JAPAN: Corporate Law: Article 821
Many foreign corporations, notably investment corporations have been anxiously awaiting the verdict from the MoJ (Ministry of Justice) regarding whether or not to amend Article 821 in the a Japanese corporate bill under review.
The bill essentially would have required foreign companies that conduct more than three "transactions" in Japan to re-register as a domestic Japanese company. Many foreign companies would incur huge costs as a result of fees, taxes, re-negotiating contracts.
Earlier in the week, legislators signalled that amendments would be made to the bill and on Tuesday the 28th, the bill past with a much softer tone; overseas companies would not be forced to re-register.
This adds confidence to the market and will help to bolster anticipated good news from leading economic indicators due over the next month.
The Japanese economy is showing signs of entering a recovery.
Additional reading regarding Article 821:
Reuters - June 28
Financial Times - June 19 (pay site)
Financial Times - June 29 (pay site)
The bill essentially would have required foreign companies that conduct more than three "transactions" in Japan to re-register as a domestic Japanese company. Many foreign companies would incur huge costs as a result of fees, taxes, re-negotiating contracts.
Earlier in the week, legislators signalled that amendments would be made to the bill and on Tuesday the 28th, the bill past with a much softer tone; overseas companies would not be forced to re-register.
This adds confidence to the market and will help to bolster anticipated good news from leading economic indicators due over the next month.
The Japanese economy is showing signs of entering a recovery.
Additional reading regarding Article 821:
Reuters - June 28
Financial Times - June 19 (pay site)
Financial Times - June 29 (pay site)
posted by howa at
6/29/2005
