Affiliated companies whose participation in bidding is restricted
Updated: July 2025, 12
“Affiliated Company” refers to a company that has the following relationship: Two parties who fall under any of the following cannot participate in the same bid. Only those with qualifications for construction work etc. are eligible. (Those who only have qualifications such as purchasing goods are not eligible.)
▶What are affiliated companies?
| Affiliated Company | Cases that do not apply | ||
| One | Company with capital relationship | Parent company and subsidiaries (including so-called sub-subsidiary companies) | This excludes cases where the subsidiary company, etc. or one of the subsidiary companies, etc. is a company, etc. that is undergoing rehabilitation proceedings or a reorganization company, and it is recognized that there is no effective control-subordination relationship. |
| Subsidiaries that share the same parent company | |||
| Two | Companies with personal relationships | If an officer of one company is also an officer of the other company | This excludes cases where one of the companies, etc. is currently undergoing rehabilitation proceedings or is a reorganization company. |
| If an officer or trustee of one company, etc. currently serves as a trustee of the other company, etc. |
* According to the Ministry of Justice Ordinance (Article 3, Paragraphs 1 to 3 of the Companies Act Enforcement Regulations), one company
The relationship between the two companies is that of a parent company and a subsidiary company when it is recognized that one company controls the financial and business policies of the other company.
It stipulates that the
1. Definition of parent company and subsidiary in capital relationships
Refers to the parent company and subsidiary company as defined in Article 2, Items 3 and 4 of the Companies Act.
| One | Definition of subsidiary in capital relationship | Refers to a stock company in which a company holds a majority of the voting rights of all its shareholders, or any other legal entity whose management is controlled by the company, as specified by Ordinance of the Ministry of Justice. |
| Two | Definition of parent company in capital relationships | Refers to a company that has a stock company as a subsidiary, or any other corporation that controls the management of such stock company, as specified by Ordinance of the Ministry of Justice. |
▶If any of the following apply, two parties will not be able to participate in the same bid in order to ensure the fairness of bidding.
case example
2. Definition of officers in terms of personnel relationships
If the position of both the submitter and the concurrent employer falls under 1 to 4 below, it falls under "personal relationship."
| One | Director with representative rights (representative director) |
| Two | Directors (excluding outside directors and directors of companies with committees, etc.) |
| Three | A trustee appointed pursuant to the provisions of the Corporate Reorganization Act or the Civil Rehabilitation Act |
| Four | Executive officer or representative executive officer in a company with committees, etc. |
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