The Review and Further Thinking of the Third Supervisory Model in Japanese Corporate Law

The Japanese commercial law sets the choice system of corporate governance when it is revised in 2002. The corporation can choose the supervisory organization as the board of supervisors or as the committee in the board of directors through it's articles of association. The third supervisory model is created because the number of using the committee system is just a few from 2002 to 2011. The third supervisory model only needs the general meeting of stockholders and the board of directors which must have the audit committee including three directors and the outside directors are no less than a half. This model covers the shortage of supervisors and excludes the failure factors of committee system in practice, but some counterviews are raised because it is a compromise proposal. The method of legislating and revising corporate law in Japan is worth studying by us.