Even though Japanese insolvency regulations do not provide for a general obligation of the management to apply for bankruptcy proceedings within a certain period of time after the confirmation of the respective insolvency reasons, the management of a Japanese corporation may still be personally liable vis-à-vis the creditors of the company, in case it has acted in violation of its general duty of care and/or fiduciary duties as a corporate director.
These duties, for example, include reducing unnecessary costs of the company and protecting the remaining assets of the company.
