Major trends in Japanese corporate governance following the 2015 corporate governance reforms

Author: Akemi Suzuki

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Japan Legal Update No.7 (November, 2016)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

I. Introduction
In our May 2015 issue of this newsletter, we discussed two significant reforms to the corporate governance regime of Japanese listed companies that were being implemented. They are:

(i) effective on May 1, 2015, the amended Companies Act introduced a new governance structure and additional requirements relating to outside directors; and
(ii) starting June 1, 2015, the Japanese Corporate Governance Code (the ‘Code’) was adopted by the Tokyo Stock Exchange (the ‘TSE’).

These reforms, particularly the Code, have had a major impact on the practice of corporate governance by Japanese listed companies. This article summarizes some of the major developments of the last 18 months in response to the 2015 reforms and touches upon the future direction of Japanese corporate governance.

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