Director's Duty to Report Article 357 If directors detect any fact likely to cause substantial detriment to the Stock Company, they must immediately report such fact to the shareholders (or, for a Company with Company Auditor(s), the company auditors).
For the purpose of the application of the provisions of the preceding paragraph to a Company with a Board of Company Auditors, "shareholders (or, for a Company with Company Auditor(s), the company auditors)" in that paragraph is read as "board of company auditors".
For the purpose of the application of the provisions of paragraph (1) to a Company with an Audit and Supervisory Committee, "shareholders (or, for a Company with Company Auditor(s), the company auditors)" is deemed to be replaced with "Audit and Supervisory Committee".