Enhancing Corporate Governance

The Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code

The Japan Revitalization Strategy as revised in 2015 (Cabinet Decision, June 30, 2015) states that "we need to work actively to prevail and to promote the adoption of Japan's Stewardship Code, established and released in February 2014 ("JSC"), and Japan's Corporate Governance Code, which entered into force in June 2015 ("JCGC"), as ‘the two wheels of a cart' such that the sustainable growth of companies will be promoted by both sides of investors and companies.

Further improvements of corporate governance, e.g., making governance function not only formally, but also effectively, continue to be a major agenda, and we need to link such efforts to the establishment of a virtuous economic cycle.

In this respect, for the purpose of following up with the prevalence and adoption of JSC and JCGC as well as further improving corporate governance of all listed companies, TSE and the Financial Services Agency (FSA) jointly establish the "Council of Experts Concerning the Follow-up of Japan's Stewardship Code and Japan's Corporate Governance Code".

Statements

Status of JPX Prime 150 Index components in light of Action Program

Tokyo Stock Exchange, Inc., (TSE) and JPX Market Innovation & Research, Inc., have compiled a list of the JPX Prime 150 Index constituents that includes indicators of profitability, market valuation, growth and the status of corporate governance, such as the appointment of independent directors, attributes of the chairs of boards of directors and those of nomination and remuneration committees, as well as the ratios of female executives. This list has been compiled in response to a call for the “visualization of companies that autonomously and proactively meet the expectations of global investors” within the "Action Program for Accelerating Corporate Governance Reform: From Form to Substance" announced on April 26, 2023, and the “Action Program for Corporate Governance Reform 2024: Principles into Practice" announced on June 7, 2024.
For a list, please see the bottom of the following page.

Councils (Meeting Minutes)

For materials used at each meeting, please see below.
Materials (FSA Website)

The Council of Experts Concerning the Corporate Governance Code

TSE and the Financial Services Agency (FSA) jointly established the Council of Experts Concerning the Corporate Governance Code ("Council") with an aim of obtaining recommendations while referring to the knowledge of experts within private sector. After the discussions by the council members and a call for public comments on the draft, the Council finalized the proposal for “Japanese Corporate Governance Code” on March 5, 2015.

Past councils

For materials used at each meeting, please see below.
Materials (FSA Website)