The Tokyo Stock Exchange (TSE) has introduced a number of policy changes, including that all listed companies must have at least one independent director on their board, according to Reuters. Additionally, the TSE will implement a simplification of quarterly earnings reports for listed companies. The addition of independent directors will go some way to reversing popular conception that Japanese companies haven’t yet come up to speed with their Western counterparts in terms of governance. A ranking conducted by GovernanceMetrics International placed Japan 36 among 39 countries.
Tokyo Stock Exchange Implements Independent Directors Rule
A proposal requiring at least one independent director at all listed companies is currently floating at the Tokyo Stock Exchange.
September 30, 2009