Daily BriefsESG

Daily Brief ESG: Are Investors Prepared for the Upcoming Formalization of Corporate Governance Practices? and more

In today’s briefing:

  • Are Investors Prepared for the Upcoming Formalization of Corporate Governance Practices?


Are Investors Prepared for the Upcoming Formalization of Corporate Governance Practices?

By Aki Matsumoto

  • If the revised Corporate Governance Code requires Prime market-listed companies to have majority independent outside directors, issues regarding outside directors’ concurrent positions and long tenures may become more prominent.
  • The real reason hiring at companies with statutory nomination committee etc. isn’t progressing is that internal leadership cannot accept the decisions made by nomination committee, which carry legal enforceability.
  • As more companies establishing statutory nomination committees increases and corporate governance practices become more formalized at many companies, investor engagement will play an even more critical role than ever before.

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