Leon Wolff

Corporate Governance and Law Reform in Japan: From the Lost Decade to the End of History?

Much has been made of Japan’s ‘lost decade’. With economic stagnation, financial crisis and record corporate insolvencies during the 1990s, Japan’s once mighty economic machine appears to have lost its way. But its sluggish economic performance stands in contrast to an enormous burst of activity in law reform. On a scale comparable to the massive legal innovations made after Japan reopened itself to the world during the Meiji Restoration from 1868 and the democratization of constitutional and economic law during the Allied Occupation from 1945 to 1952, Japan is embarking on a ‘third wave’ of legal and regulatory reform. The primary driver of the reform movement is growing desperation to regain economic momentum. A guiding theme is dismantling ex ante regulation of businesses by public authorities and introducing more indirect means of ex post control by empowering private entities with private or corporate law remedies.2

Popular participation in labour law: The new labour dispute resolution tribunal

The Labour Tribunal Law (No. 45 of 2004) ushered in a new court-annexed dispute resolution system for industrial relations disputes in Japan (outlined generally in Sugeno, 2004). Similar to the lay judge system for criminal trials (Johnson and Shinomiya, Chapter 2), the new tribunal adopts an adjudicative model that blends professional and lay expertise with decisions heard by a tripartite panel comprising a professional judge and two lay judges recommended by management and labour unions respectively. The new tribunal system came into operation on 1 April 2006.

When Japanese law goes pop

Japanese law is going ‘pop’. Since the turn of the century, Japanese popular culture, especially prime-time television, has dedicated more time to legal themes, characters and settings. Lawyers, overwhelmingly women, are the heroes in both dramatic and comedic television series (Nakamura, 2007). Courtroom battles are the scene for plot developments (Ishikawa, 2004). Practising lawyers are the new celebrities, joining actors and singers on the light entertainment talk show circuit. To be sure, law is not a new thematic preoccupation on Japanese network television. Nor is it one that has become so dominant that it overshadows more traditional genres such as workplace romantic comedies, coming-of-age dramas or family soap operas (eg, Dissanayake, 2012, p._194). But, its growing presence on the silver screen in twenty-first-century Japan is a trend that merits analysis. The purpose of this chapter is to explore that socio-legal significance. This presents theoretical and empirical challenges. Theoretically, is there explanatory potential in the link between law and popular culture in Japan? Empirically, does the greater embrace of law-related characters, plots and scenes in prime-time television series since 2001 provide compelling evidence of changing popular attitudes to law and legal process among Japanese viewers? The inspiration for both the title and theme of this chapter comes from Sherwin’s When Law Goes Pop (2000). But it departs from Sherwin in how it defines and analyses the issues. For Sherwin, ‘pop’ means ‘implosion’.

Law as Lore

Stories are central to law. Yet narrative analysis, the key analytical technique in the social sciences for analysing stories, is largely unknown in legal scholarship. This article investigates the central tenets of narrative analysis as a social scientific research method. It goes on to explore its possibilities and pitfalls for legal scholarship.

Introduction: Japan’s gradual transformation in corporate governance

Japan has recovered from a ‘lost decade’ of economic stagnation over the 1990s. Anyway, it has been a ‘found decade’ for civil and criminal justice law reform, especially in corporate and securities law. Yet, have liberalisation and globalisation in those fields led to major changes in the ‘law in action’? Does this represent ‘Americanisation’ of Japan’s corporate governance system, focusing on shareholders rather than other key stakeholders such as ‘main banks’, core employees, and partners within diffuse corporate groups (keiretsu)? This version of our introductory chapter explains how our forthcoming book argues for a more complex ‘gradual transformation’. Such shifts are also found in many other post-industrial economies, but Japan appears to give greater emphasis given to certain modes of achieving change. The book brings together contributions from academics and practitioners from Japan, Australia, New Zealand, Canada and the United States. An early chapter introduces methodology for effective cross-country comparisons and for evaluating the burgeoning but divergent literature on Japanese corporate governance. The concluding chapter compares continuities and changes in Japan’s largest companies now and two decades ago. Other chapters cover ‘lifelong employment’, main banks, the untold story of closely-held companies, the limited uptake of the Committee-based governance form, and the procedural, substantive and FDI policy dimensions of takeovers law and practice.