Jul.21.2004

Japanese Bankers Association

Report by the First Subgroup of the Study Group on Legal Matters in Banking (Only in Japanese)

The first subgroup (subgroup leader: Professor Shinsaku Iwahara, University of Tokyo) of the Study Group on Legal Matters in Banking (established by JBA and headed by Professor Emeritus Hitoshi Maeda of Gakushuin University) compiled its findings based on the subgroup's fiscal 2003 studies and published a report titled, "Legal Issues concerning Corporate Bond Management Companies." The purpose and composition of the report are as follows.

1. Purpose
"Corporate bond management companies" were introduced in 1993 after lengthy deliberation when the Corporate Bond Law was revised. However, the environment for issuing corporate bonds has changed since then, and a decision was made to review the corporate bond management company and reflect these changes in the on-going discussions for modernizing the corporate law system. The report takes recent changes into account and examines legal issues concerning the company. Topics addressed in the report are mostly those picked up in the discussions for modernizing the corporate law system.

2. Composition

Chapter 1:Outline of Corporate Bond Issues Discussed in the "Draft Summary for Modernizing the Corporate Law System"
Chapter 2:Details of Deliberations on the 1993 Corporate Bond Law Revision
Chapter 3: Powers of Corporate Bond Management Companies in Creditor Protection Procedures
Chapter 4: Fiduciary Duties of Bond Management Companies
Chapter 5: Review of the Second Clause of Article 311-2 in the Commercial Code
Chapter 6: Execution of Rights by Bondholders when Resuscitating Companies