Consolidation of basic laws on civil matters

There have been remarkable changes in the social and economic climate of Japan and the diverse opinions of the general public in recent years. In this regard, the Ministry of Justice now has to deal with many legislative problems, in order to ensure that the basic laws on civil matters are up to date. For example, with regard to the Civil Code, partial amendment to the Law for Unit Ownership of Buildings, aimed at proper management and smooth rebuilding of buildings, was made in 2002 and enforced in June 2003. In 2003, the Civil Code and the Law of Civil Executions was amended to make the security system adaptable to social changes and to make the means of executing rights more effective and these amendments entered into force in April 2004.

In 2004, the Law for Amending Part of the Law Prescribing Exceptions to the Civil Code Requirements for Setting Up Against a Third Party to an Assignment of Claims was reviewed to enable smooth fund raising of companies. In addition, the Partial Amendment to the Civil Code, which reviewed the guarantee system to ensure appropriate personal guarantees and amended Parts 1 to 3 of the Civil Code to change the Code from the previous literary style into contemporary language, was enacted and the amendment entered into force in April 2005.

In the field of the real estate registration law, the Act for Partial Revision of the Real Estate Registration Act and Other Laws was enacted in 2005 to establish the abuttals identification system aiming to rapidly and suitably identify the abuttals between registered lands, and was enforced in January 2006.

In 2006, a new Trust Code was established modernizing the trust system.

Further, in order for smoother fund raising of companies, the Electronically Recorded Monetary Claims Act was enacted in 2007. This new act establishes a new category of monetary claims called denshi-kiroku-saiken (electronically recorded monetary claims), which assures safety and higher liquidity with respect to transactions using monetary claims.

With regard to measures related to the Commercial Code, from the perspective of measures in line with recent changes in socioeconomic circumstances, systematic and fundamental review of the various systems related to companies has been implemented. The Companies Act Code was enacted in 2005 and enforced in 2006, for the purpose of rewriting Part 2 of the Commercial Code and the Limited Liability Company Act into easily comprehensible, modern-day language.

In the field of civil procedural law, the Law for Partial Amendment to the Code of Civil Procedure to Enhance and Accelerate Civil Trials and the Code of Procedure Concerning Cases Relating to Personal Status (special exception to the Code of Civil Procedure) to transfer the jurisdiction of personal status cases (e. g., divorce cases) from the district courts to the family courts, were enacted in 2003 and entered into force in April 2004, as part of reform of the justice system.

In addition, in 2004, the Code of Civil Procedure and the Law of Civil Execution were amended to enable making a motion via the Internet in Civil Procedures and to rationalize and accelerate civil execution. These amendments entered into force in April 2005.

In the field of bankruptcy law, the Civil Rehabilitation Law was enacted in 1999; and in 2000 the Law for Partial Amendment to the Civil Rehabilitation Law and the Law Relating to Recognition and Assistance for Foreign Insolvency Proceedings were enacted, and in 2002 the Corporate Reorganization Law was enacted. In 2004, the Bankruptcy Law was enacted.

The Companies Act enacted in 2005 reviewd the special liquidation procedure.

In the field of private international law, “the Code of General Rules for Application of Law” was enacted in 2006 in order to amend the provisions on private international law in Japan. The objectives of the Code are to meet current needs and to achieve coordination with the most recent rules of private international law of other countries as well as to rewrite the provisions in contemporary Japanese.

The Ministry of Justice is striving to continue consolidation of these basic laws on civil matters.