The Japan Society Review
Book, Stage, Movie, Arts and Events Review

Editor: Sean Curtin
Managing Editor: John Toppon............................................................................................................................................................

Issue 19 Volume 4 Number 1 (March 2009)

We kick off our first issue of 2009 with a look at afascinating new historical book, Kyushu, Gateway toJapan. Too often our view of Japan is distorted by
a Tokyo-centric bias which neglects other regions
and downgrades their importance in the national
narrative. Andrew Cobbing’s excellently researched
new work is the perfect antidote to this tendency,
reminding us of the significant role Japan’s mighty
south island has played in the country’s history. As
the title suggests Kyushu was the historical gateway
to Japan as well as the cradle of its early civilization.
As usual, we also offer a selection of some of thebest new Japanese film and DVD releases. FumikoHalloran examines a gripping new TaiwaneseJapanese production which explores Japan’scolonial rule of Taiwan from a modern day setting.
It’s a moving and uplifting tale, offering a different
and more human perspective on Japan’s colonial
past. Simon Cotterill looks at the new DVD release of
Turtles are Surprisingly Fast Swimmers; a very funnyand entertaining Japanese movie. Its somewhat
unusual narrative style and clever humour makeit compelling viewing. You will also find Manabu
Matsunaka’s in-depth appraisal of a new Japanese
language book on corporate law, William Farr’s
thoughts on a popular Japanese martial arts bookand Sir Hugh Cortazzi’s review of Peter Davies’
substantial new work on Frederick Cornes.
Sean Curtin

Contents(1) Kyushu, Gateway to Japan: A Concise History(2) Turtles are Surprisingly Fast Swimmers(3) Cape No. 7(4) Angry White Pyjamas(5) The Business, Life and Letters of Frederick Cornes(6) Kigyō Ketsugou Housei no Shōraizou(7) Japanese for Everyone

New reviewswww.japansociety.org.uk/reviews.html
Archive
http://www.japansociety.org.uk/reviews_archive.html

We are grateful to our regular reviewers:
Sir Hugh Cortazzi
Fumiko Halloran
Takahiro Miyao
Ben-Ami Shillony
Mikihiro Maeda
Ian NishAnna Davis
Susan Meehan
William Farr
Tomohiko Taniguchi
Simon Cotterill......................................................................................................................................................................................................

Kyushu,Gateway toJapan: A Concise History
by Andrew Cobbing
Global Oriental, 2009, 240
pages. Hardback, £55.00
ISBN-13: 978-1905246182
Review by Sir Hugh Cortazzi
Of the four main Japaneseislands, Kyushu has aparticularlyinteresting
history. The myths about
the origins of the Japaneseislands and its imperialline began at Takachiho, in what is now Miyazaki
prefecture. Here was “The Floating Bridge ofHeaven.”One of Andrew Cobbing’s aims in this book was

to draw attention to the cultural diversity in Japan
which is apparent to anyone who spends timein an outlying part of Japan such as Kyushu. This
diversity is not always adequately brought out inmuch of the writing in English about Japan which
has a tendency to focus on the view from Tokyo.
Cobbing begins his account of the history of
Kyushu with reference to various myths, but moves
in his second chapter to the discovery in 1985 of
one of Japan’s earliest settlements at Yoshinogari
in Saga prefecture which chimed with early
Chinese descriptions of Japan or the land of Wa
and of the early Japanese ruler Himiko or Queen of
Wa. This leads on to a discussion of the locationof the legendary Yamatai, of early settlements in
Kyushu including the building of giant tombs andof contacts between Tsukushi, an early name for
Kyushu, and ancient Korea.

The eventual triumph of the Yamato people incentral Honshu did not mean that Kyushu lostits importance. As Cobbing points out, contacts
with Korea and China, Japan’s nearest continental
neighbours, were mainly concentrated in Kyushu.
The administrative centre for Kyushu and forJapan’s foreign relations, such as they were overa thousand years ago, was established at Dazaifu,
south of the modern city of Fukuoka. It was toDazaifu that the renowned scholar Sugawara
Michizane was sent as governor in 901. This wasan important and prestigious appointment but
was seen as exile from the centre of Japanese
civilization at that time in the capital Kyoto or
Heiankyo. Sugawara’s death in exile was thought
to be the cause of various calamities and he wasdeified as Tenjin, the god of learning. His shrine at
Dazaifu still attracts numerous pilgrims, especiallyat examination time by students seeking successin their exams.
As Kyushu became the gateway for trade with
China and Korea, Hakata across the river from
Fukuoka (the two cities are now joined) developed
as a major mercantile centre, only to be overtaken
in later centuries by Osaka and Edo. It came under
the control of the Taira clan who were able to use
the wealth of Hakata as a base for their growing
power in the twelfth century. When the Minamoto
defeated the Taira and the Kamakura Bakufu wasestablished, Cobbing explains; “Hakata lost its
status as the single designated gateway for vessels
from overseas,” although it continued to flourish
as one of the most important mercantile cities inJapan.
When the Mongols decided to try to add Japan totheir conquests their first approach was to Kyushu.
In 1268 a letter from Kublai Khan handed over in
Hakata Bay was addressed to the “King of Japan.”This immediately raised a controversy. Was it the
Mikado or the Shogun who should respond? As aresult no reply was given. In 1274 a large Mongol
force arrived in Hakata Bay and forced the Japanese
defenders back. However a huge storm arose andthe Mongol fleet suffered serious damage. In
1275 a further group of Mongol envoys reachedJapan. They were sent to Kamakura where they
were executed. In 1276 another invasion force wasreadied and attacks were launched in Hakata Bay,but they were beaten back. The Japanese authorities
maintained for many years their vigilance against
further Mongol attacks, although this never came.
Japanese contacts with China were interrupted
after the failure of the Mongol attacks, but were
not entirely broken off. In the fifteenth andsixteenth centuries Japanese ships and Japanesepirates from Kyushu sailed as far south as Annam[Central Vietnam].
2

Hideyoshi’s attack on Korea at the end of thesixteenth century was mounted from Kyushu
and it was to Kyushu that Korean potters werebrought. Kilns were founded by these Korean
migrants at various places on the island anddistinctive wares such as those of Satsuma andKaratsu were developed by Korean potters. Kyushu
indeed became one of the most important areas
for Japanese ceramics and in the seventeenth andeighteenth centuries ceramics from Arita such as
Kakiemon were exported in large quantities by
Dutch merchants and widely imitated in Europe.
The first westerners to reach Japan in the middleof the sixteenth century landed first on the islandof Tanegashima, to the south of Kyushu. The
Portuguese Jesuits began to seek converts in theisland and Kyushu became their main base. The
merchants who followed the missionaries naturally
began to trade from Kyushu and it was to Kyushu
that the English and the Dutch first came at the
beginning of the seventeenth century. After the
expulsion of the Portuguese and Spanish Catholics
and the almost total suppression of Christianity
in Japan following the Shimabara rebellion of
1637/8 the Dutch merchants were confined to theartificial island of Dejima in Nagasaki bay. Kyushu
thus remained (throughout the Edo [Tokugawa]
period) as Japan’s window to the world.
Kyushu played a significant role in the overthrowof the Bakufu and the Meiji Restoration of 1868.
The Satsuma fief, with that of Choshu in western
Honshu, played a dominant role in the revolution
and samurai from Satsuma had leading roles ingovernment and the armed forces, especially thenavy in the new Japan. But the speed of change leftmany samurai poverty stricken and discontented.
Kyushu became the focal point of disaffection.
The Saga Rebellion of 1874 was easily suppressed,
but the Satsuma rebellion of 1877, although it was
eventually crushed, posed more of a threat to the
new central government.
In the modernisation and industrialization of Japanin the late nineteenth century, Kyushu with its
indigenous supply of coal and its ports, especially
Nagasaki, attracted steel making and shipbuilding.
Inevitably in the Second World War Kyushu wasin the front line, especially as American forces
approached Japan. The Yawata steel works, thefirst target of the Americans’ second atomic bomb,
was obscured by cloud and Nagasaki, because of
it shipbuilding works, was hit instead.
In the post-war era Kyushu has attracted agood deal of new investment especially in lightmanufacturing and tourism. It is the closest partof Japan to the Asian continent and as Cobbing
rightly calls the island, Kyushu is the Gateway toJapan.
Issue 19 Volume 4 Number 1 (March 2009)

Cobbing has produced a well researched andreadable study which is a valuable and necessary
supplement to general histories of Japan. The
60 colour illustrations add significantly to thebook’s appeal to the general reader as well as theacademic student. Anyone planning a study tourof Japan should ensure that at least a few days
are devoted to Kyushu where there is so much tosee not only of scenic beauty but also of historicinterest. This book is not a normal guide but itshould be essential reading for foreign visitors to
Kyushu.
ever since childhood, Suzume finds herself having
to duck quickly to avoid an avalanche of apples!
Lying against the floor, Suzume sees an incredibly
small advertisement stuck to a lamppost – “Spies
Wanted! Call for details.”

Turtles are Surprisingly
Fast Swimmers (亀は意外と速く泳ぐ),
Turtles are Surprisingly Fast Swimmers is the
Directed by Satoshi Miki second film by writer/director Satoshi Miki,
2005, 90 minutes, DVD
Release: February 2009,£14.99
Review by Simon Cotterill
Turtles are Surprisingly
Fast Swimmers is an offbeat, urbane comic gem,
about loneliness, normality,
friendship, and spies, with a magnificent, low-key
performance by Juri Ueno, which makes that all
somehow work wonderfully.
Suzume Katakura (Juri Ueno), a twenty-somethinghousewife, is bored. In her eyes, she’s the definitionof ordinariness - ordinary looks, an ordinary
husband and an ordinary apartment, where she
cooks, cleans and does laundry in an ordinary way.
Even her favourite food is ordinary; a ramen thatboth her best friend and the ramen shop owner
think “lacks character.” Suzume feels that she isdestined to go completely unnoticed: strangers
often treat her as invisible and her husband, who’s
always away on business, only calls to check on
their pet turtle (who, it ought to be said, we don’t
actually see doing much swimming, surprisingly
fast or otherwise).
Since they were at school together, Suzume,
whose name means ‘sparrow’ has constantly been
overshadowed by her best friend Kujaku, whosename means ‘peacock.’ Back then Kujaku’s bookfile was covered in cool Bjork and Oasis stickers,
while Suzume’s file carried stickers with dorky,childish pictures. Looking back, she reflects, “poortaste in stickers, poor taste in life.”
One day, however, the monotony of her existence
is finally broken. While walking up the same 100step seaside stairway that she’s been walking up
Issue 19 Volume 4 Number 1 (March 2009)

a comedy filmmaker who has now shot toprominence with the recent success of Adrift inTokyo (転々). Miki always spreads the humour very
evenly throughout his films and barely a scene
goes by without something clever to laugh at. His
style has perhaps been influenced by the JapaneseTV variety programmes on which he honed his
writing talents, but the comedy of Miki’s films is
far more subtle and irreverent than that of theseshows. Some of the biggest laughs in the movie
come when Suzume is discussing squids getting
trapped in sinks with a plumber, and when she’s
sumo wrestling with her dad. (Ah, ok – the latter ofthese may not be out of place on a variety show.
But generally, the humour is very subtle).
Turtles is impossible to divide up into a beginning,
middle and end. It’s the characters’ bizarre tangentsand nonsensical exchanges which gently drive theevolution of the unusual narrative and themes.
Despite being about spies, there is no attempt at
suspense - instead Miki cleverly weaves the film’s
comic episodes in and out of each other in a waythat leaves the viewer constantly questioning thefilm’s false realities. The film is also visually very
striking. Suzume might be bored with her life,
but her ‘ordinary’ apartment is full of such bold
and beautiful colours that it’s impossible for theviewer to feel the same way.
In the end, a film with such an off-beat narrative,
interesting contrasts and clever wit could only
work with great acting and thankfully thisproduction delivers this throughout. Eri Fuse andRyou Iwamatsu provide great performances as
Etsuko and Shizuo, the spies Suzume meets when
she responds to the tiny advertisement. They’re amarried couple who, despite a doing a bit of karate
sparring, don’t appear anything like real spies. But
then again if they did, they probably wouldn’t be3very successful, as Suzume figures. Etsuko and
Shizuo place their trust in Suzume, purely because
she is so ordinary and not only do they give her“spy training” but also 500,000 yen for “operational
expenses.”In the role of Suzume, Juri Ueno excels. Her comic
timing is acute, and she shows a willingness tobe silly, in a way many actors never do. Since thismovie, she’s become very popular domestically in
Nodame Kantabire (のだめカンタービレ), a mangaadaption TV show, and it seems likely Ueno’s
popularity will only grow internationally. Her mostendearing moments in Turtles come when, after
becoming a spy, Suzume returns to her ‘ordinary’
life. However, from Suzume’s new perspective she
is no longer ordinary, she is now being deliberately
inconspicuous.
Cast: Juri Ueno, Yuu Aoi, Ryo Iwamatsu, and Eri
Fuse.

Cape No. 7 (海角七号),
directed by Wei TeSheng(魏德聖), 2008, 133 minutes
Review by Fumiko Halloran
The movie Cape No. 7 wasreleased in Taiwan in August
2008 and earned a top
revenue of NT$200 million
in just a couple of months.
It first arrived in the U.S. via
the Honolulu InternationalFilm Festival held in midOctober 2008. This is where
I saw it and was struck by the constant presence ofJapan in the daily life of Taiwan even today.
The story features Taiwan under Japanese colonial
rule, Japan’s surrender in World War II in 1945, aJapanese school teacher’s love for a Taiwanese
girl, and his departure from Taiwan. He left her,even though she was willing to elope, because he
had no idea what awaited him in a Japan that had
been heavily bombed and faced starvation.
Fast forward to contemporary Taiwan: a young rockband singer and guitarist, Aga, who didn’t make it
in Taipei, comes to Hangchun in southern Taiwan.
He works as a temporary mailman. Among themail to be delivered, he finds a package of letters
written by the school teacher sixty years ago but
never sent to his girlfriend. It turns out that after
the teacher passed away in Japan, his daughter
had discovered the letters and sent them to theold address in Hangchun. But that address does
not exist today as the area has become a harbor.
4

Aga opens the package, reads the letters, and tries
to deliver them. Meanwhile a Japanese modeland music promoter, Tomoko, the same name as
the Taiwanese girl (who was required to have aJapanese name during Japanese rule), meets Aga.
She is trying to organize a local band for an opening
performance at a beach concert by a Japanese
pop singer, Kosuke Atari. Aga and Tomoko hateeach other at the beginning, but gradually theirrelationship develops into a romance. Tomoko
discovers that her hotel maid is a granddaughterof the original Tomoko, who is alive in her 80s,
and tells Aga. After finally delivering the letters to
the now old woman, Aga returns to play powerfulmusic to the delight of the audience, proclaiming
his love for Tomoko.
Throughout the movie, the languages are
Mandarin, Taiwanese and Japanese, with English
superimposed. The narration of the seven love
letters is in Japanese, with Chinese and English
superimposed. Chie Tanaka, the Japanese actressin the role of the young Tomoko, speaks Mandarin
most of the time. In the beach concert, when Aga
begins to sing “Wild Roses” (Nobara) in Japanese,
Atari, the Japanese singer, joins Aga singing the
lyrics in Mandarin. “Nobara” for many years was
included in Japanese elementary school musiceducation from pre-war to post-war years. The
original lyrics in German (Heideroslein) are by
Goethe and the music by Schubert.
In the pop music world, it is becoming increasingly
common for Japanese singers to sing not only inJapanese but in Korean and Mandarin, while other
Asian singers sing in Japanese. Just as Japanesefans rush to the airport to see their favourite
Korean singers arriving at Narita, enthusiastic
fans in Taiwan snatch up tickets for concerts by
Japanese pop singers and bands such as Ai Otsuka
and Arashi.
At the film’s Honolulu
showing, the director, Wei
Te-sheng, a quiet 40 year oldman, answered questions
from the audience. He
spoke in Mandarin, whichwastranslated
into
English. He said he wanted
to make a movie aboutmusic and was searchingfor a theme when he readin a newspaper about
the old mail that had notbeen delivered sixty years
after the end of the war.
He started to think what if those lost letters werelove letters, thus a story was born. In addition to
directing, Wei wrote the script.
Issue 19 Volume 4 Number 1 (March 2009)

The musicians in the movie were real but 90
percent of the cast had never acted before. He said
everybody gets angry sometime as things don’t
work out the way they wanted, and frustration
drives us into some negative feelings. But you
can work out things with other human beings
and when they connect, something beautiful
can happen. He said Taiwan is an ethnically andculturally diverse society and he wanted to depict
that aspect, too.
I found it interesting that the treatment ofJapanese colonial rule was free of political angles,
concentrating on the complicated and sensitive
emotions of individuals whose lives were affectedby the tidal wave of history beyond their control.
Director Wei said that by telling such stories, wecome to understand the world better.

on to do Yoshinkan Aikido. After regular training
Twigger decides that immersion is the only way totruly tackle the martial art, and so signs on to do
the Senshusei course. Two of his friends decide to
take the regular route black belt with two sessions
a day. The course means about four or five classes
a day every day. This is “ganbatte” in the extreme.
A year of daily throwing, callous growing, and allround pain plays out. Hajime classes require thecontinuous repetition of a particular move, for up
to an hour, often resulting in people either passingout in the hot summer, or throwing up.
At one point it looks at though an injury could
get Twigger thrown off the course, but the deathof the head of the Aikido school means a weekwith no training. An extremely interesting funeralfollows where different factions of the school
jostle for position as to who will be the head of
the school in the future.
At the end of the story, Twigger takes the black

Angry White Pyjamas: An Oxford Poet belt test, passes, and then also goes on to takeTrains with the Tokyo Riot Police,
the teacher’s test – enabling him to tutor otherindividuals. The new head of the order comments
by Robert Twigger
Phoenix Publications, 1999, 320 pages
Hardback £7.99
ISBN: 9780753808580,
Review by William Farr
This is a fascinating accountof a year on the Aikido
Yoshinkan
Senshusei
course, mostly populatedby Kidotai – riot police.
Each member of the riot
police must be a minimum
black belt in another martial
art before embarking on
the year of training that willtake them from white belt
to black belt and beyond in
Aikido.
For those who have ever made a living as an English
language teacher in Japan, the early chapters inthis book ring true. The packed out apartment fullof people sharing, the general lack of fitness, and a
growing ability to be able to converse in Japaneseare some of the problems faced by the group that
populate the cramped city apartment.
The whole story begins with Twigger watching asa truck driver with a punch perm makes anotherdriver perform a full Emperor bow after a nearcollision on the road. This provokes Twigger
to wonder what he would do if ever faced witha situation where he could potentially be hurtor have to fight. Various conversations ensue
about how to tackle this issue, and eventually thehousemates – all three of them, decide to sign
Issue 19 Volume 4 Number 1 (March 2009)

on the fact that his body shape and size is good
for Aikido – short legs with a long body.

The whole book is extremely well written and foranyone who has ever thought of doing or does amartial art, this is a must-read which gives good
insight into the world of the martial arts, and theultra-conservative traditionalist streak present
in Japan. This is a humorous and well-observed
commentary.

The Business, Life andLetters of FrederickCornes: Aspects of the
Evolution of Commercein Modern Japan,18611910
by Peter N. Davies
Global Oriental, 2008, 514
pages including index andappendices, plus a CD of
the letters, Hardback £75
ISBN 978-1-905246,
Review by Sir Hugh Cortazzi
Peter Davies is Emeritus Professor of Economic
History at Liverpool University. He contributed
a biographical portrait of Frederick Cornes to
Britain and Japan: Biographical Portraits Volume
IV, Japan Library 2002. This volume also contained
a biographical portrait by Merrick Baker-Bates of5Peter Hewitt who was in charge of Cornes andCompany in Japan from the 1950s to his death in1982.
Aspinall Cornes, as Cornes and company was called
until 1873, was established in Yokohama in 1861. In
the early years after Japan was opened to trade, thefirm was primarily engaged in the export of tea andsilk, but it soon developed interests in real estate,shipping and insurance. It was from the beginningone of the leading British trading companies inJapan.
The Cornes archive, which is reproduced in this book,is unique as the records of most firms establishedin the early days of the foreign settlements havedisappeared or were destroyed in the Yokohama
earthquake of 1923 or in wartime air raids.
Peter Davies has provided a valuable introduction to
the archive. He sets out the background to tradingwith Japan in the latter part of the nineteenth
century. He then describes the life and careerof Frederick Cornes, the success of the Cornes
enterprise and his legacy. He also provides a guideto the personalities, topics and problems coveredin the letters. The contents of 118 copy booksof Frederick Cornes’ correspondence and of twovolumes of private letters, which are reproduced in
the CD enclosed in the book, are briefly outlined.
The private letters from 1864 to 1868 help the reader
to get a feel for the life of traders in Yokohama inthe final years of the bakufu and early Meiji.
Frederick Cornes was an astute and able businessman
with a keen eye for ways in which business could
be expanded. He became a friend of Ernest Satow
who often stayed with Cornes at his London home.
His daughter Amy, born to his Japanese ‘common
law’ wife, Yamada Otama, was for a time looked
after by Satow and his ‘wife’ Takeda Kane. Amy, or
Yamada Chiyo as she preferred to be called, became
a teacher and lived in Yokohama until her death in
1960.
The production of this book was made possible
by a grant from the present owners of Cornes
and Company, whose President and CEO is Mr
Shinichiro Watari, and from the Great Britain
Sasakawa Foundation, whose President, ProfessorPeter Mathias has provided a preface.
As Professor Mathias points out there “is relatively
little accessible contemporary and primarymaterial about the commercial evolution of themodern Japanese economy and its international
connections.” This book will be of particular interest
to students of economic history and of the trading
relationship between Britain and Japan especiallyin the years up to the Second World War.

6

Kigyō Ketsugou
Housei no Shōraizou(企業結合法制の将来像)
The Future of
Corporate Groups Law
by Eiji Takahashi(高 橋 英 治)
Chuokeizaisha, Tokyo, 2008,
312 pages,
ISBN978-4-502-96390-2
Review by Manabu Matsunaka
The corporate group law debate has been oneof the central, but as yet unsolved, issues inJapanese corporate law. Professor Takahashi has
been researching the theme for over 10 years
and in this new book he presents concrete andcomprehensive proposals for improving Japanese
corporate group law. This Japanese language
work examines German law on corporate groups
including how the German laws have developed,
the problem encountered with these types of law
and Berlin’s efforts to solve those problems. Basedon his examination and the analysis of German law,
the author proposes introducing new institutions
and rules into Japanese corporate law. In reviewing
this timely study, I will first summarize the mainpart of professor Takahashi’s arguments, namely
his reform proposals for Japanese corporate grouplaw (or indeed the framework for establishingthem), then discuss the significance of this bookand finally highlight some outstanding problems
that remain to be solved. In doing so, I will chiefly
discuss the topics of public corporations.
The main thrust of his proposals is that although
we most certainly need compensation rules forthe harm caused by a controlling corporation on acontrolled corporation as well as improved meansof information dissemination, just solving theseissues would currently not be sufficient due tothe additional problem of enforcement which ispresently far too weak and ineffectual. Therefore,
in addition to his envisaged reforms, the author
proposes the introduction of regulations on thegovernance structure of controlled corporations.
One of the proposed reforms on the governancestructure of controlled corporations is that at least
one of the directors should be on the auditing
committee of the controlled corporation andthat he/she should never have been an officer,
a managing director or an employee of thecontrolling corporation. Another recommendation
is mandating that at least one auditor (kansayaku)
should be elected by purely minority shareholdersof some type from the controlled corporation.
Issue 19 Volume 4 Number 1 (March 2009)

Although this mandatory minority representationon the auditing board is not required for all typesof controlled corporation, the author proposes
giving incentives to elect an auditor from minority
shareholders by providing that if the minorityrepresenting auditor approves, transactions
conducted between the controlled corporationand the controlling corporation will be presumed
to be conducted on fair terms and therefore
shareholders who challenge the transaction mustbear the burden of proof.
Another strand of the author’s proposal is toguarantee the minority shareholders of controlled
corporations a so called “exit right”. When acontrolling corporation has extreme influence on
the management and governance of the controlled
corporation or the controlling corporation
continuously harms the interests of the controlled
corporation so that the systems for protecting
minority shareholders cannot function, minority
shareholders will have the right to demand thatthe controlling corporation buy their shares in thecontrolled corporation.
This type of protection for minority shareholders
in controlled corporations would be important
especially in those closed corporations where
presently minority shareholders cannot exit
by selling their shares. Currently, controllingshareholders of a closed corporation can derive
profits by excluding the minority shareholders
using means other than dividends such ascompensation for directors. Of course, it canbe significant for listed corporations because
minority discounts may impede them from selling
their shares.
The book explains that recently designing
corporate group law has been perceived not only
as important but also as an increasingly urgent
issue for Japanese corporate law. The Diet has
also recognized the necessity of legislating for acomprehensive corporate group law. Therefore,
the concrete proposals in this volume areespecially timely and have both a practical as wellas theoretical importance.
As previously mentioned, the book’s arguments
are built on a detailed study of German law and
its application. The author derives implications
from these but he does not forget to point out thevarious problems German law has encounteredand is currently confronting. Thus, the author
does not simply call for the wholesale importingof German law but recognizes its limitations andinherent shortcomings.
From this perspective, it is worth mentioning thatthe author pays particular attention to the problem
of enforcement of the regulation examining
such issues as who will blow the whistle on theIssue 19 Volume 4 Number 1 (March 2009)

parent corporation’s actions and how? Anotherchallenge is providing the liabilities of controlling
corporations to controlled corporations (or its
minority shareholders) that will confront therational apathy when the necessary actions areleft to the dispersed minority shareholders ofcontrolled corporations. The author’s solution tothis is to introduce regulations on governancestructures, which are outlined above. In doing so,
he connects the regulations on the governancestructures (i.e. auditor(s) that is (are) elected byminority shareholders) with the liabilities of acontrolling corporation by using the shift in theburden of proof.
This idea is also interesting from a different
perspective because it aims for the voluntary
introduction of minority representations and it
does not necessarily rely upon mandating theelection of minority representation. Since there
is a no one-size fits all governance structure,
mandatory minority representation may placeextreme costs on some types of corporations eventhough there is little danger for exploiting minority
shareholders. Japanese corporate law has not
adopted mandating one particular governancestructure to any type of corporations, but rather, inthe 2005 revision it made it more flexible: i.e. theCompany Law only provides minimum restrictions
on governance structures of large and/or public
corporations. So, the author’s argument runs inthe same direction, namely that we should becautious when restricting the options that areavailable to corporations.
On the other hand, there are some problems to besolved and further questions to be answered. Firstly,
apart from the cost of mandating the minority
representation, how does the auditor function?
The minority elected auditor(s) will arguably suffer
information disadvantages. If the law gave strong
powers to investigate or collect information to theauditor, wouldn’t it lead to a misuse of information?
Imposing a duty of loyalty on minority auditors
may be a solution to this problem, but it can also
make it easier for controlling shareholders to
attack minority auditors.
Furthermore, why haven’t we drafted acomprehensive law regulating the extraction ofprivate benefits by controlling shareholders if
the exploitation issue is really a serious problem?
Reputation may or may not be sufficient as
mentioned it this book, but aren’t there any othermechanisms that can suppress or mitigate theextraction of private benefit? One of the possible
answers is that minority shareholders of controlled
corporations hold the shares of controlling
corporations at the same time and hence the loss
in the value of shares in the former may be offset
7

by the gain in the latter. If this could be attained
through managing one’s portfolio, then would
we need regulations on the actions of controllingshareholders? Of course, we may need one if
we think of shareholders who do not or cannot
manage their portfolio in this manner or when
the cost of doing so is so high as to justify theregulation. And it should be noted that this offset
position or mitigation of loss may not justify thelack of regulations on controlling shareholders,certainly not if we consider the fact that many
developed countries have some kind or variant of
this law. In any case, we must take the type(s) of
shareholders into consideration when we discuss
this theme.
The types of shareholders are also in somerespects linked with the extent of enforcement.
Naturally, the incentive offered to lawyers is oneof the main factors here. However, the type ofshareholder may be another crucial factor in theequation. Compare an individual shareholder
who only possesses a very small fraction of theshares of a controlled corporation with that of an
institutional shareholder like a fund which may
hold several percent or more of the shares. The
individual shareholder arguably has no incentive
to take action against the controlling corporation.
But the institutional investor may have thatincentive because it may not be realistic to exitfrom the corporation without taking considerable
time or suffering great loss. If institutional holders
increase, the problem of the enforcement of duty
for controlling shareholder(s) can be mitigated
and therefore placing duties (and liabilities if theybreach their duties) on controlling shareholders
may become effective.
One final point should be noted. The author
examines both German corporate group laws
for stock corporations (AG) and limited liability
corporations (GmBH). The former is provided in
the Aktiengesetz (stock corporation law), whichis the statute for the AG (stock corporation) law,while the latter is formed by case law. This fact
clearly illustrates that the way of establishingcorporate group law is not singular. It also raises
the vitally important issue of who writes the rules?
The differing routes are not the same in substanceor content, further complicating matters. Fromthe perspective of public choice, legislatorsand courts will have different incentives andapproaches in setting the rules. Also, members of
the Diet and bureaucrats have different authority
and incentives. This brings us back to the tricky
question of who should draft the rules? If thelegislators (including both bureaucrats and theDiet) do not draft the rules, then naturally the
courts would be the default option. However,should we just leave it up to the courts to furnish
8

us with these rules and regulations? This may
well be the dilemma we will find ourselves facing
next.
Manabu Matsunaka is an Assistant Professor of
Law at Osaka University Graduate School of Law &Politics. This review was produced in collaboration
with the Journal of Interdisciplinary Economics.

Japanese forEveryone: A
Functional
Approach to Daily
Communication
by Susumu Nagara
Japan
Publications
Trading Company, 2008,
383 pages Paperback£22.99ISBN-13: 978-4889962345
Review by Roberta IgnirriThis revised edition of Japanese for Everyone
represents a solid foundation for anyone seriouslyinterested in communicating in Japanese.
Each of the 27 lessons begins with dialogues set
in real life situations and is followed by detailed
lists of new vocabulary, clear grammar notes andpractical exercises.
The variety of exercises is one of the strengthsof this textbook as students are offered ample
opportunities to reinforce what they havepreviously learnt in the dialogues.
The use of romaji is kept to a minimum sothat learners will have to pick up hiragana andkatakana as rapidly as possible, while kanji are
gradually introduced.
Although this book is designed for classroom use
as well as self-study, I would not recommend it
to self-taught beginners of Japanese as the text
quickly progresses to a level when a teacher overthe shoulder is required.
This is the first in a series of reviews of educational
resources by UK teachers. Roberta teaches at
Teesside Preparatory & High School in Stocktonon-Tees

Issue 19 Volume 4 Number 1 (March 2009)