Fiduciary Principles in Japanese Law

Abstract

In this chapter, we offer a general introduction to Japanese fiduciary principles. Using corporate law as an example, we outline the scope of the duties of loyalty and care, and of the business judgment rule. We compare the application of these principles in Japan to their application in the United States, and discuss their impact on economic and non-economic activity. We briefly examine their use beyond the corporate context, and outline several recent extensions in the for-profit and in the not-for-profit sectors. Throughout, we examine both statutory and case law, and trace the evolution of the principles over time.