Representative director 代表取締役

The director with legal authority to act for and bind the company. Also written daihyo torishimariyaku, representative director, legal representative.

Under Article 349 of the Companies Act, a representative director has authority to do anything in the course of the company's business, in or out of court. Internal limits on that authority, such as a parent company's approval matrix, do not bind third parties who were unaware of them. In a company with a board, the board chooses the representative director from among the directors. A company can have more than one.

The representative director is usually the shacho, the president, but the two are not the same thing: shacho is a company title, and representative director is the legal role. The law protects outsiders here too. If a company lets a director use a title such as president that suggests authority, it can be bound by what that director does even without registration as representative.

Until March 2015, at least one representative director of a Japanese company had to live in Japan. The Ministry of Justice dropped that requirement, though a branch of a foreign company still needs a representative resident in Japan. The representative director's name and address appear in the commercial register, and since October 2024 they can apply to show only the city or ward.

What it means for a foreign employer

Sources

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General information for employers, not legal advice. Thresholds and dates are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.