Require outside directors to be listed companies, etc.

At the Cabinet meeting on the 18th, the government decided to amend the Companies Act to require the establishment of outside directors in order to ensure the transparency of listed companies.

The amendment includes the requirement that listed companies, etc., have outside directors to ensure corporate transparency and increase corporate governance.

In addition, in order to streamline the procedures for opening a general meeting of shareholders, in addition to notifying shareholders in advance of the address, etc., in advance, the materials of the general meeting of shareholders can be posted on the company website, and the general meeting of shareholders is operated smoothly. Therefore, the maximum number of proposals that one shareholder can propose is limited to 10, for example.

On the other hand, if the details of individual director remuneration for directors are not decided by the general meeting of shareholders, the board of directors must establish a policy for determining remuneration and make it publicly available.

The government is aiming to establish a revised bill in the current Diet.