Japan: White paper published by ACGA

The Asian Corporate Governance Association has published a white paper in which recommendations are made for the reform of corporate governance in Japan. In the executive summary it is stated:

While a number of leading companies in Japan have made strides in corporate governance in recent years, we submit that the system of governance in most listed companies is not meeting the needs of stakeholders or the nation at large in three ways:

• By not providing for adequate supervision of corporate strategy;
• By protecting management from the discipline of the market, thus rendering the development of a healthy and efficient market in corporate control all but impossible;
• By failing to provide the returns that are vitally necessary to protect Japan’s social safety net—its pension system.

This White Paper focuses on, and makes recommendations with regard to, six key corporate governance issues".

For further information about corporate governance in Japan, including recent reforms, see: Buchanan, J. and Deakin, S., "Japan's Paradoxical Response to the New 'Global Standard' in Corporate Governance", September 2007, CLPE Research Paper No. 26/2007, available on SSRN here.