Corporate Governance 2024 (Japan Chapter) - Trends And Developments

Introduction

One of the topics related to corporate activity that attracted the most attention in Japan in 2023 was the 31 March publication of three notices addressed to listed companies by the Tokyo Stock Exchange ("TSE"). 

The notices were entitled (1) "Action to Implement Management that is Conscious of Cost of Capital and Stock Price"; (2) "Better Dialogue with Shareholders and Related Disclosure"; and (3) "Using 'Explain' to Contribute to Constructive Dialogue"; and each addresses important issues relating to corporate governance in Japanese listed companies based on the discussions of the Council of Experts Concerning the Follow-up of Market Restructuring established by the TSE.