts listed in the items of that paragraph;
(lxvi) When he/she, in violation of Article 271-10, paragraph (2)has been a holder of the voting rights of an Insurance Company which amount to not
less than the Major Shareholder Threshold upon exceeding the suspension due date prescribed in the same paragraph;
(lxvii) When he/she, in violation of the order under the provision of Article 271-
10, paragraph (4), has been a holder of the voting rights of an Insurance
Company which amount to not less than the Major Shareholder Threshold, or, in violation of Article 271-16, paragraph (2)has been a holder of the voting
rights of an Insurance Company which amount to not less than the Major
Shareholder Threshold upon exceeding the period designated by the Prime
Minister prescribed in the same paragraph;
(lxviii) When he/she has violated the order (including orders for the submission of improvement programs) under the provision of Article 271-14 (including
the cases where it is applied mutatis mutandis pursuant to Article 272-34, paragraph (1)), Article 271-15, Article 271-16, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 272-34,
paragraph (1)), or Article 271-29 (including the cases where it is applied mutatis mutandis pursuant to Article 272-40, paragraph (2));
(lxix) When he/she, without obtaining the approval of the Minister of Finance prescribed in Article 271-22, paragraph (1), has made a company other than the companies listed in the items of the same paragraph a Subsidiary
Company;
(lxx) When he/she has failed to give the notification or make the submission under the provision of Article 272-19, paragraph (1) or (2) or has modified
the matters prescribed in the documents prescribed in the provision under
Article 272-19, paragraph (1) within a period of time prescribed in Article
272-20, paragraph (1) (the shortened or extended period of time in the case where said period of time has been shortened or extended under the
provision of the same Article, paragraph (2) or (3));
(lxxi) When he/she, without obtaining authorization from the Prime Minister under Article 272-31, paragraph (1), has, by any of the trades or acts listed
in the items of the same paragraph, become a holder of the voting rights of a Small Amount and Short Term Insurance Provider which amount to not less than the Major Shareholder Threshold, or has incorporated a company or
formed another juridical person that is a holder of the voting rights of a
Small Amount and Short Term Insurance Provider which amount to not less than the Major Shareholder Threshold;
(lxxii) When he/she, in violation of Article 272-31, paragraph (2), has been a holder of the voting rights of a Small Amount and Short Term Insurance
Provider which amount to not less than the Major Shareholder Threshold
upon exceeding the suspension due date prescribed in the same paragraph;
(lxxiii) When he/she, in violation of the order under the provision of Article
272-31, paragraph (4), has been a holder of the voting rights of a Small
Amount and Short Term Insurance Provider which amount to not less than the Major Shareholder Threshold, or, in violation of Article 271-16,
paragraph (2) as applied mutatis mutandis pursuant to Article 272-34,
paragraph (1), has been a holder of the voting rights of a Small Amount and
Short Term Insurance Provider which amount to not less than the Major
Shareholder Threshold upon exceeding the period designated by the Prime
Minister prescribed in the same paragraph;
(lxxiv) When he/she, without obtaining the approval of the Prime Minister under the provision of Article 272-39, paragraph (1), has made a company other than the companies listed in the items of the same paragraph a
Subsidiary Company; and
(lxxv) When he/she has violated the conditions imposed pursuant to the provisions of Article 310, paragraph (1).
(2) In the case where an insurance administrator of a Stock Company or an
insurance administrator of a Foreign Insurance Company, etc. falls under any of the items of Article 976 of the Companies Act, he/she shall be punished by a non-penal fine of not more than one million yen; provided, however, that this shall not apply when a punishment shall be given for the act.
Article 333-2 Any person who falls under either of the following shall be punished by a non-penal fine of not more than one million yen:
(i) Any person who has, in violation of Article 946, paragraph (3) of the
Companies Act, as applied mutatis mutandis pursuant to Article 67-2 or Article 217, paragraph (3), failed to make a report, or has made a false report; and
(ii) Any person who, without justifiable grounds, has refused any of the
requests listed in Article 67-2, or the items of Article 951, paragraph (2) of the Companies Act, as applied mutatis mutandis pursuant to Article 217,
paragraph (3), or the items of Article 955, paragraph (2).
Article 334 In the case where a director, executive officer, accounting advisor or a member who shall carry out its duties, company auditor or liquidator of a Life Insurance Company that transacts an Insurance Claim Trust Business, commissioned company prescribed in Article 144, paragraph (1), insurance
administrator, supervising committee member of a liquidating Stock Company
or liquidating mutual company who has been appointed pursuant to the
provision of Article 527, paragraph (1) of the Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 184), acting director, accounting advisor, company auditor, representative director,
committee member, executive officer or representative executive officer of a
Stock Company or Mutual Company who has been appointed pursuant to the provisional disposition order prescribed in Article 56 of the Civil Provisional Relief Act, acting liquidator or Representative Liquidator of a liquidating stock company or liquidating mutual company who has been appointed pursuant to
the provisional disposition order prescribed in the same Article, any person
who shall carry out the duties of a temporary officer or temporary liquidator
who has been appointed pursuant to the provision of Article 346, paragraph (2) of the Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 479, paragraph (4) of the same Act), any person who shall
carry out the duties of a temporary committee member or temporary executive officer who has been appointed pursuant to the provision of Article 401,
paragraph (3) of the same Act (including the cases where it is applied mutatis mutandis pursuant to Article 403, paragraph (3) of the same Act), any person who shall carry out the duties of a temporary officer or temporary liquidator
who has been appointed pursuant to the provision of Article 53-12, paragraph
(2) (including the cases where it is applied mutatis mutandis pursuant to
Article 180-5, paragraph (4)), any person who shall carry out the duties of a
temporary committee member or any person who shall carry out the duties of a temporary executive officer or manager who has been appointed pursuant to
the provision of Article 401, paragraph (3) of the same Act, as applied mutatis
mutandis pursuant to Article 53-25, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 53-27, paragraph (3)), or a Representative Person in Japan of a Foreign Life Insurance Company, etc. that transacts an Insurance Claim Trust Business, liquidator, commissioned
company prescribed in Article 144, paragraph (1), as applied mutatis mutandis pursuant to Article 211, insurance administrator or manager, falls under any
of the following items, he/she shall be punished by a non-penal fine of not more than one million yen:
(i) When he/she, without obtaining authorization, has transacted an Insurance
Claim Trust Business in violation of Article 99, paragraph (7), first sentence
(including the cases where it is applied mutatis mutandis pursuant to Article
199);
(ii) When he/she, without obtaining the authorization under the provision of
Article 99, paragraph (7), second sentence (including the cases where it is
applied mutatis mutandis pursuant to Article 199; hereinafter the same shall apply in this item), has changed the method of the Insurance Claim Trust
Business prescribed in the same paragraph, second sentence;
(iii) When he/she, in violation of the order pursuant to Article 6 of the Act on
Provision, etc. of Trust Business by Financial Institutions, as applied
mutatis mutandis pursuant to Article 99, paragraph (8) (including the cases
where it is applied mutatis mutandis pursuant to Article 199), has made a supplementary or auxiliary trust contract; and
(iv) When he/she, in violation of Article 34 of the Trust Act (Act No. 108 of
2006), has failed to carry out the management of trust property that he/she should be carried out pursuant to the provision of the same Article.
Article 335 Any person who falls under any of the following items shall be punished by a non-penal fine of not more than one million yen:
(i) Any person who has violated Article 7, paragraph (2)
(ii) Any person who, in violation of the order under the provision of Article 11, paragraph (4) of the Trust Business Act, as applied mutatis mutandis
pursuant to Article 99, paragraph (8) (including the cases where it is applied
mutatis mutandis pursuant to Article 199), has failed to Make a Deposit; (iii) Any person who, in violation of Article 29-2 of the Trust Business Act, as
applied mutatis mutandis pursuant to Article 99, paragraph (8) (including
the cases where it is applied mutatis mutandis pursuant to Article 199), has made changes regarding important trusts, or has consolidated or split trusts;
(iv) Any person who has violated Article 272-8, paragraph (1)
(v) Any person who, in violation of Article 272-8, paragraph (2), has posted a sign under the provision of the same Article, paragraph (1) or a similar sign; and
(vi) Any person who has made a false statement and submitted a written
application for approval set forth in Article 272-32, paragraph (1) or document set forth in the same Article, paragraph (2)
Article 336 In the case where an officer of an agency falls under either of the
following items, he/she shall be punished by a non-penal fine of not more than five hundred thousand yen:
(i) When he/she, in violation of Article 265-22, has failed to make the registry prescribed in the same Article available for public inspection; and
(ii) When he/she has violated the order under the provision of Article 265-45, paragraph (2) or (3).
Article 337 Any person who falls under any of the following items shall be
punished by a non-penal fine of not more than five hundred thousand yen:
(i) Any person who, in violation of Article 186, paragraph (2) has offered an insurance contract prescribed in the same paragraph without obtaining
permission;
(ii) Any person who has failed to give the notification under the provision of
Article 280, paragraph (1), Article 290, paragraph (1), or Article 302, or gave a false notification; and
(iii) Any person who, in violation of the order under the provision of Article 291, paragraph (4) or Article 292, paragraph (2), has failed to Make a Deposit.
Article 337-2 In the case where an officer of an agency falls under any of the
following items, he/she shall be punished by a non-penal fine of not more than two hundred thousand yen:
(i) When he/she, in the case where the authorization of the Prime Minister and Minister of Finance is required pursuant to the provision of Part II, Chapter X, Section 4, has not obtained the authorization thereof;
(ii) When he/she has failed to complete his/her registration in violation of a
Cabinet Order under the provision of Article 264, paragraph (1); (iii) When he/she has violated Article 265-2, paragraph (2);
(iv) When he/she has engaged in a business other than the business prescribed in Article 265-28;
(v) When he/she has failed to submit a document prescribed in Article 265-37
or Article 265-39, paragraph (1) or (2), or has submitted a false document; (vi) When he/she has invested surplus funds in the course of business in
violation of Article 265-43; and
(vii) When he/she has failed to make a report under the provision of Article 268, paragraph (5) (including the cases where it is applied mutatis mutandis
pursuant to Article 269, paragraph (2), Article 270-3-12, paragraph (2),
Article 270-3-13, paragraph (4), Article 270-6-3, paragraph (2), and Article
270-6-4, paragraph (4)), Article 270, paragraph (4), or Article 270-2,
paragraph (6) (including the cases where it is applied mutatis mutandis pursuant to Article 270-3-12, paragraph (3)), or has made a false report.
Article 337-3 Any person who has violated Article 263, paragraph (2) shall be punished by a non-penal fine of not more than one million yen.
Article 338 Any person who, in violation of Article 8, paragraph (1) of the
Companies Act, as applied mutatis mutandis pursuant to Article 21, has used a denomination or trade name that runs the risk of mistaking the entity for a
Mutual Company, shall be punished by a non-penal fine of not more than one
million yen.
Supplementary Provisions
(Effective Date)
Article 1 This Act shall come into effect as from the date specified by a Cabinet
Order within a period not exceeding one year from the day of promulgation;
provided, however, that the provision of Article 106 of these Supplementary
Provisions shall come into effect as from the day of promulgation.
(Special Provisions Pertaining to Specified Insurance Business Activity of
Specified Insurance Company)
Article 1-2 (1) In case of an application for the license set forth in Article 3, paragraph (1) (limited to the case where the business to be licensed includes
the insurance underwriting activity listed in Article 3, paragraph (4), item (ii)
or Article 3, paragraph (5), item (ii); the same shall apply in the following
paragraph), the Prime Minister may, for the time being, attach any necessary condition to such license pursuant to the provision of Article 5, paragraph (2) for ensuring that the license will neither bring a drastic change in the
management environment pertaining to the specified insurance business
activity (referring to the insurance underwriting activity listed in Article 3, paragraph (4), item (ii) or Article 3, paragraph (5), item (ii); hereinafter the same shall apply in this Article) of a Specified Insurance Company (referring to an Insurance Company or Foreign Insurance Company, etc. the management of which depends relatively heavily on the insurance underwriting activity listed
in Article 3, paragraph (4), item (ii) or Article 3, paragraph (5), item (ii);
hereinafter the same shall apply in this Article), nor pose any risk to the soundness in the business of the Specified Insurance Company.
(2) Where an Insurance Company makes another Insurance Company its
Subsidiary Company with the authorization set forth in Article 106, paragraph
(4), or Article 142 or Article 167, paragraph (1) (limited to the case where a Life Insurance Company makes a Non-Life Insurance Company its Subsidiary Company or where a Non-Life Insurance Company makes a Life Insurance
Company its Subsidiary Company), the Prime Minister may, for the time being, attach any necessary condition to the license granted to that other Insurance Company under Article 3, paragraph (1) for ensuring that the license will
neither bring any drastic change in the management environment pertaining
to the specified insurance business activity of the Specified Insurance Company nor pose any risk to the soundness in the business of the Specified Insurance
Company.
(3) In case of an application for authorization or notification, pursuant to the
provision of Article 123, paragraph (1) or (2), of any modification of the matters prescribed in the document set forth in Article 123, paragraph (1) pertaining to the specified insurance business activity, the Prime Minister shall, for the time being, consider in addition to the criteria set forth in the items of Article 124 and in Article 125, paragraph (4), whether such modification will bring any
drastic change in the management environment of the Specified Insurance
Company pertaining to the specified insurance business activity or pose any
risk to the soundness in the business of the Specified Insurance Company, in
examining the matters pertaining to the application or notification.
(Special Provisions for Business)
Article 1-2-2 The Policyholders Protection Corporation (hereinafter referred to
as "Corporation") may, for the time being, carry on the business set forth in the following Article, in addition to the business set forth in Article 265-28.
(Special Provisions for Business Pertaining to Partner Bank)
Article 1-2-3 The Corporation may conclude with a bank whose purposes include the management and disposition of assets purchased from a Bankrupt
Insurance Company, etc. (referring to the Bankrupt Insurance Company set forth in Article 260, paragraph (2); the same shall apply in Article 1-3 of the Supplementary Provisions), Succeeding Insurance Company (referring to the Succeeding Insurance Company set forth in Article 260, paragraph (6)) or
Liquidating Insurance Company (referring to the Liquidating Insurance
Company set forth in Article 265-28, paragraph (2), item (iii); the same shall apply in Article 1-2-5, paragraph (1), item (iii) of the Supplementary
Provisions); the same shall apply in Article 1-2-5, paragraph (4) and Article 1-
2-7, paragraph (1) of the Supplementary Provisions) (hereinafter referred to as
"Asset Management and Collection Business") an agreement regarding the
Asset Management and Collection Business (hereinafter referred to as
"Agreement"), and conduct the following activities to implement the
Agreement:
(i) Provide, for the banks that have concluded the Agreement (hereinafter
referred to as "Partner Banks"), compensation for losses under Article 1-2-6 of the Supplementary Provisions or loans under Article 1-2-7, paragraph (1) of the Supplementary Provisions, or the guarantee of obligations set forth in that paragraph pertaining to any debt contracted by the Partner Banks;
(ii) Receive the money to be paid by the Partner Banks pursuant to the provision of paragraph (1), item (ii) of the following Article;
(iii) Provide necessary guidance and advice for the Partner Banks to carry on the Asset Management and Collection Business; and
(iv) Conduct necessary investigation for the activity set forth in item (i) or the
preceding item.
(Agreement)
Article 1-2-4 (1) The Agreement shall contain the following provisions:
(i) That the Partner Bank shall, where it concludes a contract of entrustment with the Corporation following an offer from the latter to entrust the former with the purchase of assets under paragraph (1) of the following Article,
purchase the assets pertaining to such entrustment on behalf of the
Corporation and carry on the Asset Management and Collection Business pertaining to the assets thus purchased;
(ii) That the Partner Bank shall, when it has any amount calculated pursuant to the provisions of a Cabinet Order as profit from the business carried on
under the Agreement, pay the amount corresponding to such profit to the
Corporation for each business year;
(iii) That the Partner Bank shall, when it intends to conclude a contract
regarding the purchase of assets under item (i) or a contract regarding the
borrowing of funds to be covered by the guarantee of obligations set forth in
Article 1-2-7, paragraph (1) of the Supplementary Provisions, receive in
advance the approval of the Corporation with regard to the content of the prospective contract;
(iv) That the Partner Bank shall promptly prepare, for approval by the
Corporation, an implementation plan and a financial plan for the Asset
Management and Collection Business pertaining to any purchase of assets under item (i);
(v) That the Partner Bank shall, when it intends to modify the implementation plan or financial plan set forth in the preceding item, receive in advance the approval of the Corporation; and
(vi) That the Partner Bank shall submit to the Corporation the interim
business report and business report when submitting these reports to the
Prime Minister pursuant to the provision of Article 19, paragraph (1) or (2) (Business Report, etc.) of the Banking Act.
(2) The Corporation shall, when it intends to conclude the Agreement, determine
the content of the Agreement upon discussions of the Committee for authorization by the Prime Minister and the Minister of Finance.
(3) Where the application set forth in the preceding paragraph was made, the
Prime Minister and the Minister of Finance shall not give the relevant
authorization unless they find that the content of the Agreement pertaining to the application conforms to the applicable provisions of laws and regulations and that the bank intending to conclude the Agreement with the Corporation is capable of carrying on the Asset Management and Collection Business under
the Agreement in an appropriate manner.
(Entrustment of Purchase of Assets, etc.)
Article 1-2-5 (1) The Corporation may entrust a Partner Bank with the purchase of assets on its behalf where:
(i) it decides to provide financial assistance including the purchase of assets
pursuant to the provision of Article 270-3, paragraph (1) or Article 270-3-2, paragraph (7);
(ii) it decides to purchase the assets of a partner Succeeding Insurance
Company pursuant to the provision of Article 270-3-7, paragraph (1); or
(iii) it decides to purchase the assets of a Liquidating Insurance Company pursuant to the provision of Article 270-8-3, paragraph (1).
(2) The Corporation shall, when it makes an offer of entrustment under the
preceding paragraph, determine upon discussions of the Examination Board
and the Committee the purchase value of the assets covered by the decision set forth in that paragraph as well as other conditions regarding such entrustment including the compensation for losses set forth in the following Article, for
presentation to the Partner Bank concerned.
(3) The Corporation shall, when it has concluded with a Partner Bank any contract for entrusting the purchase of assets under paragraph (1), immediately report to the Prime Minister and the Minister of Finance the content of such contract.
(4) Where the Corporation has concluded with a Partner Bank any contract for the entrustment set forth in the preceding paragraph, the contract for the
purchase of assets shall be concluded by the Partner Bank with the Bankrupt
Insurance Company, etc., notwithstanding the provisions of Article 270-3, paragraph (4) (including the cases where it is applied mutatis mutandis
pursuant to Article 270-3-2, paragraph (8)), Article 270-3-7, paragraph (3) and
Article 270-8-3, paragraph (3).
(Compensation for Loss)
Article 1-2-6 The Corporation may compensate a Partner Bank for any loss
within the scope of the amount accounted pursuant to what is specified by a Cabinet Order for the amount of loss accrued by the Partner Bank by the implementation of the businesses under the specifications of the Agreement.
(Loan of Funds and Obligation Guarantee)
Article 1-2-7 (1) The Corporation may, when it finds it necessary in the case of receiving an application from a Partner Bank for the loan of any funds
required for the purchase of assets from a Bankrupt Insurance Company, etc. under the Agreement or any other funds required for the smooth
implementation of the Asset Management and Collection Business under the
Agreement, or for an obligation guarantee pursuant to the borrowing of such
funds by the Partner Bank, extend, upon the discussions of the Committee, the loan or obligation guarantee.
(2) The Corporation shall, when it concludes a contract pertaining to the loan or
obligation guarantee of the preceding paragraph with a Partner Bank pursuant to the provision of that paragraph, immediately report to the Prime Minister and the Minister of Finance the content of the contract.
(Financial Arrangements)
Article 1-2-8 The Corporation shall endeavor to secure financial arrangements required by the Partner Banks for the smooth implementation of the Asset Management and Collection Business under the Agreement.
(Request for Cooperation)
Article 1-2-9 The Corporation may, when it is necessary for carrying out the
activities listed in the items of Article 1-2-3 of the Supplementary Provisions, make inquiries to, or request cooperation of government agencies, public
entities or any other relevant persons.
(Request of Report)
Article 1-2-10 The Corporation may, when it is necessary for the implementation of the activities listed in the items of Article 1-2-3 of the Supplementary
Provisions, request a Partner Bank to report on the status of the
implementation of the Agreement or the finance.
(Application of this Act)
Article 1-2-11 For the purpose of applying the provision of Article 265-30,
paragraph (1) to the cases where the activities listed in the items of Article 1-2-
3 of the Supplementary Provisions are carried out, the term "business listed in each of the items of Article 265-28, paragraph (1) and Article 265-28,
paragraph (2)" in Article 265-30, paragraph (1) shall be deemed to be replaced with "activities listed in each of the items of Article 265-28, paragraph (1) and Article 265-28, paragraph (2) (including the activities listed in the items of
Article 1-2-3 of the Supplementary Provisions)."
(Special Provisions on Taxation)
Article 1-2-12 (1) Where a Partner Bank has acquired any right regarding real estate following the purchase of assets pursuant to the provisions of the
Agreement with the entrustment by the Corporation set forth in Article 1-2-4, paragraph (1), item (i) of the Supplementary Provisions (referred to as
"Purchase of Assets Pursuant to the Agreement" in the following paragraph),
the registration of transfer of rights on the real estate shall not be subject to the registration and license tax, as long as such registration is made within
three years from the acquisition pursuant to the provisions of the applicable
Ordinance of the Ministry of Finance.
(2) For the purpose of applying to a Partner Bank the provisions of Articles 62-3,
63, 68-68 and 68-69 of the Act on Special Measures concerning Taxation, the conveyance of any land acquired by a Partner Bank following the Purchase of
Assets Pursuant to the Agreement or the assignment of any right over the land
(referring to the conveyance set forth in Article 62-3, paragraph (2), item (i), (a)
of that Act) shall not constitute the conveyance of land, etc. set forth in Article
62-3, paragraph (2), item (i) of that Act.
(Assistance of Government Pertaining to Financial Assistance to Specified
Members or Special Members, etc.)
Article 1-2-13 (1) The Government may, when it finds that if the Life Insurance
Policyholders Protection Corporation (referring to the Life Insurance
Policyholders Protection Corporation set forth in Article 265-37, paragraph (1);
the same shall apply hereafter in this Article, as well as in the following
Article and Article 1-2-15 of the Supplementary Provisions) was to cover the costs of Financial Assistance and other activities pertaining to its members
(limited to those subject to the disposition ordering administration under
Article 242, paragraph (1) by 31 March 2003 and any other members to be
specified by a Cabinet Order; referred to as "Specified Members" in Article 1-2-
15, paragraph (1) of the Supplementary Provisions) solely with the assessments paid by the members of the Life Insurance Policyholders
Protection Corporation pursuant to the provision of Article 265-33, paragraph
(1), the financial conditions of the members of the Life Insurance Policyholders Protection Corporation would deteriorate significantly, making it difficult to maintain the credibility of the insurance industry and hence posing the risk of causing unexpected disruptions in the lives of the citizenry and the financial market (limited to the cases where the total amount of such costs exceeds the amount to be specified by a Cabinet Order), provide assistance to the Life
Insurance Policyholders Protection Corporation in an amount corresponding to
the whole or part of such costs (limited to those required for the activities to be specified by a Cabinet Order (referred to as "Specified Activities" in the
following paragraph, the following Article and Article 1-2-15 of the
Supplementary Provisions) within the amount prescribed by the budget.
(2) The Government may, when it finds that if the Life Insurance Policyholders
Protection Corporation was to cover the costs of Financial Assistance and other activities pertaining to its members (limited to those subject to the disposition
ordering administration under Article 242, paragraph (1) between 1 April 2003
and 31 March 2006 and any other members to be specified by a Cabinet Order;
referred to as "Special Members" in Article 1-2-15, paragraph (2) of the
Supplementary Provisions) solely with the assessments paid by the members of the Life Insurance Policyholders Protection Corporation pursuant to the
provision of Article 265-33, paragraph (1), the financial conditions of the members of the Life Insurance Policyholders Protection Corporation would deteriorate significantly, making it difficult to maintain the credibility of the insurance industry and hence posing the risk of causing unexpected
disruptions in the lives of the citizenry and the financial market (limited to the cases where the total amount of such costs exceeds the amount to be specified
by a Cabinet Order), provide assistance to the Life Insurance Policyholders
Protection Corporation in an amount corresponding to the whole or part of such costs (limited to those required for the Specified Activities) within the amount
prescribed by the budget.
(3) The necessary procedure for implementing the provision of the preceding paragraph shall be specified by a Cabinet Order.
(Assistance of Government Pertaining to Financial Assistance to Members under Special Provisions, etc.)
Article 1-2-14 (1) The Government may, when it finds that if the Life Insurance
Policyholders Protection Corporation was to cover the costs of Financial
Assistance and other activities pertaining to its members (limited to those
subject to the disposition ordering administration under Article 242, paragraph
(1) between 1 April 2006 and 31 March 2009 and any other members to be specified by a Cabinet Order; referred to as "Members under Special
Provisions" in paragraph (3) of the following Article) solely with the
assessments paid by the members of the Life Insurance Policyholders
Protection Corporation pursuant to the provision of Article 265-33, paragraph (1), the financial conditions of the members of the Life Insurance Policyholders Protection Corporation would deteriorate significantly, making it difficult to maintain the credibility of the insurance industry and hence posing the risk of causing serious consequences in the lives of the citizenry and the financial
market (limited to the cases where the sum total of the amount of outstanding
debts of the Life Insurance Policyholders Protection Corporation as of the date specified by a Cabinet Order and the amount to be specified by a Cabinet Order as the amount of additional debts to be incurred if the Life Insurance
Policyholders Protection Corporation should have to finance such costs through borrowings exceeds the amount to be specified by a Cabinet Order taking into consideration the long-term balance of payments of the Life Insurance
Policyholders Protection Corporation), provide assistance to the Life Insurance Policyholders Protection Corporation in an amount corresponding to the whole or part of such costs (limited to those required for the Specified Activities)
within the amount prescribed by the budget.
(2) The necessary procedure for implementing the provision of the preceding paragraph shall be specified by a Cabinet Order.
(Payment to National Treasury)
Article 1-2-15 (1) For each business year, the Life Insurance Policyholders
Protection Corporation shall pay to the Treasury any amount calculated
pursuant to the provisions of a Cabinet Order as the profit earned by the
Specified Activities pertaining to the Specified Members, to the total amount of the assistance of the Government already provided pursuant to the provision of Article 1-2-13, paragraph (1) of the Supplementary Provisions subtracted by
any amount already paid to the Treasury pursuant to the provision of this paragraph.
(2) For each business year, the Life Insurance Policyholders Protection
Corporation shall pay to the Treasury any amount calculated pursuant to the provisions of a Cabinet Order as the profit earned by the Specified Activities pertaining to the Special Members, to the total amount of the assistance of the Government already provided pursuant to the provision of Article 1-2-13,
paragraph (2) of the Supplementary Provisions subtracted by any amount
already paid to the Treasury pursuant to the provision of this paragraph. (3) For each business year, the Life Insurance Policyholders Protection
Corporation shall pay to the Treasury any amount calculated pursuant to the
provisions of a Cabinet Order as the profit earned by the Specified Activities pertaining to the Members under Special Provisions, to the total amount of the assistance of the Government already provided pursuant to the provision of
paragraph (1) of the preceding Article subtracted by any amount already paid
to the Treasury pursuant to the provision of this paragraph.
(4) The procedure of payment and other necessary matters regarding payments under the preceding three paragraphs shall be specified by a Cabinet Order.
(Special Provisions for Financial Assistance, etc.)
Article 1-3 (1) Notwithstanding the provision of Article 270-3, paragraph (2)
(including the cases where it is applied mutatis mutandis pursuant to Article
270-3-2, paragraph (8)), the amount of the Financial Assistance provided by
the Corporation under Article 266, paragraph (1) or Article 267, paragraph (3) for the applications received by 31 March 2001 under Article 266, paragraph (1) or Article 267, paragraph (3) (limited to the donation of money; hereinafter referred to as "Financial Assistance in the Special Provision Period") shall be, for each of the Bankrupt Insurance Companies covered by the Financial
Assistance in the Special Provision Period, the amount obtained by adding the
amounts listed in items (iii) and (iv) to the difference calculated by subtracting the amount listed in item (ii) from the amount listed in item (i):
(i) The amount obtained by multiplying the sum total of the amount of the
policy reserve pertaining to those insurance contracts of the Bankrupt
Insurance Company which meet the requirements for insurance contracts to be specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance (referred to as "Covered Insurance Contracts in the Special
Provision Period" in the following item and the following paragraph) and any
other amount to be specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance as the liabilities to be retained for allocation to the
payment of Insurance Claims, etc. (referred to as "Specified Policy Reserve, etc." in that item and that paragraph) by the ratio to be specified by a
Cabinet Office Ordinance and Ordinance of the Ministry of Finance;
(ii) The amount of the asset value of that Bankrupt Insurance Company, based on the evaluation of property confirmed under the provision of Article 270-2, paragraph (2) or (5) (referred to as "Confirmed Evaluation of Property" in the following paragraph), which has been calculated as per a Cabinet Office
Ordinance and Ordinance of the Ministry of Finance as being the amount
which corresponds to the Specified Policy Reserve, etc. pertaining to the
Covered Insurance Contracts in the Special Provision Period;
(iii) With regard to those insurance contracts of the Bankrupt Insurance
Company which meet the requirements for insurance contracts to be
specified by a Cabinet Office Ordinance and Ordinance of the Ministry of
Finance and have been subject to the Modification of Contract Conditions
(referring to the modification of the contract conditions set forth in Article
250, paragraph (1)) under Article 250, 254 or 255-2, or the Modification of Contract Conditions in reorganization proceedings, the amount calculated pursuant to the provisions of a Cabinet Office Ordinance and Ordinance of the Ministry of Finance as the additional amount required due to the
difference between the modified conditions of contract and the original
conditions of contract where it is stipulated that insurance claims or benefits shall be paid in amounts as prescribed under the original conditions of
contract for any insured event (other than any of the insured events to be specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance) that has occurred by 31 March 2001 (excluding the amount of any Financial Assistance pertaining to the payment of Covered Insurance
Claims); and
(iv) That part of the amount of the costs meeting the requirements for expected costs of the transfer, etc. of insurance contracts (referring to the Transfer,
etc., of Insurance Contracts set forth in Article 260, paragraph (1);
hereinafter the same shall apply in this item) or succession of insurance contracts (referring to the succession of insurance contracts set forth in
Article 260, paragraph (7); hereinafter the same shall apply in this item)
pertaining to the Bankrupt Insurance Company to be specified by a Cabinet
Office Ordinance and Ordinance of the Ministry of Finance which the
Corporation finds necessary for the smooth implementation of the Transfer, etc., of Insurance Contracts or succession of insurance contracts pertaining to the Financial Assistance in the Special Provision Period.
(2) With regard to the underwriting of insurance contracts under Article 267,
paragraph (1) for the applications under that paragraph that the Corporation has received by 31 March 2001 (hereinafter referred to as "Underwriting in the Special Provision Period"), the amount to be transferred by the Corporation
from the General Account (referring to the General Account set forth in Article
265-41, paragraph (2)) to the Special Insurance Account created for the
Bankrupt Insurance Company pertaining to the Underwriting in the Special Provision Period shall be, for the Bankrupt Insurance Company pertaining to the Underwriting in the Special Provision Period, the amount obtained by
adding the amount listed in item (iii) to the difference calculated by
subtracting the amount listed in item (ii) from the amount listed in item (i), notwithstanding the provision of Article 270-5, paragraph (2):
(i) The amount obtained by multiplying the amount of the Specified Policy
Reserve, etc. for the Covered Insurance Contracts in the Special Provision Period pertaining to the Bankrupt Insurance Company by the ratio to be specified by a Cabinet Office Ordinance and Ordinance of the Ministry of Finance;
(ii) The amount of the asset value of that Bankrupt Insurance Company, based on the Confirmed Evaluation of Property, which has been calculated as per a Cabinet Office Ordinance and Ordinance of the Ministry of Finance as being
the amount which corresponds to the Specified Policy Reserve, etc.
pertaining to the Covered Insurance Contracts in the Special Provision
Period; and
(iii) With regard to those insurance contracts of the Bankrupt Insurance
Company which meet the requirements for insurance contracts to be
specified by a Cabinet Office Ordinance and Ordinance of the Ministry of
Finance and have been subject to the Modification of Contract Conditions
(referring to the modification of the contract conditions set forth in Article
250, paragraph (1)) under Article 250 as applied mutatis mutandis pursuant to Article 270-4, paragraph (9) or the Modification of Contract Conditions in reorganization proceedings, the amount calculated pursuant to the provisions of a Cabinet Office Ordinance and Ordinance of the Ministry of Finance as
the additional amount required due to the difference between the modified conditions of contract and the original conditions of contract where it is
stipulated that insurance claims or benefits shall be paid in amounts as
prescribed under the original conditions of contract for any insured event
(other than any of the insured events to be specified by a Cabinet Office
Ordinance and Ordinance of the Ministry of Finance) that has occurred by 31
March 2001 (excluding the amount of any Financial Assistance pertaining to the payment of Covered Insurance Claims).
(3) For the purpose of applying the provision of Article 245 to the case set forth in item (iii) of paragraph (1) or item (iii) of the preceding paragraph, the term
"(hereinafter referred to as "The Business of Paying Covered Insurance
Claims")" in that Article shall be deemed to be replaced with "(including the business of paying insurance claims or benefits in the amounts set forth in
Article 1-3, paragraph (1), item (iii) or paragraph (2), item (iii) of the
Supplementary Provisions)."
(4) Notwithstanding the provision of Article 112 of the Corporate Reorganization
Act (including the cases where it is applied mutatis mutandis pursuant to
Article 160-40 of the Act on Special Treatment, etc. of Corporate
Reorganization Proceedings and Other Insolvency Proceedings of Financial
Institutions, etc.), insurance claims or benefits may be paid in the amounts set
forth in paragraph (1), item (iii) or paragraph (2), item (iii) in the case set forth in paragraph (1), item (iii) or paragraph (2), item (iii) (excluding the case of
Article 177-29, paragraph (1) of the Act on Special Treatment, etc. of Corporate
Reorganization Proceedings and Other Insolvency Proceedings of Financial
Institutions, etc.).
(Special Provisions on Financial Assistance Pertaining to Payment of Covered
Insurance Claims)
Article 1-3-2 For the purpose of applying the provision of Article 245 and the provision of Article 177-29, paragraph (1) (Special Provisions on Payment of Covered Insurance Claims) of the Act on Special Treatment. etc. of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial
Institutions, etc. to the cases where the Corporation has received any
application under Article 270-6-6, paragraph (1) by 31 March 2001, the terms "pertaining to a Covered Insurance Contract," and "said insurance claims of a Covered Insurance Contract" in Article 245 shall be deemed to be replaced with "pertaining to a Covered Insurance Contract (including the Covered Insurance Contracts in the Special Provision Period prescribed in Article 1-3, paragraph (1), item (i) of the Supplementary Provisions (hereinafter referred to as
"Covered Insurance Contracts in the Special Provision Period"))" and "said
insurance claims of a Covered Insurance Contracts (excluding the Covered
Insurance Contracts in the Special Provision Period," respectively; the term ")
or the insurance claims and other benefits under the Covered Insurance
Contracts in the Special Provision Period (limited to the amount obtained by multiplying the amount of insurance claims and other benefits under the
Covered Insurance Contracts in the Special Provision Period by the ratio to be
specified by a Cabinet Office Ordinance and Ordinance of the Ministry of
Finance) (" shall be deemed to be inserted before the term "hereinafter referred to as "The Business of Paying Covered Insurance Claims"" in Article 245; and
the term "Contracts Qualified for Compensation set forth in Article 270-3, paragraph (2), item (i) of the Insurance Business Act (" in Article 177-29,
paragraph (1) of that Act shall be deemed to be replaced with "Contracts
Qualified for Compensation set forth in Article 270-3, paragraph (2), item (i) of the Insurance Business Act (including the Covered Insurance Contracts in the Special Provision Period as defined in Article 1-3, paragraph (1), item (i) of the Supplementary Provisions of the Insurance Business Act)."
(Special Provisions for Purchase of Insurance Claims, etc.)
Article 1-3-3 For the purpose of applying the provisions of Articles 270-6-8 and
270-6-10 to the cases where the Corporation has made any decision under
Article 270-6-8, paragraph (1) by 31 March 2001, the term "the Covered
Insurance Contract" in that paragraph shall be deemed to be replaced with
"the Covered Insurance Contract (including the Covered Insurance Contracts
in the Special Provision Period as defined in Article 1-3, paragraph (1), item (i)
of the Supplementary Provisions (hereinafter referred to as "Covered Insurance
Contracts in the Special Provision Period" in this Article); the same shall apply
in Article 270-6-10);" the term "the Covered Insurance Contract" in Article 270-
6-8, paragraph (2) shall be deemed to be replaced with "the Covered Insurance Contract (excluding the Covered Insurance Contracts in the Special Provision Period);" and the term "or the amount obtained by multiplying the amount of
insurance claims and other benefits under the Covered Insurance Contracts in the Special Provision Period by the ratio to be specified by a Cabinet Office
Ordinance/Ordinance of the Ministry of Finance" shall be deemed to be
inserted before the term "(hereinafter referred to as" in Article 270-6-8, paragraph (2).
(Special Provision on Assessment)
Article 1-4 For each of the business years from the business year in which the
Corporation is established to the business year to which belongs the date
prescribed in Article 1-6, paragraph (1) of the Supplementary Provisions to be specified by a Cabinet Order, the rate of assessment to be determined by the
Corporation pursuant to the provision of Article 265-34, paragraph (3) shall not, for each type of license prescribed in Article 262, paragraph (2), be less than
the rate to be specified by a Cabinet Order taking into consideration the
expected amount of cost required by the Corporation for the Business of
Financial Assistance, etc. pertaining to the Insurance Companies with the same type of license and the financial conditions of such Insurance Companies.
(Special Provisions on Borrowings, Guarantee by Government, etc.)
Article 1-5 (1) For the purpose of applying the provision of Article 265-42 to any
Financial Assistance in the Special Provision Period or Underwriting in the
Special Provision Period by the Corporation, the term "Insurance Company" in
that Article shall be deemed to be replaced with "Insurance Company, the
Bank of Japan."
(2) Where the provision of the preceding paragraph applies, the Bank of Japan
may provide loans of funds for the Corporation, notwithstanding the provision of Article 43, paragraph (1) of the Bank of Japan Act (Act No. 89 of 1997).
(3) Where the Corporation borrows any funds pursuant to the provision of Article
265-42 as applied with relevant replacement of terms under paragraph (1), the
Government may, when it finds necessary, provide guarantee for the
obligations of the Corporation pertaining to the borrowing within the limit of
the amount to be specified by way of a resolution of the Diet, notwithstanding the provision of Article 3 of the Act on the Limitations of Government
Financial Assistance to Juridical Persons.
(Separate Accounting)
Article 1-6 (1) The Non-Life Insurance Policyholders Protection Corporation
(referring to the Non-Life Insurance Policyholders Protection Corporation
prescribed in Article 265-37, paragraph (2); the same shall apply hereinafter)
shall, at the end of the business year to which belongs the day to be specified
by a Cabinet Order as the date of termination of the business pertaining to the
Financial Assistance in the Special Provision Period and the Underwriting in
the Special Provision Period, create a Special Account (hereinafter referred to as "Liquidation Account") to arrange for the separate accounting of any
outstanding borrowings guaranteed by the Government under paragraph (3) of the preceding Article, with regard to the account related to the performance
obligations pertaining to such borrowings.
(2) The Non-Life Insurance Policyholders Protection Corporation shall, at the end of the business year prescribed in the preceding paragraph, impute to the
Liquidation Account the obligations pertaining to the borrowings set forth in that paragraph and any claims on assessment (referring to the claims
pertaining to any unpaid amount of the assessment to be paid under Article
265-33, paragraph (1); hereinafter the same shall apply in this paragraph), and transfer from the Insurance Policyholders Protection Funds prescribed in
Article 265-32, paragraph (1) to the Liquidation Account the amount
corresponding to the balance of the fund as at the end of that business year, to the limit of the amount of the borrowings subtracted by the amount of the
claims on assessment.
(Special Assessment)
Article 1-7 (1) The members of the Non-Life Insurance Policyholders Protection Corporation shall, with regard to each of the business year from the next business year of the business year prescribed in paragraph (1) of the preceding
Article to the business year that contains the day when the Non-Life Insurance
Policyholders Protection Corporation abolishes the Liquidation Account
pursuant to the provision of Article 1-9 of the Supplementary Provisions, where the amount of obligations pertaining to borrowings to be imputed to the
Liquidation Account pursuant to the provision of paragraph (2) of the
preceding Article exceeds the amount of the assets belonging to the Liquidation
Account, pay assessment to the Non-Life Insurance Policyholders Protection Corporation pursuant to the provisions of the articles of incorporation as funds to be allocated by the Non-Life Policyholders Protection Corporation to the
performance of such obligations, in addition to the assessment set forth in
Article 265-33, paragraph (1).
(2) The provisions of Article 265-33, paragraph (2), the main clause of Article
265-34, paragraphs (1), (3) and (4) and Article 265-35 shall apply mutatis mutandis to the assessment to be paid under the preceding paragraph.
(3) The rate of assessment to be determined by the Non-Life Insurance
Policyholders Protection Corporation under Article 265-34, paragraph (3) as applied mutatis mutandis pursuant to the preceding paragraph shall not be less than the rate to be determined by the Prime Minister and the Minister of Finance taking into consideration the amount required for the performance of obligations pertaining to borrowings imputed to the Liquidation Account
pursuant to the provision of paragraph (2) of the preceding Article and the
amount of the assets belonging to the Liquidation Account.
(Special Provisions for Approval of Budget, etc.)
Article 1-8 (1) For each of the business years from the business year in which
the Non-Life Insurance Policyholders Protection Corporation is established to the business year in which the Liquidation Account is abolished pursuant to
the provision of the following Article, where the Liquidation Account is created, or to the business year to which belongs the date prescribed in Article 1-6,
paragraph (1) of the Supplementary Provisions to be specified by a Cabinet
Order, where the Liquidation Account is not created, the Non-Life Insurance Policyholders Protection Corporation shall, notwithstanding the provision of Article 265-37, have its budget and financial plan for the business year
approved by the Prime Minister and the Minister of Finance, prior to the start
of the business year (or, for the business year in which the Non-Life Insurance
Policyholders Protection Corporation is established, without delay after its establishment). The same shall apply to any amendment thereto.
(2) The provision of the preceding paragraph shall not preclude the incorporators of the Non-Life Insurance Policyholders Protection Corporation, acting on its behalf, from applying for, and receiving the approval of the Prime Minister and the Minister of Finance under the preceding paragraph for its budget and
financial plan adopted by way of a resolution of the Organizational Meeting
pursuant to the provision of Article 265-7, paragraph (4), prior to the start of the business year in which the Non-Life Insurance Policyholders Protection
Corporation is established.
(Abolition of Liquidation Account)
Article 1-9 The Non-Life Insurance Policyholders Protection Corporation shall abolish the Liquidation Account on the day when the performance of the
obligations pertaining to the borrowings imputed to the Liquidation Account
pursuant to the provision of Article 1-6, paragraph (2) of the Supplementary
Provisions is completed.
(Application of this Act)
Article 1-10 The provisions of this Act shall apply as follows where the
Liquidation Account is created in the Non-Life Insurance Policyholders
Protection Corporation pursuant to the provision of Article 1-6, paragraph (1)
of the Supplementary Provisions:
(i) For the purpose of applying the provision of Article 265-28, paragraph (1),
item (ii), the term "and the assessment set forth in Article 1-7, paragraph (1)
of the Supplementary Provisions" shall be deemed to be added at the end of that item; and
(ii) For the purpose of applying the provision of Article 265-41, paragraph (2), the term "and the Liquidation Account prescribed in Article 1-6, paragraph
(1) of the Supplementary Provisions" shall be inserted before the term "; the
same shall apply in Article 270-5."
(Penal Provisions)
Article 1-11 (1) Any officer or functionary who has failed to report under Article
1-2-5, paragraph (3) or Article 1-2-7, paragraph (2) of the Supplementary
Provisions or made a false report shall be punished by a fine of not more than five hundred thousand yen.
(2) Any person who has failed to make a report under Article 1-2-10 of the
Supplementary Provisions or has made a false report shall be punished by a fine of not more than five hundred thousand yen.
(3) When the representative person, or any agent, employee or other worker of a juridical person has committed the violation set forth in the preceding
paragraph in connection with the business or property of the juridical person, such juridical person, in addition to the perpetrator, shall be punished under
that paragraph.
Article 1-12 Any officer of the Non-Life Insurance Policyholders Protection
Corporation who has failed to receive the approval of the Prime Minister and
the Minister of Finance pursuant to the provision of Article 1-8, paragraph (1)
of the Supplementary Provisions, where such approval is required, shall be punished by a non-penal fine of not more than two hundred thousand yen.
(Special Provisions on Partial Payment in Kind of Amount Corresponding to
Policy Reserve Pertaining to Dissolved Welfare Pension Fund, etc.)
Article 1-13 (1) Where a dissolved welfare pension fund, etc. as defined in Article
113, paragraph (1) of the Defined-Benefit Corporation Pension Act (Act No. 50 of 2001) (hereinafter referred to as "Dissolved Welfare Pension Fund, etc." in
this Article) pays in kind part of the amount corresponding to the policy
reserve (referring to the policy reserve prescribed in Article 113, paragraph (1)
of that Act) pursuant to the provision of Article 114, paragraph (1) of that Act
(referring to the payment in kind prescribed in Article 114, paragraph (1) of
that Act; hereinafter the same shall apply in this Article), the provisions of this
Act shall apply to the delivery for allocation to such payment in kind of any assets pertaining to life insurance contracts concluded by the Dissolved
Welfare Pension Fund, etc. from a Life Insurance Company (including a
Foreign Life Insurance Company, etc.; hereinafter the same shall apply in this Article), by deeming such delivery as the payment of insurance claims, refunds or other benefits in an amount corresponding to the value of the assets
pursuant to the provisions of a Cabinet Office Ordinance.
(2) When a Life Insurance Company that has concluded a contract with the
Government Pension Investment Fund regarding the management and
investment of the funds receives from a Dissolved Welfare Pension Fund, etc. the transfer of assets pertaining to the payment in kind pursuant to the
provision of Article 114, paragraph (4) of the Defined-Benefit Corporation
Pension Act, the provisions of this Act shall apply to the transfer of assets by deeming such transfer as the receipt of insurance premiums pertaining to life
insurance contracts concluded with the Government Pension Investment Fund
in an amount corresponding to the value of the assets, pursuant to the provisions of a Cabinet Office Ordinance.
(Repeal of Acts on Control of Insurance Solicitation, etc.) Article 2 The following Acts shall be repealed:
(i) The Act on the Control of Insurance Solicitation (Act No. 171 of 1948); and
(ii) The Act on Foreign Insurance Business Operators (Act No. 184 of 1949).
(Transitional Measures for License)
Article 3 (1) The persons that have obtained the license of the competent
minister set forth in Article 1, paragraph (1) of the Insurance Business Act
before amendment (hereinafter referred to as the "Former Act") by the time
when this Act enters into force (including the persons deemed to have obtained the license of the competent minister set forth in Article 1, paragraph (1) of the Former Act pursuant to the provision of Article 159 of the Former Act, or any
act other than the Former Act or any order pursuant thereto (referred to as the "Provision of Article 159 of the Former Act, etc." in the following paragraph) shall be deemed to obtain the license of the Ministry of Finance set forth in
Article 3, paragraph (1) of the Insurance Business Act as amended (hereinafter referred to as the "Current Act") when this Act enters into force.
(2) The license of the Financial Minister set forth in Article 3, paragraph (1) of
the Current Act that shall be deemed as obtained by the persons prescribed in the preceding paragraph (hereinafter referred to as the "Insurance Companies Licensed under the Former Act") pursuant to the provision of that paragraph
shall be the life insurance business license as defined in Article 3, paragraph (4) of the Current Act or the non-life insurance business license as defined in paragraph (5) of that Article, in accordance with the category of business, i.e.
the life insurance business or non-life insurance business, that the person was allowed to carry on under the license set forth in Article 1, paragraph (1) of the Former Act (including the license that the person is deemed to have obtained
pursuant to the Provision of Article 159 of the Former Act, etc.).
Article 4 Those documents listed in Article 1, paragraph (2), items (i) to (iv)
inclusive of the Former Act which have been submitted to the competent
minister for the Insurance Companies Licensed under the Former Act by the time when this Act enters into force shall be deemed as the corresponding
documents listed in the items of Article 4, paragraph (2) of the Current Act (for the document listed in Article 1, paragraph (2), item (iv) of the Former Act, as
the document listed in Article 4, paragraph (2), item (iv) of the Current Act), as the case may be.
(Transitional Measures for Amount of Capital or Total Amount of Funds)
Article 5 (1) The provision of Article 6, paragraph (1) of the Current Act shall not apply to those Insurance Companies Licensed under the Former Act for
which the amount of capital or the total amount of funds (including the reserve under Article 65 of the Former Act) is less than the amount set forth in that
paragraph to be specified by a Cabinet Order at the time when this Act enters
into force, for a period of five years counting from the Effective Date of this Act (hereinafter referred to as the "Effective Date") (or, for an Insurance Company Licensed under the Former Act which has obtained the authorization of the
Prime Minister set forth in Article 79, paragraph (1) or Article 93, paragraph
(1) of the Current Act within the five-year period, until the date of the Entity
Conversion thus authorized).
(2) Where the Insurance Company Licensed under the Former Act to which the provision of the preceding paragraph is applied is a Mutual Company, for the period of time specified by the preceding paragraph, the company may set aside as a reserve all or part of the amount that may be allocated to the redemption
of funds or distribution of surplus specified in Article 55, paragraph (2) of the
Current Act, until such time as the total amount of funds (including the
reserve for redemption of funds set forth in Article 56 of the Current Act
(including any amount deemed to have been set aside as the reserve for
redemption of funds pursuant to the provisions of the following paragraph and Article 39 of the Supplementary Provisions)) reaches the amount set forth in Article 6, paragraph (1) of the Current Act to be specified by a Cabinet Order.
(3) The Reserve set aside pursuant to the provision of the preceding paragraph
shall be deemed to have been set aside as the reserve for redemption of funds set forth in Article 56 of the Current Act.
(Transitional Measures for Trade Name or Name)
Article 6 The provision of Article 7, paragraph (2) of the Current Act shall not apply for six months counting from the Effective Date to a person using any term that may be understood as indicating an Insurance Company at the time when this Act enters into force.
(Transitional Measures for Share Application Certificates)
Article 7 (1) The provision of Article 9, paragraph (1) of the Current Act shall
apply to the share application certificate set forth in Article 175, paragraph (1) (Method of Share Application) of the Commercial Code where the incorporators start the solicitation of shareholders on or after the Effective Date; with regard to the share application certificates where the incorporators started the
solicitation of shareholders before the Effective Date, the provisions then in force shall remain applicable.
(2) The provision of Article 9, paragraph (1) of the Current Act as applied
mutatis mutandis pursuant to paragraph (2) of that Article shall apply to the share application certificate set forth in Article 280-6 (Share Application
Certificate) of the Commercial Code or the subscription warrant set forth in
Article 280-6-2, paragraph (1) (Subscription Warrant) of said Code where the
board of directors or shareholders meeting adopts any resolution on the issue of new shares under Article 280-2 (Decision on Matters concerning Issue of New
Shares) of said Code after the Effective Date.
(Transitional Measures for Grounds for Disqualification of Director, etc.)
Article 8 For the purpose of applying the provision of Article 254-2, item (iii)
(Grounds for Disqualification of Director) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to Article 280,
paragraph (1) (Company Auditor) and Article 430, paragraph (2) (Liquidator) of said Code) as applied with relevant replacements of terms pursuant to Article
12, paragraph (1) of the Current Act, a person punished pursuant to the
provisions of the Former Act (including the provisions of the Former Act that shall remain applicable pursuant to the present Supplementary Provisions) shall be deemed to have been punished pursuant to the provisions of the
Current Act on the day when the person received the original punishment.
(Transitional Measures for Retained Earnings Reserve)
Article 9 The provision of Article 14 of the Current Act shall apply to the
accumulation of the retained earnings Reserve for the business years that start on or after the Effective Date.
(Transitional Measures for Restrictions on Dividend, etc.)
Article 10 The provision of Article 15 of the Current Act shall apply to the dividend of profit or the distribution of money set forth in Article 293-5,
paragraph (1) (Interim Dividend) of the Commercial Code pertaining to a resolution adopted by the board of directors or shareholders meeting in a
session held on or after the Effective Date, or to the cancellation of shares set
forth in the proviso to Article 212, paragraph (1) or Article 212-2, paragraph (1) (Cancellation of Shares) of said Code; with regard to the dividend of profit or
the distribution of money set forth in Article 293-5, paragraph (1) pertaining to
a resolution adopted by the board of directors or shareholders meeting in a
session held before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Denial of Shareholders' Right to Inspect Books)
Article 11 The provision of Article 16 of the Current Act shall not apply to any request made by shareholders before the Effective Date for the inspection or copying of accounting books and documents set forth in Article 293-6,
paragraph (1) (Shareholders' Right to Inspect Books) of the Commercial Code.
(Transitional Measures for Reduction of Capital)
Article 12 The provision of Article 17 of the Current Act shall apply to the reduction of capital pertaining to a resolution of the shareholders meeting adopted in a session held on or after the Effective Date; with regard to the reduction of capital pertaining to a resolution of the shareholders meeting adopted in a session before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Statutory Lien for Policyholders, etc.)
Article 13 With regard to the statutory lien under Article 32 of the Former Act or the right under Article 33 of the Former Act in existence at the time when
this Act enters into force, the provisions then in force shall remain applicable.
(Transitional Measures for Mutual Companies)
Article 14 The Mutual Companies under the Former Act in existence at the time when this Act enters into force shall be deemed as Mutual Companies under
the Current Act.
(Transitional Measures for Acts of Directors, etc. of Mutual Company)
Article 15 Those acts prescribed in the Commercial Code or Act on Special
Measures for the Commercial Code as applied mutatis mutandis pursuant to
the Former Act which were or should have been performed before the Effective Date by the incorporators, directors, representative director, company auditors, accounting auditors or liquidators of a Mutual Company under the Former Act
in existence at the time when this Act enters into force shall be deemed as
those acts prescribed in the relevant provisions of the Commercial Code or Act on Special Measures for the Commercial Code as applied mutatis mutandis
pursuant to the Current Act which were or should have been performed by the
incorporators, directors, representative director, company auditors, accounting auditors or liquidators of a Mutual Company under the Current Act on the day when the original acts were or should have been performed, except when the
present Supplementary Provisions specify otherwise.
(Transitional Measures for Acts, etc. of Managers, etc. of Mutual Company)
Article 16 (1) The provisions of Article 38 to 43 inclusive (Commercial Employee) of the Commercial Code as applied mutatis mutandis pursuant to Article 21, paragraph (1) of the Current Act shall apply to the acts performed before the
Effective Date by the managers (including the employees prescribed in Article
42 (Apparent Manager) or Article 43 (Employee Entrusted with Certain Type of
Task or Specific Task) of the Commercial Code as applied mutatis mutandis pursuant to Article 42 of the Former Act) appointed pursuant to the provision of Article 37 (Appointment of Manager) of the Commercial Code as applied mutatis mutandis pursuant to Article 42 of the Former Act) by a Mutual
Company under the Former Act in existence at the time when this Act enters
into force, and other matters pertaining to such managers, by deeming that the matters pertaining to the managers appointed pursuant to the provision of
Article 37 of the Commercial Code as applied mutatis mutandis pursuant to
Article 21, paragraph (1) of the Current Act by a Mutual Company under the
Current Act (including the employees prescribed in Article 42 or 43 of said Code as applied mutatis mutandis pursuant to that paragraph) have been performed on the dates of the original performance.
(2) For the purpose of applying Article 46 to 48 inclusive, Article 50 and Article
51 (Commercial Agent) of the Commercial Code as applied mutatis mutandis pursuant to Article 21, paragraph (1) of the Current Act, the acts and other matters performed before the Effective Date prescribed in Article 46 to 48
inclusive, Article 50 and Article 51 of the Commercial Code as applied mutatis mutandis pursuant to Article 42 of the Former Act regarding a Mutual
Company under the Former Act shall be deemed as the acts and other matters
regarding a Mutual Company under the Current Act, performed on the dates of the original performance.
(3) Any claim filed with the court before the Effective Date pertaining to a
Mutual Company under the Former Act in existence at the time when this Act enters into force by the members, creditors or other interested persons of the Mutual Company under the Former Act pursuant to Article 58 (Order for
Dissolution) or any other provision of the Commercial Code as applied mutatis mutandis pursuant to the Former Act, and any order issued by the court
pertaining to such claim before the Effective Date shall be deemed as a claim filed with the court or an order issued by the court on the date of the original claim or order pertaining to a Mutual Company under the Current Act
pursuant to the corresponding provision of the Commercial Code as applied
mutatis mutandis pursuant to the Current Act, except when the present
Supplementary Provisions specify otherwise.
(Transitional Measures for Commercial Books, etc. of Mutual Company) Article 17 The commercial books, financial statements or other accounting
documents prepared before the Effective Date pursuant to the provisions of the
Commercial Code as applied mutatis mutandis pursuant to the Former Act by a Mutual Company under the Former Act in existence at the time when this
Act enters into force shall be deemed to have been prepared on the dates of the original preparation by a Mutual Company under the Current Act pursuant to
the corresponding provisions of the Commercial Code as applied mutatis
mutandis pursuant to the Current Act.
(Transitional Measures for Incorporation of Mutual Company)
Article 18 The provisions of Part II, Chapter II, Section 2, Subsection 2 of the
Current Act shall apply to the procedure of incorporation of a Mutual Company whose articles of incorporation are certified on or after the Effective Date
under Article 167 (Certification of Articles of Incorporation) of the Commercial
Code as applied mutatis mutandis pursuant to Article 22, paragraph (4) of the
Current Act, and to the registration of incorporation of a Mutual Company and application thereof made on or after the Effective Date; with regard to the
procedure of incorporation (excluding the registration of incorporation and
application thereof) of a Mutual Company whose articles of incorporation were certified before the Effective Date under Article 167 of the Commercial Code as applied mutatis mutandis pursuant to Article 42 of the Former Act, the
provisions then in force shall remain applicable.
(Transitional Measures for Mutual Company's Articles of Incorporation)
Article 19 The description of the matters listed in Article 34, items (i) to (ix)
inclusive of the Former Act in the articles of incorporation of a Mutual
Company under the Former Act in existence at the time when this Act enters into force and of a Mutual Company whose incorporation shall remain
governed by the provisions then in force pursuant to the provision of the
preceding Article shall be deemed as the description of the matters listed in the corresponding items among of Article 22, paragraph (2), items (i) to (viii)
inclusive and Article 22, paragraph (3), item (ii) of the Current Act (or, for the matters listed in Article 34, item (i) of the Former Act, the matters listed in
Article 22, paragraph (2), item (i) of the Current Act), as the case may be; any description of the matters listed in Article 34, item (x) of the Former Act in
such articles of incorporation shall be deemed as nonexistent.
(Transitional Measures for Application for Registration of Incorporation)
Article 20 The provision of Article 28, item (ii) of the Current Act shall not apply to any application for registration of incorporation made by a Mutual Company whose incorporation shall remain governed by the provisions then in force
pursuant to the provision of Article 18 of the Supplementary Provisions.
(Transitional Measures for Lawsuit to Hold Incorporators of Mutual Company
Accountable)
Article 21 The provisions of Article 267 to 268-3 inclusive (Lawsuit to Hold
Directors Accountable) of the Commercial Code as applied mutatis mutandis pursuant to Article 196 (Exemption from Liability of, and Representative
Action against Incorporators) of said Code as applied mutatis mutandis
pursuant to Article 30 of the Current Act shall apply to any lawsuit filed by members on or after the Effective Date under Article 267, paragraph (1) of the Commercial Code as applied mutatis mutandis pursuant to Article 196 of said Code as applied mutatis mutandis pursuant to Article 30 of the Current Act or under Article 267, paragraph (3) of the Commercial Code as applied mutatis mutandis pursuant to Article 196 of said Code as applied mutatis mutandis
pursuant to Article 30 of the Current Act; with regard to any lawsuit filed by
members before the Effective Date under Article 57, paragraph (1) of the
Former Act as applied mutatis mutandis pursuant to Article 41 of the Former Act or under Article 267, paragraph (3) of the Commercial Code as applied mutatis mutandis pursuant to Article 57, paragraph (2) of the Former Act as applied mutatis mutandis pursuant to Article 41 of the Former Act, the
provisions then in force shall remain applicable.
(Transitional Measures for Set-offs Pertaining to Payment of Insurance
Premiums)
Article 22 With regard to set-offs pertaining to the payment of those insurance premiums under Article 45 of the Former Act which should have been paid by members before the Effective Date, the provisions then in force shall remain
applicable.
(Transitional Measures for Notice and Demand)
Article 23 The provision of Article 32 of the Current Act shall apply to any notice or demand issued on or after the Effective Date under the main clause of
paragraph (1) of that Article; with regard to any notice or demand issued
before the Effective Date under the main clause of Article 50 of the Former Act, the provisions then in force shall remain applicable.
(Transitional Measures for Withdrawing Members)
Article 24 The provisions of Articles 35 and 36 of the Current Act shall apply to the members who withdraw on or after the Effective Date; with regard to the members who withdrew before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Voting Rights of Members and General
Representatives)
Article 25 Any description of the exceptional specification prescribed in the
proviso to Article 52 of the Former Act (including the cases where it is applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Former Act) in
the articles of incorporation of a Mutual Company under the Former Act in
existence at the time when this Act enters into force shall be deemed as nonexistent.
(Transitional Measures for Right to Propose at General Meeting of Members, etc.)
Article 26 The provisions of Article 38 to 40 inclusive of the Current Act shall
apply to any request made by members on or after the Effective Date for any of the matters prescribed in those provisions; with regard to any request made
before the Effective Date under Article 52-2, paragraph (1), Article 53,
paragraph (1) or Article 53-2, paragraph (1) of the Former Act, the provisions then in force shall remain applicable.
(Transitional Measures for Resolution of General Meeting of Members, etc.) Article 27 Any resolution adopted before the Effective Date, pursuant to any of
the provisions of the Commercial Code or Act on Special Measures for the
Commercial Code as applied mutatis mutandis pursuant to the Former Act, on the appointment of directors or company auditors, or any other matter by the general meeting of members (including the organ established in lieu of such
meeting under Article 51, paragraph (1) of the Former Act) of a Mutual
Company under the Former Act in existence at the time when this Act enters into force, except those specified in other Article of these Supplementary
Provisions, shall be deemed as a resolution adopted pursuant to the
corresponding provision of the Commercial Code as applied mutatis mutandis pursuant to the Current Act on the date of the original resolution by the
general meeting of members of a Mutual Company under the Current Act or the organ established under Article 51, paragraph (1) of the Former Act that shall be deemed as the General Meeting established under Article 42,
paragraph (1) of the Current Act pursuant to the provision of Article 29 of the
Supplementary Provisions.
(Transitional Measures for Application mutatis mutandis, of Commercial Code, etc. Pertaining to General Meeting of Members)
Article 28 (1) The provisions of the Commercial Code and Act on Special
Measures for the Commercial Code as applied mutatis mutandis pursuant to
Article 41 of the Current Act shall apply to the sessions of the general meeting of members for which the convocation notice set forth in Article 232, paragraph (1) (Convocation Notice) of the Commercial Code as applied mutatis mutandis pursuant to Article 41 of the Current Act is issued on or after the Effective
Date; with regard to the sessions of general meeting of members for which the
convocation notice set forth in Article 232, paragraph (1) of the Commercial
Code as applied mutatis mutandis pursuant to Article 54 of the Former Act
was issued before the Effective Date, the provisions then in force shall remain applicable.
(2) Where the articles of incorporation of a Mutual Company under the Former
Act in existence at the time when this Act enters into force specify any
exceptional standard pursuant to the proviso to Article 52-2, paragraph (1), the proviso to Article 53, paragraph (1) or the proviso to Article 53-2, paragraph (1) of the Former Act, the description of such standard shall be deemed as
nonexistent when the proportion of the number of members to the total number
of members or the number of members thus specified exceeds the proportion of the number of members to the total number of members or the number of members prescribed in Article 38, paragraph (1), Article 39, paragraph (1) or
Article 40, paragraph (1) of the Current Act, respectively.
(Transitional Measures for Establishment of General Meeting, etc.)
Article 29 (1) Where a Mutual Company under the Former Act in existence at
the time when this Act enters into force has established the organ prescribed
in Article 51, paragraph (1) of the Former Act, such organ shall be deemed as the General Meeting set forth in Article 42, paragraph (1) of the Current Act when the specification in the articles of incorporation set forth in Article 51,
paragraph (1) of the Former Act conforms to the provisions of Article 42,
paragraphs (2) and (3) of the Current Act.
(2) Where a Mutual Company under the Former Act in existence at the time
when this Act enters into force has established the organ prescribed in Article
51, paragraph (1) of the Former Act, such organ shall be deemed as the
General Meeting set forth in Article 42, paragraph (1) of the Current Act only for a period of one year counting from the Effective Date when the specification in the articles of incorporation set forth in Article 51, paragraph (1) of the
Former Act does not conform to the provisions of Article 42, paragraphs (2) and
(3) of the Current Act.
(3) In the case prescribed in the preceding paragraph, when the Mutual Company under the Former Act prescribed in that paragraph modifies its articles of
incorporation within the period prescribed in that paragraph so that they may
conform to the provisions of Article 42, paragraphs (2) and (3)of the Current
Act, the organ prescribed in Article 51, paragraph (1) of the Former Act of the
Mutual Company under the Former Act shall be deemed as the General
Meeting set forth in Article 42, paragraph (1) of the Current Act even after the expiration of the period.
(4) The members of the organ deemed as the General Meeting set forth in Article
42, paragraph (1) of the Current Act pursuant to the provisions of the
preceding three paragraphs shall be deemed as the general representatives set forth in that paragraph.
(Transitional Measures for Method of Adopting Resolutions of General Meeting, etc.)
Article 30 The provisions of Articles 43 and 44 of the Current Act shall apply to
the sessions of the General Meeting set forth in Article 42, paragraph (1) of the Current Act (including that organ prescribed in Article 51, paragraph (1) of the Former Act which shall be deemed as the General Meeting pursuant to the
provision of the preceding Article) for which the convocation notice set forth in
Article 232, paragraph (1) (Convocation Notice) of the Commercial Code as applied mutatis mutandis pursuant to Article 49 of the Current Act is issued on or after the Effective Date; with regard to the sessions of that organ
prescribed in Article 51, paragraph (1) of the Former Act which shall be
deemed as the General Meeting set forth in Article 42, paragraph (1) of the
Current Act pursuant to the provision of paragraph (1) or (2) of the preceding Article for which the convocation notice set forth in Article 232, paragraph (1) of the Commercial Code as applied mutatis mutandis pursuant to Article 54 of
the Former Act as applied mutatis mutandis pursuant to Article 51, paragraph
(2) of the Former Act was issued before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Right to Propose in General Meeting, etc.)
Article 31 (1) The provisions of Article 45 to 47 inclusive of the Current Act shall apply to any request made on or after the Effective Date by members or the
general representatives set forth in Article 42, paragraph (1) of the Current
Act (including those who shall be deemed as the general representatives set
forth in Article 42, paragraph (1) of the Current Act pursuant to the provision of Article 29, paragraph (4) of the Supplementary Provisions) regarding the
matters prescribed in Article 45, paragraph (1), Article 46, paragraph (1) or
Article 47, paragraph (1) of the Current Act; with regard to any request made before the Effective Date pursuant to the provision of Article 52-2, paragraph (1), Article 53, paragraph (1) or Article 53-2, paragraph (1) of the Former Act as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the
Former Act, the provisions then in force shall remain applicable.
(2) The provision of Article 28, paragraph (2) of the Supplementary Provisions shall apply mutatis mutandis to any exceptional standard specified in the
articles of incorporation of a Mutual Company under the Former Act in
existence at the time when this Act enters into force, pursuant to the proviso to
Article 52-2, paragraph (1), the proviso to Article 53, paragraph (1) or the
proviso to Article 53-2, paragraph (1) of the Former Act as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Former Act.
(3) Where the articles of incorporation of a Mutual Company under the Former
Act in existence at the time when this Act enters into force describe the
number of the persons who shall be deemed as the general representatives set forth in Article 42, paragraph (1) of the Current Act pursuant to the provision of Article 29, paragraph (4) of the Supplementary Provisions pursuant to the
proviso to Article 52-2, paragraph (1), the proviso to Article 53, paragraph (1)
or the proviso to Article 53-2, paragraph (1) of the Former Act as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Former Act, such description shall be deemed as nonexistent when the number thus
described exceeds the number of general representatives prescribed in Article
45, paragraph (1), Article 46, paragraph (1) or Article 47, paragraph (1) of the
Current Act.
(Transitional Measures for Sending of Reference Documents for General
Meeting)
Article 32 The provision of Article 48 of the Current Act shall apply to that
convocation notice set forth in Article 232, paragraph (1) (Convocation Notice) of the Commercial Code as applied mutatis mutandis pursuant to Article 49 of the Current Act which is issued on or after the Effective Date; with regard to
that convocation notice set forth in Article 232, paragraph (1) of the
Commercial Code as applied mutatis mutandis pursuant to Article 54 of the Former Act as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Former Act which was issued before the Effective Date, the provisions
then in force shall remain applicable.
(Transitional Measures for Application mutatis mutandis, of Commercial Code
Pertaining to General Meeting)
Article 33 The provisions of the Commercial Code as applied mutatis mutandis pursuant to Article 49 of the Current Act shall apply to the sessions of the
General Meeting set forth in Article 42, paragraph (1) of the Current Act
(including that organ prescribed in Article 51, paragraph (1) of the Former Act which shall be deemed as the General Meeting pursuant to the provision of
Article 29 of the Supplementary Provisions) for which the convocation notice
set forth in Article 232, paragraph (1) (Convocation Notice) of the Commercial Code as applied mutatis mutandis pursuant to Article 49 of the Current Act is issued on or after the Effective Date; with regard to the sessions of that organ prescribed in Article 51, paragraph (1) of the Former Act which shall be
deemed as the General Meeting set forth in Article 42, paragraph (1) of the
Current Act pursuant to the provision of Article 29, paragraph (1) or (2) of the
Supplementary Provisions for which the convocation notice set forth in Article
232, paragraph (1) of the Commercial Code as applied mutatis mutandis
pursuant to Article 54 of the Former Act as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Former Act was issued before the Effective
Date, the provisions then in force shall remain applicable.
(Transitional Measures for Resolutions, etc. Adopted by Mutual Company's
Board of Directors, etc.)
Article 34 The resolutions adopted, and other powers used before the Effective Date pursuant to the provisions of the Commercial Code or Act on Special Measures for the Commercial Code as applied mutatis mutandis pursuant to
the Former Act by the board of directors or board of company auditors of a
Mutual Company under the Former Act in existence at the time when this Act enters into force shall be deemed as the resolutions adopted, and other powers used on the dates of the original resolutions or use of powers by the board of directors or board of company auditors of a Mutual Company under the
Current Act pursuant to the corresponding provisions of the Commercial Code
or Act on Special Measures for the Commercial Code as applied mutatis mutandis pursuant to the Current Act.
(Transitional Measures for Application mutatis mutandis of Commercial Code
Pertaining to Directors of Mutual Company)
Article 35 (1) The provision of Article 8 of the Supplementary Provisions shall apply mutatis mutandis to any application of the provision of Article 254-2
(Grounds for Disqualification of Director) of the Commercial Code as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Current Act.
(2) The provisions of Article 267 to 268-3 inclusive (Lawsuit to Hold Directors
Accountable) of the Commercial Code as applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Current Act shall apply to any request for filing the lawsuit set forth in Article 267, paragraph (1) of the Commercial Code as
applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Current Act or any filing of the lawsuit set forth in Article 267, paragraph (3) of the Commercial Code as applied mutatis mutandis pursuant to Article 51,
paragraph (2) of the Current Act, made by members on or after the Effective
Date; with regard to any request for filing the lawsuit set forth in Article 57,
paragraph (1) of the Former Act, or any filing of the lawsuit set forth in Article
267, paragraph (3) of the Commercial Code as applied mutatis mutandis
pursuant to Article 57, paragraph (2) of the Former Act, made by members
before the Effective Date, the provisions then in force shall remain applicable. (3) The provision of Article 264 (Duty not to Compete) of the Commercial Code as
applied mutatis mutandis pursuant to Article 51, paragraph (2) of the Current
Act shall apply to the transactions carried out by directors on or after the
Effective Date.
(Transitional Measures for Members List)
Article 36 The members list kept pursuant to the provision of Article 56 of the
Former Act by the directors of a Mutual Company under the Former Act in existence at the time when this Act enters into force shall be deemed as the members list set forth in Article 52, paragraph (1) of the Current Act.
(Transitional Measures for Application mutatis mutandis, of Commercial Code
Pertaining to Company Auditors of Mutual Company)
Article 37 (1) The provision of Article 8 of the Supplementary Provisions shall apply mutatis mutandis to any application of the provision of Article 254-2
(Grounds for Disqualification of Director) of the Commercial Code as applied mutatis mutandis pursuant to Article 53, paragraph (2) of the Current Act.
(2) The provisions of Article 267 to 268-3 inclusive (Lawsuit to Hold Directors
Accountable) of the Commercial Code as applied mutatis mutandis pursuant to Article 53, paragraph (2) of the Current Act shall apply to any request for filing the lawsuit set forth in Article 267, paragraph (1) of the Commercial Code as
applied mutatis mutandis pursuant to Article 53, paragraph (2) of the Current
Act or any filing of the lawsuit set forth in Article 267, paragraph (3) of the
Commercial Code as applied mutatis mutandis pursuant to Article 53,
paragraph (2) of the Current Act, made by members on or after the Effective Date; with regard to any request for filing the lawsuit set forth in Article 57, paragraph (1) of the Former Act as applied mutatis mutandis pursuant to
Article 62 of the Former Act or any filing of the lawsuit set forth in Article 267,
paragraph (3) of the Commercial Code as applied mutatis mutandis pursuant to Article 57, paragraph (2) of the Former Act as applied mutatis mutandis pursuant to Article 62 of the Former Act, made by members before the
Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Deficiency Reserve)
Article 38 (1) The provision of Article 54 of the Current Act shall apply to the accumulation of the deficiency reserve set forth in that Article pertaining to
the business years that start on or after the Effective Date; with regard to the
accumulation of the reserve set forth in Article 63, paragraph (1) of the Former Act pertaining to the business years that started before the Effective Date, the provisions then in force shall remain applicable.
(2) The reserve set forth in Article 63, paragraph (1) of the Former Act in
existence at the time when this Act enters into force pertaining to a Mutual Company under the Former Act and the reserve set forth in paragraph (1) of that Article to which the provisions then in force shall remain applicable
pursuant to the provision of the preceding paragraph shall be deemed to have been set aside as the deficiency reserve set forth in Article 54 of the Current
Act.
(3) The accounting practice for settlement purposes where the amount of that reserve set forth in Article 63, paragraph (1) of the Former Act which shall be deemed to have been set aside as the deficiency reserve set forth in Article 54 of the Current Act pursuant to the provision of the preceding paragraph
exceeds the total amount of the funds prescribed in Article 54 of the Current
Act (including the reserve for redemption of funds set forth in Article 56 of the
Current Act) or the amount specified in the articles of incorporation shall be
specified by a Cabinet Office Ordinance.
(Transitional Measures for Funds and Reserve for Redemption of Funds)
Article 39 The funds under the Former Act and the reserve under Article 65 of the Former Act pertaining to a Mutual Company under the Former Act in
existence at the time when this Act enters into force shall be deemed as the
funds under the Current Act and the reserve for redemption of funds set aside pursuant to the provision of Article 56 of the Current Act, respectively.
(Transitional Measures for Distribution of Surplus)
Article 40 The provision of Article 58 of the Current Act shall apply to the
distribution of surplus pertaining to the business years that start on or after the Effective Date; with regard to the distribution of surplus set forth in
Article 66 of the Former Act pertaining to the business years that started
before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Research and Development Expenditure, etc.)
Article 41 (1) That amount of money prescribed in Article 286-2 (Deferral of Test and Research Expenditure and Development Expenditure) of the Commercial Code as applied mutatis mutandis pursuant to Article 67 of the Former Act
which was expended before the Effective Date by a Mutual Company under the
Former Act in existence at the time when this Act enters into force shall be
deemed as that amount of money prescribed in Article 286-3 of the Commercial Code as applied mutatis mutandis pursuant to Article 59, paragraph (1) of the Current Act which was expended on the date of the original expenditure by a Mutual Company under the Current Act.
(2) The provision of Article 286-4 (Deferral of New Share Issue Cost) of the
Commercial Code as applied mutatis mutandis pursuant to Article 59,
paragraph (1) of the Current Act shall apply to that amount of cost required for the public offering of funds prescribed in that Article which is expended in the business years that start on or after the Effective Date.
(3) That amount of cost required for the public offering of funds prescribed in
Article 286-4 of the Commercial Code as applied mutatis mutandis pursuant to Article 59, paragraph (1) of the Current Act which was expended in the business years that started before the Effective Date by a Mutual Company
under the Former Act in existence at the time when this Act enters into force
may be credited to assets on the balance sheet for the accounting period of the first business year that starts on or after the Effective Date, after deducting
the minimum amount that should have been amortized if the provision of
Article 286-4 of the Commercial Code had applied to the accounting periods before the accounting period of the first business year that starts on or after
the Effective Date. In this case, not less than the straight-line amount shall be amortized in each of the accounting periods that fall within the amortization
period under that Article after deducting the period that has already elapsed. (4) The provision of Article 294 (Inspection of Business and Property Condition of
Company) of the Commercial Code as applied mutatis mutandis pursuant to
Article 59, paragraph (1) of the Current Act shall apply where the members or general representatives prescribed in Article 294, paragraph (1) of the
Commercial Code make the request set forth in that paragraph on or after the Effective Date. In this case, the business executed before the Effective Date by a Mutual Company under the Former Act in existence at the time when this
Act enters into force shall be deemed to have been executed on the date of the original business execution by a Mutual Company under the Current Act.
(Transitional Measures for Public Offering of Funds)
Article 42 The provision of Article 60 of the Current Act shall apply to any
public offering of funds started by a Mutual Company on or after the Effective
Date.
(Transitional Measures for Registry)
Article 43 The Registry of Mutual Insurance Companies kept in a registry office at the time when this Act enters into force shall be deemed as the Registry of Mutual Insurance Companies set forth in Article 64 of the Current Act.
(Transitional Measures for Application mutatis mutandis of Commercial
Registration Act)
Article 44 The dispositions, procedures and other acts carried out before the Effective Date under the Commercial Registration Act as applied mutatis mutandis pursuant to the Imperial Ordinance set forth in Article 79 of the
Former Act shall be deemed as the corresponding acts under the Commercial
Registration Act as applied mutatis mutandis pursuant to Article 65 of the
Current Act.
(Transitional Measures for Application mutatis mutandis of Act on Procedures for Non-Contentious Cases)
Article 45 The procedures started before the Effective Date under the Act on
Procedures for Non-Contentious Cases as applied mutatis mutandis pursuant to the Imperial Ordinance set forth in Article 79 of the Former Act shall be deemed as the procedures under the Act on Procedures for Non-Contentious
Cases as applied mutatis mutandis pursuant to Article 66 of the Current Act.
(Transitional Measures for Entity Conversion from Stock Company to Mutual
Company)
Article 46 The provisions of Part II, Chapter II, Section 3, Subsection 1 of the
Current Act shall apply to the Entity Conversion set forth in Article 68, paragraph (1) of the Current Act pertaining to the resolution of the
shareholders meeting set forth in Article 69, paragraph (1) of the Current Act where it is carried out on or after the Effective Date; with regard to the Entity Conversion set forth in Article 19, paragraph (1) of the Former Act pertaining to the resolution of the shareholders meeting set forth in Article 20, paragraph (1) of the Former Act, the provisions then in force shall remain applicable
where it was carried out before the Effective Date.
(Transitional Measures for Scope of Business)
Article 47 (1) Those Insurance Companies Licensed under the Former Act which, at the time when this Act enters into force, carry on, with the authorization of the competent minister pursuant to the proviso to Article 5, paragraph (1) of
the Former Act, the business of acting as an agent or intermediary, on behalf of
any of the other companies carrying on the non-life insurance business
prescribed in the proviso to that paragraph, in transactions within the scope of the latter's non-life insurance business, shall be deemed to obtain the
authorization set forth in Article 98, paragraph (2) of the Current Act at the time when this Act enters into force.
(2) Those Insurance Companies Licensed under the Former Act which carry on,
at the time when this Act enters into force, the business set forth in Article 98, paragraph (1), item (i) of the Current Act (excluding the business prescribed in the preceding paragraph) shall notify the Minister of Finance of the content of
such business within six months from the Effective Date.
(3) Those Insurance Companies Licensed under the Former Act which have made the notification set forth in the preceding paragraph shall be deemed to obtain on the Effective Date the authorization set forth in Article 98, paragraph (2) of the Current Act for carrying on the business pertaining to the notification.
Article 48 (1) Those Insurance Companies Licensed under the Former Act which carry on, at the time when this Act enters into force, the business set forth in
Article 99, paragraph (1) of the Current Act, shall notify the Minister of
Finance of the content of such business within six months from the Effective
Date.
(2) Those Insurance Companies Licensed under the Former Act which have made the notification set forth in the preceding paragraph shall be deemed to obtain on the Effective Date the authorization set forth in Article 99, paragraph (4) of the Current Act for carrying on the business pertaining to the notification.
(3) Those Insurance Companies Licensed under the Former Act which, at the
time when this Act enters into force, carry on, with the authorization of the
competent minister pursuant to the proviso to Article 5, paragraph (1) of the
Former Act, the business of accepting trusts prescribed in the proviso to that
paragraph, shall be deemed to obtain the authorization set forth in Article 99, paragraph (7) of the Current Act at the time when this Act enters into force.
(Transitional Measures for Exclusion from Application of Anti-Monopoly Act) Article 49 (1) With regard to those Agreements, contracts and other concerted
activities (hereinafter referred to as "Concerted Activities" in this Article)
listed in the items of Article 12-3 of the Former Act (including the cases where it is applied mutatis mutandis pursuant to Article 19 of the Act on Foreign
Insurance Business Operators to be repealed under Article 2 of the
Supplementary Provisions (hereinafter referred to as the "Former Foreign
Insurance Business Operators Act")) which have been entered into by the time when this Act enters into force by those Insurance Companies Licensed under
the Former Act which shall be deemed to have obtained the non-life insurance business license set forth in Article 3, paragraph (5) of the Current Act
pursuant to the provision of Article 3 of the Supplementary Provisions and
those foreign insurance business operators prescribed in Article 2, paragraph (1) of the Former Foreign Insurance Operators Act (hereinafter referred to as "Non-Life Insurance Companies, etc. Licensed under the Former Act" in this
Article) which shall be deemed to have obtained the foreign non-life insurance
business license set forth in Article 185, paragraph (5) of the Current Act
pursuant to the provision of Article 72 of the Supplementary Provisions, with other Non-Life Insurance Companies, etc. Licensed under the Former Act, the provisions of Article 12-3 to 12-7 inclusive of the Former Act (including the
cases where they are applied mutatis mutandis pursuant to Article 19 of the
Former Foreign Insurance Business Operators Act) (including the penal
provisions pertaining thereto) shall remain in force for a period of two years counting from the Effective Date, provided that all of the Non-Life Insurance Companies, etc. Licensed under the Former Act involved in the Concerted
Activities have notified the Minister of Finance pursuant to the provisions of
the applicable Ordinance of the Ministry of Finance within three months from the Effective Date.
(2) For the purpose of applying the provision of Article 12-5, paragraph (3) of the Former Act (including the cases where it is applied mutatis mutandis pursuant to Article 19 of the Former Foreign Insurance Operators Act) to any application of the provision of the preceding paragraph, the provisions of Article 12,
paragraphs (3) and (4) of the Former Act shall remain in force.
(3) With regard to those Concerted Activities prescribed in paragraph (1) which constitute the Concerted Activities listed in Article 101, paragraph (1), items
(i) and (ii) of the Current Act, the Non-Life Insurance Companies, etc. Licensed under the Former Act set forth in paragraph (1) may, even in the period
prescribed in that paragraph, apply for the authorization set forth in Article
102, paragraph (1) of the Current Act. In this case, where any disposition has been adopted to the effect that the authorization shall be given within such
period, the provision of paragraph (1) shall cease to apply on the day when the
authorization takes effect.
(Transitional Measures for Shareholding in Overseas Affiliated Company, etc.) Article 50 (1) Any Insurance Company Licensed under the Former Act at the
time when this Act enters into force that holds any shares (limited to those
with voting rights) or equity interests (hereinafter referred to as "Shares, etc." in this Article) exceeding fifty hundredths of the total number of issued shares (limited to those with voting rights) or total amount of contribution
(hereinafter referred to as "Issued Shares, etc." in this Article) in any of the
companies listed in the items of Article 108, paragraph (1) of the Current Act shall notify thereof to the Minister of Finance within three months from the
Effective Date.
(2) Where an Insurance Company Licensed under the Former Act at the time
when this Act enters into force has received the permission listed in item (i) or where the acquisition of Shares, etc. (limited to that which has not been
executed by the Effective Date) subject to the notification listed in item (ii)
constitutes the acquisition of Shares, etc. involving more than fifty hundredths of the Issued Shares, etc. in any of the companies listed in the items of Article
108, paragraph (1) of the Current Act, the Insurance Company Licensed under the Former Act shall notify thereof to the Minister of Finance within three
months from the Effective Date:
(i) Permission under Article 21, paragraph (2) (Capital Transactions that Require Permission of Minister of Finance) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949); or
(ii) Notification under Article 22, paragraph (1), item (iv) (Notification
Pertaining to External Direct Investment by Resident) of the Foreign
Exchange and Foreign Trade Act (limited to the cases where, for the relevant notification, the period during which the acquisition of the Shares, etc.
pertaining to the notification is prohibited pursuant to the provision of Article 23, paragraph (1) of that Act without the recommendation of the Minister of Finance under Article 23, paragraph (2) (Examination of Content
and Recommendation of Modification Pertaining to Capital Transaction, etc.)
of that Act has lapsed, or the notification of the acceptance of the
recommendation has been made pursuant to the provision of Article 23, paragraph (4) of that Act).
(3) The provision of Article 106, paragraph (2) of the Current Act as applied mutatis mutandis pursuant to Article 108, paragraph (2) of the Current Act shall apply mutatis mutandis to the Shares, etc. acquired or owned by the
Insurance Company Licensed under the Former Act in the cases set forth in the preceding two paragraphs.
(4) An Insurance Company Licensed under the Former Act that has notified
pursuant to the provision of paragraph (1) or (2) shall be deemed to have
received the authorization set forth in Article 108, paragraph (1) of the Current
Act as at the Effective Date.
(Transitional Measures for Documents to be Submitted to Minister of Finance) Article 51 The provision of Article 110 of the Current Act shall apply to the
business report prescribed in paragraph (1) of that Article pertaining to the business years that start on or after the Effective Date; with regard to the
documents set forth in Article 82, paragraph (1) of the Former Act pertaining
to the business years that started before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Public Inspection of Explanatory Documents on
Business and Property Status)
Article 52 The provision of Article 111 of the Current Act shall apply to the
explanatory documents prescribed in that Article pertaining to the business years that start on or after the Effective Date.
(Transitional Measures for Special Provisions on Valuation of Shares)
Article 53 (1) The provision of Article 112 of the Current Act shall apply to the valuation of shares pertaining to the business years that start on or after the Effective Date; with regard to the valuation of shares pertaining to the business years that started before the Effective Date, the provisions then in force shall remain applicable.
(2) The reserve set forth in Article 84, paragraph (2) of the Former Act in
existence at the time when this Act enters into force pertaining to an Insurance
Company Licensed under the Former Act or the reserve set forth in paragraph (2) of that Article to which the provisions then in force shall remain applicable pursuant to the provision of the preceding paragraph shall be deemed to have
been set aside as the reserve set forth in Article 112, paragraph (2) of the
Current Act to be prescribed by an Ordinance of the Ministry of Finance.
(Transitional Measures for Amortization of Incorporation Expenditures and
Business Expenditures)
Article 54 For the purpose of applying the provision of Article 113, paragraph (1)
of the Current Act to any amount of the incorporation expenditures prescribed in Article 85, paragraph (1) of the Former Act or the business expenditures for the initial five years pertaining to an Insurance Company Licensed under the Former Act that has not been amortized by the time when this Act enters into
force, such amount shall be deemed to have been credited to assets on the balance sheet pursuant to the provision of Article 113, paragraph (1) of the Current Act.
(Transitional Measures for Policy Dividend)
Article 55 The provision of Article 114 of the Current Act shall apply to any distribution of the policy dividend prescribed in paragraph (1) of that Article pertaining to the business years that start on or after the Effective Date.
(Transitional Measures for Price Fluctuation Reserve)
Article 56 (1) The provision of Article 115 of the Current Act shall apply to the
accumulation of the price fluctuation reserve set forth in paragraph (1) of that
Article pertaining to the business years that start on or after the Effective
Date; with regard to the accumulation of the reserve set forth in Article 86 of the Former Act pertaining to the business years that started before the
Effective Date, the provisions then in force shall remain applicable.
(2) The reserve set forth in Article 86 of the Former Act in existence at the time when this Act enters into force pertaining to an Insurance Company Licensed under the Former Act and the reserve set forth in that Article to which the
provisions then in force shall remain applicable pursuant to the provision of
the preceding paragraph shall be deemed to have been set aside as the price fluctuation reserve set forth in Article 115, paragraph (1) of the Current Act.
(3) Where the amount of that reserve set forth in Article 86 of the Former Act
which shall be deemed to have been set aside as the price fluctuation reserve set forth in Article 115, paragraph (1) of the Current Act pursuant to the
provision of the preceding paragraph exceeds the amount set forth in Article
115, paragraph (1) of the Current Act to be calculated pursuant to the
provisions of the applicable Ordinance of the Ministry of Finance, necessary
matters in accounting for such excess amount for settlement purposes shall be prescribed by the Ordinance of the Ministry of Finance.
(Transitional Measures for Policy Reserve)
Article 57 (1) The provision of Article 116 of the Current Act shall apply to the accumulation of the policy reserve set forth in paragraph (1) of that Article
pertaining to the business years that start on or after the Effective Date; with
regard to the accumulation of the policy reserve set forth in Article 88,
paragraph (1) of the Former Act pertaining to the business years that started
before the Effective Date, the provisions then in force shall remain applicable. (2) The policy reserve set forth in Article 88, paragraph (1) in existence at the
time when this Act enters into force pertaining to an Insurance Company
Licensed under the Former Act and the reserve set forth in that paragraph to which the provisions then in force shall remain applicable pursuant to the
provision of the preceding paragraph shall be deemed to have been set aside as
the policy reserve set forth in Article 116, paragraph (1) of the Current Act.
(Transitional Measures for Reserve for Outstanding Claims)
Article 58 The provision of Article 117 of the Current Act shall apply to the
accumulation of the reserve for outstanding claims set forth in paragraph (1) of that Article pertaining to the business years that start on or after the Effective Date.
(Transitional Measures for Special Account)
Article 59 Where an Insurance Company Licensed under the Former Act has created, by the time when this Act enters into force, a Special Account for the
assets corresponding to the amount of the policy reserve set forth in Article 88,
paragraph (1) of the Former Act pertaining to the insurance contracts set forth
in Article 118, paragraph (1) of the Current Act to be specified by an Ordinance of the Ministry of Finance for the purpose of ensuring separate accounting from other assets, such separate account shall be deemed as the separate account
created pursuant to the provision of Article 118, paragraph (1) of the Current
Act.
(Transitional Measures for Appointment of Actuary, etc.)
Article 60 (1) The provision of Article 120 of the Current Act shall not apply to an Insurance Company Licensed under the Former Act that shall be deemed to have obtained the non-life insurance business license set forth in Article 3,
paragraph (5) of the Current Act pursuant to the provision of Article 3 of the
Supplementary Provisions, for a period of three months counting from the
Effective Date.
(2) An actuary that has been appointed by the time when this Act enters into force pursuant to the provision of Article 89, paragraph (1) of the Former Act shall be deemed as the actuary appointed on the Effective Date pursuant to the provision of Article 120, paragraph (1) of the Current Act.
(3) The provision of Article 120, paragraph (2) of the Current Act shall not apply
to an actuary that shall be deemed as appointed pursuant to the provision of paragraph (1) of that Article pursuant to the provision of the preceding
paragraph, for a period of two years counting from the Effective Date.
(Transitional Measures for Actuary's Duties)
Article 61 The provision of Article 121 of the Current Act shall apply to the
duties of an actuary concerning the matters pertaining to the business years
that start on or after the Effective Date; with regard to the duties of an actuary concerning the matters pertaining to the business years that started before the Effective Date of an Insurance Company Licensed under the Former Act that shall be deemed to have obtained the life insurance business license set forth
in Article 3, paragraph (4) of the Current Act pursuant to the provision of
Article 3 of the Supplementary Provisions, the provisions then in force shall
remain applicable. In this case, the competent minister prescribed in Article 90, paragraph (2) of the Former Act to whom the provisions then in force shall
remain applicable shall be the Prime Minister.
(Transitional Measures for Dismissal of Actuary)
Article 62 The provision of Article 122 of the Current Act shall apply to the
dismissal of an actuary for any of the acts committed on or after the Effective
Date; with regard to the dismissal of an actuary for any of the neglect or acts
committed before the Effective Date, the provisions then in force shall remain applicable. In this case, the competent minister prescribed in Article 89,
paragraph (2) of the Former Act to whom the provisions then in force shall remain applicable shall be the Prime Minister.
(Transitional Measures for Authorization, etc. of Modification Pertaining to
Statement of Business Procedures, etc.)
Article 63 (1) Where an Insurance Company Licensed under the Former Act has applied, by the time this Act enters into force, for the authorization of the
competent minister pertaining to the modification of matters prescribed in any
of the documents listed in Article 1, paragraph (2), items (ii) to (iv) inclusive of the Former Act pursuant to the provision of Article 10, paragraph (1) of the
Former Act, such application shall be deemed as the application for the
authorization of the Minister of Finance set forth in Article 123, paragraph (1) of the Current Act. In this case, the matters to be modified shall be deemed to be outside the scope of the matters set forth in that paragraph to be prescribed by an Ordinance of the Ministry of Finance even when such matters do fall
under the matters prescribed by the Ordinance of the Ministry of Finance set forth in that paragraph.
(2) Where an Insurance Company Licensed under the Former Act has applied, by the time this Act enters into force, for the authorization of the competent
minister pertaining to the modification of matters prescribed in the document
listed in Article 1, paragraph (2), item (i) of the Former Act pursuant to the
provision of Article 10, paragraph (1) of the Former Act, such application shall
be deemed as an application subject to the authorization set forth in Article
126 of the Current Act when the matters to be modified fall under any of the matters listed in the items of that Article.
(3) In the case prescribed in the preceding paragraph, when the matters to be modified do not fall under any of the matters listed in the items of Article 126
of the Current Act, the modification shall take effect at the time when this Act
enters into force, and the application set forth in Article 127 of the Current Act shall be deemed as filed as at the Effective Date pertaining to the matters
listed in item (iii) of that Article.
(Transitional Measures Concerning Suspension of Business, etc.)
Article 64 (1) Any order for the suspension of business under Article 12,
paragraph (1) of the Former Act issued prior to the Effective Date shall be deemed as the disposition ordering total or partial suspension of business prescribed in, and made under, Article 132 of the Current Act.
(2) Where any notification and public notice were given under Article 12,
paragraph (3) of the Former Act before the Effective Date pertaining to an order for the suspension of business under paragraph (1) of that Article, the disposition for ordering total or partial suspension of business prescribed in Article 132 of the Current Act may be made under that Article by continuing
the procedure as prescribed in Article 12, paragraphs (2) and (4) of the Former
Act on and after the Effective Date.
(Transitional Measures Concerning Rescission of License, etc.)
Article 65 (1) For the purpose of applying the provision of item (i) or (iii) of
Article 133 of the Current Act, any act under Article 12, paragraph (1) of the Former Act committed before the Effective Date by an Insurance Company Licensed under the Former Act shall be deemed as the act prescribed in item (i) or (iii) of Article 133 of the Current Act.
(2) Where any notification and public notice were given under Article 12,
paragraph (3) of the Former Act before the Effective Date pertaining to a
disposition under paragraph (1) of that Article, a disposition under Article 133 of the Current Act that is equivalent to the original disposition may be made
by continuing the procedure as prescribed in Article 12, paragraph (4) of the
Former Act on and after the Effective Date.
(Transitional Measures for Comprehensive Transfer of Insurance Contracts) Article 66 The provisions of Part II, Chapter VII, Section 1 of the Current Act
shall apply to the transfer of insurance contracts pertaining to a resolution of
the shareholders meeting, or the general meeting of members or the General
Meeting set forth in Article 42, paragraph (1) of the Current Act (including
that organ prescribed in Article 51, paragraph (1) of the Former Act which shall be deemed as the General Meeting set forth in Article 42, paragraph (1)
of the Current Act pursuant to the provision of Article 29 of the Supplementary
Provisions) (hereinafter referred to as the "Shareholders Meeting, etc."),
adopted in a session for which the convocation notice set forth in Article 232, paragraph (1) (Convocation Notice) of the Commercial Code (including the
cases where it is applied mutatis mutandis pursuant to Articles 41 and 49 of the Current Act) is given on or after the Effective Date; with regard to the
transfer of insurance contracts pertaining to a resolution of the Shareholders
Meeting, etc. adopted in a session for which the convocation notice set forth in
Article 232, paragraph (1) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to Article 54 of the Former Act
(including the cases where it is applied mutatis mutandis pursuant to Article
51, paragraph (2) of the Former Act)) was given before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Entrustment of Business and Property
Administration)
Article 67 For the purpose of applying the provisions of Article 146 to 150
inclusive of the Current Act, those contracts set forth in Article 92, paragraph
(1) of the Former Act and authorized under Article 93 of the Former Act which are in force at the time when this Act enters into force shall be deemed as the contracts set forth in Article 144, paragraph (1) of the Current Act.
(Transitional Measures for Arrangement Proceedings)
Article 68 The provisions of the Commercial Code on corporate arrangement as applied mutatis mutandis pursuant to Article 151 of the Current Act shall
apply where the application or notification set forth in Article 381 (Initiation of
Arrangement Proceedings) of said Code is made on or after the Effective Date; where the application or notification set forth in Article 381 of the Commercial Code as applied mutatis mutandis pursuant to Article 78 of the Former Act
was made before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures Concerning Dissolution, etc.)
Article 69 The provisions of Part II, Chapter VIII, Section 2 of the Current Act shall apply to the dissolution of an Insurance Company on the grounds
prescribed in Article 152 of the Current Act that emerge on or after the
Effective Date; with regard to the dissolution of an Insurance Company under the Former Act on the grounds prescribed in Article 108, paragraph (1) of the
Former Act that emerged before the Effective Date, the provisions then in force
shall remain applicable.
(Transitional Measures for Merger)
Article 70 The provisions of Part II, Chapter VIII, Section 3 of the Current Act shall apply to any merger pertaining to a resolution of the Shareholders
Meeting, etc. adopted in a session for which the convocation notice set forth in
Article 232, paragraph (1) (Convocation Notice) of the Commercial Code
(including the cases where it is applied mutatis mutandis pursuant to Articles
41 and 49 of the Current Act) is given on or after the Effective Date; with
regard to any merger pertaining to a resolution of the Shareholders Meeting, etc. adopted in a session for which the convocation notice set forth in Article
232, paragraph (1) of the Commercial Code (including the cases where it is
applied mutatis mutandis pursuant to Article 54 of the Former Act (including the cases where it is applied mutatis mutandis pursuant to Article 51,
paragraph (2) of the Former Act)) was given before the Effective Date, the
provisions then in force shall remain applicable.
(Transitional Measures for Liquidation Procedure, etc.)
Article 71 (1) The provisions of Part II, Chapter VIII, Section 4 of the Current
Act shall apply to any liquidation pertaining to the dissolution of an Insurance
Company on the grounds prescribed in Article 152 of the Current Act that
emerge on or after the Effective Date; with regard to any liquidation pertaining to the dissolution of an Insurance Company under the Former Act on the
grounds prescribed in Article 108, paragraph (1) of the Former Act that
emerged before the Effective Date, the provisions then in force shall remain applicable.
(2) The provisions of Article 267 to 268-3 inclusive (Lawsuit to Hold Directors
Accountable) of the Commercial Code as applied mutatis mutandis pursuant to
Article 430, paragraph (2) (Provisions for Application mutatis mutandis
Concerning Liquidation) of said Code as applied mutatis mutandis pursuant to
Article 183, paragraph (1) of the Current Act shall apply to any request for filing the lawsuit set forth in Article 267, paragraph (1) of the Commercial Code as applied mutatis mutandis pursuant to Article 430, paragraph (2) of
said Code as applied mutatis mutandis pursuant to Article 183, paragraph (1)
of the Current Act or any filing of the lawsuit set forth in Article 267,
paragraph (3) of the Commercial Code as applied mutatis mutandis pursuant to Article 430, paragraph (2) of said Code as applied mutatis mutandis
pursuant to Article 183, paragraph (1) of the Current Act, made by members on or after the Effective Date; with regard to any request for filing the lawsuit set
forth in Article 57, paragraph (1) of the Former Act as applied mutatis
mutandis pursuant to Article 77 of the Former Act or any filing of the lawsuit
set forth in Article 267, paragraph (3) of the Commercial Code as applied mutatis mutandis pursuant to Article 57, paragraph (2) of the Former Act, made by members before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Business License Pertaining to Foreign Insurance
Company, etc.)
Article 72 (1) A person that has obtained by the time when this Act enters into
force the license of the Minister of Finance set forth in Article 3, paragraph (1)
of the Former Foreign Insurance Business Operators Act (including a person
that shall be deemed to have obtained the license of the Minister of Finance set forth in that paragraph pursuant to the provision of paragraph (3) or (5) of the
Supplementary Provisions to the Former Foreign Insurance Business
Operators Act) shall be deemed to obtain the license of the Minister of Finance set forth in Article 185, paragraph (1) of the Current Act at the time when this Act enters into force.
(2) The license of the Minister of Finance set forth in Article 185, paragraph (1)
of the Current Act that the person prescribed in the preceding paragraph
(hereinafter referred to as "Foreign Insurance Company, etc. Licensed under the Former Foreign Insurance Business Operators Act") shall be deemed to
have received pursuant to the provision of that paragraph shall be the foreign
life insurance business license set forth in Article 185, paragraph (4) of the
Current Act or the foreign non-life insurance business license set forth in
paragraph (5) of that Article, according to whether the person is the foreign life insurance business operator or foreign non-life insurance business operator set
forth in Article 2, paragraph (1) of the Former Foreign Insurance Business
Operators Act.
(Transitional Measures for Written Application for License, etc.)
Article 73 (1) The matters listed in the items of Article 4, paragraph (1) of the Former Foreign Insurance Business Operators Act which are described in the written application set forth in that paragraph pertaining to a Foreign
Insurance Company, etc. Licensed under the Former Foreign Insurance
Business Operators Act (or, where the notification set forth in Article 7,
paragraph (1) of the Former Foreign Insurance Business Operators Act has been made, such matters as modified by the notification) shall be deemed as
the matters listed in the corresponding items of Article 187, paragraph (1) of the Current Act which are described in the written application for license set forth in that paragraph.
(2) Those documents listed in Article 4, paragraph (1), items (i) to (v) inclusive of
the Former Foreign Insurance Business Operators Act pertaining to a Foreign
Insurance Company, etc. Licensed under the Former Foreign Insurance
Business Operators Act which have been submitted to the Minister of Finance by the time when this Act enters into force shall be deemed as the documents listed in the corresponding items of Article 187, paragraph (3) of the Current
Act (or, for the document listed in item (iv) or (v) of Article 4, paragraph (4) of the Former Foreign Insurance Business Operators Act, the document listed in Article 187, paragraph (3), item (iv) of the Current Act).
(Transitional Measures for Condition for License)
Article 74 Where the content of that Insurance Business in Japan prescribed in
Article 1 of the Former Foreign Insurance Business Operators Act which is
carried on by a Foreign Insurance Company, etc. Licensed under the Former Foreign Insurance Business Operators Act at the time when this Act enters into force falls under the case prescribed in Article 188, paragraph (1) of the
Current Act, the condition set forth in Article 188, paragraph (1) of the Current
Act shall be attached to that license of the Minister of Finance set forth in
Article 185, paragraph (1) of the Current Act which the person shall be deemed to obtain at the time when this Act enters into force pursuant to the provision
of Article 72 of the Supplementary Provisions.
(Transitional Measures for Deposit by Foreign Insurance Company, etc.) Article 75 (1) The things deposited by a Foreign Insurance Company, etc.
Licensed under the Former Foreign Insurance Business Operators Act pursuant to the provision of Article 8 of the Former Foreign Insurance
Business Operators Act by the time this Act enters into force shall be deemed to have been deposited under Article 190, paragraph (1) of the Current Act.
(2) For the purpose of applying the provision of Article 190, paragraph (8) of the
Current Act to the Foreign Insurance Company, etc. Licensed under the
Former Foreign Insurance Business Operators Act set forth in the preceding paragraph, the amount to be specified by a Cabinet Office Ordinance as the
amount of deposits pertaining to those things deposited under the preceding
paragraph which shall be deemed to have been deposited under paragraph (1)
of that Article pursuant to the provision of the preceding paragraph shall be
deemed as the amount set forth in paragraph (1) of that Article to be specified by a Cabinet Order under paragraph (8) of that Article, for a period of five
years counting from the Effective Date.
(3) In the case set forth in paragraph (1), any right of priority enjoyed by a person prescribed in Article 9, paragraph (1) or (2) of the Former Foreign
Insurance Business Operators Act on the things deposited under Article 8 of
the Former Foreign Insurance Business Operators Act at the time this Act enters into force shall be deemed as the right prescribed in Article 190,
paragraph (6) of the Current Act.
(4) In the case referred to in the preceding paragraph, any special provisions for Article 190, paragraph (6) of the Current Act and other matters necessary for applying the provision of that Article where the Foreign Insurance Company,
etc. Licensed under the Former Foreign Insurance Business Operators Act is a
Foreign Mutual Company shall be specified by a Cabinet Order.
(Transitional Measures for Representative Person in Japan, etc.)
Article 76 The provisions of Article 192, paragraphs (1) and (2) of the Current Act shall also apply to the matters that emerged before the Effective Date. In this case, for the purpose of applying the provision of Article 192, paragraphs (1) and (2)of the Current Act, the notification and public notice set forth in
Article 7, paragraph (1) of the Former Foreign Insurance Business Operators
Act shall be deemed as the public notice set forth in Article 192, paragraph (2)
of the Current Act, provided that they be given before the Effective Date.
(Transitional Measures for Application mutatis mutandis of Provisions of Commercial Code on Business Offices of Foreign Company Pertaining to Foreign Mutual Company)
Article 77 A Foreign Mutual Company that has obtained the license set forth in
Article 3, paragraph (1) of the Former Foreign Insurance Business Operators
Act by the time when this Act enters into force shall be deemed to continue its transactions in Japan pursuant to the provision of Article 479, paragraph (1)
(Business Offices of Foreign Company) of the Commercial Code as applied
mutatis mutandis pursuant to Article 193 of the Current Act; the matters registered by the Foreign Mutual Company pursuant to the provisions of
Article 45, paragraph (3) (Registration of Formation of Juridical Person) and
Article 46 (Matters to be Registered upon Registration of Formation and
Registration of Change) of the Civil Code as applied mutatis mutandis
pursuant to Article 49, paragraph (1) (Registration of Foreign Juridical Person)
of said Code shall be deemed to have been registered pursuant to the
provisions of Article 479, paragraphs (3) and (4) of the Commercial Code as applied mutatis mutandis pursuant to Article 193 of the Current Act.
(Transitional Measures for Submission of Closing Financial Statements of
Head Office or Principal Office, and Keeping and Inspection, etc. of Articles of Incorporation, etc.)
Article 78 (1) The provisions of Article 195, and Article 196, paragraphs (2) and
(4) (limited to the segment pertaining to the documents prescribed in Article
195 of the Current Act) of the Current Act shall apply to the documents
prescribed in Article 195 of the Current Act pertaining to the business years of
a Foreign Insurance Company, etc. that end on or after the Effective Date; with regard to the documents prescribed in Article 12 of the Former Foreign
Insurance Business Operators Act pertaining to the business years that ended before the Effective Date, the provisions then in force shall remain applicable.
In this case, those documents set forth in that Article to be submitted pursuant to the provision of that Article to which the provisions then in force shall
remain applicable shall be submitted to the Prime Minister.
(2) The articles of incorporation or any equivalent document, and the members list in Japan, kept by the Representative Person in Japan of a Foreign
Insurance Company, etc. Licensed under the Former Foreign Insurance
Business Operators Act at the time when this Act enters into force, pursuant to the provision of Article 17, paragraph (1) of the Former Foreign Insurance
Business Operators Act, shall be deemed as kept pursuant to the provision of
Article 196, paragraph (1) of the Current Act.
(3) The provisions of paragraphs (3), (4) (limited to the segment pertaining to paragraph (3) of that Article) and (5) of Article 196 of the Current Act shall
apply to the documents prescribed in paragraph (3) of that Article pertaining to the business years in Japan that start on or after the Effective Date; with
regard to the documents prescribed in Article 17, paragraph (1) of the Former
Foreign Insurance Business Operators Act (other than the documents
prescribed in the preceding two paragraphs) pertaining to the business years
that started before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Obligation of Foreign Insurance Company, etc. to
Hold Assets in Japan)
Article 79 For the purpose of applying the provision of Article 197 of the Current
Act to a Foreign Company, etc. Licensed under the Former Foreign Insurance
Business Operators Act, the term "sum total" in that Article shall be deemed to be replaced with "sum total multiplied by the proportion to be specified by a
Cabinet Office Ordinance," for a period of five years counting from the Effective
Date.
(Transitional Measures for Acts, etc of Manager, etc of Foreign Mutual
Company, etc.)
Article 80 (1) For the purpose of applying the provisions of Articles 38 to 43 inclusive (Commercial Employee) of the Commercial Code as applied mutatis mutandis pursuant to Article 198, paragraph (1) of the Current Act to acts
prior to the Effective Date of the manager appointed by a Foreign Mutual
Company that has obtained the license set forth in Article 3, paragraph (1) of the Former Foreign Insurance Business Operators Act by the time this Act
enters into force, pursuant to the provision of Article 37 (Appointment of
Manager) of the Commercial Code as applied mutatis mutandis pursuant to Article 18 of the Former Foreign Insurance Business Operators Act (including the employee prescribed in Article 42 (Apparent Manager) or Article 43
(Employee with Certain Types of Entrustment or Specific Entrustment) as applied mutatis mutandis pursuant to Article 18 of the Former Foreign
Insurance Business Operators Act), and other matters pertaining to said
manager, such acts and other matters shall be deemed as matters pertaining to the manager appointed by a Foreign Mutual Company under the Current Act
pursuant to the provision of Article 37 of the Commercial Code as applied mutatis mutandis pursuant to Article 198, paragraph (1) of the Current Act
(including the employee prescribed in Article 42 or 43 of said Code as applied
mutatis mutandis pursuant to that paragraph).
(2) For the purpose of applying the provisions of Article 46 to 48 inclusive, 50 and
51 (Commercial Agent) of the Commercial Code as applied mutatis mutandis
pursuant to Article 198, paragraph (1) of the Current Act, those acts and other matters prescribed in Articles 46 to 48 inclusive, 50 and 51 of the Commercial Code as applied mutatis mutandis pursuant to Article 18 of the Former Foreign Insurance Business Operators Act which were carried out before the Effective
Date concerning a Foreign Mutual Company under the Former Foreign
Insurance Business Operators Act shall be deemed as acts and other matters carried out as at the dates of the original acts and matters concerning a
Foreign Mutual Company under the Current Act.
(Transitional Measures for Commercial Books, etc of Foreign Mutual Company) Article 81 The books and other documents prepared prior to the Effective Date
by a Foreign Mutual Company under the Former Foreign Insurance Business
Operators Act in existence at the time when this Act enters into force,
pursuant to the provisions of Part I, Chapter V (Commercial Books) of the Commercial Code as applied mutatis mutandis pursuant to Article 18 of the Former Foreign Insurance Business Operators Act, shall be deemed to have been prepared by a Foreign Mutual Company under the Current Act as at the dates of the original preparation, pursuant to the corresponding provisions of Part I, Chapter V of the Commercial Code as applied mutatis mutandis
pursuant to Article 198 of the Current Act.
(Transitional Measures for Application mutatis mutandis of Provisions on
Business and Accounting, etc. Pertaining to Foreign Insurance Companies, etc.)
Article 82 (1) Those Foreign Insurance Companies, etc. Licensed under the
Former Foreign Insurance Business Operators Act which carry on the business
set forth in Article 98, paragraph (1), item (i) of the Current Act as applied
mutatis mutandis pursuant to Article 199 of the Current Act at the time when this Act enters into force shall notify to the Minister of Finance of the content of such business within six months from the Effective Date.
(2) Those Foreign Insurance Companies, etc. Licensed under the Former Foreign
Insurance Business Operators Act which have made the notification set forth
in the preceding paragraph shall be deemed to have received as at the Effective Date the authorization set forth in Article 98, paragraph (2) of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act.
Article 83 The provision of Article 110 of the Current Act as applied mutatis
mutandis pursuant to Article 199 of the Current Act shall apply to the business report prescribed in Article 110, paragraph (1) of the Current Act pertaining to
the business years in Japan that start on or after the Effective Date; with
regard to the business report prescribed in Article 11, paragraph (1) of the
Former Foreign Insurance Business Operators Act pertaining to the business years in Japan that started before the Effective Date, the provisions then in force shall remain applicable. In the cases where the provisions then in force shall remain applicable, the business report set forth in that paragraph shall be submitted to the Prime Minister.
Article 84 The provision of Article 111 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act shall apply to the
explanatory documents prescribed in Article 111 of the Current Act pertaining
to the business years in Japan that start on or after the Effective Date.
Article 85 The provision of Article 112 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act shall apply to the
valuation of shares pertaining to the business years in Japan that start on or after the Effective Date.
Article 86 The provision of Article 114 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act shall apply to any
distribution of the policy dividend prescribed in Article 114, paragraph (1) of
the Current Act pertaining to the business years in Japan that start on or after the Effective Date.
Article 87 The provision of Article 115 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act shall apply to the
accumulation of the price fluctuation reserve set forth in Article 115,
paragraph (1) of the Current Act pertaining to the business years in Japan that
start on or after the Effective Date.
Article 88 (1) The provision of Article 116 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act shall apply to the
accumulation of the policy reserve set forth in Article 116, paragraph (1) of the Current Act pertaining to the business years in Japan that start on or after the Effective Date; with regard to the accumulation of the policy reserve set forth
in Article 13 of the Former Foreign Insurance Business Operators Act
pertaining to the business years in Japan that started before the Effective Date, the provisions then in force shall remain applicable.
(2) The policy reserve set forth in Article 13 of the Former Foreign Insurance
Business Operators Act in existence at the time when this Act enters into force pertaining to a Foreign Insurance Company, etc. Licensed under the Former
Foreign Insurance Business Operators Act and the policy reserve set forth in that Article to which the provisions then in force shall remain applicable
pursuant to the provision of the preceding paragraph shall be deemed to have been set aside in Japan as policy reserve pursuant to the provision of Article
116 of the Current Act as applied mutatis mutandis pursuant to Article 199 of
the Current Act.
Article 89 (1) The provision of Article 117 as applied mutatis mutandis pursuant to Article 199 of the Current Act shall apply to the accumulation of the reserve
for outstanding claims set forth in Article 117, paragraph (1) of the Current Act pertaining to the business years in Japan that start on or after the Effective Date; with regard to the accumulation of the reserve for outstanding claims set forth in Article 13 of the Former Foreign Insurance Business
Operators Act pertaining to the business years in Japan that started before the
Effective Date, the provisions then in force shall remain applicable.
(2) The reserve for outstanding claims set forth in Article 13 of the Former
Foreign Insurance Business Operators Act in existence at the time when this
Act enters into force pertaining to a Foreign Insurance Company, etc. Licensed under the Former Foreign Insurance Business Operators Act and the reserve
for outstanding claims set forth in that Article to which the provisions then in
force shall remain applicable pursuant to the provision of the preceding
paragraph shall be deemed to have been set aside in Japan as reserve for
outstanding claims pursuant to the provision of Article 117 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act.
Article 90 Where a Foreign Insurance Company, etc. Licensed under the Former
Foreign Insurance Business Operators Act in existence at the time when this
Act enters into force has created a Special Account to ensure separate
accounting from other property for the property corresponding to the amount of the policy reserve set forth in Article 13 of the Former Foreign Insurance
Business Operators Act pertaining to the insurance contracts set forth in
Article 118, paragraph (1) of the Current Act as applied mutatis mutandis
pursuant to Article 199 of the Current Act to be specified by an Ordinance of the Ministry of Finance, such Special Account shall be deemed as the Special Account created pursuant to the provision of Article 118, paragraph (1) of the Current Act as applied mutatis mutandis pursuant to Article 199 of the
Current Act.
Article 91 The provision of Article 120 of the Current Act as applied mutatis mutandis pursuant to Article 199 of the Current Act shall not apply to a Foreign Insurance Company, etc. Licensed under the Former Foreign
Insurance Business Operators Act for a period of three months counting from the Effective Date.
(Transitional Measures for Suspension of Business, etc.)
Article 92 (1) Any order for the suspension of business in Japan issued under
Article 22, paragraph (1) of the Former Foreign Insurance Business Operators Act before the Effective Date shall be deemed as the disposition ordering total or partial suspension of business prescribed in Article 204 of the Current Act
taken under that Article.
(2) Where any notification and public notice were given under Article 22,
paragraph (3) of the Former Foreign Insurance Business Operators Act before the Effective Date pertaining to an order for the suspension of business under paragraph (1) of that Article, the disposition for ordering total or partial
suspension of business prescribed in Article 204 of the Current Act may be
taken under that Article by continuing the procedure as prescribed in Article
22, paragraphs (2) and (4) of the Former Foreign Insurance Business Operators
Act on and after the Effective Date.
(Transitional Measures for Rescission of License, etc.)
Article 93 (1) For the purpose of applying the provision of Article 205 of the Current Act, that act prescribed in Article 22, paragraph (1) of the Former Foreign Insurance Business Operators Act which was committed before the Effective Date by a Foreign Insurance Company, etc. Licensed under the
Former Foreign Insurance Business Operators Act shall be deemed as the act
prescribed in Article 205, item (i) of the Current Act.
(2) Where any notification and public notice were given under Article 22,
paragraph (3) of the Former Foreign Insurance Business Operators Act before the Effective Date pertaining to a disposition under paragraph (1) of that
Article, a disposition corresponding to such disposition may be taken under
Article 205 of the Current Act by continuing the procedure as prescribed in
Article 22, paragraph (4) of the Former Foreign Insurance Business Operators
Act on and after the Effective Date.
(Transitional Measures Concerning Authorization of Modification Pertaining to
Statement of Business Procedures, etc.)
Article 94 Where a Foreign Insurance Company, etc. Licensed under the Former
Foreign Insurance Business Operators Act has applied, by the time when this
Act enters into force, for the authorization of the competent minister pertaining to the modification of any of the matters prescribed in the
documents listed in Article 4, paragraph (4), items (ii) to (v) inclusive of the
Former Foreign Insurance Business Operators Act pursuant to the provision of
Article 10, paragraph (1) of the Former Act as applied mutatis mutandis
pursuant to Article 19 of the Former Foreign Insurance Business Operators Act, such application shall be deemed as an application for the authorization of the Minister of Finance set forth in Article 123, paragraph (1) of the Current Act
as applied mutatis mutandis pursuant to Article 207 of the Current Act. In this
case, the matters to be modified shall be deemed to be outside the scope of the matters set forth in that paragraph to be prescribed by an Ordinance of the Ministry of Finance even when such matters do fall under the matters
prescribed by the Ordinance of the Ministry of Finance set forth in that
paragraph.
(Transitional Measures Concerning Comprehensive Transfer of Insurance
Contracts by Foreign Insurance Company, etc.)
Article 95 The provisions of Part II, Chapter VII, Section 1 of the Current Act as applied mutatis mutandis pursuant to Article 210, paragraph (1) of the
Current Act shall apply to the transfer of insurance contracts pertaining to
that written Agreement pertaining to the Agreement set forth in Article 135, paragraph (1) of the Current Act as applied mutatis mutandis pursuant to
Article 210, paragraph (1) of the Current Act which is prepared by a Foreign
Insurance Company, etc. on or after the Effective Date; with regard to the transfer of insurance contracts pertaining to that written Agreement
pertaining to the Agreement set forth in Article 211, paragraph (1) of the
Former Foreign Insurance Business Operators Act which was prepared before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Liquidation of Foreign Insurance Company, etc.) Article 96 The provision of Article 212 of the Current Act shall apply to a
Foreign Insurance Company, etc. that falls under any of the items of paragraph
(1) of that Article on or after the Effective Date; with regard to the foreign
insurance business operator set forth in Article 26, paragraph (1) of the Former
Foreign Insurance Business Operators Act that fell under the case prescribed in that paragraph before the Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Order to Close Business Office, etc. Issued to
Secondary Office, etc. of Foreign Insurance Business Operator)
Article 97 Where the foreign insurance business operator set forth in Article 29 of the Former Foreign Insurance Business Operators Act has established any secondary offices or other offices in Japan, or where a person specialized in
solicitation on behalf of a foreign insurance business operator has established
any business offices or other offices, the provisions then in force shall remain applicable to any event before the Effective Date that fell under any of the
items of Article 484, paragraph (1) (Order to Close Business Offices) of the
Commercial Code as applied mutatis mutandis pursuant to Article 29 of the
Former Foreign Insurance Business Operators Act.
(Transitional Measures for Registry of Foreign Mutual Insurance Companies) Article 98 The registry of foreign mutual insurance companies set forth in
Article 31 of the Former Foreign Insurance Business Operators Act shall be
deemed as the registry of foreign mutual insurance companies prescribed in
Article 214 of the Current Act.
(Transitional Measures for Application mutatis mutandis of Commercial
Registration Act Pertaining to Foreign Mutual Company)
Article 99 Any disposition, procedure or other act before the Effective Date
under the provisions of the Commercial Registration Act as applied mutatis mutandis pursuant to Article 33 of the Former Foreign Insurance Business
Operators Act shall be deemed as the corresponding act under the provisions of
the Commercial Registration Act as applied mutatis mutandis pursuant to
Article 216, paragraph (1) of the Current Act.
(Transitional Measures for Application mutatis mutandis of Act on Procedures for Non-Contentious Cases Pertaining to Foreign Mutual Company)
Article 100 Any procedure commenced before the Effective Date under the
provisions of the Act on Procedures for Non-Contentious Cases as applied mutatis mutandis pursuant to Article 33 of the Former Foreign Insurance
Business Operators Act shall be deemed as a procedure under the provisions of
the Act on Procedures for Non-Contentious Cases as applied mutatis mutandis pursuant to Article 217 of the Current Act.
(Transitional Measures Concerning Notification of Establishment of Foreign
Insurer's Representative Office, etc.)
Article 101 That foreign insurance business operator prescribed in Article 2,
paragraph (1) of the Former Foreign Insurance Business Operators Act which
has established an office falling under Article 218, paragraph (1), item (i) of the
Current Act by the time this Act enters into force and which is not a Foreign
Insurance Company, etc. Licensed under the Former Foreign Insurance
Business Operators Act shall, within six months from the Effective Date, notify the content of the business listed in (a) or (b) of that item concerning such
office, the location of the office to carry on such business and other matters set forth in Article 218, paragraph (1) of the Current Act to be prescribed by an
Ordinance of the Ministry of Finance, unless it obtains, in the meantime, the license set forth in Article 185, paragraph (1) of the Current Act, or has
abolished such office or the business listed in (a) or (b) of that item. In this
case, such notification shall be deemed as notification made under Article 218, paragraph (1) of the Current Act.
(Transitional Measures for Order for Suspension of Business)
Article 102 (1) Any order for the suspension of business under Article 100,
paragraph (1) of the Former Act or order for the suspension of business in
Japan under Article 23, paragraph (1) of the Former Foreign Insurance
Business Operators Act, issued before the Effective Date, shall be deemed as the disposition ordering total or partial suspension of business prescribed in Article 241 of the Current Act, issued under that Article.
(2) Where any notification and public notice under Article 12, paragraph (3) of the Former Act as applied mutatis mutandis pursuant to Article 100,
paragraph (3) of the Former Act were given before the Effective Date
pertaining to an order for the suspension of business issued under paragraph (1) of that Article, or where any notification and public notice under Article 22, paragraph (3) of the Former Foreign Insurance Business Operators Act as
applied mutatis mutandis pursuant to Article 23, paragraph (3) of the Former
Foreign Insurance Business Operators Act were given before the Effective Date pertaining to an order for the suspension of business in Japan issued under
paragraph (1) of that Article, the disposition ordering total or partial
suspension of business prescribed in Article 241 of the Current Act may be made under that Article by continuing the procedure as prescribed in Article
12, paragraph (4) of the Former Act as applied mutatis mutandis pursuant to
Article 100, paragraphs (2) and (3) of the Former Act, or in Article 22,
paragraph (4) of the Former Foreign Insurance Business Operators Act as
applied mutatis mutandis pursuant to Article 23, paragraphs (2) and (3) of the
Former Foreign Insurance Business Operators Act, on and after the Effective
Date.
(Transitional Measures for Order for Administration of Business and Property) Article 103 (1) Any order for the administration of business and property under
Article 100, paragraph (1) of the Former Act, and order for the administration
of business and property in Japan under Article 23, paragraph (1) of the
Former Foreign Insurance Business Operators Act, issued before the Effective Date, shall be deemed as the disposition ordering the administration of business and property by an insurance administrator prescribed in Article 241 of the Current Act, made under that Article; the insurance administrator
pertaining to the original order for the administration of business and property
or order for the administration of business and property in Japan shall be
deemed as the insurance administrator pertaining to the disposition ordering the administration of business and property.
(2) Where any notification and public notice under Article 12, paragraph (3) of the Former Act as applied mutatis mutandis pursuant to Article 100,
paragraph (3) of the Former Act were given before the Effective Date
pertaining to an order for the administration of business and property issued
under paragraph (1) of that Article, or where any notification and public notice under Article 22, paragraph (3) of the Former Foreign Insurance Business
Operators Act as applied mutatis mutandis pursuant to Article 23, paragraph (3) of the Former Foreign Insurance Business Operators Act were given before the Effective Date pertaining to an order for the administration of business and property in Japan issued under paragraph (1) of that Article, the
disposition ordering the administration of business and property by an
insurance administrator prescribed in Article 241 of the Current Act may be made under that Article by continuing the procedure as prescribed in Article
12, paragraph (4) of the Former Act as applied mutatis mutandis pursuant to
Article 100, paragraphs (2) and (3) of the Former Act, or in Article 22,
paragraph (4) of the Former Foreign Insurance Business Operators Act as
applied mutatis mutandis pursuant to Article 23, paragraphs (2) and (3) of the
Former Foreign Insurance Business Operators Act, on and after the Effective
Date.
(Transitional Measures for Order for Transfer of Insurance Contracts)
Article 104 (1) Where any notification and public notice under Article 12,
paragraph (3) of the Former Act as applied mutatis mutandis pursuant to
Article 100, paragraph (3) of the Former Act were given before the Effective
Date pertaining to an order for the transfer of contracts issued under
paragraph (1) of that Article, or where any notification and public notice under
Article 22, paragraph (3) of the Former Foreign Insurance Business Operators
Act as applied mutatis mutandis pursuant to Article 23, paragraph (3) of the
Former Foreign Insurance Business Operators Act were given before the
Effective Date pertaining to an order for the transfer of insurance contracts in Japan issued under paragraph (1) of that Article, the provisions of Article 100 and Article 121 to 126 of the Former Act, and Article 23 of the Former Foreign Insurance Business Operators Act shall remain in force with regard to the
transfer of contracts or transfer of insurance contracts in Japan pertaining to
such orders, until the day before the date of the Designation set forth in Article
259, paragraph (1) of the Current Act.
(2) For the purpose of applying the provisions of Article 100, paragraph (3),
Article 121, paragraph (5), Article 122, paragraphs (2) and (3) and Article 126
of the Former Act, and Article 23, paragraphs (3) and (4) of the Former Foreign Insurance Business Operators Act, which shall remain in force pursuant to the provision of the preceding paragraph, the provisions of Article 12, paragraphs (3) and (4), Article 103, Article 104, Article 109, the proviso to Article 111,
paragraph (2), Article 114, Article 115, Article 117, Article 118 and Article 120 of the Former Act, and Article 22, paragraphs (3) and (4) of the Former Foreign Insurance Business Operators Act shall remain in force. In this case, the term
"Article 39, paragraph (2) of this Act" in Article 109 of the Former Act shall be deemed to be replaced with "Article 62, paragraph (2) of the Insurance
Business Act (Act No. 105 of 1995)."
(3) For the purpose of applying penal provisions to acts committed before the period prescribed in paragraph (1) lapses, the provisions prescribed in that paragraph, which shall remain in force pursuant to the provision of that
paragraph, shall remain in force even after the period prescribed in that paragraph has lapsed.
(4) Where the provisions of Article 100 and Article 121 to 126 of the Former Act, or Article 23 of the Former Foreign Insurance Business Operators Act, which shall remain in force pursuant to the provision of paragraph (1), apply, the
provisions of Part II, Chapter VII, Section 1 of the Current Act (including the
cases where they are applied mutatis mutandis pursuant to Article 210, paragraph (1) of the Current Act) shall not apply, notwithstanding the
provisions of Articles 66 and 95 of the Supplementary Provisions.
(Deleted)
Article 105 Deleted.
(Deleted)
Article 106 Deleted.
(Transitional Measures Concerning Lapse of License)
Article 107 The provision of Article 272, paragraph (1), item (v) of the Current
Act shall apply to the license of the Prime Minister set forth in Article 3,
paragraph (1) of the Current Act, and the license of the Prime Minister set forth in Article 185, paragraph (1) of the Current Act, obtained by an
Insurance Company or a Foreign Insurance Company, etc. on or after the
Effective Date; with regard to the license of the competent minister set forth in
Article 1, paragraph (1) of the Former Act, and the license of the Minister of Finance set forth in Article 3, paragraph (1) of the Former Foreign Insurance Business Operators Act, issued before the Effective Date pertaining to an
Insurance Company Licensed under the Former Act or a Foreign Insurance
Company, etc. Licensed under the Former Foreign Insurance Business
Operators Act, the provisions then in force shall remain applicable.
(Transitional Measures for Registration of Life Insurance Solicitors and Non- Life Insurance Agents)
Article 108 Those Life Insurance Solicitors (including the persons that shall be deemed as registered on the registry of Life Insurance Solicitors pursuant to
the provision of Article 4, paragraph (2) of the Former Solicitation Control Act pursuant to the provision of paragraph (2) of the Supplementary Provisions to the Act for Partial Revision of the Act on the Control of Insurance Solicitation
(Act No. 152 of 1951)) and Non-Life Insurance Agents that have obtained the
registration set forth in Article 3 of the Former Solicitation Control Act by the time this Act enters into force (hereinafter referred to as "Life Insurance
Solicitors, etc. Registered under the Former Act") shall be deemed to have
obtained the registration with the Ministry of Finance set forth in Article 276 of the Current Act, at the time when this Act enters into force.
(Transitional Measures for Registry of Life Insurance Solicitors, etc.)
Article 109 (1) The registry of Life Insurance Solicitors and registry of Non-Life Insurance Agents under Article 4, paragraph (1) of the Former Solicitation Control Act in existence at the time this Act enters into force shall be deemed as the registry of Life Insurance Solicitors and registry of Non-Life Insurance Agents under Article 278, paragraph (1) of the Current Act.
(2) The provision of Article 278, paragraph (2) of the Current Act shall apply to those persons who shall be deemed to have obtained the registration with the Minister of Finance set forth in Article 276 of the Current Act at the time when this Act enters into force, pursuant to the provision of the preceding Article
and who have not received the notice under Article 4, paragraph (3) of the
Former Solicitation Control Act, and to their Affiliated Insurance Companies.
(Transitional Measures for Refusal of Registration Pertaining to Life Insurance
Solicitor, etc.)
Article 110 (1) For the purpose of applying the provision of Article 279,
paragraph (1), item (iii) of the Current Act, a person who was sentenced to a fine pursuant to the provisions of the Former Solicitation Control Act
(including those provisions of the Former Solicitation Control Act which shall
remain applicable pursuant to the present Supplementary Provisions as
provisions then in force) shall be deemed to have been sentenced to a fine as at
the date of the original punishment for violating a provision of the Current Act. (2) For the purpose of applying the provision of Article 279, paragraph (1), item
(iv) of the Current Act, a person whose registration under Article 3, paragraph
(1) of the Former Solicitation Control Act was canceled pursuant to the
provision of Article 7-2 or Article 20, paragraph (1) of the Former Solicitation Control Act shall be deemed to have had his/her registration under Article 276 of the Current Act canceled pursuant to the provision of Article 307, paragraph (1) of the Current Act as at the date of the original punishment.
(Transitional Measures for Affiliated Insurance Company's Liability for
Damages)
Article 111 The provision of Article 283 of the Current Act shall apply to any liability for the damages inflicted on or after the Effective Date by a Life
Insurance Solicitor or Non-Life Insurance Solicitor upon Policyholders in
connection with Insurance Solicitation; with regard to any liability for the damages inflicted before the Effective Date upon Policyholders by a Life
Insurance Solicitor, an officer or employee of a Non-Life Insurance Company, or a Non-Life Insurance Agent in connection with solicitation, the provisions
then in force shall remain applicable.
(Transitional Measures for Registry of Life Insurance Solicitors and Non-Life
Insurance Agents)
Article 112 Any registry regarding Life Insurance Solicitors or Non-Life
Insurance Agents under Article 13, paragraph (1) of the Former Solicitation Control Act in existence at the time when this Act enters into force shall be deemed as the registry regarding Life Insurance Solicitors or Non-Life
Insurance Agents set forth in Article 285, paragraph (1) of the Current Act.
(Transitional Measures for Refusal of Registration Pertaining to Insurance
Broker)
Article 113 For the purpose of applying the provision of Article 289, paragraph
(1), item (iii) of the Current Act, a person who was sentenced to a fine pursuant to the provisions of the Former Act, the Former Solicitation Control Act or the
Former Foreign Insurance Business Operators Act (including those provisions of the Former Act, the Former Solicitation Control Act and the Foreign
Insurance Business Operators Act which shall remain applicable pursuant to the present Supplementary Provisions as provisions then in force) shall be
deemed to have been sentenced to a fine as at the date of the original punishment for violating a provision of the Current Act.
(Transitional Measures for Notification of Officers or Employees of Non-Life
Insurance Agent)
Article 114 Any notification of officers or employees of a Non-Life Insurance
Agent under Article 8 of the Former Solicitation Control Act made before the
Effective Date shall be deemed as notification under Article 302 of the Current
Act.
(Transitional Measures for Notification, etc. of Change, etc. of Life Insurance
Solicitor, etc.)
Article 115 (1) The provisions of Articles 7 and 26 of the Former Solicitation
Control Act shall remain in force with regard to those Life Insurance Solicitors, etc. Registered under the Former Act who have not made the notification
required under Article 7 of the Former Solicitation Control Act by the time
when this Act enters into force. In this case, the term "Minister of Finance" in
Article 7 of the Former Solicitation Control Act, which shall remain in force, shall be deemed to be replaced with "Prime Minister."
(2) The provision of Article 7-3 (limited to the segment pertaining to item (ii)) of
the Former Solicitation Control Act shall remain in force with regard to the
Life Insurance Solicitors, etc. Registered under the Former Act who make, on
or after the Effective Date, the notification required under Article 7, paragraph (3) of the Former Solicitation Control Act, which shall remain in force pursuant to the provision of the preceding paragraph. In this case, the term "Minister of
Finance" in Article 7-3 (limited to the segment pertaining to item (ii)), which
shall remain in force, shall be deemed to be replaced with "Prime Minister."
(Transitional Measures for Cancellation of Registration, etc.)
Article 116 For the purpose of applying the provision of Article 307, paragraph (1) of the Current Act, any act falling under Article 7-2, item (iii) or any of the items of Article 20, paragraph (1) of the Former Solicitation Control Act that
was committed before the Effective Date by a Life Insurance Solicitor, etc.
Registered under the Former Act shall be deemed as the act prescribed in item
(ii) or (iii) of Article 307, paragraph (1) of the Current Act. (Transitional Measures for Deletion of Registration, etc.)
Article 117 Any Life Insurance Solicitors, etc. Registered under the Former Act
who fell under any of the items of Article 7-3 of the Former Solicitation Control
Act before the Effective Date and have not had its registration deleted under
that Article by the time when this Act enters into force shall be deemed to fall under Article 308, paragraph (1), item (ii) of the Current Act.
(Transitional Measures for Officers, etc of Foreign Life Insurance Business
Operator)
Article 118 (1) The officers or employees of a foreign life insurance business
operator that have obtained the license of the Minister of Finance set forth in
Article 3, paragraph (1) of the Former Foreign Insurance Business Operators
Act by the time this Act enters into force may, notwithstanding the provision of
Article 275 of the Current Act, carry out Insurance Solicitation activity for a period of six months counting from the Effective Date (or until the date, within such six months, of any disposition refusing the registration under Article 279, paragraphs (1) to (3) inclusive of the Current Act). The same shall apply where said period has elapsed even though such persons have applied for the
registration set forth in Article 277 of the Current Act within said period, until
such time as the registration or the disposition refusing the registration is made, with regard to the application.
(2) The Minister of Finance may, within the period prescribed in the preceding
paragraph, order the abolition of business, or total or partial suspension of business when the officers or employees of a foreign life insurance business operator prescribed in the preceding paragraph fall under item (i) or (iii) of Article 307, paragraph (1) of the Current Act.
(3) For the purpose of applying the provision of Article 279, paragraph (1) of the Current Act, any order for the abolition of business issued under the preceding paragraph to the officers or employees of a foreign life insurance operator
prescribed in paragraph (1) shall be deemed as cancellation of the registration set forth in Article 276 of the Current Act under Article 307, paragraph (1) of
the Current Act.
(Transitional Measures for Insurance Broker)
Article 119 (1) An Insurance Broker registered under Article 286 of the Current
Act shall, when it intends to, or intends to cause any of its officers or
employees to, act as intermediary in concluding the long-term insurance contracts to be specified by a Cabinet Order, determine the method of such
activity and shall obtain authorization from the Prime Minister, for the time being. The same shall apply where it intends to modify the method thus
authorized.
(2) The Prime Minister may, when an Insurance Broker authorized under the
preceding paragraph has violated this Act or any disposition of the Prime Minister pursuant to this Act, or has committed an act that harms the public interest, cancel the authorization set forth in that paragraph.
(3) Necessary matters for the authorization set forth in paragraph (1) shall be specified by a Cabinet Office Ordinance.
(Transitional Measures for Revocation, etc. of Application for Insurance
Contract)
Article 120 The provision of Article 309 of the Current Act shall apply to the applications for insurance contracts received by an Insurance Company or Foreign Insurance Company, etc. on or after the Effective Date, or the
insurance contracts concluded on or after the Effective Date (excluding those
for which applications were made before the Effective Date).
(Deleted)
Article 121 Deleted.
(Transitional Measures for Matters to Be Registered)
Article 122 (1) An Insurance Company Licensed under the Former Act shall,
within six months from the Effective Date, register the matters newly required to be registered under the Current Act.
(2) No other registration shall complete registration set forth in the preceding
paragraph; any such registration shall be accompanied by the registration set forth in that paragraph.
(3) When any change has occurred in the matters set forth in paragraph (1)
before making the registration set forth in that paragraph, the registration set forth in that paragraph shall be made without delay regarding the original
matters.
(4) For any violation of the provisions of the preceding three paragraphs, the
representative director of the Insurance Company Licensed under the Former
Act shall be punished by a petty fine of not more than one million yen.
(Effect of Dispositions or Procedures Pursuant to Provisions of Former Act, etc.)
Article 123 The authorization, approval and other dispositions, or application and other procedures made before the Effective Date under the provisions of the Former Act, the Former Solicitation Control Act or the Former Foreign Insurance Business Operators Act, or any of the orders pursuant thereto,
which are covered by the Supplementary Provisions of the Current Act or any
of the orders pursuant thereto, shall be deemed as authorization, approval and other dispositions, or application and other procedures made under the
corresponding provisions of the Current Act or the orders pursuant thereto.
(Transitional Measures Concerning Penal Provisions)
Article 124 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act, and to acts committed subsequent to the
enforcement of this Act pertaining to any of the matters to which the
provisions then in force shall remain applicable pursuant to the present
Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation to Cabinet Order)
Article 125 In addition to what is provided for in Article 3 to the preceding
Article inclusive of the present Supplementary Provisions, necessary
transitional measures for the enforcement of this Act shall be specified by a
Cabinet Order.
(Review)
Article 126 At an appropriate time after the enforcement of this Act, the
Government shall, taking into consideration the status of enforcement of this
Act and changing socioeconomic conditions surrounding the Insurance
Business, among other factors, review the system prescribed in this Act pertaining to the Insurance Business, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 55 of May 21, 1997] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 June 1997.
Supplementary Provisions [Act No. 72 of June 6, 1997] (Effective Date)
(1) This Act shall come into effect as from the Effective Date of the Act for Partial
Revision of the Commercial Code, etc. (Act No. 71 of 1997).
(Transitional Measures)
(2) With regard to any merger pertaining to a merger agreement concluded prior to the enforcement of this Act, the provisions then in force shall remain
applicable subsequent to the enforcement of this Act.
(Transitional Measures for Application of Penal Provisions)
(3) With regard to the application of penal provisions to acts committed prior to
the enforcement of this Act, and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the provision of the preceding paragraph, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 102 of June 20, 1997] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of the Act for
Establishment of the Financial Supervisory Agency (Act No. 101 of 1997).
(Transitional Measures for Dispositions, etc. Made by Minister of Finance, etc.) Article 2 (1) The licensing, permission, authorization, approval, Designation and
other dispositions, or notification and other acts carried out by the Minister of Finance or other organs of the State pursuant to the provisions of the Secured Bond Trust Act, Trust Business Act, Norinchukin Bank Act, Mutual Loan
Business Act, Act on Simplification of Banking Business Procedures, etc., Act on Provision, etc. of Trust Business by Financial Institutions, Act on
Prohibition of Private Monopolization and Maintenance of Fair Trade,
Agricultural Cooperative Association Act, Securities and Exchange Act, Act on
Non-Life Insurance Rating Organizations, Fisheries Cooperative Association
Act, Act on the Cooperative Associations of Small and Medium Enterprises, etc., Act on Financial Businesses by Cooperative, Shipowners Mutual Insurance
Association Act, Securities Investment Trust Act, Shinkin Bank Act, Long-
Term Credit Bank Act, Loan Trust Act, Medium and Small Fishery Loan
Guarantee Act, Credit Guarantee Companies Act, Labor Bank Act, Foreign Exchange Bank Act, Automobile Liability Security Act, Agricultural Credit Guarantee Insurance Act, Act on Financial Institutions' Merger and
Conversion, Act on Foreign Securities Brokers, Deposit Insurance Act, Act on the Promotion of Introduction of Industry, etc. into Agricultural Regions,
Agricultural and Fishery Cooperation Savings Insurance Act, Banking Act, Act on Controls, etc. on Money Lending, Act on Regulation, etc. on Investment
Advisory Business Pertaining to Securities, Act on Regulation, etc. for
Mortgage Corporations, Financial Futures Trading Act, Act on Regulation, etc. on Advanced Payment Certificate, Act on Regulations of Business Pertaining to Commodities Investment, Act on Special Provisions for the Narcotics and
Psychotropics Control Act, etc. and Other Matters for the Prevention of
Activities Encouraging Illicit Conduct and Other Activities Involving
Controlled Substances through International Cooperation, Act on the
Regulation of Business Pertaining to Specified Claims, etc., Act on Revision, etc. of Related Acts for the Reform of Financial System and Securities
Exchange System, Act on Preferred Equity Investment by Cooperative
Structured Financial Institution, Real Estate Specified Joint Enterprise Act, Insurance Business Act, Act on Special Treatment, etc. of Corporate
Reorganization Proceedings and Other Insolvency Proceedings of Financial
Institution, Act on the Merger of the Norinchukin Bank and the Federation of Credit Agricultural Cooperatives, etc., Bank of Japan Act, or Act on Special Measures, etc. for Merger Procedures Pertaining to Banks, etc. for the Creation of Bank Holding Company. (hereinafter referred to as the "Former Secured
Bond Trust Act, etc."), prior to the revision by this Act, shall be deemed as
licensing, permission, authorization, approval, Designation and other
dispositions, or notification and other acts carried out by the Prime Minister or other corresponding organs of the State pursuant to the corresponding
provisions of the Secured Bond Trust Act, Trust Business Act, Norinchukin
Bank Act, Mutual Loan Business Act, Act on Simplification of Banking
Business Procedures, etc., Act on Provision, etc. of Trust Business by Financial Institutions, Act on Prohibition of Private Monopolization and Maintenance of Fair Trade, Agricultural Cooperative Association Act, Securities and Exchange Act, Act on Non-Life Insurance Rating Organizations, Fisheries Cooperative
Association Act, Act on the Cooperative Associations of Small and Medium
Enterprises, etc., Act on Financial Businesses by Cooperative, Shipowners
Mutual Insurance Association Act, Securities Investment Trust Act, Shinkin Bank Act, Long-Term Credit Bank Act, Loan Trust Act, Medium and Small Fishery Loan Guarantee Act, Credit Guarantee Companies Act, Labor Bank Act, Foreign Exchange Bank Act, Automobile Liability Security Act,
Agricultural Credit Guarantee Insurance Act, Act on Financial Institutions'
Merger and Conversion, Act on Foreign Securities Brokers, Deposit Insurance
Act, Act on the Promotion of Introduction of Industry, etc. into Agricultural
Regions, Agricultural and Fishery Cooperation Savings Insurance Act, Banking
Act, Act on Controls, etc. on Money Lending, Act on Regulation, etc. on
Investment Advisory Business Pertaining to Securities, Act on Regulation, etc. for Mortgage Corporations, Financial Futures Trading Act, Act on Regulation, etc. on Advanced Payment Certificate, Act on Regulations of Business
Pertaining to Commodities Investment, Act on Special Provisions for the
Narcotics and Psychotropics Control Act, etc. and Other Matters for the
Prevention of Activities Encouraging Illicit Conduct and Other Activities
Involving Controlled Substances through International Cooperation, Act on the
Regulation of Business Pertaining to Specified Claims, etc., Act on Revision, etc. of Related Acts for the Reform of Financial System and Securities
Exchange System, Act on Preferred Equity Investment by Cooperative
Structured Financial Institution, Real Estate Specified Joint Enterprise Act, Insurance Business Act, Act on Special Treatment, etc. of Corporate
Reorganization Proceedings and Other Insolvency Proceedings of Financial
Institution, Act on the Merger of the Norinchukin Bank and the Federation of Credit Agricultural Cooperatives, etc., Bank of Japan Act, or Act on Special Measures, etc. for Merger Procedures Pertaining to Banks, etc. for the Creation of Bank Holding Company, revised by this Act (hereinafter referred to as the
"Current Secured Bond Trust Act, etc.").
(2) The application, notification and other acts that have been addressed to the
Minister of Finance or other organs of the State pursuant to the provisions of
the Former Secured Bond Trust Act, etc. by the time when this Act enters into force shall be deemed as application, notification and other acts addressed to
the Prime Minister or other corresponding organs of the State pursuant to the corresponding provisions of the Current Secured Bond Trust Act, etc.
(3) For the purpose of applying the provisions of the Current Secured Bond Trust Act, etc. to the matters that shall be reported, notified, submitted, or subject to any other procedure addressed to the Minister of Finance or other organs of the State pursuant to the provisions of the Former Secured Bond Trust Act, etc.,
any such matters for which the relevant procedure has not been completed by
the Effective Date of this Act shall be deemed as matters that shall be reported, notified, submitted or subject to any other procedure addressed to the Prime Minister or other corresponding organs of the State pursuant to the
corresponding provisions of the Current Secured Bond Trust Act, etc., but for
which the relevant procedure has not been completed.
(Transitional Measures Concerning Penal Provisions)
Article 5 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act, the provisions then in force shall remain applicable.
(Delegation to Cabinet Order)
Article 6 In addition to what is provided for in Article 2 to the preceding Article
inclusive of the Supplementary Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
Supplementary Provisions [Act No. 117 of December 10, 1997] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the day on which twenty days
have elapsed from the day of promulgation.
Supplementary Provisions [Act No. 120 of December 12, 1997] [Extract]
(Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a Cabinet Order within a period not exceeding three months from the day of promulgation.
(Review)
Article 10 Where five years have elapsed from the enforcement of this Act, the
Government shall, taking into consideration the status of enforcement of the
Banking Act revised by the provision of Article 1 (hereinafter referred to as the
"Current Banking Act"), the Long-Term Credit Bank Act revised by the
provision of Article 2 (hereinafter referred to as the "Current Long-Term Credit Bank Act") and the Insurance Business Act revised by the provision of Article 4 (hereinafter referred to as the "Current Insurance Business Act"), and
changing socioeconomic conditions surrounding the banking and Insurance Businesses, among other factors, review the systems pertaining to the bank holding companies prescribed in Article 2, paragraph (13) of the Current
Banking Act, the Long Term Credit Bank holding companies prescribed in
Article 16-4, paragraph (1) of the Current Long-Term Credit Bank Act and the insurance holding companies prescribed in Article 2, paragraph (16) of the
Current Insurance Business Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 121 of December 12, 1997] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of the Act on
the Revision, etc. of Finance-Related Acts Accompanying the Lifting of
Prohibition on the Incorporation of Holding Companies, etc. (Act No. 120 of
1997).
Supplementary Provisions [Act No. 106 of June 15, 1998]
This Act shall come into effect as from the Effective Date (1 September 1998) of the Act on the Liquidation of Specified Assets by Special Purpose Companies (Act No. 105 of 1998); provided, however, that the provision revising Article 5 of the
Supplementary Provisions to the Local Tax Act in Article 17 shall come into
effect as from 1 April 1999.
Supplementary Provisions [Act No. 107 of June 15, 1998] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 December 1998; provided,
however, that the provisions listed in the following items shall come into effect as from the date specified in the relevant item:
(i) The provision adding a Chapter after Chapter IV of the Securities and
Exchange Act (limited to the segment pertaining to Article 79-29, paragraph (1)) and provision revising Article 189, paragraphs (2) and (4) of that Act in Article 1, the provision of Article 21, the provision revising Part II, Chapter X, Section 2, Subsection 1 of the Insurance Business Act (limited to the
segment pertaining to Article 265-6) in Article 22, the provision of Article 23
and the provision of Article 25, and the provisions of Article 40, Article 42, Article 58, Article 136, Article 140, Article 143, Article 147, Article 149,
Article 158, Article 164, Article 187 (excluding the provision revising Article
4, item (lxxix) of the Ministry of Finance Establishment Act (Act No. 144 of
1949) and Article 188 to 190 inclusive of the Supplementary Provisions: 1
July 1998
(Transitional Measures Accompanying Partial Revision to Insurance Business
Act)
Article 130 (1) The provision of Article 97-2, paragraph (2) (including the cases where it is applied mutatis mutandis pursuant to Article 199 of the Insurance Business Act revised by the provision of Article 22 (hereinafter referred to as
"Current Insurance Business Act") of the Current Insurance Business Act shall
not apply, for a period of one year counting from the Effective Date, to the investment of assets on behalf of one single person (referring to the one single person prescribed in Article 97-2, paragraph (2) of the Current Insurance
Business Act; the same shall apply in the following paragraph) by an Insurance
Company (referring to an Insurance Company as defined in Article 2,
paragraph (2) of the Current Insurance Business Act; the same shall apply hereinafter) (including a Foreign Insurance Company, etc. (referring to a
Foreign Insurance Company, etc. as defined in Article 2, paragraph (7) of the
Current Insurance Business Act; the same shall apply hereinafter) or a
Licensed Specified Juridical Person (referring to a Licensed Specified Juridical
Person as defined in Article 223, paragraph (1) of the Current Insurance
Business Act; the same shall apply hereinafter); hereinafter the same shall apply in this paragraph), where the amount of those assets prescribed in
Article 97-2, paragraph (2) of the Current Insurance Business Act which are
invested by the Insurance Company on behalf of that one single person exceeds, at the time when this Act enters into force, the amount calculated pursuant to
the provision of that paragraph, provided that the Insurance Company notify
thereof to the Financial Reconstruction Commission within three months from the Effective Date.
(2) The provision of Article 97-2, paragraph (3) of the Current Insurance
Business Act shall not apply, for a period of one year counting from the
Effective Date, to an Insurance Company and the Subsidiary Companies, etc. (referring to Subsidiary Companies, etc. as defined in that paragraph;
hereinafter the same shall apply in this paragraph) of the Insurance Company
that invest, at the time when this Act enters into force, the assets prescribed in that paragraph on behalf of one single person in a total amount that exceeds
the amount calculated pursuant to the provision of that paragraph, or to the
investment of such assets by the Subsidiary Companies, etc. of the Insurance Company on behalf of that one single person, provided that the Insurance Company notify thereof to the Financial Reconstruction Commission within
three months from the Effective Date.
Article 131 The provisions of Articles 100-3 and 194 of the Current Insurance
Business Act shall apply to transactions or acts carried out on or subsequent to the Effective Date by an Insurance Company or a Foreign Insurance Company, etc.; with regard to transactions or acts carried out by an Insurance Company
or a Foreign Insurance Company, etc. prior to the Effective Date, the
provisions then in force shall remain applicable.
Article 132 (1) The provision of Article 106, paragraph (1) of the Current
Insurance Business Act shall not apply, for a period of one year counting from the Effective Date, to any Subsidiary Company (referring to any Subsidiary
Company as defined in Article 2, paragraph (13) of the Current Insurance
Business Act; hereinafter the same shall apply in this Article) of an Insurance
Company that is not a Companies Eligible for Subsidiary Company as defined
in Article 106, paragraph (1) of the Current Insurance Business Act at the time when this Act enters into force, provided that the Insurance Company notify
thereof to the Financial Reconstruction Commission within three months from the Effective Date.
(2) The Insurance Company set forth in the preceding paragraph shall, when that company pertaining to the notification set forth in that paragraph which is not
a Companies Eligible for Subsidiary Company has ceased to be its Subsidiary
Company, notify thereof without delay to the Prime Minister.
(3) Until the date to be specified by a Cabinet Order, but no later than 31 March
2000, the term "bank as defined in Article 2, paragraph (4) (Definitions, etc.) of the Banking Act" in Article 106, paragraph (1), item (iii) of the Current
Insurance Business Act shall be deemed to be replaced with "bank as defined in Article 2, paragraph (4) (Definitions, etc.) of the Banking Act that falls
under the category of bankrupt financial institutions prescribed in Article 2,
paragraph (4) (Definitions) of the Deposit Insurance Act (Act No. 34 of 1971);"
and the term "Long Term Credit Bank as defined in Article 2 (Definitions) of
the Long Term Credit Bank Act" in Article 106, paragraph (1), item (iv) of the
Current Insurance Business Act shall be deemed to be replaced with "Long
Term Credit Bank as defined in Article 2 (Definitions) of the Long Term Credit
Bank Act that falls under the category of bankrupt financial institutions
prescribed in Article 2, paragraph (4) (Definitions) of the Deposit Insurance
Act."
(4) Any authorization given by the Prime Minister pursuant to the provision of
Article 106, paragraph (1) or Article 108, paragraph (1) of the Insurance
Business Act prior to the revision by the provision of Article 22 (hereinafter referred to as the "Former Insurance Business Act"), conditions attached to such authorization, or applications made pursuant to those provisions
pertaining to such authorization before the Effective Date shall be deemed as
the authorization prescribed in Article 106, paragraph (4) of the Current
Insurance Business Act given by the Prime Minister pursuant to the provision of that paragraph, conditions attached to such authorization or applications
made pursuant to the provision of that paragraph pertaining to such authorization.
(5) Where an Insurance Company has made any Insurance Company, etc.
Eligible for Subsidiary Company as defined in Article 106, paragraph (4) of the
Current Insurance Business Act (excluding any company in which the
Insurance Company holds shares or equity interests with the authorization set forth in Article 106, paragraph (1) or Article 108, paragraph (1) of the Former
Insurance Business Act; the same shall apply in the following paragraph) its
Subsidiary Company by the time when this Act enters into force, the Insurance
Company shall notify thereof to the Financial Reconstruction Commission within three months from the Effective Date.
(6) An Insurance Company that has made notification under the preceding paragraph shall be deemed to have received as at the Effective Date the
authorization set forth in Article 106, paragraph (4) of the Current Insurance
Business Act for making the Insurance Company, etc. Eligible for Subsidiary
Company pertaining to the notification its Subsidiary Company.
(7) The provision of Article 107, paragraph (1) of the Current Insurance Business
Act shall not apply, for a period of one year counting from the Effective Date,
to the ownership of Shares, etc. (referring to Shares, etc. as defined in Article 2, paragraph (12) of the Current Insurance Business Act; hereinafter the same shall apply in this paragraph) by an Insurance Company or any of its
Subsidiary Companies in a domestic company (referring to a domestic company as defined in Article 107, paragraph (1) of the Current Insurance Business Act; hereinafter the same shall apply in this paragraph), where the Insurance
Company or the Subsidiary Company owns, at the time when this Act enters
into force, Shares, etc. in the domestic company in a total number that exceeds its shareholding threshold, etc. (referring to the shareholding threshold, etc.
prescribed in Article 107, paragraph (1) of the Current Insurance Business Act;
hereinafter the same shall apply in this paragraph), provided that the
Insurance Company notify thereof to the Financial Reconstruction Commission within three months from the Effective Date. In this case, for the purpose of
applying the provision of that Article to the ownership of Shares, etc. in the domestic company on and subsequent to the date, the Insurance Company or its Subsidiary Company shall be deemed to have acquired as at the date the
Shares, etc. of the domestic company in excess of the shareholding threshold,
etc. following the events prescribed in the main clause of paragraph (2) of that
Article.
Article 133 The provisions of Article 110, paragraphs (2) and (3), Article 111, paragraphs (1) to (3) inclusive (including the cases where the provisions of
paragraphs (1) and (3) of that Article are applied mutatis mutandis pursuant to Article 199 of the Current Insurance Business Act), Article 271-8, and
Article 271-9, paragraphs (1) and (2) of the Current Insurance Business Act
shall apply to the documents of an Insurance Company (including a Foreign
Insurance Company, etc. or a Licensed Specified Juridical Person; hereinafter the same shall apply in this Article) or Insurance Holding Company (referring to an Insurance Holding Company as defined in Article 2, paragraph (16) of the Current Insurance Business Act; hereinafter the same shall apply in this
Article) prescribed in those provisions pertaining to the business years or fiscal
years that start on or subsequent to 1 April 1998; with regard to the business report and other documents of an Insurance Company or Insurance Holding Company pertaining to the business years or fiscal years that started prior to the date, the provisions then in force shall remain applicable.
Article 134 (1) The provisions of Article 132, paragraph (2), Article 204, paragraph (2) and Article 230, paragraph (2) of the Current Insurance Business Act shall apply to any order (including any demand for the
submission of an improvement program) issued on or subsequent to 1 April
1999 under Article 132, paragraph (1), Article 204, paragraph (1) or Article 230, paragraph (1) of the Current Insurance Business Act, respectively.
(2) Any demands for the submission of an improvement program under Article
130, paragraph (1), Article 202, paragraph (1) or Article 228, paragraph (1) of the Former Insurance Business Act, and orders for modification under Article
130, paragraph (2), Article 202, paragraph (2) or Article 228, paragraph (2) of
the Former Insurance Business Act issued prior to the Effective Date shall be deemed as demands for the submission of an improvement program, and orders
for modification issued under Article 132, paragraph (1), Article 204,
paragraph (1) or Article 230, paragraph (1) of the Current Insurance Business
Act, respectively.
Article 135 Any authorization given by the Prime Minister pursuant to the
provision of Article 8, paragraph (1) of the Former Insurance Business Act as
applied mutatis mutandis pursuant to Article 192, paragraph (3) of the Former
Insurance Business Act, conditions attached to such authorization, or
applications made pursuant to the provision of that paragraph pertaining to
the authorization set forth in that paragraph prior to the Effective Date shall be deemed as authorization given by the Prime Minister pursuant to the
provision of Article 192, paragraph (3) of the Current Insurance Business Act,
conditions attached to such authorization or applications made pursuant to the provision of that paragraph pertaining to the authorization set forth in that
paragraph.
Article 136 (1) An Insurance Company (including a Foreign Insurance Company, etc. or a Licensed Specified Juridical Person) that intends to become an
incorporator or a member of the Policyholders Protection Corporation
prescribed in Article 259 of the Current Insurance Business Act (hereinafter
referred to as the "Corporation") may, prior to the Effective Date, proceed with the preparation of the articles of incorporation, the holding of sessions of the
Organizational Meeting and other acts necessary for incorporating the
Corporation, necessary acts for participating in the Corporation, and necessary acts for business for the business year to which belongs the date of
incorporation of the Corporation, as prescribed in Article 261 to 263 inclusive, Article 265 to 265-3 inclusive, Article 265-5, Article 265-7, Article 265-12,
Article 265-13, Article 265-15 to 265-17 inclusive, Article 265-30 and Article
265-34 of the Current Insurance Business Act, and Article 1-4 of the
Supplementary Provisions to the Current Insurance Business Act.
(2) The incorporators of the Corporation may, prior to the Effective Date, apply for the authorization of the incorporation of the Corporation and the
authorization of the appointment of officers and, on behalf of the Corporation,
the authorization of the Corporation's business procedures, the budget and financial plan for the business year to which belongs the date of its
incorporation and the assessment rates, and receive the authorization from the
Minister of Finance, as prescribed in Article 265-8, Article 265-9, Article 265-
15, Article 265-30 and Article 265-34 of the Current Insurance Business Act, and Article 1-8 of the Supplementary Provisions to the Current Insurance
Business Act. In this case, such authorization shall come into effect as from the
Effective Date.
Article 137 (1) The provisions of Article 265-2, paragraph (2) and Article 265-3, paragraph (1) of the Current Insurance Business Act shall not apply to any
Insurance Company (including any Foreign Insurance Company, etc.;
hereinafter the same shall apply in this Article and the following Article), in
cases where the Prime Minister, pursuant to the provision of Article 241 of the
Former Insurance Business Act, has issued an order for suspension of all or
part of its business (or, for a Foreign Insurance Company, etc., its business in
Japan; hereinafter the same shall apply in this Article), the transfer of
insurance contracts or consultation on merger (or, for a Foreign Insurance
Company, etc., consultation on the transfer of insurance contracts in Japan), or has rendered a disposition ordering the administration of its business and
property (or, for a Foreign Insurance Company, etc., its property located in
Japan; the same shall apply in the following paragraph) by an insurance administrator, at the time when this Act enters into force.
(2) Where the condition of the business and property of an Insurance Company to which the provision of the preceding paragraph shall apply is found to have
returned to normal after this Act enters into force, as attested by the relevant
Designation by the Prime Minister, the provisions of Article 265-2, paragraph (2) and Article 265-3, paragraph (1) of the Current Insurance Business Act shall apply as from the date of such Designation.
Article 138 With regard to any Policyholders Protection Fund as defined in
Article 259, paragraph (2) of the Former Insurance Business Act in existence at the time when this Act enters into force (including a fund in the course of
liquidation; referred to as "Policyholders Protection Fund" in the following
Article to Article 141 inclusive of the Supplementary Provisions) that includes among its business participants (referring to the business participants
prescribed in Article 260, paragraph (5), item (iv) of the Former Insurance
Business Act), at the time when this Act enters into force, any Insurance
Company to which the provision of paragraph (1) of the preceding Article shall apply but for which no decision has been made to provide Financial Assistance (referring to the Financial Assistance prescribed in Article 260, paragraph (5),
item (v) of the Former Insurance Business Act), the provisions of Article 259 to
270 inclusive of the Former Insurance Business Act and Article 105 of the
Supplementary Provisions to the Former Insurance Business Act shall remain in force even after this Act enters into force, for a period to be specified by a
Cabinet Order counting from the Effective Date. In this case, the term "Article
241" in Article 268, paragraph (1), item (i) of the Former Insurance Business
Act, which shall remain in force, shall be deemed to be replaced with "Article
241 of the Insurance Business Act prior to the revision by the provision of
Article 22 of the Act on Revision, etc. of Related Acts for the Financial System
Reform (Act No. 107 of 1998)."
Article 139 With regard to any Policyholders Protection Fund in existence at the time when this Act enters into force that carries on the Business of Financial
Assistance, etc. (referring to the Business of Financial Assistance, etc.
prescribed in Article 259, paragraph (1) of the Former Insurance Business Act; the same shall apply in the following Article) at the time when this Act enters into force, the Former Insurance Business Act shall remain in force even after
this Act enters into force until the Business of Financial Assistance, etc. is
completed, within the limit necessary for executing the Business of Financial
Assistance, etc. In this case, the terms "Minister of Finance" and "Ordinance of
the Ministry of Finance" in Part II, Chapter X, Section 2 (excluding Article 267, paragraph (5), Article 269, paragraph (2) and Article 270, paragraph (3)) of the Former Insurance Business Act shall be deemed to be replaced with "Prime Minister and the Minister of Finance" and "Cabinet Office Ordinance and
Ordinance of the Ministry of Finance," respectively; and the terms
"incompetent" and "quasi-incompetent" in Article 259, paragraph (1), item (iii)
of the Former Insurance Business Act shall be deemed to be replaced with "adult ward" and "person under curatorship," respectively; any necessary technical change in interpretation shall be specified by a Cabinet Order.
Article 140 (1) The Policyholders Protection Fund set forth in the preceding Article may, until a date to be specified by a Cabinet Order, propose to the incorporators of the Corporation or the Corporation that the Corporation
should succeed to the Business of Financial Assistance, etc. carried on by the
Policyholders Protection Fund, and those assets and liabilities which have
come to belong to the Policyholders Protection Fund as a result of executing the Business of Financial Assistance, etc. (hereinafter referred to as the "Financial Assistance, etc. Business Property" in this Article).
(2) The incorporators of the Corporation or the Corporation shall, when they
intend to give consent to any proposal made under the preceding paragraph, receive the approval of the Organizational Meeting or General Meeting of the Corporation.
(3) In giving approval under the preceding paragraph, the Organizational
Meeting shall adopt a resolution by a majority of two thirds of the votes held by those present in a session attended by at least half of those persons qualified
for the membership that have offered to become members of the Corporation, in writing, to the incorporators by the date of the session of the Organizational Meeting and the incorporators combined; the General Meeting shall adopt a resolution by a majority of two thirds of the votes held by those present in a
session attended by at least half of its members.
(4) The incorporators of the Corporation or the Corporation shall, when the
Organizational Meeting or the General Meeting adopted a resolution of
approval under paragraph (2), apply without delay for the authorization of the
Ministry of Finance.
(5) When the authorization set forth in the preceding paragraph was given, the Corporation shall succeed to the Business of Financial Assistance, etc. carried on by the Policyholders Protection Fund and the Financial Assistance, etc.
Business Property, set forth in paragraph (1), as at the date of such
authorization (or, when the authorization was given to the incorporators of the
Corporation prior to the date of establishment of the Corporation, as at the date of establishment of the Corporation).
(6) Where the Corporation has succeeded to the Business of Financial Assistance, etc. pursuant to the provision of the preceding paragraph, the Former
Insurance Business Act shall remain in force with regard to the Corporation
until the Business of Financial Assistance, etc. is completed, within the limit necessary for executing the Business of Financial Assistance, etc. In this case, the terms "Minister of Finance" and "Ordinance of the Ministry of Finance" in
Part II, Chapter X, Section 2 (excluding Article 267, paragraph (5), Article 269,
paragraph (2) and Article 270, paragraph (3)) of the Former Insurance
Business Act shall be deemed to be replaced with "Prime Minister and the Minister of Finance" and "Cabinet Office Ordinance and Ordinance of the Ministry of Finance," respectively; and the terms "incompetent" and "quasi-
incompetent" in Article 259, paragraph (1), item (iii) of the Former Insurance
Business Act shall be deemed to be replaced with "adult ward" and "person under curatorship," respectively; any technical change in interpretation
required shall be specified by a Cabinet Order.
(7) For the purpose of applying the provisions of the Former Insurance Business
Act that shall remain in force pursuant to the provision of the preceding
paragraph, the Corporation that has succeeded to the Business of Financial
Assistance, etc. pursuant to the provision of paragraph (5) shall be deemed as a
Policyholders Protection Fund and may carry on the Business of Financial
Assistance, etc. thus succeeded to, notwithstanding the provision of Article
265-28 of the Current Insurance Business Act.
(8) The Corporation shall, when it carries on the Business of Financial
Assistance, etc. to which it has succeeded pursuant to the provision of the preceding paragraph, create a Special Account (hereinafter referred to as
"Ongoing Business Account") to arrange for the separate accounting of the
Business of Financial Assistance, etc. In this case, any Financial Assistance,
etc. Business Property succeeded to pursuant to the provision of paragraph (5)
shall be credited to the Ongoing Business Account as at the date of such
succession.
(9) For the purpose of applying the provision of Article 265-41, paragraph (2) of the Current Insurance Business Act during the period in which the Ongoing
Business Account is in place pursuant to the provision of the preceding
paragraph, the term "and the Ongoing Business Account prescribed in Article
138, paragraph (7) of the Supplementary Provisions to the Act on Revision, etc. of Related Acts for the Financial System Reform (Act No. 107 of 1998)" shall be deemed to be inserted before the term "; the same shall apply in Article 270-5"
in Article 265-41, paragraph (2) of the Current Insurance Business Act.
(10) The Corporation shall, when the Business of Financial Assistance, etc.
succeeded to pursuant to the provision of paragraph (5) has been completed, abolish the Ongoing Business Account, and impute any residual assets in
existence at the time of such abolishment to the General Account set forth in
Article 265-41, paragraph (2) of the Current Insurance Business Act.
Article 141 With regard to the obligation for a person who has been an officer or functionary of a Policyholders Protection Fund not to reveal any secret that
he/she had access to in the course of duties, the provisions then in force shall
remain applicable even after this Act enters into force.
Article 142 The provision of Article 263, paragraph (2) of the Current Insurance
Business Act shall not apply, for a period of six months counting from the
Effective Date, to a person that uses the term "Hoken Keiyakusha Hogo Kiko" (which means "Policyholders Protection Corporation") in its name at the time when this Act enters into force.
(Delegation of Authorities)
Article 147 (1) The Prime Minister shall delegate his/her authorities under the
present Supplementary Provisions (excluding the authorities to be specified by a Cabinet Order) to the Commissioner of the Financial Services Agency.
(2) The authorities delegated to the Commissioner of the Financial Services
Agency pursuant to the provision of the preceding paragraph, and the
authorities of the Minister of Agriculture, Forestry and Fisheries and Minister of Health, Labour and Welfare under the present Supplementary Provisions
may be delegated in part to the heads of the Regional Financial Bureaus or
Regional Financial Offices (or, for the authorities of the Minister of Agriculture, Forestry and Fisheries and Minister of Health, Labour and Welfare, the heads
of the Regional Financial Branch Offices), pursuant to the provisions of a
Cabinet Order.
(Effect of Dispositions, etc.)
Article 188 Those dispositions, procedures or other acts carried out before this
Act (or, for the provisions listed in the items of Article 1 of the Supplementary Provisions, such provisions) enters into force pursuant to the provisions of the respective Acts prior to the revision (including any orders pursuant thereto;
hereinafter the same shall apply in this Article), which are covered by the
corresponding provisions of the respective Acts as revised, shall be deemed to have been carried out pursuant to such corresponding provisions of the
respective Acts as revised, unless provided otherwise in the present
Supplementary Provisions.
(Transitional Measures for Application of Penal Provisions)
Article 189 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act (or, for the provisions listed in the items of Article 1 of the Supplementary Provisions, such provisions), and to acts
committed subsequent to the enforcement of this Act where the provisions then
in force shall remain applicable pursuant to the provisions of the present
Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 190 In addition to what is provided for in Article 2 to 146 inclusive,
Article 153 and Article 169 of the Supplementary Provisions, and the preceding
Article, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 191 (1) Subsequent to the enforcement of this Act, the Government shall, when it finds it necessary, take necessary measures to maintain the credibility of the insurance industry, taking into consideration the status of
implementation of the system pertaining to special measures, etc. for the
protection of Policyholders, etc. under the Current Insurance Business Act and the condition of soundness in management of Insurance Companies, among
other factors.
(2) In addition to what is provided for in the preceding paragraph, the
Government shall, within five years from the enforcement of this Act, review
the financial systems revised by this Act, taking into consideration the status of implementation of the provisions revised by this Act and changing
socioeconomic conditions surrounding the financial sector, among other factors, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 131 of October 16, 1998]
(Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of the Act for
Establishment of the Financial Reconstruction Commission (Act No. 130 of
1998).
(Transitional Measures)
Article 2 (1) The licensing, permission, authorization, approval, Designation and other dispositions, or notification and other acts carried out by the Prime
Minister or other organs of the State pursuant to the provisions of the Secured
Bond Trust Act, Trust Business Act, Norinchukin Bank Act, Mutual Loan
Business Act, Act on Simplification of Banking Business Procedures, etc., Act on Provision, etc. of Trust Business by Financial Institutions, Act on
Prohibition of Private Monopolization and Maintenance of Fair Trade,
Agricultural Cooperative Association Act, Securities and Exchange Act, Act on
Non-Life Insurance Rating Organizations, Fisheries Cooperative Association
Act, Act on the Cooperative Associations of Small and Medium Enterprises, etc., Act on Financial Businesses by Cooperative, Shipowners Mutual Insurance
Association Act, Local Tax Act, Act on Securities Investment Trust and
Securities Investment Corporations, Shinkin Bank Act, Long-Term Credit
Bank Act, Loan Trust Act, Medium and Small Fishery Loan Guarantee Act, Credit Guarantee Companies Act, Labor Bank Act, Automobile Liability
Security Act, Agricultural Credit Guarantee Insurance Act, Act on Earthquake
Insurance, Registration and License Tax Act, Act on Financial Institutions' Merger and Conversion, Act on Foreign Securities Brokers, Act on the
Promotion of Introduction of Industry, etc. into Agricultural Regions,
Agricultural and Fishery Cooperation Savings Insurance Act, Banking Act, Act on Controls, etc. on Money Lending, Act on Regulation, etc. on Investment
Advisory Business Pertaining to Securities, Act on Regulation, etc. for
Mortgage Corporations, Financial Futures Trading Act, Act on Regulation, etc. on Advanced Payment Certificate, Act on Regulations of Business Pertaining to Commodities Investment, Act on Special Provisions for the Narcotics and
Psychotropics Control Act, etc. and Other Matters for the Prevention of Activities Encouraging Illicit Conduct and Other Activities Involving Controlled Substances through International Cooperation, Act on the
Regulation of Business Pertaining to Specified Claims, etc., Act on Revision, etc. of Related Acts for the Reform of Financial System and Securities
Exchange System, Act on Preferred Equity Investment by Cooperative
Structured Financial Institution, Real Estate Specified Joint Enterprise Act, Insurance Business Act, Act on Special Treatment, etc. of Corporate
Reorganization Proceedings and Other Insolvency Proceedings of Financial
Institution, Act on the Merger of the Norinchukin Bank and the Federation of
Credit Agricultural Cooperatives, etc., Bank of Japan Act, Act on Special
Measures, etc. for Merger Procedures Pertaining to Banks, etc. for the Creation of Bank Holding Company, Act on the Liquidation of Specified Assets by
Special Purpose Companies, or Act on Revision, etc. of Related Acts for the
Financial System Reform, prior to the revision by this Act (hereinafter referred to as "Former Secured Bond Trust Act, etc."), shall be deemed as licensing,
permission, authorization, approval, Designation and other dispositions, or notification and other acts carried out by the Financial Reconstruction
Commission or other corresponding organs of the State pursuant to the
corresponding provisions of the Secured Bond Trust Act, Trust Business Act, Norinchukin Bank Act, Mutual Loan Business Act, Act on Simplification of
Banking Business Procedures, etc., Act on Provision, etc. of Trust Business by
Financial Institutions, Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade, Agricultural Cooperative Association Act,
Securities and Exchange Act, Act on Non-Life Insurance Rating Organizations, Fisheries Cooperative Association Act, Act on the Cooperative Associations of
Small and Medium Enterprises, etc., Act on Financial Businesses by
Cooperative, Shipowners Mutual Insurance Association Act, Local Tax Act, Act on Securities Investment Trust and Securities Investment Corporations,
Shinkin Bank Act, Long-Term Credit Bank Act, Loan Trust Act, Medium and Small Fishery Loan Guarantee Act, Credit Guarantee Companies Act, Labor Bank Act, Automobile Liability Security Act, Agricultural Credit Guarantee
Insurance Act, Act on Earthquake Insurance, Registration and License Tax Act, Act on Financial Institutions' Merger and Conversion, Act on Foreign
Securities Brokers, Act on the Promotion of Introduction of Industry, etc. into
Agricultural Regions, Agricultural and Fishery Cooperation Savings Insurance
Act, Banking Act, Act on Controls, etc. on Money Lending, Act on Regulation, etc. on Investment Advisory Business Pertaining to Securities, Act on
Regulation, etc. for Mortgage Corporations, Financial Futures Trading Act, Act on Regulation, etc. on Advanced Payment Certificate, Act on Regulations of
Business Pertaining to Commodities Investment, Act on Special Provisions for the Narcotics and Psychotropics Control Act, etc. and Other Matters for the
Prevention of Activities Encouraging Illicit Conduct and Other Activities
Involving Controlled Substances through International Cooperation, Act on the
Regulation of Business Pertaining to Specified Claims, etc., Act on Revision, etc. of Related Acts for the Reform of Financial System and Securities
Exchange System, Act on Preferred Equity Investment by Cooperative
Structured Financial Institution, Real Estate Specified Joint Enterprise Act, Insurance Business Act, Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institution, Act on
the Merger of the Norinchukin Bank and the Federation of Credit Agricultural
Cooperatives, etc., Bank of Japan Act, Act on Special Measures, etc. for Merger
Procedures Pertaining to Banks, etc. for the Creation of Bank Holding
Company, Act on the Liquidation of Specified Assets by Special Purpose
Companies, or Act on Revision, etc. of Related Acts for the Financial System Reform, revised by this Act (hereinafter referred to as "Current Secured Bond Trust Act, etc.").
(2) Any application, notification and other acts that have been addressed to the
Prime Minister or other organs of the State pursuant to the provisions of the
Former Secured Bond Trust Act, etc. by the time when this Act enters into
force shall be deemed as application, notification and other acts addressed to
the Financial Reconstruction Commission or other corresponding organs of the
State pursuant to the corresponding provisions of the Current Secured Bond
Trust Act, etc.
(3) For the purpose of applying the provisions of the Current Secured Bond Trust Act, etc. to the matters that shall be reported, notified, submitted, or subject to any other procedure addressed to the Prime Minister or other organs of the
State pursuant to the provisions of the Former Secured Bond Trust Act, etc.,
any such matters for which the relevant procedure has not been completed by
the Effective Date of this Act shall be deemed as matters that shall be reported, notified, submitted, or subject to any other procedure addressed to the
Financial Reconstruction Commission or other corresponding organs of the
State pursuant to the corresponding provisions of the Current Secured Bond
Trust Act, etc., but for which the relevant procedure has not been completed.
Article 3 Any orders pursuant to the provisions of the Former Secured Bond Trust Act, etc. that are effective at the time when this Act enters into force shall be effective as orders issued pursuant to the corresponding provisions of the Current Secured Bond Trust Act, etc.
Article 4 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act, the provisions then in force shall remain applicable.
(Delegation to Cabinet Order)
Article 5 In addition to what is provided for in the preceding three Articles, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
Supplementary Provisions [Act No. 125 of August 13, 1999] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of
promulgation; provided, however, that the provision revising Article 285-4,
Article 285-5, paragraph (2), Article 285-6, paragraphs (2) and (3), Article 290, paragraph (1) and Article 293-5, paragraph (3) of the Commercial Code in
Article 1, and the provision revising Article 23, paragraph (3) and Article 24,
paragraph (1) of the Norinchukin Bank Act (Act No. 42 of 1923) in Article 6 of the Supplementary Provisions, the provision revising Article 39-3, paragraph
(3) and Article 40-2, paragraph (1) of the Shoko Chukin Bank Act (Act No. 14 of
1936) in Article 7 of the Supplementary Provisions, the provision revising
Article 52, paragraph (1) of the Agricultural Cooperative Association Act (Act No. 132 of 1947) in Article 9 of the Supplementary Provisions, the provision revising Article 53, paragraph (3) of the Securities and Exchange Act (Act No.
25 of 1948) and deleting paragraph (4) of that Article in Article 10 of the
Supplementary Provisions, the provision revising Article 56, paragraph (1) of
the Fisheries Cooperative Association Act (Act No. 242 of 1948) in Article 11 of the Supplementary Provisions, the provision adding an Article after Article 5-5 of the Act on Financial Businesses by Cooperative (Act No. 183 of 1949) and
revising Article 12, paragraph (1) of that Act in Article 12 of the
Supplementary Provisions, the provision revising Article 42, paragraph (1) of the Shipowners Mutual Insurance Association Act (Act No. 177 of 1950) in
Article 13 of the Supplementary Provisions, the provision revising Article 55-3, paragraph (3) and Article 57, paragraph (1) of the Shinkin Bank Act (Act No.
238 of 1951) in Article 16 of the Supplementary Provisions, the provision
revising Article 61, paragraph (1) of the Labor Bank Act (Act No. 227 of 1953)
in Article 18 of the Supplementary Provisions, the provision revising Article
17-2, paragraph (3) of the Banking Act (Act No. 59 of 1981) and deleting
paragraph (4) of that Article in Article 23 of the Supplementary Provisions, the provision of Article 26 of the Supplementary Provisions, the provision adding a paragraph to Article 15 of the Insurance Business Act (Act No. 105 of 1995),
revising Article 55, paragraphs (1) and (2), Article 102, paragraph (1) and
Article 112-2, paragraph (3) of that Act, deleting Article 112-2, paragraph (4) of that Act, revising Article 115, paragraph (2), Article 118, paragraph (1), Article
119 and Article 199 of that Act and deleting Article 59, paragraph (2) and
Article 90, paragraph (2) of the Supplementary Provisions to that Act in Article
27 of the Supplementary Provisions, the provision revising Article 7, paragraph (2) of the Act on Special Measures for the Commercial Code on the Procedure of Cancellation of Shares (Act No. 55 of 1997) in Article 29 of the Supplementary
Provisions and the provision revising Article 101, paragraph (1) and Article
102, paragraph (3) of the Act on the Liquidation of Specified Assets by Special
Purpose Companies (Act No. 105 of 1998) in Article 31 of the Supplementary
Provisions shall come into effect as from 1 April 2000.
(Transitional Measures for Audit Report)
Article 2 With regard to matters described in audit reports to be prepared for the financial years that ended prior to the enforcement of this Act, the
provisions then in force shall remain applicable. The same shall apply to
matters described in audit reports to be prepared for the business years that ended prior to the enforcement of this Act with regard to the Norinchukin
Bank, Agricultural Cooperative Associations and Federations of Agricultural
Cooperatives, Fisheries Cooperative Associations, Federations of Fisheries Cooperatives, Fish Processors' Cooperative Associations and Federations of Fish Processors' Cooperatives, Credit Cooperatives and Federations of Credit Cooperatives (referring to federations of cooperatives that carry on the
business set forth in Article 9-9, paragraph (1), item (i) of the Act on the
Cooperative Associations of Small and Medium Enterprises, etc. (Act No. 181 of
1949); the same shall apply in the following Article), Shinkin Banks and
Federations of Shinkin Banks, Labor Banks and Federations of Labor Banks, and Mutual Companies (referring to Mutual Companies as defined in Article 2, paragraph (5) of the Insurance Business Act; the same shall apply in the
following Article).
(Transitional Measures for Valuation of Monetary Claims, etc.)
Article 3 With regard to the valuation of monetary claims, company bonds and other bonds, and shares and other equity interests acquired by contribution
(hereinafter referred to as "Valuation of Monetary Claims, etc." in this Article)
for the accounting periods in the financial years that started prior to the
enforcement of the amending provisions listed in the proviso to Article 1 of the
Supplementary Provisions, the provisions then in force shall remain applicable. The same shall apply to the Valuation of Monetary Claims, etc. listed in the
following items:
(i) Valuation of Monetary Claims, etc. as at the end of the business years that started prior to the enforcement of the amending provisions listed in the proviso to Article 1 of the Supplementary Provisions with regard to the
Norinchukin Bank, the Shoko Chukin Bank, Agricultural Cooperative
Associations and Federations of Agricultural Cooperatives, Fisheries
Cooperative Associations, Federations of Fisheries Cooperatives, Fish
Processors' Cooperative Associations and Federations of Fish Processors' Cooperatives, Credit Cooperatives and Federations of Credit Cooperatives,
Shipowners Mutual Insurance Cooperatives, Shinkin Banks and Federations
of Shinkin Banks, and Labor Banks and Federations of Labor Banks; (ii) Valuation of Monetary Claims, etc. for the accounting periods in the
business periods (referring to the business periods prescribed in Article 133, paragraph (2) of the Act on Securities Investment Trust and Securities
Investment Corporations (Act No. 198 of 1951)) that started prior to the enforcement of the amending provisions listed in the proviso to Article 1 of the Supplementary Provisions with regard to securities investment
corporations (referring to securities investment corporations as defined in
Article 2, paragraph (11) of that Act; and
(iii) Valuation of Monetary Claims, etc. for the accounting periods in the business years that started prior to the enforcement of the amending
provisions listed in the proviso to Article 1 of the Supplementary Provisions with regard to Mutual Companies.
Supplementary Provisions [Act No. 151 of December 8, 1999] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2000.
Article 4 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 160 of December 22, 1999] [Extract] (Effective Date)
Article 1 This Act (excluding Articles 2 and 3) shall come into effect as from 6
January 2001; provided, however, that the provisions listed in the following items shall come into effect as from the date specified in the relevant item:
(ii) The provisions of Chapter III (excluding Article 3) and the following Article:
1 July 2000;
Supplementary Provisions [Act No. 225 of December 22, 1999] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of promulgation.
(Transitional Measures Accompanying Partial Revision to Civil Code, etc.) Article 25 With regard to the treatment of the matters specified in the legal
provisions listed in the following items pertaining to any petition for the
commencement of composition filed prior to the enforcement of this Act or any
ruling for the commencement of composition made prior or subsequent to the enforcement of this Act based on such petition, the provisions then in force shall remain applicable, notwithstanding those provisions revised by the
Supplementary Provisions to this Act:
(i) Article 398-3, paragraph (2) of the Civil Code;
(ii) Article 33-12-3, paragraph (1), item (i), (c) of the Mariners Insurance Act; (iii) Article 59, paragraph (3) and Article 68-3, paragraph (2) of the
Agricultural and Fishery Cooperation Savings Insurance Act;
(iv) Article 22-2, paragraph (1), item (i), (c) of the Employment Insurance Act; (v) Article 135-36 of the Act on Procedures for Non-Contentious Cases;
(vi) Article 309-2, paragraph (1), item (ii), and Article 383, paragraphs (1) and
(2) of the Commercial Code;
(vii) Article 54, paragraph (1), item (vii), Article 64-10, paragraph (1) and
Article 79-53, paragraph (1), item (ii) of the Securities and Exchange Act; (viii) Article 2, paragraph (3), item (i) of the Small and Medium-Sized
Enterprise Credit Insurance Act;
(ix) Article 20, paragraph (2), Article 24, Article 37, paragraph (1), Article 38,
paragraph (4), Article 67, paragraph (1), Article 78, paragraph (1), Article 79, paragraph (2), items (ii) to (iv) inclusive, Article 80, paragraph (1), and
Article 163, items (ii) and (iv) of the Corporate Rehabilitation Act.
(x) Article 30 of the Act on the Management of the State's Credits, etc.; (xi) Article 27, paragraph (1), item (v) of the Installment Sales Act;
(xii) Article 22, paragraph (1), item (viii) and Article 33, paragraph (1) of the
Act on Foreign Securities Brokers;
(xiii) Row 12 and Row 17(d) of Appended Table 1 to the Act on Civil Court
Costs, etc.;
(xiv) Article 36, paragraph (1), item (v) of the Funded Building Lots and
Buildings Sales Business Act;
(xv) Article 2, paragraph (2), item (i) of the Act on Mutual Relief System for the
Prevention of Bankruptcies of Small and Medium-sized Enterprises; (xvi) Article 46, paragraph (1) of the Banking Act;
(xvii) Article 111, paragraph (4), item (ii) of the Act on the Liquidation of
Specified Assets by Special Purpose Companies;
(xviii) Article 66, Article 151 and Article 271, paragraph (1) of the Insurance
Business Act;
(xix) Article 24, paragraph (1), Article 26, Article 27, Article 31, Article 45,
Article 48, paragraph (1), items (ii) to (iv) inclusive and Article 49, paragraph (1) of the Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions, etc.; and
(xx) Article 40, paragraphs (1) and (3) of the Act on Punishment of Organized
Crimes and Control of Crime Proceeds.
(Transitional Measures on Application of Penal Provisions)
Article 26 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the Supplementary Provisions to this Act, the
provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 14 of March 31, 2000] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2000.
Supplementary Provisions [Act No. 91 of May 31, 2000] (Effective Date)
(1) This Act shall come into effect as from the Effective Date of the Act for Partial
Revision of the Commercial Code, etc. (Act No. 90 of 2000).
(Transitional Measures)
(2) Where the Effective Date of this Act comes before the Effective Date of the
provision of Article 8 of the Supplementary Provisions to the Act on the Center for Food Quality, Labeling and Consumer Services (Act No. 183 of 1999), the
term "Article 27" in the provision revising Article 19-5-2, Article 19-6,
paragraph (1), item (iv) and Article 27 of the Act on Standardization and
Proper Quality Labeling of Agricultural and Forestry Products in Article 31 shall be deemed to be replaced with "Article 26."
Supplementary Provisions [Act No. 92 of May 31, 2000] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding three months from the day of
promulgation; provided, however, that the provision adding an Article after
Article 265-42 of the Insurance Business Act and revising Articles 275 and 317-
2 of that Act in Article 1, and the provision of Article 19 of the Supplementary
Provisions shall come into effect as from 1 April 2001.
(Transitional Measures)
Article 3 The provisions of Part II, Chapter II, Section 3 of the Current
Insurance Business Act shall apply to any Entity Conversion (referring to
Entity Conversion as defined in Article 68, paragraph (2) or Article 86, paragraph (1) of the Current Insurance Business Act) pertaining to a resolution of the shareholders meeting or general meeting of members (or
General Meeting, where the company has such meeting) (hereinafter referred to as "Shareholders Meeting, etc.") adopted in a session for which the
convocation notice set forth in Article 232, paragraph (1) of the Commercial
Code (including the cases where it is applied mutatis mutandis pursuant to
Articles 41 and 49 of the Current Insurance Business Act) is issued on or subsequent to the Effective Date; with regard to any Entity Conversion
(referring to Entity Conversion as defined in Article 68, paragraph (2) or
Article 86, paragraph (1) of the Insurance Business Act prior to the revision by the provision of Article 1 (hereinafter referred to as "Former Insurance
Business Act")) pertaining to a resolution of the Shareholders Meeting, etc.
adopted in a session for which the convocation notice set forth in Article 232,
paragraph (1) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to Articles 41 and 49 of the Former Insurance
Business Act) was issued prior to the Effective Date, the provisions then in force shall remain applicable.
Article 4 The provision of Article 117-2 of the Current Insurance Business Act
shall also apply to claims pertaining to the insurance contracts concluded prior to the Effective Date.
Article 5 The provisions of Articles 136-2 and 137 of the Current Insurance
Business Act shall apply to any transfer of insurance contracts pertaining to a resolution of the Shareholders Meeting, etc. adopted in a session for which the convocation notice set forth in Article 232, paragraph (1) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to
Articles 41 and 49 of the Current Insurance Business Act) is issued on or
subsequent to the Effective Date; with regard to any transfer of insurance
contracts pertaining to a resolution of the Shareholders Meeting, etc. adopted
in a session for which the convocation notice set forth in Article 232, paragraph
(1) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to Articles 41 and 49 of the Former Insurance Business
Act) was issued prior to the Effective Date, the provisions then in force shall remain applicable.
Article 6 The provisions of Articles 156-2 and 157 of the Current Insurance
Business Act shall apply to any dissolution pertaining to a resolution of the general meeting of members (or General Meeting, where the company has such meeting; hereinafter the same shall apply in this Article) adopted in a session
for which the convocation notice set forth in Article 232, paragraph (1) of the Commercial Code as applied mutatis mutandis pursuant to Articles 41 and 49 of the Current Insurance Business Act is issued on or subsequent to the
Effective Date; with regard to any dissolution pertaining to a resolution of the general meeting of members adopted in a session for which the convocation
notice set forth in Article 232, paragraph (1) of the Commercial Code as applied
mutatis mutandis pursuant to Articles 41 and 49 of the Former Insurance Business Act was issued prior to the Effective Date, the provisions then in force shall remain applicable.
Article 7 The provisions of Part II, Chapter VIII, Section 3 of the Current
Insurance Business Act shall apply to any merger pertaining to a resolution of the Shareholders Meeting, etc. adopted in a session for which the convocation
notice set forth in Article 232, paragraph (1) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to Articles 41 and 49
of the Current Insurance Business Act) is issued on or subsequent to the
Effective Date; with regard to any merger pertaining to a resolution of the
Shareholders Meeting, etc. adopted in a session for which the convocation
notice set forth in Article 232, paragraph (1) of the Commercial Code (including the cases where it is applied mutatis mutandis pursuant to Articles 41 and 49
of the Former Insurance Business Act) was issued prior to the Effective Date,
the provisions then in force shall remain applicable.
Article 8 The provisions of Articles 136-2 and 137 of the Current Insurance
Business Act as applied mutatis mutandis pursuant to Article 210, paragraph
(1) of the Current Insurance Business Act shall apply to any transfer of
insurance contracts pertaining to that Agreement set forth in Article 135, paragraph (1) of the Current Insurance Business Act as applied mutatis mutandis pursuant to Article 210, paragraph (1) of the Current Insurance Business Act which is prepared by a Foreign Insurance Company, etc.
(referring to a Foreign Insurance Company, etc. as defined in Article 2,
paragraph (7) of the Current Insurance Business Act) on or subsequent to the
Effective Date; with regard to any transfer of insurance contracts pertaining to that Agreement set forth in Article 135 of the Former Insurance Business Act as applied mutatis mutandis pursuant to Article 210, paragraph (1) of the
Former Insurance Business Act which was prepared prior to the Effective Date,
the provisions then in force shall remain applicable.
Article 9 The provisions of Part II, Chapter X, Section 1, Subsection 2 of the
Current Insurance Business Act shall apply to any disposition ordering the
administration of business and property by an insurance administrator under
Article 241, paragraph (1) of the Current Insurance Business Act, made on or subsequent to the Effective Date; with regard to any disposition ordering the
administration of business and property by an insurance administrator under Article 241 of the Former Insurance Business Act, made prior to the Effective Date, the provisions then in force shall remain applicable.
Article 10 The provisions of Part II, Chapter X, Section 1, Subsection 3 of the
Current Insurance Business Act shall apply to any modification of the contract conditions where an order for consultation on Merger, etc. is issued under
Article 241, paragraph (1) of the Current Insurance Business Act, where a disposition ordering the administration of business and property by an
insurance administrator is made under that paragraph, or where the
certification set forth in Article 268, paragraph (1) of the Current Insurance Business Act is given, on or subsequent to the Effective Date; with regard to any modification of the contract conditions where an order for the transfer of
insurance contracts or for consultation on merger was issued under Article 241
of the Former Insurance Business Act, where a disposition ordering the
administration of business and property by an insurance administrator was made under that Article, or where the certification set forth in Article 268,
paragraph (1) of the Former Insurance Business Act was given, prior to the
Effective Date, the provisions then in force shall remain applicable.
Article 11 The provision of Article 257 of the Current Insurance Business Act shall apply to any mediation conducted on or subsequent to the Effective Date pertaining to the recommendation set forth in Article 256, paragraph (1) of the Current Insurance Business Act; with regard to any mediation conducted prior
to the Effective Date pertaining to the recommendation set forth in Article 256,
paragraph (1) of the Former Insurance Business Act, the provisions then in force shall remain applicable.
Article 12 The provision of Article 265-37 of the Current Insurance Business Act shall apply to the approval, submission or modification of budgets and financial plans pertaining to the business years that start on or subsequent to the Effective Date; with regard to the approval, submission or modification of
budgets and financial plans pertaining to the business years that started prior to the Effective Date, the provisions then in force shall remain applicable.
Article 13 The provision of Article 265-39, paragraph (3) of the Current
Insurance Business Act shall apply to the documents set forth in that
paragraph for the business years that start on or subsequent to the Effective
Date; with regard to the documents set forth in that paragraph for the business
years that started prior to the Effective Date, the provisions then in force shall remain applicable.
Article 14 The provisions of Part II, Chapter X, Section 2, Subsection 2, Division
1 of the Current Insurance Business Act shall apply to Financial Assistance
pertaining to any decision on the Financial Assistance set forth in Article 270-3, paragraph (1) of the Current Insurance Business Act made on or subsequent to
the Effective Date; with regard to Financial Assistance pertaining to any
decision on the Financial Assistance set forth in Article 270-3, paragraph (1) of the Former Insurance Business Act made prior to the Effective Date, the
provisions then in force shall remain applicable.
Article 15 The provisions of Part II, Chapter X, Section 2, Subsection 2, Division
3 of the Current Insurance Business Act shall apply to the underwriting of
insurance contracts pertaining to any decision on the date of concluding an
Agreement regarding the underwriting of insurance contracts set forth in
Article 270-4, paragraph (6) of the Current Insurance Business Act, made on or subsequent to the Effective Date; with regard to the underwriting of insurance contracts pertaining to any decision on the date of concluding an Agreement
regarding the underwriting of insurance contracts set forth in Article 270-4, paragraph (6) of the Former Insurance Business Act, made prior to the
Effective Date, the provisions then in force shall remain applicable.
(Transitional Measures for Application of Penal Provisions)
Article 29 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act (or, for the provisions set forth in the
proviso to Article 1 of the Supplementary Provisions, such provisions), and to
acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain applicable pursuant to the provisions of the present
Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 30 In addition to what is provided for in Article 2 to 17 inclusive of the Supplementary Provisions and the preceding Article, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet order.
(Review)
Article 31 Within three years from the enforcement of this Act, the Government shall review the system for the protection of Policyholders, etc. revised by this Act, taking into consideration the status of implementation of the system, etc. pertaining to special measures, etc. for the protection of Policyholders, etc. and
the condition of soundness in management of Insurance Companies, among other factors, and when it finds it necessary, take necessary measures to maintain the credibility of the insurance industry, based on its findings.
Supplementary Provisions [Act No. 96 of May 31, 2000] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 December 2000 (hereinafter
referred to as "Effective Date").
(Effect of Dispositions, etc.)
Article 49 Those dispositions, procedures or other acts carried out prior to the enforcement of this Act (or, for the provisions listed in the items of Article 1 of the Supplementary Provisions, such provisions) enter into force pursuant to
the provisions of the respective Acts prior to the revision which are covered by
the corresponding provisions of the respective Acts as revised, shall be deemed to have been carried out pursuant to such corresponding provisions of the
respective Acts as revised, unless provided otherwise in the present
Supplementary Provisions.
(Transitional Measures for Application of Penal Provisions)
Article 50 With regards to the application of penal provisions to acts committed prior to the enforcement of this Act, the provisions then in force shall remain
applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 51 In addition to what is provided for in Article 2 to 11 inclusive of the Supplementary Provisions and the preceding Article, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 52 Where five years have elapsed from the enforcement of this Act, the Government shall, taking into consideration the status of enforcement of the Current Securities and Exchange Act and the Current Financial Futures
Trading Act and changing socioeconomic conditions, among other factors,
review the systems pertaining to securities exchanges as defined in Article 2, paragraph (16) of the Current Securities and Exchange Act and financial
futures exchanges as defined in Article 2, paragraph (6) of the Current
Financial Futures Trading Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 97 of May 31, 2000] [Extract]
(Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of promulgation (hereinafter referred to as "Effective Date").
(Partial Revision to Insurance Business Act) Article 56 (1) Omitted.
(2) For the purpose of applying the provision of Article 98, paragraph (5) of the
Insurance Business Act revised by the provision of the preceding paragraph, a
former special purpose company and the asset securitization plan and specified bonds of the special purpose company shall be deemed as a special purpose
company incorporated pursuant to the provisions of the Current Asset
Liquidation Act and the asset securitization plan and specified bonds of the special purpose company, respectively.
(Effect of Dispositions, etc.)
Article 64 Those dispositions, procedures or other acts carried out before this Act (or, for the provisions set forth in the proviso to Article 1 of the Supplementary Provisions, such provisions) enter into force pursuant to the provisions of the respective Acts prior to the revision (including any orders pursuant thereto;
hereinafter the same shall apply in this Article), which are covered by the
corresponding provisions of the respective Acts as revised, shall be deemed to have been carried out pursuant to such corresponding provisions of the
respective Acts as revised, unless provided otherwise in the present
Supplementary Provisions.
(Transitional Measures for Application of Penal Provisions)
Article 65 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act (or, for the provisions set forth in the
proviso to Article 1 of the Supplementary Provisions, such provisions), and to
acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain applicable pursuant to the provisions of the present
Supplementary Provisions, the provisions then in force shall remain applicable.
Article 66 For the purpose of applying the provisions (excluding the penal
provisions that shall apply pursuant to the provision of the preceding Article)
of the Act on Punishment of Organized Crimes and Control, etc. of Crime
Proceeds revised by the provision of Article 62 of the Supplementary Provisions
(hereinafter referred to as "Current Organized Crimes Punishment Act" in this
Article), the crimes set forth in Article 171, Article 172, Article 174, Article 179, paragraph (1), and Article 182, paragraphs (2) and (4) of the Former Asset
Liquidation Act, which shall remain in force pursuant to the provision of the main clause of Article 2, paragraph (1) of the Supplementary Provisions shall be deemed as the crimes listed in Appended Table 58 to the Current Organized Crimes Punishment Act; and the crimes set forth in Article 228, Article 230,
Article 235, paragraph (1), and Article 236, paragraphs (2) and (4) of the
Former Investment Trust Act, where the provisions then in force shall remain applicable pursuant to the provision of the preceding Article, shall be deemed as the crimes listed in Appended Table 23 to the Current Organized Crimes
Punishment Act.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 67 In addition to what is provided for in the present Supplementary
Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 68 Within five years from the enforcement of this Act, the Government shall, taking into consideration the status of enforcement of the Current Asset Liquidation Act, the Current Investment Trust Act and the Building Lots and Buildings Transaction Business Act revised by Article 8 (hereinafter referred to as "Current Building Lots and Buildings Transaction Business Act" in this
Article) and changing socioeconomic conditions, among other factors, review
the provisions of the Current Asset Liquidation Act and Current Investment
Trust Act, and the system pertaining to the authorized building lots and
buildings traders prescribed in Article 50-2, paragraph (2) of the Current
Building Lots and Buildings Transaction Business Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 126 of November 27, 2000] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding five months from the day of promulgation.
(Transitional Measures Concerning Penal Provisions)
Article 2 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 129 of November 29, 2000] [Extract]
(Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of promulgation.
Supplementary Provisions [Act No. 7 of March 30, 2001] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2001.
Supplementary Provisions [Act No. 41 of June 8, 2001] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2002.
Supplementary Provisions [Act No. 50 of June 15, 2001] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2002; provided, however,
that the provisions listed in the following items shall come into effect as from the date specified in the relevant item:
(i) The provision of Article 9 of the Supplementary Provisions: the day of promulgation;
(ii) The provision of Article 7 of the Supplementary Provisions: the date to be
specified by a Cabinet Order within a period not exceeding one year from the day of promulgation; and
(iii) The provisions of Article 111 to 114 inclusive and Article 115, paragraph
(2), and the provisions of Articles 4, 10, 16 and 35 of the Supplementary
Provisions: the date to be specified by a Cabinet Order within a period not exceeding two years and six months from the day of promulgation
Supplementary Provisions [Act No. 75 of June 27, 2001] [Extract] (Effective Date, etc.)
Article 1 This Act shall come into effect as from 1 April 2002 (hereinafter
referred to as "Effective Date"), and apply to short-term company bonds, etc. issued on or subsequent to the Effective Date.
(Transitional Measures on Application of Penal Provisions)
Article 7 With regard to the application of penal provisions to acts committed prior to the Effective Date and to acts committed on or subsequent to the
Effective Date where the provisions then in force shall remain applicable
pursuant to the present Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 8 In addition to what is provided for in the present Supplementary
Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 9 Where five years have elapsed after the enforcement of this Act, the
Government shall, taking into consideration the status of enforcement of this
Act and changing socioeconomic conditions, among other factors, review the
system pertaining to institutions for transfer, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 80 of June 29, 2001]
This Act shall come into effect as from the Effective Date of the Act for Partial
Revision of the Commercial Code, etc.
Supplementary Provisions [Act No. 117 of November 9, 2001] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of
promulgation; provided, however, that the provisions listed in the following items shall come into effect as from the date specified in the relevant item:
(i) In Article 1, the provision deleting Article 17-2 of the Banking Act and the provision revising Article 47, paragraph (2) of that Act (limited to the
segment deleting the term "Article 17-2"); in Article 3, the provision deleting
Article 112-2 of the Insurance Business Act and the provision revising Article
270-6, paragraph (2), item (i) of that Act; in Article 4, the provision deleting Article 55-3 of that Act; the provisions of Articles 8, 9, 13 and 14; and the provisions of the following Article, Article 9 and Article 13 to 16 inclusive of
the Supplementary Provisions: the day on which one month has elapsed from
the day of promulgation.
(Transitional Measures for Shareholders of Insurance Company)
Article 5 (1) For the purpose of applying the provisions of Chapter X-2
(excluding the provisions of Section 3) of the Insurance Business Act revised by the provision of Article 3 (hereinafter referred to as "Current Insurance
Business Act"), any owners of shares in an Insurance Company in existence at the time when this Act enters into force shall be deemed to become owners of shares in the Insurance Company as at the Effective Date following an event
other than the transactions or acts listed in the items of Article 271-10, paragraph (1) of the Current Insurance Business Act.
(2) Any Insurance Company that has made another Insurance Company its
Subsidiary Company by the time when this Act enters into force, with the
authorization set forth in Article 106, paragraph (4) or the proviso to Article
106, paragraph (5) of the Insurance Business Act prior to the revision by the
provision of Article 3, shall be deemed to have received as at the Effective Date the authorization set forth in Article 271-10, paragraph (1) of the Current
Insurance Business Act for the ownership of shares in such another Insurance
Company.
(Delegation of Authorities)
Article 13 (1) The Prime Minister shall delegate his/her authority under the
present Supplementary Provisions (excluding the authorities to be specified by a Cabinet Order) to the Commissioner of the Financial Services Agency.
(2) The authorities delegated to the Commissioner of the Financial Services
Agency pursuant to the provision of the preceding paragraph may be delegated in part to the heads of the Regional Financial Bureaus or Regional Financial
Offices, pursuant to the provisions of a Cabinet Order.
(Effect of Dispositions, etc.)
Article 14 Those dispositions, procedures or other acts carried out before the
amending provisions of this Act enter into force pursuant to the provisions of the respective Acts prior to the revision (including any orders pursuant
thereto; hereinafter the same shall apply in this Article), which are covered by the corresponding provisions of the respective Acts as revised, shall be deemed to have been carried out pursuant to such corresponding provisions of the
respective Acts as revised, unless provided otherwise in the present
Supplementary Provisions.
(Transitional Measures Concerning Penal Provisions)
Article 15 With regard to the application of penal provisions to acts committed prior to the enforcement of the amending provisions of this Act and to acts committed subsequent to the enforcement of the amending provisions
pertaining to the matters to which the provisions then in force shall remain
applicable pursuant to the present Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 16 In addition to what is provided for in Article 2 to the preceding Article inclusive of the Supplementary Provisions, necessary transitional measures for the enforcement of this Act (including transitional measures pertaining to
penal provisions) shall be specified by a Cabinet Order.
(Review)
Article 23 Where five years have elapsed after the enforcement of this Act, the
Government shall, taking into consideration the status of enforcement of the
Current Banking Act, the Current Long-Term Credit Bank Act and the Current
Insurance Business Act, and changing socioeconomic conditions surrounding
the banking and insurance businesses, among other factors, review the systems pertaining to Bank Major Shareholders as defined in Article 2, paragraph (10)
of the Current Banking Act, Long-Term Credit Bank Major Shareholders as
defined in Article 16-2-2, paragraph (5) of the Current Long-Term Credit Bank
Act and Major Shareholders of Insurance Company as defined in Article 2, paragraph (14) of the Current Insurance Business Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 129 of November 28, 2001] [Extract] (Effective Date)
(1) This Act shall come into effect as from 1 April 2002.
(Transitional Measures for Application of Penal Provisions)
(2) With regard to the application of penal provisions to acts committed prior to the enforcement of this Act and to acts committed subsequent to the
enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the provisions of this Act, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 150 of December 12, 2001]
This Act shall come into effect as from the Effective Date of the Act for Partial
Revision of the Commercial Code and the Act on Special Measures for the
Commercial Code on the Audit, etc. of Stock Company; provided, however, that the provision of Article 21, paragraph (5) shall come into effect as from the
Effective Date of the amending provisions listed in the proviso to Article 1 of the Supplementary Provisions to that Act, and the provision of Article 24 shall come into effect as from the day of promulgation.
Supplementary Provisions [Act No. 45 of May 29, 2002] (Effective Date)
(1) This Act shall come into effect as from the date to be specified by a Cabinet
Order within a period not exceeding one year from the day of promulgation.
(Transitional Measures)
(2) Where the Effective Date of this Act comes before the Effective Date of the provision of Article 2 of the Act for Partial Revision of the Agricultural
Cooperative Association Act, etc. (Act No. 94 of 2001), the term "Article 30, paragraph (12)" in the provision revising Article 30, paragraph (12) of the Agricultural Cooperative Association Act in Article 9 shall be deemed to be replaced with "Article 30, paragraph (11)."
Supplementary Provisions [Act No. 47 of May 29, 2002] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of promulgation.
Supplementary Provisions [Act No. 65 of June 12, 2002] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 6 January 2003; provided,
however, that the provisions listed in the following items shall come into effect as from the date specified in the relevant item:
(ii) The provisions of Article 3, and of Article 3, Article 58 to 78 inclusive and
Article 82 of the Supplementary Provisions: the date to be specified by a
Cabinet Order within a period not exceeding five years from the Effective
Date of this Act (hereinafter referred to as "Effective Date");
(Transitional Measures Accompanying Partial Revision to Insurance Business
Act)
Article 72 The provision of Article 61-9 of the Insurance Business Act prior to
the revision by the provision of the preceding Article shall remain in force with regard to registered company bonds, etc. under the Former Bond, etc. Registry
Act, which shall remain in force pursuant to the provision of Article 3 of the
Supplementary Provisions.
(Transitional Measures for Application of Penal Provisions)
Article 84 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act (or, for the provisions listed in the items of
Article 1 of the Supplementary Provisions, such provisions; hereinafter the same shall apply in this Article) and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the present Supplementary Provisions, the provisions
then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 85 In addition to what is provided for in the present Supplementary
Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 86 Where five years have elapsed from the enforcement of this Act, the Government shall, taking into consideration the status of enforcement of the Current Act on Transfer of Bonds, etc., the Current Securities and Exchange Act and the Current Financial Futures Trading Act, and changing
socioeconomic conditions, among other factors, review the systems pertaining to Subscriber's Protective Trusts as defined in Article 2, paragraph (11) of the Current Act on Transfer of Bonds, etc., Settlement Institutions of Securities
Transactions as defined in Article 2, paragraph (31) of the Current Securities and Exchange Act and Settlement Institutions for Financial Futures as defined in Article 2, paragraph (15) of the Current Financial Futures Trading Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 79 of July 3, 2002] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 August 2002.
Supplementary Provisions [Act No. 155 of December 13, 2002] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of the
Corporate Rehabilitation Act (Act No. 54 of 2002).
(Transitional Measures for Application of Penal Provisions)
Article 3 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the provisions of this Act, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 39 of May 9, 2003] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding one month from the day of
promulgation; provided, however, that the provisions revising Articles 277 and
302, and the provisions of Article 5 to 7 inclusive of the Supplementary
Provisions shall come into effect as from 1 September 2003.
(Transitional Measures for Consolidated Financial Statements, etc. Pertaining to Mutual Company)
Article 2 The following provisions shall not apply to a Mutual Company
(referring to a Mutual Company as defined in Article 2, paragraph (5) of the
Insurance Business Act revised by this Act (hereinafter referred to as "Current Act"); the same shall apply hereinafter), until the conclusion of the first session of the general meeting of members (or General Meeting, where the company
has such meeting; the same shall apply hereinafter) convened for the business
year subsequent to the enforcement of this Act:
(i) Article 21-8, paragraph (7) and Article 21-10, paragraph (2) of the Act on
Special Measures for the Commercial Code on the Audit, etc. of Stock Company (Act No. 22 of 1974; hereinafter referred to as "Act on Special Measures for the Commercial Code") as applied mutatis mutandis pursuant
to Article 52-3, paragraph (2) of the Current Act, and Article 4, paragraph (2),
item (ii), Article 7, paragraph (3) and Article 7, paragraph (5) (limited to the segment regarding consolidated subsidiary companies) of the Act on Special Measures for the Commercial Code as applied mutatis mutandis pursuant to Article 59, paragraph (1) of the Current Act; and
(ii) Article 21-32, paragraphs (1) to (5) inclusive of the Act on Special Measures for the Commercial Code as applied mutatis mutandis pursuant to Article 52-
3, paragraph (2) of the Current Act, and Article 18, paragraph (4), Article 19-
2 and Article 19-3 of the Act on Special Measures for the Commercial Code as applied mutatis mutandis pursuant to Article 59, paragraph (1) of the
Current Act.
(Transitional Measures for Consolidated Financial Statements of Mutual
Company Not Submitting Securities Report)
Article 3 (1) For the purpose of applying the provisions listed in the items of the preceding Article to a Mutual Company that does not fall under the category of Mutual Companies required to submit to the Prime Minister the securities
report prescribed in Article 24, paragraph (1) of the Securities and Exchange
Act (Act No. 25 of 1948) within the period specified in the main clause of that paragraph (hereinafter referred to as "Mutual Companies Submitting the
Securities Report"), the preceding Article as well as the following paragraph to
paragraph (4) inclusive below shall be effective for the time being.
(2) The provisions listed in the items of the preceding Article shall not apply to a
Mutual Company that does not fall under the category of Mutual Companies
Submitting the Securities Report.
(3) If and when the Mutual Company set forth in the preceding paragraph falls
under the category of Mutual Companies Submitting the Securities Report, the provisions listed in the items of the preceding Article shall not apply to the
Mutual Company until the conclusion of the first session of the general meeting of members convened for the business year subsequent thereto.
(4) If and when a Mutual Company that fell under the category of Mutual Companies Submitting the Securities Report at the end of a business year (limited to a company to which the provisions listed in the items of the
preceding Article applied) ceases to fall under the category of Mutual
Companies Submitting the Securities Report prior to the conclusion of the first session of the general meeting of members convened for the business year subsequent to the end of the business year, the provisions listed in the items of the preceding Article shall apply to the Mutual Company even after it ceases to fall under the category until the conclusion of the session of the general
meeting of members, notwithstanding the provision of paragraph (2).
(Transitional Measures for Interim Business Report)
Article 4 The provision of Article 110 of the Current Act (including the cases where the provisions of paragraphs (1) and (3) of that Article are applied
mutatis mutandis pursuant to Article 199 of the Current Act) shall apply to the
documents prescribed in Article 110 of the Current Act pertaining to the business years that start on or subsequent to 1 April 2004; with regard to the documents pertaining to the business years that started prior to the date, the provisions then in force shall remain applicable.
(Transitional Measures Accompanying Modification of Matters Registered for
Life Insurance Solicitor and Non-Life Insurance Agent)
Article 5 (1) With regard to the modification of any matters registered for an
individual that has obtained the registration set forth in Article 276 of the
Insurance Business Act prior to the revision by this Act (hereinafter referred to as "Former Act") by the time when the provision revising Article 277 enters
into force (other than a person whose birth date has been registered on the registry of Life Insurance Solicitors or the registry of Non-Life Insurance
Agents by the time when the provision revising Article 277 enters into force;
hereinafter referred to as "Non-Registrant of Birth Date"), the provisions then in force shall remain applicable.
(2) A Non-Registrant of Birth Date (other than a person who has made the
notification set forth in the following paragraph) shall, when he/she intends to notify any change in address to which the provisions then in force shall be
applicable pursuant to the provision of the preceding paragraph, notify to the
Prime Minister of his/her address in lieu of the address. In this case, the
provisions of the Current Act shall apply to the modification of any matters
related to the registration made subsequent to such notification, regarding the person who made the notification, notwithstanding the provision of the
preceding paragraph.
(3) A Non-Registrant of Birth Date who has not notified any change in address to which the provisions then in force shall remain applicable pursuant to the
provision of paragraph (1) may notify the Prime Minister of his/her birth date.
In this case, the provisions of the Current Act shall apply to the modification of any matters related to the registration made subsequent to such notification,
regarding the person who made the notification, notwithstanding the provision of paragraph (1).
(4) A Non-Registrant of Birth Date may make the notification set forth in the
preceding paragraph via his/her Affiliated Insurance Company (referring to the
Affiliated Insurance Company prescribed in Article 2, paragraph (20) of the
Current Act; the same shall apply hereinafter) acting as his/her agent.
(5) The Prime Minister shall, when he/she received the notification set forth in paragraph (3), register the birth date pertaining to the notification on the
registry of Life Insurance Solicitors or the registry of Non-Life Insurance
Agents, and notify thereof to the Affiliated Insurance Company.
(6) Any person that has made a false notification regarding the notification set forth in paragraph (3) shall be punished by a petty fine of not more than five hundred thousand yen.
(Transitional Measures Accompanying Modification of Matters to be Notified for Officer or Employee of Non-Life Insurance Agency and Insurance Broker)
Article 6 (1) With regard to the modification of any matters regarding a
notification made for a person who has been reported as an officer or employee
(other than a person whose birth date has been notified to the Prime Minister
by the time the provision revising Article 302 enters into force; hereinafter referred to as "Non-Notifier of Birth Date") by the time when the provision
revising Article 302 enters into force, the provisions then in force shall remain applicable.
(2) A Non-Life Insurance Agent (referring to a Non-Life Insurance Agent as defined in Article 2, paragraph (19) of the Current Act; the same shall apply hereinafter) or an Insurance Broker (referring to an Insurance Broker as defined in Article 2, paragraph (21) of the Current Act; the same shall apply
hereinafter) shall, in notifying any change in the address of a Non-Notifier of
Birth Date (excluding a person for whom the notification set forth in the
following paragraph has been made) to which the provisions then in force shall remain applicable pursuant to the provision of the preceding paragraph, notify to the Prime Minister of his/her birth date in lieu of the address. In this case,
the provisions of the Current Act shall apply to the modification of any matters related to such notification made subsequent to the notification, regarding the
person for whom the notification was made, notwithstanding the provision of the preceding paragraph.
(3) A Non-Life Insurance Agent or an Insurance Broker may notify to the Prime
Minister the birth date of a Non-Notifier of Birth Date for whom any change in address to which the provisions then in force shall remain applicable has not
been notified. In this case, the provisions of the Current Act shall apply to the
modification of any matters related to such notification made subsequent to the notification, regarding the person for whom the notification was made,
notwithstanding the provision of paragraph (1).
(4) A Non-Life Insurance Agent may make the notification set forth in the
preceding paragraph via its Affiliated Insurance Company acting as its agent. (5) Any person that has made a false notification regarding the notification set
forth in paragraph (3) shall be punished by a petty fine of not more than five hundred thousand yen.
(Delegation of Authorities)
Article 7 (1) The Prime Minister shall delegate his/her authority under Article 5, paragraph (3) of the Supplementary Provisions and paragraph (3) of the
preceding Article to the Commissioner of the Financial Services Agency.
(2) The Commissioner of the Financial Services Agency may, pursuant to the provisions of a Cabinet Order, delegate part of the authority that has been delegated pursuant to the provisions of the preceding paragraph to the
Director-Generals of Local Finance Bureaus or Local Finance Branch Offices.
(Transitional Measures Concerning Penal Provisions)
Article 8 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act (or, for the provisions prescribed in the proviso to Article 1 of the Supplementary Provisions, such provisions;
hereinafter the same shall apply in this Article) and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain applicable pursuant to the present Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 9 In addition to what is provided for in the present Supplementary
Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 11 Within three years from the enforcement of this Act, the Government shall review the system for the protection of Policyholders, etc. revised by this Act, taking into consideration the status of implementation of the system, etc. pertaining to special measures, etc. for the protection of Policyholders, etc. and the condition of soundness in management of Insurance Companies, among
other factors, and when it finds it necessary, take necessary measures to
maintain the credibility of the insurance industry, based on its findings.
Supplementary Provisions [Act No. 54 of May 30, 2003] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2004.
(Transitional Measures for Application of Penal Provisions)
Article 38 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 39 In addition to what is provided for in this Act, necessary transitional measures to accompany the enforcement of this Act shall be specified by a
Cabinet Order.
(Review)
Article 40 Where five years have elapsed from the enforcement of this Act, the
Government shall review the financial systems revised by this Act, taking into consideration the status of implementation of the provisions revised by this Act and changing socioeconomic conditions, among other factors, and when it finds
it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 129 of July 25, 2003] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding one month from the day of promulgation.
(Delegation of Transitional Measures to Cabinet Order)
Article 2 Necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
Supplementary Provisions [Act No. 132 of July 30, 2003] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding three months from the day of
promulgation; provided, however, that where the Effective Date of the Act for
Partial Revision of the Insurance Business Act (Act No. 39 of 2003) comes after the Effective Date of this Act, the provision revising Article 52-3, paragraphs (2) and (3) and Article 65 of the Insurance Business Act (Act No. 105 of 1995)
in Article 5 of the Supplementary Provisions shall come into effect as from the
Effective Date of the Act for Partial Revision of the Insurance Business Act.
Supplementary Provisions [Act No. 134 of August 1, 2003] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding one year from the day of promulgation.
(Transitional Measures Accompanying Partial Revision to Insurance Business
Act)
Article 35 With regard to a statutory lien pertaining to any claims emerging from that employment relationship set forth in Article 295, paragraph (1) of the Former Commercial Code as applied mutatis mutandis pursuant to Article
59, paragraph (1) of the Insurance Business Act prior to the revision by the
provision of the preceding Article which started prior to the Effective Date, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 76 of June 2, 2004] [Extract]
(Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of the
Bankruptcy Act (Act No. 75 of 2004; referred to as "Current Bankruptcy Act" in paragraph (8) of the following Article, and in Article 3, paragraph (8), Article 5, paragraph (8), (16) and (21), Article 8, paragraph (3) and Article 13 of the
Supplementary Provisions).
(Delegation to Cabinet Order)
Article 14 In addition to what is provided for in Article 2 to the preceding Article inclusive of the Supplementary Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
Supplementary Provisions [Act No. 87 of June 9, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding one year from the day of promulgation.
(Transitional Measures for Repeal of Public Notice, etc.)
Article 2 (1) The provisions then in force shall remain applicable to public notice in the case of any lawsuit filed under Article 104, paragraph (1), Article 136,
paragraph (1), Article 140, Article 141, Article 247, paragraph (1), Article 252, Article 280-15, paragraph (1), Article 363, paragraph (1), Article 372,
paragraph (1), Article 374-12, paragraph (1), Article 374-28, paragraph (1),
Article 380, paragraph (1), Article 415, paragraph (1) or Article 428, paragraph
(1) of the Commercial Code prior to the revision by the provision of Article 1 (hereinafter referred to as "Former Commercial Code" in this Article)
(including the cases where those provisions are applied mutatis mutandis
pursuant to the Former Commercial Code or any other Act), any lawsuit filed under Article 73-14, paragraph (1) of the Agricultural Cooperative Association Act prior to the revision by the provision of Article 6, any lawsuit filed under
Article 101-15, paragraph (1) of the Securities and Exchange Act prior to the revision by the provision of Article 7, any lawsuit filed under Article 94,
paragraph (2) of the Act on Securities Investment Trust and Securities
Investment Corporations prior to the revision by the provision of Article 13
(referred to as "Former Investment Trust Act" in the following paragraph), any
lawsuit filed under Article 100-16, paragraph (1) of the Act on the Organization of Small and Medium-Sized Enterprise Association prior to the revision by the
provision of Article 15, any lawsuit filed under Article 34-18, paragraph (1) of the Financial Futures Trading Act prior to the revision by the provision of
Article 18, any lawsuit filed under Article 84, paragraph (1) of the Insurance Business Act prior to the revision by the provision of Article 19, or any lawsuit filed under Article 22, paragraph (1), Article 38, paragraph (2) or (3), Article 79, paragraph (1), Article 95, paragraph (1) or Article 125, paragraph (1) of the
Intermediate Companies Act prior to the revision by the provision of Article 23,
prior to the enforcement of this Act.
(2) The provisions then in force shall remain applicable to public notice and
notification in the case of any payment made under Article 309, paragraph (1)
of the Former Commercial Code (including the cases where it is applied
mutatis mutandis pursuant to the Former Commercial Code or any other Act), any resolution adopted under Article 64, paragraph (1) or Article 67, paragraph (1) of the Limited Liability Companies Act prior to the revision by the provision of Article 3, any security interest exercised by an Entrusted Company pursuant to the provision of Article 82, paragraph (1) of the Secured Bond Trust Act
prior to the revision by the provision of Article 5, any payment made under
Article 139-5, paragraph (1) of the Former Investment Trust Act, any payment made under Article 111, paragraph (1) of the Act on the Liquidation of Assets
prior to the revision by the provision of Article 20, any resolution adopted
under Article 10-17, paragraph (1) or (7) of the Act for the Promotion of the
Creation of New Businesses prior to the revision by the provision of Article 21, or any payment made under Article 111, paragraph (1) of the Act on the
Liquidation of Specified Assets by Special Purpose Companies prior to the
revision by the provision of Article 1 of the Act for Partial Revision of the Act
on the Liquidation of Specified Assets by Special Purpose Companies, etc. prior to the revision by the provision of Article 24, which shall remain in force
pursuant to the provision of Article 2, paragraph (1) of the Supplementary
Provisions to that Act, prior to the enforcement of this Act.
(Transitional Measures for Application of Penal Provisions)
Article 3 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall be applicable under the preceding Article, the provisions then in force shall remain
applicable.
Supplementary Provisions [Act No. 88 of June 9, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding five years from the day of
promulgation (hereinafter referred to as "Effective Date"); provided, however, that the provisions of Article 34, paragraphs (7) to (16) inclusive of the
Supplementary Provisions shall come into effect as from the Effective Date of the Companies Act (Act No. 86 of 2005).
(Transitional Measures Accompanying Partial Revision to Insurance Business
Act)
Article 41 (1) Where the period (hereinafter referred to as "Closure Period" in
this Article) prescribed in Article 11, paragraph (1) of the Insurance Business
Act prior to the revision by the provision of Article 6 (hereinafter referred to as "Former Insurance Business Act" in this Article) for a Stock Company carrying on the Insurance Business (referring to a Stock Company carrying on the
Insurance Business as defined in Article 9, paragraph (1) of the Former
Insurance Business Act; hereinafter referred to as "Company" in this Article)
starts to elapse prior to the Partial Enforcement Date and expires subsequent
to the Partial Enforcement Date, the Company set forth in that paragraph may choose not to make entries in the shareholders list or change any data recorded thereon even after the Partial Enforcement Date until the expiration date of
the Closure Period.
(2) With regard to a Company (including a Company that obtained certification for its articles of incorporation prior to the Partial Enforcement Date but is
established subsequent to the Partial Enforcement Date (hereinafter referred to as "Company in the Course of Incorporation" in this paragraph)) whose
articles of incorporation include a provision pertaining to the Closure Period as at the Partial Enforcement Date but do not include any provision pertaining to the certain date set forth in Article 11, paragraph (2) of the Former Insurance
Business Act, a resolution for an amendment in the articles of incorporation
shall be deemed to be adopted as at the Partial Enforcement Date (or, for a
Company in the Course of Incorporation, the date of its establishment) to
designate the first day of the Closure Period as the certain date set forth in that paragraph, in order to specify the persons to exercise rights as
shareholders or pledgees. In this case, a resolution of the board of directors
shall determine the content of such rights.
(Transitional Measures for Application of Penal Provisions)
Article 135 With regards to the application of penal provisions to acts committed prior to the enforcement of this Act and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable or remain in force pursuant to the present Supplementary
Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 136 In addition to what is provided for in the present Supplementary Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 137 Where five years have elapsed from the enforcement of this Act, the
Government shall, taking into consideration the status of implementation of the provisions revised by this Act and changing socioeconomic conditions,
among other factors, review the settlement system pertaining to the
transactions of Shares, etc. revised by this Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 97 of June 9, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2005 (hereinafter
referred to as "Effective Date"); provided, however, that the provisions listed in the following items shall come into effect as from the date specified in the
relevant item:
(i) In Article 1, the provision revising Article 33-3, Article 64-2, paragraphs (1)
and (2) and Article 64-7, paragraph (5) of the Securities Exchange Act, the provision revising Article 65-2, paragraph (5) of that Act (limited to the
segment replacing the term "and (vii)" with ", (vii) and (xii)") and the
provision revising Article 144, Article 163, paragraph (2) and Article 207, paragraph (1), item (i) and paragraph (2) of that Act; in Article 2, the
provision revising Article 36, paragraph (2) of the Act on Foreign Securities Brokers (hereinafter referred to as "Foreign Securities Brokers Act" in this Article); in Article 4, the provision revising Article 10-5 of the Act on
Securities Investment Trust and Securities Investment Corporations
(hereinafter referred to as "Investment Trust Act" in this Article); in Article
6, the provision revising Article 29-3 of the Act on Regulation, etc. on
Investment Advisory Business Pertaining to Securities (hereinafter referred to as "Investment Advisory Business Act" in this Article); the provisions of
Articles 11 and 12; in Article 13, the provision adding terms to Article 9-8,
paragraph (6), item (i) of the Act on the Cooperative Associations of Small and Medium Enterprises, etc.; and the provisions of Article 14 to 19
inclusive: the day of promulgation of this Act;
(Transitional Measures for Application of Penal Provisions)
Article 22 With regard to the application of penal provisions to acts committed
prior to the enforcement of this Act (or, for the provisions listed in the items of
Article 1 of the Supplementary Provisions, such provisions; hereinafter the same shall apply in this Article) and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the provision of Article 3 of the Supplementary
Provisions, the provisions then in force shall remain applicable
(Delegation of Other Transitional Measures to Cabinet Order)
Article 23 In addition to what is provided for in the present Supplementary
Provisions, necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 24 Where five years have elapsed from the enforcement of this Act, the
Government shall, taking into consideration the status of implementation of the provisions revised by this Act and changing socioeconomic conditions,
among other factors, review the financial systems revised by this Act, and
when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 105 of June 11, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2006; provided, however, that the provisions of Article 17, paragraph (3) (limited to the segment
applying mutatis mutandis the provision of Article 14 of the Act on General
Rules), Article 30, and the following Article to Article 5 inclusive of the
Supplementary Provisions, Article 7 of the Supplementary Provisions and
Article 39 of the Supplementary Provisions shall come into effect as from the day of promulgation.
(Delegation to Cabinet Order)
Article 39 In addition to what is provided for in Article 2 to 13 inclusive of the
Supplementary Provisions, Article 15 of the Supplementary Provisions, Article
16 of the Supplementary Provisions and Article 19 of the Supplementary
Provisions, necessary transitional measures accompanying the incorporation of the Government Pension Investment Fund and other necessary transitional measures for the enforcement of this Act shall be specified by a Cabinet Order.
Supplementary Provisions [Act No. 124 of June 18, 2004] [Extract]
(Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of the
Current Act on the Registration of Immovables.
(Transitional Measures)
Article 2 In the case that the Effective Date of this Act falls after the Effective Date of Act on the Protection of Personal Information Held by Administrative Organs, then in Article 52, the provisions revising Article 114-3 and Article
117 to 119 inclusive of the Commercial Registration Act, the term "Article 114-
3" shall be deemed to be replaced with "Article 114-4."
Supplementary Provisions [Act No. 147 of December 1, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of promulgation.
Supplementary Provisions [Act No. 154 of December 3, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding six months from the day of promulgation (hereinafter referred to as "Effective Date").
(Effect of Dispositions, etc.)
Article 121 Those dispositions, procedures or other acts carried out pursuant to the provisions of the respective Acts prior to the enforcement of this Act
(including any orders pursuant thereto; hereinafter the same shall apply in this Article), which are covered by the corresponding provisions of the
respective Acts as revised, shall be deemed to have been carried out pursuant to such corresponding provisions of the respective Acts as revised, unless
provided otherwise in the present Supplementary Provisions.
(Transitional Measures Concerning Penal Provisions)
Article 122 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act and to acts committed subsequent to the enforcement of this Act where the provisions then in force shall remain
applicable pursuant to the present Supplementary Provisions, the provisions
then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 123 In addition to what is provided for in the present Supplementary
Provisions, necessary transitional measures accompanying the enforcement of this Act shall be specified by a Cabinet Order.
(Review)
Article 124 The Government shall, within three years from the enforcement of this Act, review the status of enforcement of this Act, and when it finds it necessary, take required measures based on its findings.
Supplementary Provisions [Act No. 159 of December 8, 2004] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 July 2005.
Supplementary Provisions [Act No. 38 of May 2, 2005] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date to be specified by a
Cabinet Order within a period not exceeding one year from the day of
promulgation (hereinafter referred to as "Effective Date"); provided, however, that the provisions listed in the following items shall come into effect as from the date specified in the relevant item:
(i) In Article 1, The provision revising Article 59, paragraph (1) of the
Insurance Business Act (limited to the segment replacing the term "the term
"Article 130, paragraph (3) of that Act" shall be deemed to be replaced with
"Article 48, paragraph (2) of the Insurance Business Act" and the term
"Ordinance of the Ministry of Justice" shall be deemed to be replaced with
"Cabinet Office Ordinance"" with "the term "by an Ordinance of the Ministry of Justice as electronic public notice (referring to the electronic public notice
set forth in Article 66, paragraph (6) of the Insurance Business Act; the same shall apply hereinafter)" shall be deemed to be replaced with
"electromagnetic means (referring to the electromagnetic means set forth in
Article 48, paragraph (2) of the Insurance Business Act) by a Cabinet Office
Ordinance""), the provision revising Article 258, paragraph (2) of that Act,
the provision revising Article 270-4, paragraph (9) of that Act (excluding the segment adding the term "(including the cases where it is applied mutatis mutandis pursuant to Article 272-29)" after the term "Article 135, paragraph (1)" and adding the term "and Article 272-29" after the term "(Article 210,
paragraph (1)" in Article 155, item (i)) and the provision revising Article 271-
4, paragraph (1) of that Act, and the provision revising Article 1-2-13 of the
Supplementary Provisions to that Act (limited to the segment adding a
paragraph to that Article): the date to be specified by a Cabinet Order within a period not exceeding three months from the day of promulgation; and
(ii) In Article 1, the provision revising Article 118 of the Insurance Business Act, the provision revising Article 199 of that Act (limited to the segment replacing the term "establish" with "shall establish"), the provision revising Article 245 of that Act, the provision revising Article 247, paragraph (1) of
that Act, the provision revising Article 250 of that Act (limited to the
segment replacing the term "Insurance Company" in paragraph (1) of that
Article with "Insurance Company, etc. or Foreign Insurance Company, etc.,"
the segment adding the term "and Article 272-29" after the term "Article 210, paragraph (1)" in that paragraph, the segment replacing the term "Insurance Company" in paragraph (2) of that Article with "Insurance Company, etc. or Foreign Insurance Company, etc.," the segment replacing the term "the
Insurance Company set forth in paragraph (1), when it is not a Foreign
Insurance Company, etc." in paragraph (4) of that Article with "in the case referred to in paragraph (1), in the Insurance Company, etc.," the segment adding the term "(including the cases where it is applied mutatis mutandis pursuant to Article 272-29)" after the term "Article 136, paragraph (1)" in
that paragraph, the segment replacing the term "when it is a Foreign
Insurance Company, etc." in that paragraph with "in the Insurance Company, etc." and the segment replacing the term "Insurance Company" in paragraph (5) of that Article with "Insurance Company, etc. or Foreign Insurance
Company, etc."), the provision revising Article 254 of that Act (limited to the
segment adding the term "and businesses related to the termination of
specified covered contracts" after the term "the covered insurance claims
payment business" in paragraph (4) of that Article), the provision revising
Article 255-2 of that Act (limited to the segment adding the term "and
businesses related to the termination of specified covered contracts" after the term "the covered insurance claims payment business" in paragraph (3) of
that Article), the provision revising Article 267 of that Act, the provision revising Article 270-3 of that Act, the provision revising Article 270-5,
paragraph (2), item (i) of that Act and the provision revising Article 270-6-8,
paragraph (2) of that Act, and the provision revising Article 1-2-14 of the
Supplementary Provisions to that Act and the provision changing the
number of that Article into Article 1-2-15 of the Supplementary Provisions to that Act and adding an Article after Article 1-2-13 of the Supplementary
Provisions to that Act; and in Article 3, the provision revising Article 440 of the Act on Special Treatment of Corporate Reorganization Proceedings and
Other Insolvency Proceedings of Financial Institution, etc. and the provision revising Article 445 of that Act: 1 April 2006.
(Transitional Measures)
Article 2 (1) A person carrying on the specified insurance business (referring to the Insurance Business as defined in Article 2, paragraph (1) of the Insurance Business Act revised by the provision of Article 1 (hereinafter referred to as
"Current Insurance Business Act") that does not fall under the category of
Insurance Business as defined in Article 2, paragraph (1) of the Insurance Business Act prior to the revision by the provision of Article 1 (hereinafter referred to as "Former Insurance Business Act"); the same shall apply
hereinafter) at the time when this Act enters into force may, notwithstanding
the provision of Article 3, paragraph (1) of the Current Insurance Business Act, carry on the specified insurance business until the date specified in one of the following items, as the case may be:
(i) In the case that the abolition of a specified insurance business is ordered
pursuant to the provisions of Article 272-26, paragraph (1) or of Article 272-
27 of the Current Insurance Business Act as applied with relevant changes
in interpretation pursuant to the provision of Article 4, paragraph (1) of the
Supplementary Provisions: On the date of the ordering of said abolition
(ii) In the case that an application is made for a license as set forth in Article 3, paragraph (1) of the Current Insurance Business Act or an application for
registration is made for a license as set forth in Article 272, paragraph (1) of
the Current Insurance Business Act within two years of the Effective Date
(except in cases that fall under the preceding item): On the date of the
disposition of that license or of the refusal of the application for registration
(iii) In the case that a person who has committed that it/he/she will receive the transfer of insurance contracts from a person carrying on that Specified
Insurance Business or succeed insurance contracts from a person carrying on
that Specified Insurance Business (limited to persons who have applied for
approval of the transfer or succession of said insurance contracts pursuant to the provisions of Article 4, paragraphs (7), (8), (11) and (12) of the
Supplementary Provisions within two years of the Effective Date) makes an application for a license set forth in Article 3, paragraph (1) of the Current
Insurance Business Act or registration set forth in Article 272, paragraph (1)
of the Current Insurance Business Act within two years of the Effective Date (except in cases that fall under the preceding two items): On the date of the disposition of that license or of the refusal of the application for registration
(iv) In cases that are not covered by any of the preceding three items: On the
date two years after the Effective Date
(2) Among persons who are actually carrying on Specified Insurance Business at the time when this Act enters into force, concerning persons who only
undertake the administration of business and property pertaining to insurance
contracts which were underwritten before the Effective Date (except for
persons who have received the license set forth in Article 3, paragraph (1) of
the of the Current Insurance Business Act or who have received the disposition of refusal of registration as set forth in Article 272, paragraph (1) of the
Current Insurance Business Act), notwithstanding the provisions of the
preceding paragraph, the provisions then in force shall remain applicable. (3) Persons who are actually carrying on Specified Insurance Business at the
time when this Act enters into force (except for persons who are provided for in the preceding paragraph, persons who are listed in the items of Article 5,
paragraph (1) of the Supplementary Provisions, and persons who have received the disposition of a license as set forth in Article 3, paragraph (1) of the of the
Current Insurance Business Act or who have received the disposition of refusal
of registration as set forth in Article 272, paragraph (1) of the Current
Insurance Business Act; hereinafter referred to as "Specified Insurers") shall
transfer the insurance contract of which the person manages the business and property pursuant to the contract with an Insurance Company (including a
Foreign Insurance Company, etc.; hereinafter the same shall apply in this
Article) or Small Amount and Short Term Insurance Provider, or entrust the management of the business and property pertaining to such insurance
contract pursuant to the contract with an Insurance Company or Small
Amount and Short Term Insurance Provider corresponding with cases listed in the items of paragraph (1), after the date specified by the items and until one
year from the date specified by the items.
(4) A Specified Insurer may conduct business and property management
pertaining to insurance contracts underwritten before the date specified in the items until one year from the date pursuant to the provisions of the preceding paragraph (when the Prime Minister recognizes that there are compelling reasons making it impossible to effect the transfer of the insurance contracts
and the entrusting of business and property management pertaining to
insurance contracts as set forth in the same paragraph, until a date designated by the Prime Minister) notwithstanding the provisions of Article 3, paragraph (1) of the Current Insurance Business Law, corresponding to cases listed in the items of paragraph (1).
(Report by Specified Insurer)
Article 3 (1) A Specified Insurer who continuously carries on the specified
insurance business pursuant to paragraph (1) or (4) of the preceding Article
(including a person who intends to be a Specified Insurer pursuant to the
paragraph (2) of that Article) shall submit a written report that contains the matters listed in the following to the Prime Minister by the day when six months have passed since the Effective Date (or, if the underwriting of the
insurance is performed for the first time after the Effective Date, the date of such underwriting; hereinafter the same shall apply in this Article.): provided, however, that this shall not apply to a person who applies for the license set
forth in Article 3, paragraph (1) of the New Insurance Business Act or for the registration set forth in Article 272, paragraph (1) of the New Insurance
Business Act by the day on which such six months have passed.
(i) Name or trade name
(ii) When the person is a juridical person, the amount of capital or contribution or total amount of funds
(iii) When the person is a juridical person (including an association or
foundation that is not a juridical person and has provisions on representative persons or administrators), the name of the officer (including a
representative persons or administrator of an association or foundation that is not a juridical person)
(iv) Location of head office and other offices
(2) The following documents must be attached to the written report in the preceding paragraph.
(i) Insurance clause (including those relevant to this)
(ii) Documents that describes matters regarding the Policyholders, matters regarding a person acting as an agent or intermediary for the conclusion of an insurance contract on behalf of a Specified Insurer, and other items
specified by a Cabinet Office Ordinances as the content and means of
business.
(iii) Inventory of property, balance sheets, income and expenditure account
statement, profit and loss statements and other documents that disclose the situation of the property and business
(iv) Other documents specified by a Cabinet Office Ordinance
(3) When a Specified Insurer who continuously carries on a specified insurance business pursuant to paragraph (1) or (4) of the preceding Article and falls
under any of the following items, the person defined in such items shall notify
the Prime Minister thereof within thirty days from the date.
(i) in the event of abolishment of a specified insurance business: its Specified
Insurer
(ii) in the event of extinction due to a merger: the person who was the officer representing the Specified Insurer
(iii) in the event of dissolution due to a decision for the commencement of
bankruptcy proceedings: the bankruptcy trustee
(iv) in the event of dissolution by reason other than that of a merger and commencement of bankruptcy proceedings: the liquidator
(v) in the event of a transfer of all insurance contracts, or the succession or assignment of all business: the Specified Insurer
(Application of Provisions of the New Insurance Business Act to Specified
Insurer)
Article 4 (1) When the Specified Insurer continuously carries on a specified
insurance business pursuant to the provision of Article 2, paragraph (1) or (4) of the Supplementary Provisions, such Specified Insurer shall be deemed as a Small Amount and Short Term Insurance Provider, and the provisions of
Article 100-2 to 100-4 of the New Insurance Business Act, as applied mutatis mutandis pursuant to Article 272-13, paragraph (2), Article 272-16, paragraph (1) and the provisions of Article 272-16, Article 272-22 to 272-24 of the New
Insurance Business Act and the provisions of Article 272-25, paragraph (1), Article 272-26 and 272-27 of the New Insurance Business Act (including the penal provisions pertaining thereto) shall be applied. In this case, the term
"measure for securement" in Article 100-2 of the New Insurance Business Act as applied mutatis mutandis pursuant to Article 272-13, paragraph (2) of the New Insurance Business Act shall be deemed to be replaced with "measure for securement (limited to those specified by a Cabinet Office Ordinance)"; the
term "the Specified Insurer shall not carry out any of the following
transactions or acts: provided, however, this shall not apply where the Prime
Minister has approved such transaction or act for any of the compelling reasons specified by a Cabinet Office Ordinance" in Article 100-3 of the New
Insurance Business Act as applied mutatis mutandis pursuant to Article 272-
13, paragraph (2) of the New Insurance Business Act shall be deemed to be replaced with "the Specified Insurer shall not carry out any of the following
transactions or acts (limited to those specified by a Cabinet Office Ordinance)," the term "matters defined in the documents included in Article 272-2,
paragraph (2), item (iv)" in Article 272-24, paragraph (1) of the New Insurance
Business Act shall be deemed to be replaced with "matters defined as part of the method of calculating insurance premiums or the method of calculating
policy reserve," the term "matters defined in the documents included in that
item" shall be deemed to be replaced with "such matters," the term "matters defined in the documents included in Article 272-2, paragraph (2), items (ii) to (iv)" in Article 272, paragraph (2) shall be deemed to be replaced with
"insurance clause (including those relevant to this) or matters defined as the
method of calculating insurance premiums or the method of calculating policy reserve," the term "the following items" in Article 272-26, paragraph (1) of the New Insurance Business Act shall be deemed to be replaced with "items (i) and (iii) to (v)," the term "rescind the registration according to Article 272,
paragraph (1)"shall be deemed to be replaced with "order for abolishing of the
business," the term "from Article 272-4, paragraph (1), items (i) to (iv), (vii)" in item (i) of that paragraph shall be deemed to be replaced with "Article 272-4,
paragraph (1), item (vii)," the term "in the event that the Specified Insurer is no longer a small business, other laws and regulations" in item (iii) of that
paragraph shall be deemed to be replaced with "laws and regulations," the
term "documents included in each of the items in Article 272-2, paragraph (2)" in item (iv) of that paragraph shall be deemed to be replaced with "insurance clause (including those relevant to this)," the term "the director, executive
officer, and accounting adviser or company auditor" in paragraph (2) of that
Article shall be deemed to be replaced with "the officer (including a
representative persons or administrator of an association or foundation that is not a juridical person)," the term "laws and regulations in the event that it
falls under any of the provisions in Article 272-4, paragraph (1), item (x), (a) to (f)" in Article 272, paragraph (2) shall be deemed to be replaced with "laws and regulations," the term "canceling registration set forth in Article 272,
paragraph (1)" in Article 272-27 of the New Insurance Business Act shall be deemed to be replaced with order for abolishing of the business"; and the term "the incorporator, director at the time of incorporation, the executive officer at
the time of incorporation, the company auditor at the time of incorporation, the director, executive officer, accounting advisor or any member who is supposed
to carry out such duties and the company auditor" in Article 333, paragraph (1) of the New Insurance Business Act shall be deemed to be replaced with "the incorporator, officer (including a representative person or administrator of an association or foundation that is not a juridical person)."
(2) For the purpose of applying the provisions of Article 272-4, paragraph (1), Article 272-33, paragraph (1), and Article 272-37, paragraph (1) of the New
Insurance Business Act in the event that the Specified Insurer as a juridical person (including an association or foundation that is not a juridical person and has provisions on representative persons or administrators) is ordered to abolish the specified insurance business pursuant to the provisions of Article
272-26, paragraph (1) or Article 272-27 of the New Insurance Business Act
applied with relevant changes in interpretation pursuant to the provision of
the preceding paragraph, the Specified Insurer being ordered to execute such
abolishment shall be deemed as a person having cancellation of registration set forth in Article 272, paragraph (1) of the New Insurance Business Act pursuant to the provision of Article 272-26, paragraph (1) or Article 272-27 of the New
Insurance Business Act, and the date on which such abolishment was ordered shall be deemed as the date of cancellation of registration set forth in Article
272, paragraph (1) of the New Insurance Business Act pursuant to the provision of Article 272-26, paragraph (1) or Article 272-27 of the New Insurance Business Act.
(3) For the purpose of applying the provisions of Article 272-4, paragraph (1),
Article 272-33, paragraph (1), and Article 272-37, paragraph (1) of the New
Insurance Business Act in the event that the Specified Insurer as an individual is ordered to abolish the specified insurance business pursuant to the provision of Article 272-26, paragraph (1) or Article 272-27 of the New Insurance
Business Act applied with relevant changes in interpretation pursuant to the provision of paragraph (1), the individual shall be deemed as a person who is subject to Article 272-4, paragraph (1), item (x), (c) of the New Insurance
Business Act until five years have passed since the day on which the individual
was ordered to execute such abolishment.
(4) The matters to be described in the business reports set forth in Article 272-16, paragraph (1) of the New Insurance Business Act applied in paragraph (1),
their submission dates and other necessary matters regarding those written reports shall be specified by a Cabinet Office Ordinance.
(5) The provision of Article 272-16, paragraph (1) of the New Insurance Business Act applied in paragraph (1) shall be applied from the business year on which ends after the day on which six months have elapsed from the Effective Date.
(6) The Prime Minister shall, pursuant to the provisions of a Cabinet Office
Ordinance, make the business report that is recognized as a necessary part for protection of Policyholders, etc., available for public inspection out of the business report of Article 272-16, paragraph (1) of the New Insurance Business Act applied in paragraph (1) except the matters that may be a breach of
confidence and may have a risk of causing unjust disadvantage upon execution
of the business of the Specified Insurer as recognized as a Small Amount and
Short Term Insurance Provider pursuant to Article 272-16, paragraph (1) of the New Insurance Business Act applied in paragraph (1).
(7) When the Specified Insurer who continuously carries on the specified
insurance business executes transfer of the insurance contract pursuant to the provision of Article 2, paragraph (1) or (4) of the Supplementary Provisions,
such Specified Insurer shall be deemed as a Small Amount and Short Term
Insurance Provider, the provisions of Part II, Chapter VII, Section 1 of the New
Insurance Business Act (including the penal provisions pertaining thereto)
shall be applied mutatis mutandis pursuant to Article 272-29 of the New Insurance Business Act. In this case, the term "Transferor Company and Transferee Company" in Article 136, paragraphs (1) and (3) of the New
Insurance Business Act as applied mutatis mutandis in Article 272-29 shall be
deemed to be replaced with "Transferee Company," the terms "The directors (or in a company with Committees, executive officers)" and "two weeks before of
the date of Shareholders Meeting, etc. set forth in paragraph (1) of the preceding Article" in Article 136-2, paragraph (1) of the New Insurance Business Act as applied mutatis mutandis in Article 272-29 of the New
Insurance Business Act shall be deemed to be replaced with "the officers
(including representative persons or administrators of an association or
foundation that is not a juridical person)" and "the date of preparation of the Transfer Agreement concluded under Article 135, paragraph (1) (hereinafter referred to as "Transfer Agreement" in this Section)," respectively; the term
"the Transfer Agreement concluded under Article 135, paragraph (1) and other" shall be deemed to be replaced with "Transfer Agreement and other," the term
"A shareholder or Policyholder of the Transferor Company" in paragraph (2) of
the same Article shall be deemed to be replaced with "Affected Policyholders," the term "the time of the adoption of the resolution under Article 136,
paragraph (1)" in Article 138 of the New Insurance Business Act as applied
mutatis mutandis pursuant to Article 272-29 of the New Insurance Business Act shall be deemed to be replaced with "the time of the creation of Transfer Agreement," the term "the incorporator, the director at the incorporation, the
executive officer at the incorporation, the company auditor at the incorporation,
the director, the executive officer, the accounting advisor or the member who is supposed to carry out such duties and the company auditor" in Article 333,
paragraph (1) in the New Insurance Business Act shall be deemed to be
replaced with "the officer"; any technical change in interpretation required shall be specified by a Cabinet Order.
(8) When the Specified Insurer continuously carries on the specified insurance business pursuant to the provision of Article 2, paragraph (1) or (4) of the
Supplementary Provisions, such Specified Insurer shall be deemed as a Small
Amount and Short Term Insurance Provider, and the provisions of Article 142 of the New Insurance Business Act as applied mutatis mutandis pursuant to
Article 272-30, paragraph (1) of the New Insurance Business Act shall be
applied.
(9) When the Specified Insurer who continuously carries on the specified
insurance business pursuant to the provision of Article 2, paragraph (1) or (4)
of the Supplementary Provisions entrusts the business and property
management, such Specified Insurer shall be deemed as a Small Amount and
Short Term Insurance Provider, and the provisions of Articles 144, 145, Article
146, paragraph (1) and Articles 147 to 149 of the New Insurance Business Act as applied mutatis mutandis in Article 272-30, paragraph (2) of the New
Insurance Business Act, and the provisions of Article 150, paragraph (1) of the
New Insurance Business Act (including the penal provisions pertaining
thereto) shall be applied. In this case, the term "the Insurance Company
entrusting the administration activity (hereinafter referred to as "Entrusting
Company" in this Section) and the Entrusted Company" in Article 144,
paragraph (2) of the New Insurance Business Act as applied mutatis mutandis pursuant to Article 272-30, paragraph (2) of the New Insurance Business Act
shall be deemed to be replaced with "Entrusted Company," the term "publish the gist of the Agreement set forth in Article 146, paragraph (1) (hereinafter
referred to as "Administration Entrustment Agreement" in this Section) and register the entrustment of the administration activity, and the Entrusted Company's trade name, name and its head office or principal office, or its
principal branch store in Japan (referring to the principal branch store in
Japan set forth in Article 187, paragraph (1), item (iv))" in Article 146,
paragraph (1) of the New Insurance Business Act as applied mutatis mutandis pursuant to Article 272-30, paragraph (2) of the New Insurance Business Act shall be deemed to be replaced with "publish the gist of the Agreement set
forth in Article 146, paragraph (1) (hereinafter referred to as "Administration
Entrustment Agreement" in this Section)"; and the term "the Entrusting Company and the Entrusted Company" in Article 149, paragraph (1) of the New Insurance Business Act as applied mutatis mutandis pursuant to Article
272-30, paragraph (2) of the New Insurance Business Act shall be deemed to be
replaced with "Entrusted Company."
(10) The provisions of the Part II, Chapter II, Section 1 and Chapter VIII of the New Insurance Business Act shall not be applied to the Specified Insurer who continuously carries on the specified insurance business pursuant to the
provisions of Article 2, paragraph (1) or (4) of the Supplementary Provisions.
(11) When the Specified Insurer continuously carries on the specified insurance business pursuant to the provision of Article 2, paragraph (1) or (4) of the
Supplementary Provisions, such Specified Insurer shall be deemed as a Small
Amount and Short Term Insurance Provider, and the provisions of Article 167, paragraphs (1) and (2) of the New Insurance Business Act shall be applied.
(12) When the Specified Insurer continuously carries on the specified insurance
business pursuant to the provision of Article 2, paragraph (1) or (4) of the
Supplementary Provisions, such Specified Insurer shall be deemed as a Small
Amount and Short Term Insurance Provider, and the provisions of Article 173-
6, paragraphs (1) and (2) of the New Insurance Business Act shall be applied. (13) The Specified Insurer who continuously carries on the specified insurance
business pursuant to the provision of Article 2, paragraph (1) or (4) of the
Supplementary Provisions shall receive the approval from the Prime Minister when the insurer intends to abolish the specified insurance business.
(14) Any public notice given by the Specified Insurer who continuously carries on
the specified insurance business pursuant to the provision of Article 2, paragraph (1) or (4) of the Supplementary Provisions, pursuant to the
provisions of the New Insurance Business Act applied in paragraph (7) or (9)
shall be published in a daily newspaper that publishes matters on current events.
(15) When the Specified Insurer continuously carries on the specified insurance
business pursuant to the provision of Article 2, paragraph (1) or (4) of the
Supplementary Provisions, such Specified Insurer shall be deemed as an
Insurance Company, etc., or Entrusting Insurance Company, etc., the person
acting as an agent or intermediary for the conclusion of an insurance contract on behalf of such Specified Insurer shall be deemed as an Insurance Solicitor or specified Insurance Solicitor respectively, and the provisions of Article 283,
Article 294, Article 300, paragraph (1) (limited to the segment pertaining to items (i) to (iv), (vi), (vii), and (ix) ), Article 305, Article 306, Article 307,
paragraph (1) and Article 309 (including the penal provisions pertaining
thereto) shall be applied. In this case, the term "any of the following items" in Article 307, paragraph (1) of the New Insurance Business Act shall be deemed to be replaced with "the item (i) or (iii)," and "cancel the registration set forth
in Article 276 or 286" shall be deemed to be replaced with "order abolition of the business."
(16) For the purpose of applying the provisions of Article 272-4, paragraph (1) and Article 279, paragraph (1) of the New Insurance Business Act in the case where the Specified Insurer is ordered to abolish the business pursuant to the provision of Article 307, paragraph (1) of the New Insurance Business Act
applied with relevant changes in interpretation pursuant to the provision of
the preceding paragraph, the person who is ordered such abolishment shall be deemed as a person of whom is canceled the registration set forth in Article
276 of the New Insurance Business Act, and the day of which such abolishment is ordered shall be deemed as the day of cancellation of the registration set
forth in Article 276 of the New Insurance Business Act pursuant to the
provision of Article 307, paragraph (1) of the New Insurance Business Act.
(Transitional Measure regarding Public-interest Corporation, etc.)
Article 5 (1) The juridical person (excluding the following) established pursuant to the provision of Article 34 of the Civil Code (Act No. 89 of 1896) and carries on the specified insurance business at the time when this Act enters into force
can continuously carry on the specified insurance business notwithstanding the provisions of Article 3, paragraph (1) of the New Insurance Business Act for
the time being.
(i) The juridical person who completed the registration (referred to as "Public-
Interest Corporation Transfer Register" in paragraph (5).) set forth in Article
106, paragraph (1) of the Act on the Revision, etc. of Related Acts that
Accompany the Enforcement of the Act on General Incorporated Association and General Incorporated Foundation and the Act on the Authorization, etc. of Public-interest Incorporated Associations and Public-interest Incorporated Foundation (Act No. 50 of 2006. Hereinafter referred to as "Revision Act")
with the authorization set forth in Article 44 of the Revision Act
(ii) The juridical person who completed the registration (referred to as "General
Incorporated Association, etc., Transfer Register" in paragraph (5).) set forth
in Article 106, paragraph (1) of the Revision Act as applied mutatis mutandis pursuant to Article 121, paragraph (1) of the Revision Act with the approval
set forth in Article 45 of the Revision Act
(2) The Japan Chambers of Commerce and Industry, societies of commerce and industry or Central Federations of Societies of Commerce and Industry who
carry on the specified insurance business at the time when this Act enters into
force can continuously carry on the specified insurance business
notwithstanding the provisions of Article 3, paragraph (1) of the New
Insurance Business Act for the time being.
(3) When the specified insurance business is continuously carried on pursuant to the provision of the preceding two paragraphs, the person who carries on the business shall be deemed as an Insurance Company, etc., or Entrusting
Insurance Company, etc, the person acting as an agent or intermediary for the
conclusion of an insurance contract on behalf of such Specified Insurer shall be deemed as an Insurance Solicitor or specified Insurance Solicitor respectively,
and the provisions (including the penal provisions pertaining thereto) of Article
283 and Article 300, paragraph (1) (limited to the segment pertaining to items
(i) to (iii).) shall be applied.
(4) For the purpose of applying the provisions of Article 95 and Article 96 of the Revision Act in the case where the specified insurance business is continuously carried on pursuant to the provision of paragraph (1), the term "the business of a special case juridical person under the Civil Code" in Article 95 of the
Revision Act shall be deemed to be replaced with "the business of a special case juridical person under the Civil Code (including the specified insurance
business prescribed in Article 2, paragraph (1) of the Supplementary
Provisions of the Act on Partial Revision of the Insurance Business Act, etc. (Act No. 38 of 2005); the same shall apply in the following paragraph)," the
term "order" in Article 96, paragraph (1) of the Revision Act shall be deemed to be replaced with "order (including the order of which make it comply with the
provision of Article 300, paragraph (1) (limited to the segment pertaining to
items (i) to (iii)) of the Insurance Business Act (Act No. 105 of 1995))," and
"order by" in paragraph (2) of the same Article shall be deemed to be replaced
with "order by (including the order of which make it comply with the provisions of Article 300, paragraph (1) of the New Insurance Business Act (limited to the segment pertaining to items (i) to (iii))."
(5) The juridical person who was established pursuant to the provision of Article
34 of the Civil Code and actually carries on the specified insurance business at the time when this Act enters into force and being listed in the items of
paragraph (1) (excluding the person having the registration set forth in Article
272, paragraph (1) of the New Insurance Business Act; hereinafter referred to as "Transferred Juridical Person" in this Article.) can manage the business and
property pertaining to the insurance contract that the person underwrote before the day of the Public-Interest Corporation Transfer Register or General Incorporated Association etc., Transfer Register (hereinafter, named
generically as "Transfer Register" in this Article) notwithstanding the
provision of Article 3, paragraph (1) of the New Insurance Business Act for a period of one year counting from the day of the Transfer Register (or until the day of which the Prime Minister designates when he/she recognizes that there are compelling reasons not to be able to transfer the following insurance
contract and the entrustment pertaining to the management of the business
and property).
(6) In the case referred to in the preceding paragraph, such Transferred Juridical
Person shall, by the day of which one year have passed described in the same paragraph, transfer the insurance contract of which the person manages the business and property pursuant to the contract with an Insurance Company
(including Foreign Insurance Company, etc; hereinafter the same shall apply in
this Article) or Small Amount and Short Term Insurance Provider, or entrust the management of the business and property pertaining to such insurance contract pursuant to the contract with an Insurance Company or Small
Amount and Short-Term Insurance Provider.
(7) The Transferred Juridical Person who manages the business and property pertaining to the insurance contract underwritten before the day of the
Transfer Register pursuant to the provision of paragraph (5) shall be deemed as a Small Amount and Short Term Insurance Provider, and the provisions of Article 272-22, Article 272-23, Article 272-25, paragraph (1), Article 272-26, and Article 272-27 of the New Insurance Business Act (including the penal
provisions pertaining thereto) shall be applied. In this case, the term "items
listed in following" and the term "cancel registration set forth in Article 272,
paragraph (1)" in Article 272-26, paragraph (1) of the New Insurance Business Act shall be deemed to be replaced with "items (i) and (iii) to (v)" and "order for abolishing of the business" respectively; the term "Article 272-4, paragraph (1), items (i) to (iv), items (vii) and (viii)" in item (i) of the same paragraph shall be deemed to be replaced with "Article 272-4, paragraph (1), item (viii)," the term "in the case where the Specified Insurer is no longer a small business, other
laws and regulations" in item (iii) of the same paragraph shall be "laws and
regulations," the term "documents included in each of the items in Article 272-
2, paragraph (2)" in item (iv) of the same paragraph shall be deemed to be
replaced with "insurance contract (including those relevant thereto)," the term
"the director, executive officer, and accounting adviser or company auditor"
and "laws and regulations in the case where it falls under any of the provisions in Article 272-4, paragraph (1), item (x), (a) to (f) inclusive" in paragraph (2) of
the same Article shall be deemed to be replaced with "the officer" and "laws
and regulations" respectively; the term "cancel registration set forth in Article
272, paragraph (1)" in Article 272-27 of the New Insurance Business Act shall be deemed to be replaced with "order for abolishing of the business," the term
"the incorporator, the director at the incorporation, the executive officer at the incorporation, the company auditor at the incorporation, the director, the
executive officer, the accounting advisor or the member who is supposed to
carry out such duties and the auditor" in Article 333, paragraph (1) in the New
Insurance Business Act shall be "the officer," and other necessary technical change in interpretation shall be specified by a Cabinet Order.
(8) The Transferred Juridical Person who manage the business and property pertaining to the insurance contract underwritten before the day of the
Transfer Register pursuant to the provision of paragraph (5) shall be deemed
as the Specified Insurer who continuously carries on the specified insurance business pursuant to the provisions of Article 2, paragraph (1) or (4) of the
Supplementary Provisions, and the provisions of Article 3 of the
Supplementary Provisions (excluding paragraph (2)), the preceding Article
(limited to paragraphs (7) to (12) and (14)), following Article (limited to
paragraphs (2) and (5).), and Articles 8 and 16 of the Supplementary Provisions shall be applied. In this case, the term "by the day when six months have
passed since the Effective Date (or, if the underwriting of the insurance is performed for the first time after the Effective Date, the date of such
underwriting; hereinafter the same shall apply in this Article.)" in Article 3,
paragraph (1) of the Supplementary Provisions shall be deemed to be replaced with "after the day on which the Transfer Register provided in Article 5,
paragraph (1) of the Supplementary Provisions was registered without delay" and the term ": provided, however, that this shall not apply to a person who applies for the license set forth in Article 3, paragraph (1) of the New
Insurance Business Act or for the registration set forth in Article 272,
paragraph (1) of the New Insurance Business Act by the day on which such six months have passed" in the Article 3, paragraph (1) of the Supplementary
Provisions shall be deemed to be deleted; the term "by the day when two years have passed since the Effective Date" in paragraph (2) of the following Article shall be deemed to be replaced with "it shall be applied pursuant to the
provision of paragraph (8) of the preceding Article by the day when six years
have passed since the Effective Date of the Revision Act," the term "five years have passed since the Effective Date" in paragraph (8) of the preceding Article, Article 8, paragraph (2) and Article 16, paragraph (18) of the Supplementary
Provisions shall be deemed to be replaced with "eight years have passed since the Effective Date of the Revision Act," the term "by the day when two years
have passed since the Effective Date" in Article 8, paragraph (2) and Article 16, paragraphs (1), (17) and (18) of the Supplementary Provisions shall be deemed
to be replaced with "it shall be applied pursuant to the provisions of Article 5,
paragraph (8) of the Supplementary Provisions by the day when six years have passed since the Effective Date of the Revision Act," and the term "seven years have passed since the Effective Date" in Article 16, paragraph (1) shall be
deemed to be replaced with "ten years have passed since the Effective Date of the Revision Act"; any technical change in interpretation required shall be
specified by a Cabinet Order.
(Transitional Measures, etc. Concerning Examination Criteria for License)
Article 6 (1) The provisions of Article 6, paragraph (1) of the Current Insurance
Business Act shall not apply to Specified Insurers who have applied for a license as set forth in Article 3, paragraph (1) of the Current Insurance
Business Act (limited to persons whose capital amount at the time of the
application for that license exceeds five hundred million yen and is less than
the amount specified by a Cabinet Order as set forth in Article 6, paragraph (1)
of the Current Insurance Business Act) for a period of five years counting from the Effective Date.
(2) The provisions of Article 6, paragraph (1) of the Current Insurance Business
Act shall not apply to a license applicant as set forth in Article 3, paragraph (1)
of the Current Insurance Business Act who has committed that he/she will
receive the transfer of insurance contracts from a Specified Insurer or succeed to insurance contracts from a Specified Insurer (limited to persons who have made an application for approval of the transfer or succession of that insurance contract pursuant to the provisions of Article 4, paragraphs (7), (8), (11) and
(12) of the Supplementary Provisions until the date two years after the
Effective Date, and to persons whose capital amount at the time of the
application for that license exceeds five hundred million yen and is less than
the amount specified by a Cabinet Order as set forth in Article 6, paragraph (1) of the Current Insurance Business Law) for a period of five years counting from the Effective Date.
(3) Where the person to whom the provision of the preceding paragraph is
applied is a Mutual Company, for a period of five years set forth in the same paragraph, said person may set aside as a reserve all or part of the amount
that may be allocated to the redemption of funds or distribution of surplus specified in Article 55, paragraph (2) of the Current Insurance Business Act, until such time as the total amount of funds (including the reserve for
redemption of funds set forth in Article 56 of the Current Insurance Business
Act (including any amount deemed to have been set aside as the reserve for redemption of funds pursuant to the provisions of the following paragraph)) reaches the amount set forth in Article 6, paragraph (1) of the Current
Insurance Business Act to be specified by a Cabinet Order.
(4) The reserve set aside pursuant to the provision of the preceding paragraph shall be deemed to have been set aside as the reserve for redemption of funds set forth in Article 56 of the Current Insurance Business Law.
(5) The Prime Minister may attach necessary conditions pursuant to the
provisions of Article 5, paragraph (2) of the Current Insurance Business Act concerning Specified Insurers as prescribed in paragraph (1) or concerning the issue of licenses to license applicants as prescribed in paragraph (2), with
regard to underwriting of insurance contracts by the other party, contents of insurance contracts, and other matters to said licenses.
(Transitional Measures for Registry)
Article 7 (1) The Registry of Mutual Insurance Companies kept in a registry office at the time when this Act enters into force shall be deemed as the Registry of Mutual Insurance Companies set forth in Article 64 of the New Insurance Business Act.
(2) The Registry of Foreign Mutual Insurance Companies kept in a registry office
at the time when this Act enters into force shall be deemed as the Registry of
Foreign Mutual Insurance Companies set forth in Article 214 of the New
Insurance Business Act.
(Transitional Measures for the Insurance Company, etc., which was a Specified
Insurer)
Article 8 (1) The provision of Article 113 of the New Insurance Business Act
shall not be applied to the Insurance Company which applied for a license set forth in Article 3, paragraph (1) of the New Insurance Business Act and
received the license set forth in the same paragraph following the application of the provision of Article 6, paragraph (2) of the Supplementary Provisions.
(2) The Insurance Company which was a Specified Insurer or the Insurance
Company which received transfer of the insurance contract from a Specified
Insurer or succeeded to the insurance contract from a Specified Insurer
(limited to the person who applied for the approval of transfer or succession of insurance contract pursuant to the provisions of Article 4, paragraph (7), (8), (11) or (12) of the Supplementary Provisions and applied for the license set
forth in Article 3, paragraph (1) in the New Insurance Business Act by the day
when two years have passed since the Effective Date) may, with giving a notification to the Prime Minister, be relieved of the requirement of
accumulating of the policy reserve specified by a Cabinet Office Ordinance set forth in Article 116, paragraph (1) of the New Insurance Business Act for the
accounting period that ends by the day when five years have passed since the
Effective Date.
(Transitional Measures regarding Suspension of Business and Approval of
Plan)
Article 9 The provision of Article 245 (including the cases where it is applied mutatis mutandis pursuant to Article 258, paragraph (2) of the New Insurance Business Act.) and Article 247, paragraph (1) of the New Insurance Business
Act shall be applied to the disposition ordering the management of the
business and property after 1 April 2006 by the Insurance Administrator
pursuant to the provision of Article 241, paragraph (1) of the New Insurance Business Act; with regard to the disposition ordering the management of the business and property before that day by the Insurance Administrator
pursuant to the provision of Article 241, paragraph (1) of the Former Insurance
Business Act, the provisions then in force shall remain applicable.
(Transitional Measures regarding Modification of Contract Condition in
Transfer, etc., of Insurance Contracts)
Article 10 The provision of Article 250 (including the cases where it is applied mutatis mutandis pursuant to Article 270-4, paragraph (9) of the New
Insurance Business Act.), Article 254 or 255-2 of the New Insurance Business
Act, shall be applied to the Modification of Contract Conditions in the transfer of insurance contracts, merger agreement, or acquisition of shares in the case where the order for consultation on Merger, etc. or disposition ordering the
management of the business and property by the Insurance Administrator
pursuant to the provision of Article 241, paragraph (1) of the New Insurance
Business Act is issued or in the case where the Insurance Company (including
Foreign Insurance Companies, etc.; hereinafter the same shall apply in this
Article.) falls under the category of the Bankrupt Insurance Company
prescribed in Article 260, paragraph (2) of the New Insurance Business Act
after 1 April 2006; with regard to the Modification of Contract Conditions in
the transfer of insurance contracts, merger Agreement, or acquisition of shares in the case where the order for consultation on Merger, etc. or disposition
ordering the management of the business and property by the Insurance
Administrator pursuant to the provision of Article 241, paragraph (1) of the
New Insurance Business Act is issued or in the case where the Insurance
Company (including Foreign Insurance Companies, etc.; hereinafter the same
shall apply in this Article.) falls under the category of the Bankrupt Insurance
Company prescribed in Article 260, paragraph (2) of the New Insurance
Business Act before 1 April 2006, the provisions then in force shall remain applicable.
(Transitional Measures regarding Financial Assistance, etc.)
Article 11 The provisions of Part II, Chapter X, Section 4, Subsection 2 of the
New Insurance Business Act shall be applied to the Business of Financial
Assistance, etc. prescribed in Article 265-30 of the New Insurance Business Act executed by the Life Insurance Policyholders Protection Corporation pertaining to the person who falls under the category of the Bankrupt Insurance Company prescribed in Article 260, paragraph (2) of the New Insurance Business Act
after 1 April 2006; with regard to the Business of Financial Assistance, etc.
prescribed in Article 265-30 of the Former Insurance Business Act executed by the Life Insurance Policyholders Protection Corporation pertaining to the
person who falls under the category of the Bankrupt Insurance Company
prescribed in Article 260, paragraph (2) of the Former Insurance Business Act before 1 April 2006, the provisions then in force shall be remain applicable.
(Transitional Measures regarding Purchase of Insurance Claims)
Article 12 The provision of Article 270-6-8, paragraph (2) of the New Insurance
Business Act shall be applied to the purchase of Insurance Claims, etc.
prescribed in Article 270-6-8, paragraph (1) of the New Insurance Business Act pertaining to the person who falls under the category of the Bankrupt
Insurance Company prescribed in Article 260, paragraph (2) of the New
Insurance Business Act after 1 April 2006; with regard to the purchase of
Insurance Claims prescribed in Article 270-6-8, paragraph (1) of the Former
Insurance Business Act pertaining to the person who falls under the category
of the Bankrupt Insurance Company prescribed in Article 260, paragraph (2) of the Former Insurance Business Act before 1 April 2006, the provisions then in
force shall be remain applicable.
(Transitional Measures regarding Submission of Modification Report regarding
Written Notice of Insurance Voting Rights Ownership)
Article 13 The provision of Article 271-4, paragraph (1) of the New Insurance
Business Act shall be applied to the submission of a modification report
prescribed in Article 271-4, paragraph (1) of the New Insurance Business Act in the case where there are modifications to matters listed in items of Article
271-3, paragraph (1) of the New Insurance Business Act after the day specified in Article 1, paragraph (1) of the Supplementary Provisions; with regard to the submission of a modification report prescribed in Article 271-4, paragraph (1)
of the Former Insurance Business Act in the case where there are
modifications to matters listed in items of Article 271-3, paragraph (1) of the
Former Insurance Business Act before that day, the provisions then in force shall be remain applicable.
(Transitional Measures regarding Business Report, etc. pertaining to
Insurance Holding Company)
Article 14 The provision of Article 271-24 of the New Insurance Business Act
shall be applied to an interim business report and business report prescribed in paragraph (1) of the same Article pertaining to the business year which starts
after the Effective Date; with regard to the business report prescribed in
Article 271-24, paragraph (1) of the Former Insurance Business Act pertaining to the business year which started before the Effective Date, the provisions
then in force shall remain applicable.
(Transitional Measures regarding Juridical Person who Carries on Specified
Insurance Business)
Article 15 (1) In the case where the juridical person (excluding stock companies;
hereinafter the same shall apply in this Article.) who carries on the specified
insurance business at the time when this Act enters into force applied for the registration set forth in Article 272, paragraph (1) of the New Insurance
Business Act, the provision of Article 272-4, paragraph (1), item (i) of the New
Insurance Business Act shall not be applied.
(2) For the purpose of applying the provisions of Article 272-2, paragraph (1) and Article 272-4, paragraph (1) of the New Insurance Business Act to the juridical person in the preceding paragraph, the term "the amount of capital or the total amount of funds" in Article 272-2, paragraph (1), item (ii) of the New Insurance Business Act shall be deemed to be replaced with "the amount of contribution
or the total amount of funds," the term "directors and company auditors (or, in
a company with Committees, directors and executive officers)" in item (iii) of the same paragraph shall be deemed to be replaced with "officers," the term
"whose capital or total funds" in Article 272-4, paragraph (1), item (ii) of the
New Insurance Business Act shall be deemed to be replaced with "whose
contribution or total funds," the term "Stock Company, etc." shall be deemed to be replaced with "juridical person," the term "Stock Company, etc." in the
provisions of items (iii) to (viii) inclusive of the same paragraph shall be
deemed to be replaced with "juridical person," the term "any other business
than the businesses set forth in the proviso to Article 272-11, paragraph (2) to be specified by a Cabinet Office Ordinance, or." and the term "Stock Company, etc." in item (ix) of the same paragraph shall be deemed to be replaced with
"any other business that" and "juridical person," respectively; the term
"directors, executive officers, accounting advisers or company auditors" and
"Stock Company, etc." in item (x) of the same paragraph shall be deemed to be replaced with "officers" and "juridical person," respectively, and the term
"Stock Company, etc." in item (xi) of the same paragraph shall be deemed to be replaced with "juridical person."
(3) Any reduction of the amount of the contribution or total amount of the fund of the Small Amount and Short-Term Insurance Provider (hereinafter referred to
as "Specified Small Amount and Short Term Insurance Provider" in this Article.) who is the juridical person under paragraph (1) and received the registration set forth in Article 272, paragraph (1) of the New Insurance
Business Act shall be null and void without the approval of the Prime Minister. (4) The person (excluding administrative agencies and other persons specified by
a Cabinet Order) who holds the right to request inspection of the accounting
books and accounting documents of the Specified Small Amount and Short Term Insurance Provider pursuant to the provisions of other Acts may not exercise such right unless receiving the approval of the Prime Minister.
(5) For the purpose of applying the provisions of Article 272-11, paragraph (2)
and Article 272-26 of the New Insurance Business Act to the Specified Small
Amount and Short Term Insurance Provider, the term "to be specified by a
Cabinet Office Ordinance as related to the Small Amount and Short Term
Insurance Business" in the same paragraph shall be deemed to be deleted, the term "Article 272-4, paragraph (1), items (i) to (iv) inclusive" in Article 272-26, paragraph (1), item (i) of the New Insurance Business Act shall be deemed to
be replaced with "Article 272-4, paragraph (1), items (ii) to (iv) inclusive as
applied with relevant changes in interpretation pursuant to the provision of
Article 15, paragraph (2) of the Supplementary Provisions of the Act on Partial Revision of the Insurance Business Act, etc. (Act No. 38 of 2005)" and the term "director, executive officer, accounting advisor or company auditor" in
paragraph (2) of the same Article shall be deemed to be replaced with "officer."
(6) The Specified Small Amount and Short Term Insurance Provider cannot be a
Transferee Company prescribed in Article 135, paragraph (1) of the New
Insurance Business Act as applied mutatis mutandis pursuant to Article 272-
29 of the New Insurance Business Act, notwithstanding of that Article.
(7) In the case where the Specified Small Amount and Short Term Insurance
Provider is the Transferor Company prescribed in Article 135, paragraph (3) of the New Insurance Business Act as applied mutatis mutandis pursuant to
Article 272-29 of the New Insurance Business Act, the term "the Transferor
Company and the Transferee Company" in Article 136, paragraphs (1) and (3)
of the New Insurance Business Act as applied mutatis mutandis pursuant to
Article 272-29 of the New Insurance Business Act shall be deemed to be replaced with "the Transferee Company," the terms "directors (or, in a
company with Committees, executive officers)," "for a period ranging from two weeks before the date of the Shareholders Meeting, etc. set forth in paragraph (1) of the preceding Article," and "the Transfer Agreement concluded under
Article 135, paragraph (1) and other" in Article 136-2, paragraph (1) of the New
Insurance Business Act as applied mutatis mutandis pursuant to Article 272-
29 of the New Insurance Business Act shall be deemed to be replaced with
"officers," "on the creation day of the contract pertaining to the contract set
forth in Article 135, paragraph (1) (hereinafter defined as "Transfer
Agreement")," and "the Transfer Agreement and other," respectively; the term
"A shareholder or Policyholder of the Transferor Company" in paragraph (2) of the same Article shall be deemed to be replaced with "An Affected
Policyholder,", and the term "the time of the adoption of the resolution under
Article 136, paragraph (1)" in Article 138 of the New Insurance Business Act as applied mutatis mutandis pursuant to Article 272-29 of the New Insurance
Business Act shall be deemed to be replaced with "the time of preparation of the Transfer Agreement."
(8) The Specified Small Amount and Short Term Insurance Provider cannot be an
Entrusted Company prescribed in Article 144, paragraph (1) of the New
Insurance Business Act as applied mutatis mutandis pursuant to Article 272-
30, paragraph (2) of the New Insurance Business Act notwithstanding the provision of that paragraph.
(9) In the case where the Specified Small Amount and Short Term Insurance
Provider is the Entrusting Company prescribed in Article 144, paragraph (2) of the New Insurance Business Act as applied mutatis mutandis pursuant to
Article 272-30, paragraph (2) of the New Insurance Business Act, the term
"both the Insurance Company entrusting the administration activity
(hereinafter referred to as "Entrusting Company" in this Section) and" in
Article 144, paragraph (2) shall be deemed to be deleted; the term ", in addition to the documents set forth in Articles 18 and 19 (Documents to be attached to
written application) and Article 46 (General rules on attached documents) of the Commercial Registration Act (including the cases where they are applied mutatis mutandis pursuant to Article 67)" in Article 146, paragraph (3) of the New Insurance Business Act as applied mutatis mutandis pursuant to Article
272-30, paragraph (2) of the New Insurance Business Act shall be deemed to be
deleted; and the term "both the Entrusting Company and" in Article 149,
paragraph (1) of the New Insurance Business Act as applied mutatis mutandis pursuant to Article 272-30, paragraph (2) of the New Insurance Business Act
shall be deemed to be deleted.
(10) The Specified Small Amount and Short Term Insurance Provider shall not specify the reason of dissolution in the articles of incorporation
notwithstanding of the provision of other Acts.
(11) The Specified Small Amount and Short-Term Insurance Provider shall obtain the authorization from the Prime Minister when the Specified Small
Amount and Short Term Insurance Provider intends to dissolve or abolish the
Specified Insurance Business.
(12) The provision of Article 153, paragraph (2) of the New Insurance Business
Act shall apply mutatis mutandis to the application for approval set forth in the preceding paragraph, the provision of Article 153, paragraph (3) shall
apply mutatis mutandis to the Specified Small Amount and Short Term
Insurance Provider who applied for the approval set forth in the preceding
paragraph, and the provision of Article 154 of the New Insurance Business Act shall apply mutatis mutandis to the Specified Small Amount and Short-Term Insurance Provider who received the approval set forth in the same paragraph respectively.
(13) The merger of the Specified Small Amount and Short Term Insurance
Provider shall be null and void without the approval of the Prime Minister.
(14) The provision of Article 167, paragraph (2) of the New Insurance Business
Act shall apply mutatis mutandis to the application for the approval of the preceding paragraph.
(15) The juridical person who is established by the merger upon receiving the
approval set forth in paragraph (13) shall be deemed that the juridical person received the registration set forth in Article 272, paragraph (1) of the New
Insurance Business Act at such establishment.
(16) The company split of the Specified Small Amount and Short-Term Insurance
Provider shall be null and void without the approval of the Prime Minister.
(17) The provision of Article 173-6, paragraph (2) of the New Insurance Business
Act shall apply mutatis mutandis to the application for the approval set forth in the preceding paragraph.
(18) For the purpose of applying the provision of Part II, Chapter X, Section 2 of
the New Insurance Business Act to the Specified Small Amount and Short
Term Insurance Provider, the term "In the case set forth in paragraph (1), an Insurance Company, etc." and the term "a Foreign Insurance Company, etc.," in Article 250, paragraph (4) of the New Insurance Business Act shall be
deemed to be replaced with "In the case of paragraph (1), an Insurance Company, etc. (excluding the Specified Small Amount and Short Term Insurance Provider prescribed in Article 15, paragraph (3) of the
Supplementary Provisions of the Act on Partial Revision of the Insurance
Business Act, etc. (Act No. 38 of 2005).)" and "a Foreign Insurance Company,
etc. (including the Specified Small Amount and Short Term Insurance Provider prescribed in Article 15, paragraph (3) of the Supplementary Provisions of that Act.)," respectively; the term "The Insurance Company, etc., set forth in
paragraph (1)" and the term "the purpose of the meeting" in Article 254,
paragraph (3) of the New Insurance Business Act shall be deemed to be replaced with "In the case of paragraph (1), the Insurance Company, etc.
(excluding the Specified Small Amount and Short Term Insurance Provider
(referring to the Specified Small Amount and Short Term Insurance Provider
prescribed in Article 15, paragraph (3) of the Supplementary Provisions of the Act on Partial Revision of the Insurance Business Act, etc.; hereinafter the same shall apply in this paragraph.).)" and "the purpose of the meeting; the
Specified Small Amount and Short Term Insurance Provider, etc. shall, on the date of issue of the merger agreements, make public notice to the effect that contracts that contain said Modifications of Contract Conditions have been
issued."
(19) For the purpose of applying the provision of Article 333 of the New
Insurance Business Act to the Specified Small Amount and Short Term
Insurance Provider, the term "the incorporator, the director at the
incorporation, the executive officer at the incorporation, the company auditor
at the incorporation, the director, the executive officer, the accounting advisor or the member who is supposed to carry out such duties and the company
auditor" in paragraph (1) of the same Article shall be deemed to be replaced with "the incorporator, the officer."
(20) The Method of Public Notice for a Specified Small Amount and Short Term Insurance Provider shall be publication in a daily newspaper that publishes matters on current events.
(Transitional Measures regarding Small Amount and Short Term Insurance
Provider, etc., who was a Specified Insurer)
Article 16 (1) A Small Amount and Short Term Insurance Provider that was a
Specified Insurer or a Small Amount and Short Term Insurance Provider that received the transfer of, or succeeded to, the insurance contracts from a
Specified Insurer (limited to a person who applied for the approval of transfer
or succession of said insurance contracts pursuant to the provision of Article 4, paragraph (7), (8), (11) or (12) of the Supplemental Provisions by the day when two years have passed since the Effective Date and for the registration set
forth in Article 272, paragraph (1) of the New Insurance Business Act) may,
notwithstanding the provision of Article 3, paragraph (1) of the New Insurance Business Act, underwrite insurance whose insurance amount is more than the amount specified by a Cabinet Order set forth in Article 2, paragraph (17) of
the New Insurance Business Act and less than the amount specified by a
Cabinet Order, until the day on which seven years have passed since the
Effective Date.
(2) The Small Amount and Short Term Insurance Provider shall, when
underwriting insurance whose insurance amount exceeds the amount specified by a Cabinet Order set forth in Article 2, paragraph (17) of the New Insurance Business Act pursuant to the provision of the preceding paragraph, effect a
reinsurance whose insurance amount equals or exceeds that excess amount
with an Insurance Company (including Foreign Insurance Companies, etc.;
hereinafter the same shall apply in this Article) pursuant to a Cabinet Office
Ordinance.
(3) When underwriting insurance whose insurance amount exceeds the amount
specified by a Cabinet Order set forth in Article 2, paragraph (17) of the New
Insurance Business Act pursuant to the provision of paragraph (1), the Small
Amount and Short Term Insurance Provider shall, in advance, submit a report stating the trade name and name of the Insurance Company with which the
reinsurance is effected, contents of the reinsurance as well as other matters specified by a Cabinet Office Ordinance to the Prime Minister.
(4) When underwriting insurance whose insurance amount exceeds the amount specified by a Cabinet Order set forth in Article 2, paragraph (17) of the New Insurance Business Act pursuant to the provision of paragraph (1), the Small Amount and Short Term Insurance Provider shall, in advance, disclose the
matters listed below to the customers.
(i) Trade name and name of the Insurance Company with which the reinsurance is effected
(ii) Amount of reinsurance to be effected and other contents of the reinsurance. (iii) Other matters specified by a Cabinet Office Ordinance.
(5) When the underwriting of the insurance whose insurance amount exceeds the amount specified by a Cabinet Order provided in the Article 2, paragraph (17)
of the New Insurance Business Act pursuant to the provision of paragraph (1)
is performed, the provision of the paragraph (2) shall not apply to a Small
Amount and Short Term Insurance Provider for whom the effecting
reinsurance pertaining to such insurance with a Foreign Insurer was approved by the Prime Minister as falling under any of the following cases. In this case, pursuant to the provisions of a Cabinet Office Ordinance, such Small Amount and Short Term Insurance Provider shall effect reinsurance whose insurance amount reinsured equals or exceeds that excess amount with said Foreign
Insurer.
(i) The contents of the reinsurance do not violate the laws and regulations, or are not unfair.
(ii) Instead of said reinsurance, effecting reinsurance with an Insurance Company on the terms equivalent to or more favorable than those of said reinsurance is difficult.
(iii) Effecting such reinsurance poses no risk of unduly harming the interest of the insured and other relevant persons.
(6) In the case the reinsurance contract is entered into with a Foreign Insurer pursuant to the provision of the preceding paragraph, the term "trade name and name of an Insurance Company" in paragraph (4), item (i) shall be deemed to be replaced with "trade name and name of a Foreign Insurer."
(7) When giving an approval set forth in paragraph (5), the Prime Minister may confirm with the Insurance Company whether it falls under any case of item (ii) of the same paragraph.
(8) When an approval set forth in paragraph (5) was made, the Prime Minister
may rescind the approval of the same paragraph when effecting reinsurance with such Foreign Insurer does not fall under the cases listed in the items of
the same paragraph. In this case, the Small Amount and Short Term Insurance
Provider set forth in the same paragraph shall, without delay, effect
reinsurance whose insurance amount equals or exceeds the excess amount set forth in the second sentence of the same paragraph with the other Insurance Company or Foreign Insurer.
(9) The Specified Insurer may, if it received the registration set forth in Article
272, paragraph (1) of the New Insurance Business Act, manage businesses or properties pertaining to the insurance contract which was underwritten prior
to such registration and whose insurance amount exceeds the amount specified by a Cabinet Order set forth in Article 2, paragraph (17) of the New Insurance Business Act, notwithstanding the provision of Article 3, paragraph (1) of the
New Insurance Business Act.
(10) Notwithstanding the provision of Article 3, paragraph (1) of the New
Insurance Business Act, a Small Amount and Short Term Insurance Provider may manage businesses or properties pertaining to the insurance contract
which was underwritten prior to the Effective Date or during the period when
the Specified Insurer carried on the Specified Insurance Business pursuant to
the provisions of Article 2, paragraph (1) of the Supplementary Provisions and whose insurance amount exceeds the amount specified by a Cabinet Order set
forth in Article 2, paragraph (17) of the New Insurance Business Act, after the
Specified Insurer received the transfer of, or succeeded to, such insurance contract.
(11) In the case of paragraph (9) or the case in the preceding paragraph, a Small
Amount and Short Term Insurance Provider shall effect reinsurance with an Insurance Company or a Foreign Insurer whose insurance amount equals or exceeds the excess amount prescribed in paragraph (9) or the preceding
paragraph, pursuant to the provisions of a Cabinet Office Ordinance.
(12) A Small Amount and Short Term Insurance Provider shall, if it effected
reinsurance with an Insurance Company or a Foreign Insurer pursuant to the provision in the preceding paragraph, submit a report stating the trade name and name of such Insurance Company or Foreign Insurer and other matters specified by a Cabinet Office Ordinance to the Prime Minister without delay,.
(13) A Specified Insurer may, if it received the registration set forth in Article
272, paragraph (1) of the New Insurance Business Act, manage businesses or properties pertaining to the insurance contract which was underwritten prior
to such registration and whose insurance period exceeds the period specified by a Cabinet Order set forth in Article 2, paragraph (17) of the New Insurance
Business Act, notwithstanding the provisions of Article 3, paragraph (1) of the
New Insurance Business Act.
(14) A Small Amount and Short Term Insurance Provider who has committed that it will receive the transfer of insurance contracts from a Specified Insurer or succeed to insurance contracts from a Specified Insurer, or a Small Amount and Short Term Insurance Provider who received the transfer of insurance
contracts from a Specified Insurer or succeeded insurance contracts from a
Specified Insurer may, notwithstanding the provisions of Article 3, paragraph
(1) of the New Insurance Business Act, receive the transfer of insurance
contracts which were underwritten prior to the Effective Date or during the period when the Specified Insurer carried on the Specified Insurance Business pursuant to the provisions of Article 2, paragraph (1) of the Supplementary
Provisions and whose insurance period exceeds the period specified by a
Cabinet Order set forth in Article 2, paragraph (17) of the New Insurance
Business Act or succeed to such insurance contracts, and manage the businesses and properties pertaining to such insurance contracts.
(15) In the cases of paragraphs (1), (5), (9), (10), and (13) or of the preceding
paragraph, the term "carries on Small Amount and Short Term Insurance
Business" in Article 2, paragraph (18) of the New Insurance Business Act shall be deemed to be replaced with "carries on Small Amount and Short Term
Insurance Business (including insurance business carried on pursuant to the provision of Article 16, paragraph (1), (9), (10), (13) or (14) of the
Supplementary Provisions of Act on Partial Revision of Insurance Business Act
etc.(Act No. 38 of 2005)," the term "Small Amount and Short Term Insurance Business" in Article 272, paragraph (1) of the New Insurance Business Act shall be deemed to be replaced with "Small Amount and Short Term Insurance
Business (including Insurance Business carried on pursuant to the provision of
Article 16, paragraph (1), (9), (10), (13) or (14) of the Supplementary Provisions of Act on Partial Revision of Insurance Business Act etc.; the same shall apply
in paragraph (1), item (v) of the following Article, Article 272-4, paragraph (1), items (ix) and (xi), Article 272-5, paragraphs (2) and (5), Article 272-9, Article
272-11, paragraphs (1) and (2), Article 272-21, paragraph (1), item (i), Article
272-27 and Article 315, item (iv))", and the term "(xi)" in Article 272-26,
paragraph (1), item (i) of the New Insurance Business Act shall be deemed to be replaced with "(xi) of Article 272-4, paragraph (1) as applied with the
change in interpretation pursuant to Article 16, paragraph (15) of the
Supplementary Provisions of Act on Partial Revision of Insurance Business Act etc."
(16) In paragraph (13) or (14), necessary matters regarding the accumulation of policy reserve performed by a Small Amount and Short Term Insurance
Provider set forth in Article 116, paragraph (1) of the New Insurance Business
Act as applied mutates mutandis pursuant to Article 272-18 of the New
Insurance Business Act.
(17) The provisions of Article 113 of the New Insurance Business Act applied mutatis mutandis to Article 272-18 of the New Insurance Business Act shall not apply to a Small Amount and Short Term Insurance Provider who received a transfer of insurance contracts from a Specified Insurer or succeeded
insurance contracts from a Specified Insurer (limited to a person who applied for the approval of transfer or succession of said insurance contracts pursuant to the provisions of Article 4, paragraph (7), (8), (11) or (12) of the
Supplemental Provisions by the day when two years have passed since the Effective Date, or a person who applied for the registration of Article 272, paragraph (1) of the New Insurance Business Act).
(18) The Small Amount and Short Term Insurance Provider who was a Specified Insurer, or the Small Amount and Short Term Insurance Provider who received the transfer of insurance contracts from a Specified Insurer or succeeded to
insurance contracts from a Specified Insurer (limited to a person who applied for the approval of transfer or succession of said insurance contracts pursuant to the provisions of Article 4, paragraph (7), (8), (11) or (12) of the
Supplemental Provisions or applied for the registration set forth in Article 272, paragraph (1) of the New Insurance Business Act by the day when two years have passed since the Effective Date) may, with giving a notification to the
Prime Minister, be relieved of the requirement of accumulating of the policy reserve specified by a Cabinet Office Ordinance set forth in Article 116,
paragraph (1) of the New Insurance Business Act as applied mutatis mutandis pursuant to Article 272, paragraph (18) of the New Insurance Business Act for the accounting period that ends by the day when five years have passed since
the Effective Date.
(Transitional Measures regarding Posting of Sign)
Article 17 The provision of Article 272-8, paragraph (2) of the New Insurance
Business Act does not apply to a person who posts a sign set forth in paragraph (1) of the same Article or a sign similar to this at the time when this Act enters into force, until the day on which six months have passed from the Effective
Date.
(Penal Provisions)
Article 19 (1) A person who did not submit a report pursuant to the provision of
Article 3, paragraph (1) of the Supplementary Provisions and documents that should be attached pursuant to the provision of paragraph (2) of the same
Article, or a person who submitted these documents without stating the
matters that should be stated in these documents, or making a false statement shall be punished by imprisonment with work for not more than five years or
by a fine of not more than three million yen.
(2) When a representative person or administrator of a juridical person
(including an association or foundation that is not a juridical person and has provisions on representative persons or administrators; hereinafter the same shall apply in this paragraph) or any agent, employee or other worker of a
juridical person or an individual has done the violation set forth in the preceding paragraph with regard to the business of said juridical person or individual, not only the offender shall be punished but also said juridical
person or individual shall be punished by the fine prescribed in the respective paragraph.
(Delegation to Cabinet Office Ordinance)
Article 34 In addition to what is provided for in the Supplementary Provisions, the procedures for application pertaining to the authorization or approval
pursuant to the provisions of the Supplementary Provisions, submission of documents, and any other matter required for implementing this Act shall be specified by a Cabinet Office Ordinance.
(Transitional Measures Concerning Penal Provisions)
Article 35 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act and acts committed after the enforcement of this Act in the cases where the provisions then in force shall remain
applicable pursuant to the provisions of the Supplementary Provisions, the
provisions then in force shall remain applicable.
(Delegation of Authority)
Article 36 (1) The Prime Minister shall delegate his/her authority under the
Supplementary Provisions (except for authority to be specified by a Cabinet
Order) to the Commissioner of Financial Services Agency.
(2) With regard to the authority delegated to the Commissioner of Financial
Services Agency pursuant to the provisions in the preceding paragraph, part of it may be delegated to the Director-Generals of Local Finance Bureaus or Local Finance Branch Bureaus pursuant to the provision of a Cabinet Order.
(Delegation to Cabinet Order)
Article 37 In addition to what is provided for in the Supplementary Provisions, necessary transitional measures regarding the enforcement of the Act will be specified by a Cabinet Order.
(Review)
Article 38 (1) Within three years after the enforcement of this Act, the
government shall consider the implementations of systems, etc., pertaining to
special measures, etc. for protection of Policyholders, etc., including
government assistance for Life Insurance Policyholders Protection Corporation and Financial Assistance, etc., by Life Insurance Policyholders Protection
Corporation, the financial conditions of Life Insurance Policyholders Protection
Corporation, and the soundness of the management of an Insurance Company, among other factors, examine burdens pertaining to the costs required for the Financial Assistance, etc., of Life Insurance Policyholders Protection
Corporation and necessities, etc. for the continuation of the provisions
pertaining to the government assistance, and conduct an appropriate review. (2) Within five years after the enforcement of the Act, the government shall
consider the situations of the business for which reinsurance is effected with an Insurance Company and other businesses of a Small Amount and Short
Term Insurance Provider, the conditions of diversification of insurance that an Insurance Company underwrites, as well as the changes in economic and social conditions, review systems pertaining to the Insurance Business specified in
this Act, and take necessary measures based on its results, when necessary.
Supplementary Provisions [Act No. 87 of July 26, 2005] [Extract]
This Act shall come into effect as from the Effective Date of Companies Act.
Supplementary Provisions [Act No. 102 of October 21, 2005] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the Effective Date of Postal
Service Privatization Act.
(Transitional Measures Concerning Penal Provisions)
Article 117 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act; acts committed after the enforcement of
this Act in the cases where the provisions then in force shall remain applicable pursuant to the provisions of the Supplementary Provisions; acts committed
prior to the lapse of the provision of Article 38-8 of the Former Postal Money
Order Law (limited to the segment pertaining to items (ii) and (iii)) which shall remain in force pursuant to the provision of Article 9, paragraph (1) of the
Supplementary Provisions even after the enforcement of this Act; acts
committed prior to the lapse of the provision of Article 70 of the Former Postal Transfer Law (limited to the segment pertaining to items (ii) and (iii)) which shall remain in force pursuant to the provisions of Article 13, paragraph (1) of
the Supplementary Provisions after the enforcement of this Act; acts
committed prior to the invalidation of the provisions of Article 8 of the Former
Act on the Entrustment of Postal Transfer Deposit and Contribution (limited to the segment pertaining to items (ii)) which shall remain in force pursuant to
the provision of Article 27, paragraph (1) of the Supplementary Provisions even after the enforcement of this Act; acts committed before the lapse of the
provision of Article 70 of the Former Public Companies Act (limited to the segment pertaining to items (ii)) which shall remain in force pursuant to the provision of Article 39, paragraph (2) of the Supplementary Provisions even after the enforcement of this Act; acts committed prior to the lapse of the
provisions of Article 71 and 72 of the Former Public Companies Act (limited to
the segment pertaining to items (xv))which shall remain in force pursuant to
the provision of Article 42, paragraph (1) of the Supplementary Provisions even after the enforcement of this Act; and acts committed prior to the specified day pertaining to the post savings bank prescribed in Article 104 of the Postal
Service Privatization Act in the cases where the provision of Article 2,
paragraph (2) of the Supplementary Provisions is applicable, the provisions then in force shall remain applicable.
Supplementary Provisions [Act No. 10 of March 31, 2006] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 April 2006.
(Transitional Measures Concerning Penal Provisions)
Article 211 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act (with regard to the provisions listed in the items of Article 1 of the Supplementary Provisions, those provisions;
hereinafter the same shall apply in this Article) and acts committed after the
enforcement of this Act in the cases where the provisions then in force shall remain applicable pursuant to the provisions of the Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 212 In addition to what is provided for in the Supplementary Provisions, necessary transitional measures concerning the enforcement of this Act shall be specified by a Cabinet Order.
Supplementary Provisions [Act No. 50 of June 2, 2006] [Extract] (Effective Date)
(1) This Act shall come into effect as from the Effective Date of Act on General
Incorporated Association and General Incorporated Foundation.
(Adjustment Provisions)
(2) If the Effective Date of the Act for Partial Revision of the Penal Code, etc. to
Respond to an Increase in International and Organized Crimes and
Advancement of Information Processing (Act No. of 2006) is after the Effective Date, for the purpose of applying the provisions of appended table 62 of the Act for Punishment of Organized Crimes and Control of Crime Proceeds (Act No.
136 of 1999; hereinafter referred to as the "Organized Crime Punishment Act") from the Effective Date to the day before the enforcement of that Act, the term "crime set forth in Article 157 (aggravated breach of trust of director etc.) of
the Intermediate Corporation Act (Act No. 49 of 2001)" in the same table shall be deemed to be replaced with "crime of Article 334 (aggravated breach of trust of director etc.) of the Act on General Incorporated Association and General
Incorporated Foundation (Act No.48 of 2006)."
(3) In addition to what is provided for in the provisions in the preceding
paragraph, with regard to the application of the provisions of the Organized Crime Punishment Act until the day before the Effective Date of the Act for Partial Revision of the Penal Code, etc. to Respond to an Increase in
International and Organized Crimes and Advancement of Information
Processing in the case referred to in the preceding paragraph, a crime set forth in Article 157 of the Former Intermediate Corporation Law (aggravated breach of trust of director, etc.) where the provisions then in force remain applicable
pursuant to the provisions of Article 457 shall be deemed to be a crime listed in the appended table 62 of the Organized Crime Punishment Act.
Supplementary Provisions [Act No. 65 of June 14, 2006] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from the date specified by a Cabinet
Order within a period not exceeding one year and six months from the day of promulgation (hereinafter referred to as the "Effective Date"); provided,
however, that the provisions set forth in the following items shall come into effect as from the day prescribed respectively in those items.
(i) Provision of Article 1; revised provision in Article 30-4, paragraph (2), item (ii) of the Agricultural Cooperative Association Act in Article 8 (limited to the segment which revises "Article 197, paragraph (1), items (i) to (iv) inclusive
or item (vii) or paragraph (2), Article 198, items (i) to (x) inclusive, item
(xviii) or (xiv)" to "Article 197, Article 197-2, items (i) to (x) or (xiii), Article
198, item (viii)"); revised provision in Article 34-4, paragraph (2), item (ii) of
the Fisheries Cooperative Association Act in Article 9 (limited to the segment which revises "Article 197, paragraph (1), items (i) to (iv) inclusive or item
(vii) or paragraph (2), Article 198, items (i) to (x) inclusive, item (xviii) or
(xix)" to "Article 197, Article 197-2, items (i) to (x) inclusive or item (xiii),
Article 198, item (viii)"); revised provision in Article 5-4, paragraph (4), item (iv) of the Act on Financial Businesses by Cooperative in Article 11 (limited to the segment which revises "Article 197, paragraph (1), items (i) to (iv)
inclusive or item (vii) or paragraph (2)" to "Article 197" and "Article 198,
items (i) to (x) inclusive, item (xviii) or (xix) (Crime of Solicitation of
Securities by Unregistered Agents etc)" to "Article 197-2, items (i) to (x)
inclusive or item (xiii) (Crime of Solicitation of Securities by Unregistered
Agents. etc), Article 198, item (viii) (Crime of Violating Prohibition Order or
Order for Suspension by Court)"; revised provision in Article 34, item (iv) of the Shinkin Bank Act in Article 13 (limited to the segment which revises
"Article 197, paragraph (1), items (i) to (iv) inclusive or item (vii) or
paragraph (2)" to "Article 197" and "Article 198, items (i) to (x) inclusive, item (xviii) or (xix) (Crime of Solicitation of Securities by Unregistered
Agents etc)" to "Article 197-2, items (i) to (x) inclusive or item (xiii) (Crime of
Solicitation of Securities by Unregistered Agents etc), Article 198, item (viii) (Crime of Violating Prohibition Order or Order for Suspension by Court)"; revised provision in Article 34, item (iv) of the Labor Bank Act in Article 15
(limited to the segment which revises "Article 197, paragraph (1), items (i) to
(iv) inclusive or item (vii) or paragraph (2)" to "Article 197" and "Article 198, items (i) to (x) inclusive, item (xviii) or (xix) (Crime of Solicitation of
Securities by Unregistered Agents etc)" to "Article 197-2, items (i) to (x)
inclusive or item (xiii) (Crime of Solicitation of Securities by Unregistered
Agents etc), Article 198, item (viii) (Crime of Violating Prohibition Order or
Order for Suspension by Court)"; revised provision in Article 53-2, paragraph
(1), item (iii) of the Insurance Business Act in Article 18 (limited to the
segment which revises "Article 197, paragraph (1), items (i) to (iv) inclusive or item (vii) or paragraph (2)" to "Article 197" and "Article 198, items (i) to
(x) inclusive, item (xviii) or (xix) (Crime of Solicitation of Securities by
Unregistered Agents etc)" to "Article 197-2, items (i) to (x) inclusive or item
(xiii) (Crime of Solicitation of Securities by Unregistered Agents etc), Article
198, item (viii) (Crime of Violating Prohibition Order or Order for Suspension by Court)"; revised provision in Article 24-4, item (iv) of the Norinchukin
Bank Act in Article 19 (limited to the segment which revises "Article 197, paragraph (1), items (i) to (iv) inclusive or item (vii) or paragraph (2), or
Article 198, items (i) to (x) inclusive, item (xviii) or (xix)" to "Article 197,
Article 197-2, items (i) to (x) inclusive or item (xiii), Article 198, item (viii)");
and Supplementary Provisions, Article 2, Article 4, Article 182, paragraph
(1), Article 184, paragraph (1), Article 187, paragraph (1), Article 190,
paragraph (1), Article 193, paragraph (1), Article 196, paragraph (1) and
Article 198, paragraph (1): the day on which 20 days have passed from the day of promulgation.
(ii) Provision of Article 3 of the Supplementary Provisions: the Effective Date
of the Act for Partial Revision of the Penal Code to Respond to an Increase in
International and Organized Crimes and Advancement of Information
Processing (Act No. of 2006) or the Effective Date of the provisions listed in the preceding item, whichever comes later.
(iii) Provision of Article 2 (excluding revised provision in Article 27-23 of the
Securities and Exchange Act (excluding the segment that adds "and Article
27-26" under "Article 27-25, paragraph (1)"); revised provision in Article 27-
24 of the same Act; revised provision in Article 27-25 of the same Act; revised provision in Article 27-26 of the same Act (excluding the segment which
revises "control business activities of a company, an issuer of share
certificates etc." to "perform what is specified by a Cabinet Order as acts that make a significant change in and have a significant impact on business
activities of an issuer of share certificate, etc., (referred to as an "Important Proposed Act, etc." in paragraphs (4) and (5)) and the segment which adds paragraph (3) in the same Article"; revised provision in Article 27-27 of the same Act and revised provision in Article 27-30, item (ii) of the same Act
(excluding the segment which revises "Article 27-10, paragraph (2)" to
"Article 27-10, paragraphs (8) and (12)" and the segment that adds "or (11)" under "Article 27-10, paragraph (1)"); and provisions of Article 7, Article 8 and Article 12 of the Supplementary Provisions: the date specified by a
Cabinet Order within a period not exceeding six months from the day of
promulgation.
(iv) Revised provision in Article 27-23 of the Securities and Exchange Act in
Article 2 (excluding the segment which adds "and Article 27-26" under
"Article 27-25, paragraph (1)"); revised provision in Article 27-24 of the same
Act; revised provision in Article 27-25 of the same Act; revised provision in Article 27-26 of the same Act (excluding the segment which revises "control business activities of a company, an issuer of share certificate etc." to
"perform what is specified for in a Cabinet Order as acts that make a
significant change in and have a significant impact on business activities of an issuer of share certificates etc.(referred to as an "Conduct of Important
Proposal, etc." in paragraphs (4) and (5)) and the segment which adds
paragraph (3) in the same Article"; revised provision in Article 27-27 of the same Act and revised provision in Article 27-30, item (ii) of the same Act
(excluding the segment which revises "Article 27-10, paragraph (2)" to
"Article 27-10, paragraphs (8) and (12)" and the segment that adds "or (xi)" under "Article 27-10, paragraph (1)"); and provisions from Article 9 to Article
11 and 13 of the Supplementary Provisions: the day specified by a Cabinet
Order within a period not exceeding one year from the day of promulgation. (v) The provision of Article 4: the Effective Date of the Act on General
Incorporated Association and General Incorporated Foundation (Act No. 48 of
2006)
(Transitional Measures associated with Partial Revision of Insurance Business
Act)
Article 196 (1) With regard to the applications of the provision of Article 53-2, paragraph (1), item (iii) of the Revised Insurance Business Act (hereinafter referred to as the New Insurance Business Act in this paragraph) (including the cases where it is applied mutatis mutandis pursuant to the provision of
Article 53-5, paragraph (1), Article 53-26, paragraph (4), and Article 180-4,
paragraph (3) of the New Insurance Business Act) pursuant to the provision of
Article 18 (limited to the revised provision in Article 53-2, paragraph (1), item
(iii) (limited to the segments that revise "Article 197, paragraph (1), items (i) to
(iv) inclusive or item (vii) or paragraph (2)" to "Article 197", and "Article 198,
items (i) to (x) inclusive, item (xviii) or (xix) (Crime of Solicitation of Securities by Unregistered Agents, etc)" to "Article 197-2, items (i) to (x) inclusive or item (xiii) (Crime of Solicitation of Securities by Unregistered Agents. etc), Article
198, item (viii) (Crime of Violating Prohibition Order or Order for Suspension
by Court)", any person who has violated Article 197, paragraph (1), items (i) to
(iv) inclusive, or item (vii), paragraph (2) or Article 198, items (i) to (x)
inclusive, item (xviii) or (xix) of the prerevised Securities and Exchange Act pursuant to the provision of Article 1 (including these provisions where the
provisions then in force remain applicable pursuant to the provisions of Article
218 of the Supplementary Provisions) and who has been punished shall be
deemed to have violated Article 197, Article 197-2, items (i) to (x) inclusive or
item (xiii), or Article 198, item (viii) of the revised Securities and Exchange Act pursuant to the provision of Article 1, and to have been punished.
(2) With regard to the application of the provision of Article 53-2, paragraph (1),
item (iii) of the Revised Insurance Business Act (hereinafter referred to as the
"Newly Revised Insurance Business Act" in this paragraph) (including the
cases where it is applied mutatis mutandis pursuant to Article 53-5, paragraph (1), Article 53-26, paragraph (4) and Article 180-4, paragraph (3) of the Newly Revised Insurance Business Act), pursuant to the provision of Article 18
(limited to the revised provision in Article 53-2, paragraph (1), item (iii)
(limited to the segments that revise "Securities and Exchange Act" to
"Financial Instruments and Exchange Act", "(xxi) or (xxii)" to "(xx) or (xxi)",
"securities company etc." to "Financial Instruments Business Operators etc." and "(xv) or (xvi)" to "(xix) or (xx)"), any person who has violated the provisions of Article197 Article 197-2, items (i) to (x) inclusive or item (xiii), Article 198,
item (viii), Article 199, Article 200, items (i) to (xii) inclusive, item (xxi) or
(xxii), Article 203, paragraph (3) or Article 205, items (i) to (vi) inclusive, item
(xv) or (xvi) of the Former Securities and Exchange Act (including these
provisions where the provisions then in force remain applicable pursuant to the provisions of Article 218 of the Supplementary Provisions) and has been
punished shall be deemed to have violated the provisions of Article 197, Article
197-2, items (i) to (x) inclusive or item (xiii), Article 198, item (viii), Article199, Article 200, items (i) to (xii) inclusive, item (xx) or (xxi), Article 203, paragraph (3) or Article 205, items (i) to (vi) inclusive, item (xix) or (xx) of the New
Financial Instruments and Exchange Act and to have been punished.
Article 197 If an Insurance Company, etc. (referring to an Insurance Company, etc. provided in Article 2-2, paragraph (1) of the Revised Insurance Business
Act pursuant to the provision of Article 18 (hereinafter referring to "Revised Insurance Business Act"), a Foreign Insurance Company, etc. (referring to a Foreign Insurance Company, etc. provided in Article 2, paragraph (7) of the Revised Insurance Business Act), or an Insurance Broker (referring to an
Insurance Broker provided in Article 2, paragraph (25) of the Revised
Insurance Business Act), in the case where an application for a specified
insurance contract, etc. (referring to as a specified insurance contract, etc.
provided in Article 34 of the New Financial Instruments and Exchange Act as applied mutatis mutandis pursuant to Article 300-2 of the Revised Insurance
Business Act with relevant changes in interpretation) from a customer (limited to an individual listed in Article 2, paragraph (31), item (iv) of the New
Financial Instruments and Exchange Act) for the first time after the
enforcement of this Act is received, and has notified such customer prior to the enforcement of this Act pursuant to an example set forth in Article 34 of the New Financial Instruments and Exchange Act as applied mutatis mutandis
pursuant to Article 300-2 of the Revised Insurance Business Act that such
customer may make an application pursuant to the provision of Article 34-2,
paragraph (1) of the New Financial Instruments and Exchange Act as applied mutatis mutandis pursuant to Article 300-2 of the Revised Insurance Business Act after the enforcement of this Act, a notification provided in Article 34 of
the New Financial Instruments and Exchange Act as applied mutatis mutandis
pursuant to Article 300-2 of the Revised Insurance Business Act shall be deemed to have been made to such customer.
(Delegation of Authority)
Article 216 (1) The Prime Minister shall delegate his/her authority under the Supplementary Provisions (except for authority to be specified by a Cabinet Order) to the Commissioner of Financial Services Agency.
(2) With regard to the authority delegated to the Commissioner of Financial
Services Agency pursuant to the provision in the preceding paragraph, part of it may, pursuant to the provision of a Cabinet Order, be delegated to the
Director-Generals of Local Finance Bureaus or the Director-General of Local
Finance Branch Bureaus.
(Effect of Dispositions, etc.)
Article 217 Dispositions imposed, procedures taken or other acts committed
prior to the enforcement of this Act pursuant to the provisions of the Former Securities and Exchange Act, the Former Act on Securities Investment Trust and Securities Investment Corporations, or Former Trust Business Act or
orders based on those, for which the corresponding provisions exist in the
provisions of the New Financial Instruments and Exchange Act shall be deemed to have been imposed, taken or committed pursuant to the
corresponding provisions of the New Financial Instruments and Exchange Act,
except as otherwise provided for in this Supplementary Provision.
(Transitional Measures regarding the Application of Penal Provisions)
Article 218 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act (in provisions listed in the items of Article
1 of the Supplementary Provisions, such provision. Hereinafter the same shall
apply in this Article) and acts committed after the enforcement of this Act where the provisions previously in force remain applicable pursuant to the
provisions of the Supplementary Provisions and remain in force, the provisions
then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order, etc.)
Article 219 (1) In addition to what is prescribed in the Supplementary Provisions, transitional measures necessary for the enforcement of this Act shall be
specified by a Cabinet Order.
(2) Transitional measures necessary for a procedure concerning a registration associated with a partial revision of the Securities and Exchange Act pursuant to the provision of Article 3 shall be specified by an Ordinance of the Ministry
of Justice
(Review)
Article 220 Within five years after the enforcement of this Act, the government shall review the conditions of the enforcement of this Act and take necessary measures based on its results, when necessary.
Supplementary Provisions [Act No. 109 of December 15, 2006] [Extract]
This Act shall come into effect as from the Effective Date of New Trust Act; provided, however, the provisions listed in the following items shall come into effect as from the day prescribed respectively in those items.
(i) Provisions of Article 9 (limited to the revised provision in Article 7 of the Commercial Code, Article 25 (limited to the revised provision in Article 251, item (xxiv) of Act on Securities Investment Trust and Securities Investment Corporations), Article 37 (limited to the revised provision in Article 76, item (vii) of Act on Financial Institutions' Merger and Conversion), Article 49 (limited to the revised provisions in Article 17-6, paragraph (1), item (vii),
Article 53-12, paragraph (8), Article 53-15, Article 53-25, paragraph (2),
Article 53-27, paragraph (3), Article 53-32, Article 180-5, paragraphs (3) and
(4) as well as Article 180-9, paragraph (5) of the Insurance Business Act), Article 55 (limited to the revised provisions in Article 76, paragraph (6),
Article 85, Article 168, paragraph (5), Article 171, paragraph (6) and Article
316, paragraph (1), item (xxiii) of the Act on Liquidation of Assets), Article
59, Article 75 and Article 77 (excluding the provision which revises the table of contents in the Companies Act, the provision which adds two items in
Article 132 of the same Act, the provision which adds Subsection 1 after
Article 154 in the Part II Chapter II Section 3 in the same Act, the provision which adds after the Article 272 in Part II Chapter III Section 4 of the same Act, the provision which adds Article 1 after the Article 695 of the same Act and the revised provision in Article 943, item (i) of the same Act: the day of
promulgation.
Supplementary Provisions [Act No. 74 of June 1, 2007] [Extract] (Effective Date)
Article 1 This Act shall come into effect as from 1 October 2008, provided,
however, that the provisions set forth in following items shall come into effect as from the day prescribed respectively in those items.
(i) The provisions Article 3 to 22, 25 to 30, 101 and 102 of the Supplementary
Provisions: the date to be specified by a Cabinet within a period no exceeding six months from the day of promulgation.
(Transitional Measures Accompanying Partial Revision to Insurance Business
Act)
Article 77 With respect to application to the provisions of Insurance Business
Act about short-term commercial and industrial bonds which a juridical person prior to the conversion has published before the enforcement, the short-term
commercial and industrial bonds shall be deemed to be short-term company
bonds, etc. prescribed in Article 98, paragraph (6) of that Act.
(Transitional Measures regarding the Disposition, etc.)
Article 100 Those dispositions, procedures or other acts carried out before this
Act enters into force pursuant to the provisions of the respective Acts prior to
the revision (including any orders pursuant thereto; hereinafter the same shall apply in this Article), which are covered by the corresponding provisions of the respective Acts as revised, shall be deemed to have been carried out pursuant to such corresponding provisions of the respective Acts as revised, unless
provided otherwise in the present Supplementary Provisions.
(Transitional Measures regarding the Application of Penal Provisions)
Article 101 With regard to the application of penal provisions to acts committed prior to the enforcement of this Act (in provisions listed in the items of Article
1 of the Supplementary Provisions, such provision. Hereinafter the same shall
apply in this Article) and acts committed after the enforcement of this Act where the provisions previously in force remain applicable pursuant to the
provisions of the Supplementary Provisions and remain in force pursuant to
the provisions of the Supplementary Provisions, the provisions then in force shall remain applicable.
(Delegation of Other Transitional Measures to Cabinet Order etc.)
Article 102 In addition to what is provided for in the Supplementary Provisions, necessary transitional measures concerning the enforcement of this Act shall be specified by a Cabinet Order.