Action Guidelines for Independent Directors (2020)

March 26, 2020

The Japanese Corporate Law revised in 2019 requires the appointment of independent directors. What role do they have?

The Independent Directors Committee (Chairman Yasunori Nakagami *Note 1 and Vice Chairman Akio Sawa *Note 2 ) has published the "Action Guidelines for Independent Directors".

The guidelines define that in order to restore sustainable growth of the Japanese economy, it is most important to make good use of corporate governance and increase earning power.

In order for corporate governance to function well, it is essential to separate corporate business execution and supervision.

In addition, the guidelines state that the role of independent director are as follows; (1) evaluation of management's performance, (2) selection and dismissal of management, not as advice or consulting.

The Guidelines (In Japanese)

*Note1 Founder & CEO, Misaki Capital Inc.
*Note2 Director, Industrial Growth Platform, Inc.