Daily BriefsESG

Daily Brief ESG: A Crossroads: Should a Company Strive to Meet Formal Criteria and more

In today’s briefing:

  • A Crossroads: Should a Company Strive to Meet Formal Criteria, or Move to Standard Market Instead?


A Crossroads: Should a Company Strive to Meet Formal Criteria, or Move to Standard Market Instead?

By Aki Matsumoto

  • Changes to laws and regulations may lead to more companies having majority independent directors, which could result in more companies transitioning to Company with US-style three-committee structures.
  • There’re concerns about whether outside directors could effectively fulfill roles if more companies have majority of outside directors. In reality, this likely depends on the case-by-case circumstances of each company.
  • Rather than compromising the quality of outside directors just to meet formal requirements, companies would be better off abandoning those requirements and moving from Prime Market to Standard Market.

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