Steady progress is indeed being made as a result of the efforts being made to improve corporate governance in Japan now that remarkable changes are observed. “Japan is the land of the rising sun, but as far as corporate governance is concerned, it has been more a land of false dawns over the past 15 years or so. However, some significant […]
Chicago Booth Insights, a series of global events where leaders address the complex issues facing businesses today, will be organizing one of such events here in Tokyo. It will be hosting the event on Tuesday, July 4th 2017 to discuss the effectiveness of recent efforts to improve corporate governance in Japan.
If you are interested in being a part of this event, please see details and guidelines on how to register here.
”The Organisation for Economic Co-operation and Development (OECD) has recently released a report of a survey that was conducted based on the responses to a questionnaire on corporate governance frameworks that was disseminated to partner organisations in the 14 participating Asian jurisdictions in May 2016. These included Bangladesh, China, Chinese Taipei, Hong Kong, India, Indonesia, Korea, Malaysia, Mongolia, Pakistan, Philippines, Singapore, Thailand and Vietnam.
The survey which is a useful document to all stakeholders that are working towards corporate governance reforms in the region is a reflection of current status of practices and standards. Role of stakeholders, disclosure of related parties, shareholder rights, board and ownerships structures are some of the key areas highlighted.”
Read the full report here.
There has been notable increased concern about protecting ICT systems from cyber attacks not only in Japan but over the globe the past years given that using IT is now even more important for corporate profitability. Cyber attacks can cause serious financial loss through theft of information, disruptions and other unlawful actions. Protecting ICT systems and their contents is crucial for any 21st Century business or company. In response to this, companies now have to invest more in cybersecurity as a corporate strategy.
Progress in Japan’s cybersecurity activities is underway. For example, The Ministry of Economy, Trade and Industry (METI) formulated the Cybersecurity Management Guidelines with the Information-technology Promotion Agency, Japan (IPA). It is expected that these measures for cybersecurity will be promoted under the leadership of corporate managers based on the Guidelines. [ To facilitate this process, BDTI will hold a Japanese-language seminar on 10/5. Speakers will include the head of METI’s division handling cyber-security matters, a BDTI director sitting on the key committee; and lawyers familiar with global cyber-security legal risk issuess. See: https://bdti.or.jp/news/10-05-cyber-seminar/ to sign up for the seminar. ]
Despite the fact that many still doubt how successful the Abenomics corporate governance reforms in Japan that led to the introduction of the Stewardship and Corporate Governance Code and the amendment of the Companies Act, Arthur Mitchell, a senior counselor with White & Case in Tokyo strongly believes otherwise. He writes an insightful article explaining that while the effectiveness of the reforms will largely depend on the way they are implemented, the reforms will certainly enable market participants to change their corporate performance and overall corporate culture. (Note: Arthur Mitchell has taken BDTI’s director training course in Japanese, and currently sits on the board of Mitsui Sumitomo Financial Group.)
Read full article here.
Following the release of the ”Commonsence Principles of Corporate Governance ” by a diverse, twelve-member coalition of executives of major corporations, asset managers and one shareholder activist in America in July 2016, the influential Business Roundtable (“BRT”) recently released a set of corporate governance principles which are to provide guidance on governance disclosure.
Whereas the Commonsence Principles of Corporate Governance are mainly 8 recommendations on roles and responsibilities of the board, companies and shareholders, the BRT Principles extensively cover the key governance issues such as board responsibilities, roles of key corporate actors, committee responsibilities and other, elemental, governance concerns historically addressed by the organization.
In his article,
Read full article here.
Source: Havard Law School Forum on Corporate Governance and Financial Regulation
Although the “third arrow” in Japan still has mixed reviews, it can not be denied that with the shift to deliberate improved corporate governance, there is more shareholder involvement in Japanese companies.
In this article, Mr. Naoki Kamiyama of Nikko Asset Management, describes some of the positive changes that now benefiti nvestors.
Read full article here.
Source: FE Trustnet
Below is an insightful interview with Sir Win Bischoff, Chairman of the Financial Reporting Council and formerly Chairman at Lloyds Bank. He speaks to Alexandra Jones, Editor of the Governance and Compliance Magazine on corporate culture and shares his experience on how a strong culture helped him lead Lloyds through the financial crisis. He explains how by its very nature , culture is not short term but much longer than a strategy of a business model.
He further shares his view on the responsibilities of management and the board, in terms of establishing the right culture and how long it takes to change a bad culture, among others.
”The latest activist showdown involving billionaire investor Dan Loeb has the makings of a test case for the progress Japan Inc. boards have made in improving governance.
Acquisition comes after weeks of uncertainty over deal at higher price
”TAIPEI, taiwan — The Taiwanese company that assembles Apple’s iPhones agreed Wednesday to buy control of financially struggling Sharp Corp. for $3.5 billion in the first foreign takeover of a major Japanese electronics producer.