The evolution of corporate governance in Japan towards international standards continues, though at a gradual pace that often concerns outsiders. The substance of Japanese corporate governance is often questioned due to a lack of understanding of the unique elements of the Japanese institutional system. Japanese companies are under a sustained assault from overseas investors to introduce a greater number of independent directors on boards, improve accountability, and enhance transparency. The majority of Japanese companies have taken what they regard as significant steps in this direction of accountability. In Japan, however, there is a different conception of the role of the board, the function of corporate governance, and the purpose of the corporation. This Article argues that significant change in these enduring Japanese corporate values and practices can only be accomplished if a more convincing theory and model of the corporation is proposed.
Takaya Seki and Thomas Clarke, The Evolution of Corporate Governance in Japan: The Continuing Relevance of Berle and Means, 37 SEATTLE U. L. REV. 717 (2014).