Sogo-gaisha

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Sōgo-gaisha ( Japanese 相互 会 社 , " mutual insurance "; English mutual insurance ) is a Japanese legal form for insurance companies . It grants policyholders certain ownership rights. It is mainly used by life insurers.

The Japanese insurance system is regulated in the 1996 hokengyō-hō ( 保 険 業 法 , "Insurance Industry Act"). According to this, an insurance company can be organized either as a Kabushiki kaisha (joint stock company) or as a Sōgo-gaisha; a change between both types of company is expressly possible. Since the new law, several companies have converted into a Kabushiki-gaisha, so that only a few Sōgo-gaisha exist.

Policyholders enjoy certain rights like shareholders in public companies. They can have a say in the election of the board, the appropriation of profits and changes to the articles of association. Since the number of policyholders in a large company is much greater than the number of shareholders (for example in Dai-ichi Seimei Hoken , a stock corporation since 2010, over 8 million), these rights are in practice through the election of representatives ( 総 代 , sōdai ) exercised. The voting rights are not based on the contract sums.

See also