Article Title

A Study of Judicial Precedents in Commercial Law: Liability of a Limited Liability Company Director to a Third Party for Trading and Issuing Notes After Deterioration of the Business and Bankruptcy of the Company

Authors

Takamoto Suzuki

Abstract

[extract] The liability of a director of a Limited Liability Company to a third party (under Yugen Kaisha Ho, Article 30-3) should be applied consistently with the interpretation of Commercial Code, Article 266-3 in spite of the fact that there are minor variations because of the special nature of Limited Liability Companies.

In this decision, in which the breach of a representative director’s duty to supervise was questioned, the immediate issue was that the neglect of duty by the director taking the action (it is unclear from the judgment whether B became a representative director before or after these transactions and note issuances) was based on bad faith and gross negligence.

Recommended Citation

Suzuki, Takamoto (1993) "A Study of Judicial Precedents in Commercial Law: Liability of a Limited Liability Company Director to a Third Party for Trading and Issuing Notes After Deterioration of the Business and Bankruptcy of the Company," Bond Law Review: Vol. 5: Iss. 2, Article 8.
Available at: http://epublications.bond.edu.au/blr/vol5/iss2/8