“Outside director for listed companies” Proposed amendments to the Companies Act

“External Director for Listed Companies” Proposal for Amendment of Company Law

The proposed amendments to the Companies Act, which require listed companies to have outside directors, etc., were partially revised by the House of Representatives Legal Committee and passed by the majority of the parties except the Communist Party.

In order to ensure transparency in corporate management and strengthen corporate governance, the government is submitting a revised draft of the Companies Act that requires listed companies to have outside directors, etc., and aims to enact it.

The Liberal Democratic Party and the Komei Party, the Constitutional Democratic Party, and the Japan Restoration Society at the House of Representatives Legal Committee held on the 22nd The standard should be clarified, ”and jointly submitted an amendment that removes the provision that the proposal can be rejected at the discretion of the company.

The committee voted, the amendment was passed unanimously, and the revised proposal was passed by the majority of the parties except the Communist Party.

The revised bill is expected to be passed by the majority at the House of Representatives meeting next week and sent to the House of Councilors.