We are pleased to share the August 2021 issue of Japan Corporate & Finance Insights. This newsletter is designed to keep you current on what we consider to be important recent legal developments involving Japanese corporate and finance matters. The present issue relates to the Companies Act, which was amended in December 2019.

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Amendment to the Companies Act – Director Compensation (By Yuji Nakano and Hironori Ikoma)

The Companies Act has been amended with the aim of increasing the performance-based portion of director compensation and improving the transparency of the process for deciding each director’s compensation. This memorandum discusses the outline of the amendment and the actions that companies need to take.