How can you minimize corporate administrative burdens?
Kabushiki-Kaisha (KK) is often said to have heavier administrative burdens than Godo-Kaisha (GK). However, those burdens can be reduced by choosing an appropriate corporate structure.
First, you should adopt the minimum required corporate bodies—namely, a shareholders’ meeting and one director. You do not need to establish a board of directors. If a company has a board, board meetings must generally be held at least once every three months, which can be burdensome.
Second, you can use written resolutions of shareholders. If all shareholders consent to a matter to be resolved, you are not required to physically hold a shareholders’ meeting to approve fundamental matters. In such cases, you can skip the actual meeting and simply prepare and retain written minutes reflecting the resolution.
Please note that the annual disclosure of the balance sheet is mandatory for a KK and cannot be exempted. However, the measures mentioned above can significantly reduce administrative burdens and allow you to focus on your core business activities.
