009 System of independent executives
Listed companies will be asked have in their companies one or more than one independent executive by the next day of the end of regular stockholders’ meeting for the year ended after March 1 2010.
Independent executives are outside directors or outside auditors who have no conflicting interest with general shareholders’.
The Corporation Law has already established the system of outside auditors and outside directors. However, this is not functioning as it should because some of them are from companies within their group or from their clients or suppliers, and there are many cases in which people not necessarily neutral to the company are positioned as independent executives. In order to break this protectionism by companies’ executives and establish the substantial independency of outside directors, they have asked explicitly the listed companies to have independent executives.
In the business operation where independent executives with no conflicting interest with general shareholders, it is expected that decisions are made with more consideration for general shareholders’ interest.
