December 5, 2025
The Committee on Corporate Governance for Unlisted Companies (Chair: Shinya Takahashi, Chairman of the Board, Management Solutions Co., Ltd.) has drafted and released the "Policy Recommendations on Corporate Governance for Unlisted Companies."
Currently, there are approximately 1.78 million corporations in Japan, but listed companies account for only 0.22 percent of this total, with unlisted companies making up the vast majority. For unlisted companies--which form the majority and support regional economies and employment--institutional discipline is often insufficient, and challenges such as management being overly dependent on individual leaders and delays in risk management remain.
The report categorizes unlisted companies into three types: (1) startups, (2) Showa-era companies, and (3) large unlisted corporations, outlining governance enhancement strategies tailored to their respective characteristics and challenges.
As challenges common to all three categories, the report advocates viewing companies as public institutions and adopting a perspective that prioritizes "substance over form" and "harmony between culture and systems." It further recommends using business succession as an opportunity for governance reform and establishing a dissemination framework based on the trinity of executive education, regional finance, and expert support.