TSE orders firms to appoint at least 2 outside directors

Tokyo

COMPANIES listed on the Tokyo Stock Exchange (TSE) must have at least two outside board members from June, the bourse's operator said, under new rules aimed at improving corporate governance and attracting foreign investors.

Japan Exchange Group chief executive Atsushi Saito called the move a "cultural turning point" in a country where companies are widely criticised for prioritising employee welfare and business relationships over shareholder returns.