Being a director is more than a prestigious title. It is a serious responsibility with real exposure. In Japan, lawsuits against directors remain relatively rare—but that doesn’t mean the risks aren’t real. 

In July of 2025, the Tokyo high court overturned the 2022 ruling ordering four TEPCO directors to pay 13 million yen in damages. The shareholder derivative suit resulted in 62 meetings over a 10-year period. This was an unprecedented case of damage claims, and the time span is hard to imagine. In early 2025, a shareholder lawsuit was filed against seven Kobayashi Pharmaceutical Directors (including renowned directors). It is critical to be diligent in the role, but also understand the coverage offered and any potential exceptions. Even if cleared from financial liability, the time, energy, and stress associated with a lawsuit is a serious and challenging matter.

Topics:

• D&O Risk

• Insurance Market Trends

• D&O Compensation Details

• Payment Limits

• Shareholder Representative Litigation System

• Overseas Subsidiary Fraud

• Major Incidents