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Corporate Governance Changes In The Two Largest Economies: What's Happening In The U.S. And Japan?, Makoto Toda, William Mccarty
Corporate Governance Changes In The Two Largest Economies: What's Happening In The U.S. And Japan?, Makoto Toda, William Mccarty
Syracuse Journal of International Law and Commerce
Lawmakers in the world's two largest economies, the United States and Japan, have enacted legislation to require firms to at least consider altering their governance structure. In the United States, the 2002 Sarbanes-Oxley Act (SOX) and Securities and Exchange Commission (SEC) rules have led to revised governance structures at the 30 Dow Jones (DJ) companies. The governance changes affect the composition, size and functions of the board of directors and its relations with the chief executive officer (CEO). A 2003 change in the Japanese Commercial Code provided firms with three governance options, including a "Company with Committees" system similar to …