Our Responses to Diversifying Business Needs

The practice areas and the personnel structure of the firm went through significant changes and expansion in response to the cataclysmic changes in the economic environment surrounding Japanese companies, such as rapid globalization of the Japanese economy after the 1985 Plaza Accord, the collapse of the bubble economy, and financial deregulation (the so-called “Financial Big Bang”).

In corporate law, in addition to the traditional legal services we had long been offering to many clients, such as advice on corporate management, the steering of shareholder meetings and corporate actions, we have been involved in stock-buyouts and in cases that triggered the formation of so-called Primary Purpose Rule. We have recently seen a significant increase in demand for advice and drafting of rules for compliance and corporate governance issues (including directors’ legal duty of due care). We are also seeing an increase in cases where we advise on large-scale M&A (mergers, stock transfers and assignments of business), conduct due diligence (acquisition audit), and participate in contract negotiations. In finance and financial services, there is similarly an increase in cases where we provide diversified legal services, including advice on structuring of financial schemes and regulatory issues as well as documentation, in response to the diversification of financial structures and products available to or offered by financial institutions.

In the wake of such expansion of practice areas, the number of attorneys in the firm has gradually increased.

During the financial crisis in the 1990s triggered by the collapse of the bubble economy, Iwata Godo was deeply involved in various legal procedures required for disposition of an insolvent financial institution, including the establishment of a new bank in order to liquidate this institution, the assignment of its remaining business, and other settlement procedures.

We also assisted leading financial institutions in their efforts for final disposition of non-performing loans by such means as preservation and collection of claims through court procedures when necessary, and advice on reconstruction of the debtors’ businesses. In 1999, the Servicer Act on management and collection of claims held by financial institutions came into effect. Attorneys of Iwata Godo were appointed as directors of servicers (debt collection companies) under this Act, and they continue to be involved in debt collection policies in general, including advice to management.

In 1996, the office moved temporarily to the Mitsubishi Building due to the demolition and rebuilding of the Marunouchi Building.