Shareholder Activism and the Role of Independent Directors in Japan

Activist shareholders and independent directors have significantly shaped corporate governance in the United States for the past few decades. In the United States, both phenomena have resulted in a distinct monitoring board that is often replicated across the globe. Currently, Japan is undergoing a new wave of shareholder activism and independent directors. How the country responds will determine how its corporate governance evolves. Bringing together a wide variety of researchers and practitioners, this conference looks at the changing Japanese response to both trends and offers many views on what it will mean for the development of its corporate law. The presentations, lectures, and panel discussions demonstrate that shareholder activism often creates value for the companies it takes hold of. Independent directors are also on the rise. Though different from independent directors in the United States, they are believed by many to be a positive development for Japanese businesses. Many also agree that both of these phenomena will develop in a way that is uniquely modified by Japan’s culture and social norms.