The Corporate Governance Code of Japan and the Stewardship Code were recently adopted by Prime Minister Shinzo Abe's government. The former relates to the good governance of public companies, and the latter to the behavior of institutional investors. These two codes have changed the landscape for corporate governance in Japan, paving the way for the ultimate goal of transforming Japanese corporations into becoming more transparent, responsible and sustainable while at the same time enhancing the relationships between shareholders and companies. While these codes may not seem to be bringing radical change, Japan's historical corporate governance culture was, more often than not, shrouded in opaqueness which makes this quite a step in the right direction.

As foreign funds and activist shareholders start to become the norm in Japan as compared to the passive shareholders and investors of the past, these codes push Japanese companies to be more in line with international business norms and standard practices, making Japan a more attractive destination for fund investors. But do you know what these codes mean and what your rights and obligations are in case you become a shareholder of a Japanese public company?

Click the link below to download a white paper written by Tokyo-based Corporate partner Lance Miller and associate Yuji Shimada that details the changes that these codes are bringing to the business landscape in Japan, what your rights and obligations are as a shareholder in a Japanese public company, and what this ultimately means for your business when looking at Japan as an investment destination.

For further information and advice on next steps, please get in touch with your usual DLA Piper Global Funds and Investment Management contact or the authors of this article.

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