The American Chamber of Commerce in Japan on Wednesday called on the Japanese government to create a greater role for independent directors rather than enhancing the role of auditors in legislating corporate governance.
Inside monitoring of listed companies is better served by independent directors rather than auditors "as some in Japan are currently suggesting" in the ongoing government deliberations to revise the Commercial Code, the chamber said in a report.
"We believe the objection that outside directors can't know enough about the company is misplaced," Anthony Zaloom, chairman of the ACCJ Commercial Code task force, said.
"Well-qualified outside directors bring expertise and fresh perspectives that the company doesn't have internally," he said. "More fundamentally, outside directors are more prone to emphasize shareholder value rather than what makes current management most comfortable."