More than one-third of the directors of companies listed on the Tokyo Stock Exchange are appointed from outside the company.

In order to increase the transparency of corporate governance, a draft review of the guidelines requiring companies listed on the Tokyo Stock Exchange to appoint more than one-third of their directors from outside the company has been finalized.

The Financial Services Agency and the Tokyo Stock Exchange presented a proposal to revise the Corporate Governance Code, a guideline for corporate governance, at a meeting of experts held on the 8th.

TSE will reorganize the market next year = April 2022, and the current "Part 1" will be taken over by the tentative name "Prime Market", but in the revised proposal, 3 minutes of directors to listed companies in the prime market We are requesting that one or more of the above be appointed from outside the company.

The aim is to increase the transparency of corporate governance by making it stricter than the current guideline of having two or more outside directors.

If this is simply applied to the companies listed on the first section, many companies will be forced to respond if they move to the prime market because more than 40% do not meet the standards.

The Financial Services Agency and the TSE will revise the guidelines in the spring of next year after soliciting opinions from the general public.