Recent Boardroom Reforms in Japan and the Roles of Outside / Independent Directors

I. Introduction | II. Traditional Japanese Corporate Governance | 1. Traditional Model | 2. The Burst of the Bubble Economy and Changes to the Traditional Model | 3. Introduction of US-style Governance Structure in 2002 | III. Reforms of 2014/2015 | 1. “Comply or Explain” Approach on Appointment of Outside/Independent Director(s) | a) The 2014 Companies Act Reform | b) The 2015 Japanese Corporate Governance Code | 2. Stricter Definition for “Outside” Directors | 3. Company with Audit-plus Committee | 4. Effects of the Reforms | IV. Expected Roles of Outside/Independent Directors | 1. Why Is Japan Focusing on Outside/Independent Directors? | 2. The 2014 Companies Act Reform and the Monitoring Model | 3. The 2015 Corporate Governance Code and “Growth-oriented Governance” | 4. Insulating the Management from the “Corporate Community” | V. Conclusion