Corporate Law

with a representative from the legal and intellectual property department of the advisory firm.
We work together to support your business.

Management Disputes and Commercial Litigation

extensive experience in disputes between family companies

According to a survey by the National Tax Agency in 2015, 95.7% of companies in Japan are family-owned companies. And in such family companies, the shares are dispersed among the family members due to inheritance and heritage. It is common for disputes to arise over the management rights of a company, and these disputes often end up in litigation. The Civil Affairs Division 8 of the Tokyo District Court is known as the “Commercial Division” and is responsible for corporate and antitrust law-related litigation.

Most of the cases we deal with are internal disputes between family companies. In family companies, since the relatives of family members are often both shareholders and directors of the company, the number of measures that can be taken under the Companies Act is much greater than that of only one of the shareholders and directors.

In addition, such family companies often do not comply with the detailed provisions of the Companies Act. This can also be the cause of a corporate relationship lawsuit being filed. For shareholders on the offensive, this is due to the fact that the courts require compliance with the forms set out in the Companies Act.

We have seen cases where, although there were no problems at first, over time a family relationship deteriorated, resulting in disagreements over management, minority shareholders demanding that the company purchase their shares, and so on, and the conflict intensified due to a combination of economic interests and the emotional entanglements inherent in family members, which eventually led to litigation.

We have handled many family company disputes, so if you are involved in a dispute, we are able to provide you with advice on how to avoid being involved in a dispute or how to disentangle yourself from such a predicament.

Employment Law

meticulous attention to detail required under labor laws

Employment issues range from overtime, wages, firing, sexual harassment, and power harassment to name but a few. Labor problems are inevitable for companies as they employ people and conduct business activities.

In Japan, employment laws mean that employees are well-protected, and employers are required to comply with various kinds of regulations.

One of the most common of these cases is when a company wants an employee to quit or tries to get an employee to quit and as a result, receives a letter from said employee’s lawyer.

When an employee’s lawyer is retained, at the labor tribunal process, which is often used, an immediate initial response is required. It is important for you to be able to consult with an attorney who is available immediately and able to respond promptly.

We place great importance on the speed of our response, not only for labor tribunals, but also for other matters.

Debt Collection

choosing the appropriate procedure and maximizing results

No matter how great the sales figures that are recorded in sales activities, they mean nothing if you do not receive compensation for the amount of sales.

If a debt is not collected, it is purely a loss of profit. In addition, under our legal system, if collection is not possible voluntarily, a creditor will want to convert or recover the debt or property, and there is no way for a creditor to determine the assets of a debtor. In recent years, the situation has gradually been made more transparent and the system has been amended.

We understand the importance and difficulty of such debt collection services and consult with our clients on what legal means are best and whether the debtor’s assets are hidden somewhere, taking into account the prospect of recovery and costs.

Even in cases where there is no prospect of recovery, we may take legal proceedings to dispose of the loss for tax purposes.

In such cases, we consider in which year the loss should be treated as a loss and determine if it is not recoverable by the desired year and schedule it so that you can show it (which can be very time-consuming in the case of estate executions).

Crisis Management and Compliance

minimizing reputational risk

In recent years, public condemnation for getting the initial response wrong on crisis management and compliance issues has increased. Companies are exposed to a number of cases. To prevent this from happening, companies need to be able to respond quickly and effectively to deal with any problems that may arise. It is necessary to have a system in place to deal with such issues accurately.

Yukio Kobayashi has experience as an external auditor and as an external contact for whistleblowers for companies, and Hiroshi Yugeta has served eight years as an external auditor of a listed company listed on the First Section of the Tokyo Stock Exchange and continues to serve as an external contact for whistleblowers for companies, giving him ample experience in risk management and compliance issues.

Personal Information

privacy compliance as a business imperative

In recent years, companies that handle a lot of personal information have been exposed for leaking and using personal information for purposes other than those intended, and this has led to major privacy issues and made us aware that this has become a social problem too.

In addition, even in cases of obtaining and providing customers’ movement history and other information that is not strictly personal information, society has been justifiably concerned. The laws and regulations regarding personal information were so sturdy that some businesses were eventually forced to stop. There is a strong tendency to want and desire the “proper” handling of personal information.

On the contrary, the business world is promoting the use of big data, and the Personal Information Protection Act has been amended. This is an ongoing process, and the use of personal information for corporate activities is becoming more and more active. As such, there are many companies that are suffering from the dilemma of being in the middle of the personal information dispute.

We are able to provide legal advice to companies that are taking a leading role in the acquisition of big data. We often respond to corporate clients and provide accurate advice on personal information issues. In addition, we draft privacy policies and various regulations, such as contracts for outsourcing the handling of personal information. We also assist in the development of related internal rules.

Insolvency

choosing the appropriate procedure in an emergency to ensure an immediate response

When a company goes bankrupt, the company itself is significantly transformed by law as a bankrupt company, but in addition to directors and employees, it affects a variety of stakeholders, including shareholders, creditors and business partners.

Therefore, the legal issues that arise as a result of corporate insolvency are multifarious, and proper involvement by legal professionals is required.

Hiroshi Yugeta has been appointed by the Tokyo District Court as a trustee and is able to provide appropriate advice from the perspective of all parties involved.

Civil Intervention Violence

supported by attorneys who continuously work on civil intervention violence cases

Hiroshi Yugeta specializes in civil intervention and violence cases and has been involved in a number of civil intervention violence cases in the past.

Mr. Yugeta is a member of the Committee on Civil Intervention and Violence of the Daini-Tokyo Bar Association and is therefore committed to ensuring the smooth cooperation of the association and the Metropolitan Police Department and redressing the rights of clients promptly and accurately.

Unreasonable and unacceptable words, actions and behavior from members of organized crime groups, syndicates, gangs, right-wing extremists, ordinary members of the public and people engaged as loan sharks, and complainers etc. will fall under the category of civil intervention violence.
If an organized crime member or other person has actually assaulted or threatened you, the most effective and immediate solution is to report it to the police and have it dealt with as a criminal case.

However, since the enactment of the Act on Prevention of Unjust Acts by Gangsters (the so-called Violent Crime Prevention Act), the number of blatantly illegal activities has been on the decline as opposed to merely unreasonable demands etc. that cannot be criminalized.

There are more and more cases of coercion and obstruction of business that cannot be handled by the police. In these cases, it is necessary to contact an attorney who can send a warning letter to the other party or attempt to negotiate with the other party. There are times however, when the other party will refuse to cooperate, and it will thus be necessary to file a provisional injunction or a lawsuit with the court.

Also, any company, large or small, can get into trouble with civil intervention violence and complainers at any time. You may become involved too. Should you find yourself in such a situation you may want to talk to us right away. If you have any requests for ongoing advice on how to deal with such problems, claims, unfair demands etc., please contact our advisors.

Mergers & Acquisitions/Reorganization

the most suitable team at reasonable cos

Our firm reviews and prepares agreements related to organizational restructuring, such as stock purchase agreements, merger agreements, company split agreements, and business transfer agreements, as well as internal corporate documents necessary for organizational restructuring. In many cases, there are legally set deadlines for each procedure in a reorganization, and we try to respond as quickly as possible after illustrating the ‘big picture’ of such procedure.
We also handle so-called due diligence (DD) on target companies, and are involved in the entire process from interviewing key personnel and company officers, identifying legal issues, and preparing due diligence reports.
The so-called “hourly charge system” typically used by large law firms may result in significant increases in legal fees, but our firm is able to offer a fixed fee proposal in accordance with the requests and needs of the client. In addition, we do not assign more than one attorney per area of practice, but rather select the most suitable and reasonable team of attorneys for a client’s project.