Bain Capital says more Japanese companies looking to delist

Corporate governance reforms have shifted the dynamic between board and management

David Gross, managing partner at Bain Capital Asia, says some of Japan's listed companies want help to "take the business private and professionalize their management." (Nikkei montage/Source photos by Shihoko Nakaoka and Bain Capital)

LISA KIM, Nikkei staff writer

December 28, 2023 15:04 JST

TOKYO -- A small but increasing number of companies listed in Japan are considering going private to improve their management following corporate governance reforms in the country, according to U.S. private equity firm Bain Capital.

Companies on the Tokyo Stock Exchange's Prime section are required to fill at least a third of their board -- and in some cases a majority -- with external directors, according to the revised corporate governance code introduced in June 2021. In doing so, corporate boards play a more active and independent role than before, when management had a bigger say.