Counsel in Japan have questioned the
country’s corporate governance code, at a time
when Prime Minister Shinzo Abe has reiterated his intention to
clean up the country’s corporate sector.
Speaking at Bloomberg’s New York
Headquarters last Tuesday, Prime Minister Shinzo Abe vowed to
strengthen corporate governance by putting an end to
But uncertainty surrounds the short-term
effectiveness of the new regime, with no concrete actions
having been taken by firms to unload cross-held shares four
months after its introduction.
"We have felt that many listed companies are
beginning to think about the reasonableness of
cross-shareholding, but we are not quite sure about the
effectiveness of the governance code itself," said Shuhei
Uchida, partner of Mori Hamada & Matsumoto.