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Japan Issues Liquidation Guidelines to Recover Donation Damages at Specified Religious Corporations

The guidance prioritizes proactive, long-term outreach by court-appointed liquidators for victim identification and compensation.

Overview

  • The Agency for Cultural Affairs published nonbinding guidance that defines liquidators’ authorities and lays out methods to pursue donation-related compensation during the dissolution of designated religious corporations.
  • Liquidators are urged to set extended claim periods and to manage what could be lengthy proceedings in good faith so no claimant is left out.
  • Concrete steps include checking donation records to contact former members, opening consultation desks, and holding explanatory meetings to solicit claims.
  • The guidance addresses asset preservation and accountability, noting potential civil liability for concealing assets and the option to seek bankruptcy if available funds are insufficient.
  • The Family Federation is the only organization currently designated and is appealing a March dissolution order; procedures guided by the new framework would begin only if the Tokyo High Court upholds that decision, and the group has publicly objected over privacy and authority concerns.