Corporate Law
Q. Is a shareholders' agreement legally binding in Japan?
A.
Shareholders' agreements are binding between parties but do not bind third parties or the company itself.
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Shareholders' agreements are binding between parties under freedom of contract (Art. 521-522). Common clauses include voting, transfer restrictions, board nominations, and deadlock provisions. However, they only bind contracting parties, not third parties or the company itself.
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
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