amounts, such as a bank or trust company; and the project participants. the Ministry of Land, Infrastructure and Transport, the Amendment aims to activate the local economy and provide relief against asset deflation, certain measures (such as permitting special purpose entities which meet certain requirements to carry out a bankruptcy remoteness type of Real Estate Specified Joint Enterprise), through the introduction and promotion of private funds into the earthquake resistance of buildings and/or the renovation of aging real estate. The press release also states that due to this Amendment, it is estimated that in 10 years after this amendment, new investments of about 5 trillion yen will be made, a ripple effect in terms of production of about 8 trillion yen will occur, and a job creation effect for about 440,000 people will also occur. In addition to the requirements to the Special Operations, further requirements are described in the press release by Transport as set out below: Operator entrusted with operations from Special Operators Enterprise must obtain permission from the competent minister. Enterprise Operator under the Financial Instruments and Exchange Act. addition to the current regulations, there are new regulations such as prohibitions against self-dealing, subcontracting works which were already entrusted. In the event of a violation of these regulations, the competent minister may issue any instructions and/or disposal orders, a business suspension order and/or an order cancelling a permission that had been granted for an enterprise. Enterprises of Real Estate Specified Joint Enterprise Operators Real Estate Specified Joint Enterprise Specified Joint Enterprise Operators): among the officers of an Operator, the enterprise activities of the Operator are controlled by organized crime group members etc., and other such facts would be considered reasons for the disqualification of a permission of such Operator Estate Specified Joint Enterprise contracts and subcontractors shall be added as subjects of orders for the collection of reports and site inspections, etc. inspection of documents to/by enterprise participants, soliciting contracts of a Real Estate Specified Joint Enterprise, and reports to administrative authority etc. are to be strengthened. Asuka Law Offices for further details about the Amendment. |