Special Corporations

Social Welfare Corporations

In recent years, some social welfare corporations have faced problems such as arbitrary management by the president, and there have been calls for stronger governance, transparency of management, and information disclosure. In response, the revised Social Welfare Act came into full force on April 1, 2017.

The revised Social Welfare Act includes provisions to strengthen corporate governance, such as the establishment of councilors and boards of councilors, legislation of methods for the appointment and termination of officers, legislation of restrictions on competing and conflict of interest transactions between officers, and legislation of liability for damages of officers and councilors. Information disclosure provisions have also been established by law. There is also a need with respect to the operational practices of existing social welfare corporations for an accurate understanding of the details of these legal revisions, implementation of the necessary procedures, establishment of governance, and disclosure of information.

In our representation of and provision of advice to social welfare corporations, our firm has accumulated a wealth of organizational and operational practices and expertise in response to the revised Social Welfare Act. We have systems in place to comprehensively assist and support social welfare corporations in their organization, operations and dispute resolution, from preventive legal steps to consultation with administrative organizations (competent authorities) in the event of problems.