Skip Navigation
Online Bookstore Book Supplements Newsletter Subscription For Academics For Bookshops For Authors About Us Journals Holt Prize


Australian Journal of Asian Law

Abstract from Volume 5 No 1 (2003)

The 2002 Reform of the Management of Large Corporations in Japan: A Race to Somewhere?

Dan W Puchniak Torys LLP in Toronto, Canada

Japan's 2002 reforms to the Commercial Code have been widely touted as introducing US-style corporate governance to Japan in the form of corporate officers and committee structures for large corporations. This article argues that these reforms have three apparent problems: (i) they are optional and do not provide the managerial or market incentives necessary to make managers choose the new corporate model; (ii) they fail to provide clear direction for corporate managers because they offer two new, conflicting, corporate models; and (iii) even if adopted, the new corporate models are changes in form, rather than in corporate governance practice. Nevertheless, the article argues that if we compare the Japanese reforms with their English, rather than US, counterparts, we can see that the optional nature of the reform may cause Japanese managers to 'run the race': although the reforms may lack a clear direction, the market may unify around one corporate model that does not depend on independent directors.

(2003) 5(1) Asian Law 42

        BACK TO TOP