Revisions to Corporate Governance Disclosures

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June 28, 2010

  • Jun Yokoyama

Summary

◆On 31 March, Japan’s government announced revisions to the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. New requirements include enhanced disclosure on corporate governance.


◆Among other points, listed companies will be required to disclose the outline of their corporate governance systems, reasons for employing those systems, whether they have statutory auditors with expert knowledge of finance and accounting, relations between outside directors/auditors and divisions in charge of internal controls, whether any outside directors/auditors are appointed and if not, internal systems that substitute for their functions.


◆The new rules will apply to annual securities filings for the fiscal year ended 31 March 2010.


*This report updates our 4 March 2010 report on the proposed revisions to the Cabinet Ordinance (Japanese only).

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