Niigata, 11 May 2023 (TDI): In a significant development, the G-7 High-Level Corporate Governance Roundtable was held today, on May 11th, 2023. The event was hosted by Japan’s G-7 Presidency and Japan’s Financial Services.
The roundtable, which aimed to discuss corporate governance issues, commenced at 8:00- 10:00 CET and was broadcasted online.
Mathias Cormann, the Secretary-General OECD, said that good corporate governance is always fundamental to ensure efficient, effective and well-functioning markets. It includes the facilitation of access to the market finance at reasonable costs, which encourages market growth and innovation.
The key issues highlighted at the event were the review of the G20/ OECD Principles of Corporate Governance and the international standard in the area of corporate governance,
The opening remarks were presented at the first half of the event
Whereas at the second half of the event titled “Corporate Governance Roundtable,” presenters and panelists discussed the sustainability and resilience risks.
The agenda of the roundtable was to address the rapidly changing business environment as corporate governance plays a key role for corporations.
The structural changes in the global economy and societies have faced various challenges, including sustainability risks and technology disruption after the COVID-19 pandemic.
The roundtable brought together experienced and insights on how corporate governance can support corporations’ sustainability and resilience. Resilience and sustainability are essential to creating long-term value.
Masato Kanda, Vice-Minister of Finance for International Affairs, Japan, and Chair of the Corporate Governance Committee, OECD, presented the G20/OECD Principles of Corporate Governance Revision.
The six principles were revised. First, ensuring the basis of an effective Corporate Governance framework. Second, the rights and equitable treatment of shareholders and key ownership functions. Third, institutional investors, stock markets and intermediaries. Fourth, disclosure and transparency. Fifth, the responsibilities of the board. Lastly, sustainability and resilience.
Toshitake Inoue, Deputy Director-General of the Policy and Markets Bureau, Financial Services Agency, Japan, shared Japan’s efforts to attain effective governance that supports long-term sustainable growth.
He also presented the four unique features of the Corporate Governance Reforms of Japan. Firstly the Corporate Governance Reforms were led by the government. Secondly, they were growth-oriented governance. Thirdly, they were periodically reviewed and followed up and finally, they were formed into substance.
The roundtable discussed the G20/OECD Principles of Corporate Governance and the single global standard in the area of corporate governance. The roundtable review will be reported at the G20 Leaders Summit in September this year.
The G20/OECD Principles of Corporate Governance are the international standard for corporate governance. The Principles help policymakers evaluate and improve the legal, regulatory, and institutional framework for corporate governance.