I hereby promulgate the Law for Partial Amendment of the Law for Partial Amendment of the Commercial Code.
Signed:HIROHITO, Seal of the Emperor
This eighth day of the sixth month of the twenty-sixth year of Showa (June 8, 1951)
Prime Minister YOSHIDA Shigeru
Law for Partial Amendment of the Law for Partial Amendment of the Commercial Code
The Law for Partial Amendment of the Commercial Code (Law No,167 of 1950) shall be partially amended as follows:
The amended provisions of Article 59 shall be amended as follows:
Article 59. When a shareholder, a creditor or any other party interested has made an application mentioned in paragraph 1 of the preceding Article, the Court may order him to furnish adequate security at the request of the company. In order to make the request mentioned in the preceding Article, the company must render credible the fact that the application mentioned in paragraph 1 of the preceding Article has been made with wrongful intent.
The amended provisions of Article 106 shall be amended as follows:
Article 106. When a creditor has instituted an action mentioned in Article 104 paragraph 1, the Court may order him to furnish adequate security at the request of the company.
In order to make the request mentioned in the preceding Article, the company must render credible the fact that the action mentioned in the same paragraph has been instituted with wrongful intent.
The amended provisions of Article 249 shall be amended as follows:
Article 249. When a shareholder has instituted an action for rescinding a resolution, the Court may order him to furnish adequate security at the request of the company;this shall not apply, however, if such shareholder is director.
The provisions of Article 106 paragraph 2 shall apply with the necessary modifications to the request mentioned in the preceding paragraph.
The amended provisions of Article 252 shall be deleted.
The amended provisions of Article 253 shall be amended as follows:
Article 253 paragraph 1, "paragraph 4" shall be amended as "paragraph 5" .
The following two paragraphs shall be added to the amended provisions of Article 267:
When a shareholder has instituted an action memtioned in the preceding two paragraphs, the Court may, at the request of the defendant, order him to furnish adequate security.
The provisions of Article 106 paragraph 2 shall apply with the necessary modifications to the request mentioned in the preceding paragraph.
In the amended provisions of Article 280-(16), "and Article 137" shall be amended as "Article 137 and Article 240" .
The amended provisions of Article 380 shall be amended as follows:
In Article 380 paragraph 1, "the reduction of the capital" shall be amended as "the alteration due to the reduction of the stated capital," and "an auditor" in paragraph 2 and "Article 107" in paragraph 3 of the same Article shall be deleted.
The amended provisions of Article 416 paragraph 1 shall be amended as follows:
In Article 416 paragraph 1, "and Articles 105 to 111" shall be amended as "Articles 105,106 and 108 to 111 inclusive" .
In the amended provisions of Article 430 paragraph 2, "Article 247" shall be amended as "Articles 247,249" .
In the amended provisions of Article 484, "Article 58 paragraph 2" shall be amended as "Article 58 paragraph 2 and Article 59" .
Supplementary Provision:
This Law shall come into force as from July 1, 1951.