Japanese FSA publishes consultative draft of the Revised Corporate Governance Code

FSA

The FSA in Japan has published a consultative document concerning Revisions to the Corporate Governance Code and the Establishment of Guidelines for Investor and Company Engagement. The following topics have been added in the draft revised version of the Code.

Cross-Shareholdings (Principle 1)

When companies hold shares of other listed companies as cross-shareholdings, they should disclose their policy with respect to doing so, including their policies regarding the reduction of cross-shareholdings.

Roles of Corporate Pension Funds as Asset Owners (Principle 2)

Companies should ensure that conflicts of interest which could arise between pension fund beneficiaries and companies are appropriately managed.

Roles and Responsibilities of the Board (Principle 4)

The board should appoint a qualified CEO through objective, timely, and transparent procedures, deploying sufficient time and resources.

Preconditions for Board and Kansayaku Board Effectiveness (Principle 4)

The board should be well balanced in knowledge, experience and skills in order to fulfill its roles and responsibilities, and it should be constituted in a manner to achieve both diversity, including gender and international experience, and appropriate size.

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For more information in Japanese click here
April 2018

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