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Japan's revised governance code takes on cross-shareholdings

Tokyo bourse wants to see more diversity in the boardroom

Japan's revised corporate governance code focuses heavily on cutting back cross-shareholdings and improving transparency.

TOKYO -- The Tokyo Stock Exchange is urging Japanese companies to bring their practices more in line with global norms by reducing cross-shareholdings and tapping more women and international talent for directors under a revised corporate governance code released Friday.

This marks the code's first update since the Financial Services Agency and the TSE introduced the original version in 2015. While the code itself is not legally binding, companies are being asked to report on progress by December. Those not in compliance will have to explain why. 

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