Establishing an outside director Proposed amendment to company law
The draft amendment to the Companies Act, which obligates listed companies to have outside directors, was approved by the majority at the plenary session of the House of Representatives on the 26th and sent to the House of Councilors.
The amendment to the Companies Act was approved last week by the House of Representatives' Legal Committee after amending the provisions to prevent abuse of shareholder proposal rights.
The vote was held at the House of Representatives meeting on the 26th, passed by the majority of the parties except the Communist Party, and sent to the House of Councilors.
The revised proposal requires listed companies to have outside directors in order to ensure transparency in corporate management and encourage corporate governance.
In addition, in order to streamline the procedures for opening a general meeting of shareholders, we will notify shareholders in advance of the address of the company's website, etc., so that the materials for the general meeting of shareholders can be posted on the website.
The revised bill is expected to be approved by the current Diet.