Corporate Adviser System in Japan under Scrutiny (News)
Tokyo, June 22 (Jiji Press)—It is not unusual for former presidents or chief executive officers of Japanese businesses to assume the roles of advisers or consultants instead of leaving the companies completely.
But the standard practice is causing concern in the government and also attracting shareholder criticism, as management decisions may be swayed by former corporate leaders in advisory positions who are not board members.
The Japanese government plans to oblige listed companies to disclose information on corporate advisers and consultants, possibly from early next year.
The government included the requirement in an update to its growth strategy adopted at a cabinet meeting on June 9.
By modifying the rules of the Tokyo Stock Exchange this summer, the government plans to force companies listed on the exchange that appoint presidents or CEOs as advisers or consultants to disclose their names, positions and the kinds of work they will do.[Copyright The Jiji Press, Ltd.]