Interim Proposal Concerning Revision of Companies Act

Sodali joined with J-Eurus IR Company, Ltd., Tokyo, in a letter to Japan's Ministry of Justice commenting on proposed revisions to the Companies Act.  The letter supports the requirement for companies to appoint an independent director, but expresses concern that proposed reforms fall far short of international corporate governance standards.  We urge a redefinition of the board's role at Japanese companies and adoption of core governance principles that are the basis for governance best practice standards around the world.  We are concerned that the flight of global investment capital from Japanese companies will continue as long as corporate governance standards in Japan fall short of global best practice.