The Tokyo District Court has ruled that a car sale agreement whereby the seller reserved the ownership of the cars until all debt was paid was not an executory contract under the Civil Rehabilitation Law. However, because the agreement on ownership reservation was regarded as a collateral agreement, the seller could execute such collateral under the civil rehabilitation procedure.
Several amendments to Japan's Commercial Code came into force in April 2002. They are designed to give companies more financial flexibility and to make Japan's commercial law more user-friendly for venture businesses.
Reforms are underway to fight the corruption that was formerly commonplace throughout corporate Japan. In several recent high-profile cases, senior officials have been held accountable for their mistakes by shareholders – highlighting the way in which improved communications and globalization have changed what corporations can hope to get away with.