TOKYO -- Japanese companies will face a shortfall of about 1,000 outside directors next year, when the Financial Services Agency and the Tokyo Stock Exchange revise the country's corporate governance code, according to a Nikkei survey.
Nikkei subsidiary QUICK found that corporate governance reports submitted by 2,178 companies listed on the Tokyo Stock Exchange show that more than 40% have boards with fewer than one-third independent outside directors, the likely required minimum under the new rules. Even large companies such as Shin-Etsu Chemical and Keyence have boards composed of fewer than one-third outside directors.
