Only 15 companies have submitted English language Corporate Governance Reports to the TSE in the past 12 months…even though the CG Code asks companies with many foreign investors to consider that. We need significantly more than 15. Boys be [more] ambitious! But recently I was able to convince the TSE to at least make a list of the companies that DO have English reports, so that we can single them out for praise. You can find the list on a downloadable Excel file on this page.
Tag: Corporate Governance Code
Corporate Governance Code Compliance So Far: A Survey of Director Training Policies
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Corporate Governance Code Compliance So Far: A Survey of Director Training Policies
The status of director training as required pursuant to Principle 4-14 of the Corporate Governance Code,based on comply/explain disclosures
FSA: “Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code”
1.Purpose The Japan Revitalization Strategy as revised in 2015 (Cabinet Decision, June 30, 2015) states that “we need to work actively to prevail and to promote the adoption of Japan’s Stewardship Code, established and released in February 2014 (“JSC”), and Japan’s Corporate Governance Code, which entered into force in June 2015 (“JCGC”), as ‘the two wheels of a cart’ such that the sustainable growth of companies will be promoted by both sides of investors and companies.
Further improvements of corporate governance, e.g., making governance function not only formally, but also effectively, continue to be a major agenda, and we need to link such efforts to the establishment of a virtuous economic cycle.
In this respect, for the purpose of following up with the prevalence and adoption of JSC and JCGC as well as further improving corporate governance of all listed companies, we hereby announce the establishment of the “Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code” (the “Council”).
2. Organization (1)The Council will be composed of outside experts; including members from corporate managers, local and foreign investors, and academics (the member list will be released later).
Ethical Boardroom:”Japan’s shareholder Rights and The Arms of The Revolution”
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Japan’s return on equity (ROE) revolution is now underway and is evolving into a revolution in corporate productivity and return on investment underpinned by Japan’s Corporate Governance Code, which established fundamental principles for governance at listed companies in Japan, and Japan’s Stewardship Code, which established principles for institutional investors.
Results of First Round of Submissions of “Corporate Governance Reports” to the TSE
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In a filing with the Tokyo Stock Exchange, MUFG said it tested 3.8 trillion yen ($30.6 billion) worth of shares, about 70 percent of its cross-shareholdings, against the new criteria. About 20 percent of the shareholdings tested do not meet the criteria and the bank will consider selling them unless their returns improve, it said.
The bank did not disclose the specifics of the criteria, but said both direct and indirect returns of the holdings are taken into consideration in determining whether they are met or not. MUFG did not specify by when the returns need to improve before it takes a decision to sell the shares.
Seminar Report:”Changing Corporate Governance in Japan”
Theseminar Changing Corporate Governance in Japan, which took place in Stanford, CA on June 4, 2015.
Abstract
ISS: “Marked Growth in Prevalence of Outside Directors at Japanese Firms – Spike Reflects Impact of Corporate Governance Reform”
(Press release) – Rockville, MD (June 17, 2015) – Institutional Shareholder Services Inc. (ISS), a leading provider of corporate governance solutions to the global financial community, today announced findings from an analysis of Japanese corporate filings for the 2015 annual meeting season, which show marked growth in the prevalence of outside directors.
The Wall Street Journal: “Japan’s New Code of Conduct”, by BDTI’s Nicholas Benes
Japan’s first corporate-governance code come into effect Monday, less than a year after it was first proposed as part of the Abe administration’s 2014 growth strategy. Most of the first “comply or explain” statements will be filed by December.
FRC Report : Developments In Corporate Governance And Stewardship 2014
The UK Financial Reporting Council’s report on Developments in Corporate Governance and Stewardship contains many insights useful to Japan as it implements its new Corporate Governance Code and the Stewardship Code. In particular, pages 17-22 on stewardship and engagement, and the quality of stewardship statements, provide food for thought in the sense that progress for the Stewardship Code seems spotty and slow.
The Diplomat: “Reform Boost For Tokyo Stocks” (w/quote from BDTI’s Representative Director)
Excerpt: … Meno’s comments echo those of Nicholas Benes, head of the Tokyo-based Board Director Training Institute of Japan (BDTI), who has called for increased director training in corporate governance to ensure a “virtuous cycle” that accelerates reform.