Japan

Listed companies’ corporate governance

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

Introduction, The concept of corporate governance has not been given a fixed common definition so far by either company law scholars or practical lawyers in Japan, but noteworthy is the provision of “New Corporate Governance Principles” issued by the Japan Corporate Governance Forum (“JCGF”) on December 15, 2006, to explain the meaning of corporate governance of large listed companies. It reads as follows: “Corporate governance is a mechanism to ensure company officers entrusted with responsibilities by shareholders fulfill the entrusted responsibilities.” The New Corporate Governance Principles are designed to apply to listed companies in Japan for the purpose of raising the standard of their corporate governance arrangements. In the case of listed companies, shareholders do not handle company management themselves; instead, much of management is entrusted to directors or officers and carried out by them in accordance with the duty to pay reasonable care, the duty of loyalty, and the principle of business judgment rules. Therefore, “entrusted responsibilities” refers to company directors or officers carrying out their duties for the purpose of increasing long-term shareholder values. The New Corporate Governance Principles also say that corporate governance not only includes the aspect of ensuring company officers’ entrusted responsibilities are fulfilled in normal situations, but also the aspect of preparing in advance for situations in which potential conflicts of interest for the company materialize, i.e., a hostile takeover.

Original languageEnglish
Title of host publicationComparative Corporate Governance: A Functional and International Analysis
PublisherCambridge University Press
Pages233-272
Number of pages40
ISBN (Print)9781139177375, 9781107025110
DOIs
Publication statusPublished - 2010 Jan 1

Fingerprint

corporate governance
Japan
responsibility
shareholder
director
company law
shareholder value
conflict of interest
management
loyalty
lawyer

ASJC Scopus subject areas

  • Social Sciences(all)

Cite this

Nakamura, N. (2010). Japan: Listed companies’ corporate governance. In Comparative Corporate Governance: A Functional and International Analysis (pp. 233-272). Cambridge University Press. https://doi.org/10.1017/CBO9781139177375.009

Japan : Listed companies’ corporate governance. / Nakamura, Nobuo.

Comparative Corporate Governance: A Functional and International Analysis. Cambridge University Press, 2010. p. 233-272.

Research output: Chapter in Book/Report/Conference proceedingChapter

Nakamura, N 2010, Japan: Listed companies’ corporate governance. in Comparative Corporate Governance: A Functional and International Analysis. Cambridge University Press, pp. 233-272. https://doi.org/10.1017/CBO9781139177375.009
Nakamura N. Japan: Listed companies’ corporate governance. In Comparative Corporate Governance: A Functional and International Analysis. Cambridge University Press. 2010. p. 233-272 https://doi.org/10.1017/CBO9781139177375.009
Nakamura, Nobuo. / Japan : Listed companies’ corporate governance. Comparative Corporate Governance: A Functional and International Analysis. Cambridge University Press, 2010. pp. 233-272
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