The mandate to establish outside board members in listed companies in Japan and implications for Vietnam

Abstract

This article explores Japan's experience with provisions mandating listed companies to appoint outside board members. By analysing legal frameworks, policies, and scholarly perspectives, the article clarifies the role and impact of outside board members in promoting transparency, impartiality, and effective oversight in corporate governance. Based on these insights, the article evaluates the feasibility and relevance of introducing mandatory independent board members  for listed companies in Vietnam. Furthermore, the article also makes recommendations to ensure the effective implementation of such provisions, aligning them with Vietnam's unique economic, legal, and corporate governance landscape.