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K.K. (Kabushiki Kaisha)
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G.K. (Godo Kaisha)
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Corporate Structure
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Separation of Ownership and Management
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Ownership and Management combined
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Credibility
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Still considered as most credible entity form
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Enacted in 2006 and continues to gain credibility and popularity
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Minimum Capital (Cash amount)
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From 1 JPY
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From 1 JPY
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Responsibility of Shareholders (Members)
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Limited to the amount of equity participation
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Limited to the amount of equity participation
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Transfer of Shares (Ownership)
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May be transferred freely in principle However, most K.K. entities other than listed K.K. entities limit he transfer of equity participation shares
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Unanimous approval of equity participants (members) required However, it is possible to have alternative procedures as provided in the Articles of Incorporation
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Number of Executives (Directors) Required
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Appoint of 1 or more required Representative Director with right to execute business. If no representative director is appointed, executive officers (directors) each have the right of representation.
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No legally stipulated minimum. In principle, all members (shareholders) are executive officers, but a representative member may be appointed.
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Term of Executives
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Director: 2 years in principle, extendable up to 10 years Auditor (if required): 4 years in principle, extendable up to 10 years
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No legally stipulated term
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Possibility of a Company to be a Director
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Not possible
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Possible However, the company needs to appoint an individual as executive manager (shokumu shikkoshain) to perform management duties. On registration, both the company and individual names are registered and are publicly available.
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Possibility of Public Offer of Stock
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Possible
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Not possible
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Distribution of Profits and Losses
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Allocated according to equity participation ratio
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May be allocated at different rates from the equity participation ratio if specified in the Articles of Incorporation.
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