The 2026 Corporate Governance Code (the "Code") revisions reflect an important shift from “defensive governance” towards “growth-oriented governance.”  Board directors are expected to (i) set a path for growth; (ii) explain measures that will be taken to achieve growth; and (iii) consistently review the allocation of business resources. The Code continues to guide companies towards efficient capital allocation, with new measures proposed regarding cash holdings. In addition, the revisions focus on strengthening governance throughout the organization as well as recommending a strengthened corporate secretary function.

Board directors must be prepared for these changes and must be ready to enter the boardroom able to challenge strategy, question the allocation of capital, and engage management with a level of rigor that matches global standards.

Boards that remain passive or ceremonial will not meet the standard. The companies that succeed under the new governance regime will be those whose directors continually expand their expertise, strengthen their judgment, and elevate the quality of conversation in the boardroom.

If Japan can elevate discuss from form to substance, it can continue the upward market trends as outside board directors become a strategic asset and competitive advantage.

The majority of board directors and boards must evolve. Be ready for this shift and to increase your contributions.

Speakers

Hideki Ito - Former FSA Commissioner (Keynote)
Kanako Ogura - KPMG Partner (Host)
Daisuke Tsuchiya - KPMG Partner (Panelist)
Annalisa Barrett - KPMG Board Leadership Center Senior Advisor (Panelist)
Rie Shigekawa - Blackrock Head of Japan Equities (Panelist)

Sponsors

KPMG