On September 28, ACGA sent a formal letter tothe Ministry of Justice and keymembers ofthe Legislative Advisory Council's Company Law Sub-Committee in Japan. The letter was made public and is available on BDTI's data libary athttp://bdti.mastertree.jp/f/l0ngs7zm.
According to some academics, there is goodstatistical evidence of a correlation between the presence of parent companies and PE funds and superior firm performance, but the evidence is weak that the presence of independent directors improves firm performance.
BDTI hasreceived a new comment on METI'sproposed Joint Audit Committee Company. Please see below. (Admin.)
CLSA and the Asian Corporate Governance Association have published their 2010 version of CG Watch Asia. Japan's score moved up a to 57%, a level that however is still 23 percentage points below what ACGA considers to be the global best-practice score of 80%.The Japan section of the report is available on BDTI' data library. The full report can be purchased from ACGA.
What is the general reaction to METI's proposal to amend the Company Law toenable formation ofa thirdtypeof company, a joint audit committee-style company? It isdescribedon pages 36-38 of this document: http://bdti.mastertree.jp/f/os68ejbz
NOTE: the summary translation file that was attached to the comment that was subsequently submitted in response (below) is available at: http://bdti.mastertree.jp/f/p5k7vzjg
(Reply to comment made yesterday.) Your idea* is a good one, but I believe that a much bolder reform of the corporategovernance framework is needed for Japan's markets.
The harsh reality is thatthe quality of corporate governance in Japan has lost much credibility and itslaws and rulesnow lag most other countries in Asia.
Unlike US courts, Japanese courts almost never cite, describe, distinguish, etc. other cases.
As noted in a separate entry below, the Legal System Advisory Council will soon discuss (if not largely decide) some ofthe most important issues affecting corporate governance in Japan. BDTIencourages parties with opinions on these topics to submit them to BDTIas soon as possible. –>