Japan’s corporate gov reforms lack teeth

Author: Brian Yap | Published: 5 Jan 2016

Around 10% of some 2,500 major listed domestic companies have fully complied with Japan’s first corporate governance code, introduced last June, according to counsel in the country.

The Financial Services Agency had required all mainboard-listed companies, which are subject to the code, to submit governance reports by the end of last month.  

But corporate lawyers argue that the response varies widely among corporates, with large-caps generally more willing to comply than their smaller sized counterparts.

"Small and medium-cap companies, on the other hand, have traditionally not been subject to the oversight of foreign investors, making them a difficult bunch for the authorities to challenge," said Shinji Nakamura,...