Tokyo Stock Exchange: How Listed Companies Have Addressed Japan’s Corporate Governance Code (Status As Of The End Of December 2015)

Tokyo Stock Exchange, Inc. has published “Listed Companies’ Reaction to Japan’s Corporate Governance Code (as of December 2015)”, based on corporate governance reports of listed companies as of December 31, 2015.

< Summary>
As of the end of December 2015, 2,487 companies submitted CG reports with a statement of “Comply or Explain” as per the Code.

Approx. 80% of listed companies in the 1st and 2nd Sections comply with no less than 90% of the Code Principles.

Principles with higher explanation rates include:
Supplementary Principle 4.11.3 (Board evaluation and disclosure of summary)
- 63.6% of companies explained the reasons for non-compliance

Supplementary Principle 1.2.4 (Electronic voting / English AGM notices)
- 55.9% of companies explained the reasons for non-compliance

Breakdown of reasons for non-compliance:
- Approx. 30% indicate their intention to comply in the future.
- Approx. 45% state that they have yet to decide whether to comply or not.
- Approx. 25% have no plan to comply due to reasons such as company-specific circumstances or alternative measures to be taken.