CORPORATE MANAGEMENT IN JAPAN - BOARD SYSTEMS AND OUTSIDE MEMBERS WITH A REVIEW ON FUNCTION OF THE SUPERVISORY BOARD IN SERBIAN COMPANIES

Abstract

The corporate governance in Japan was mostly characterized by the main-bank system, board members that are internally promoted executives and employee-focused management. That is why Japan has been behind other developed countries in appointing independent directors, partly due to its exclusionist corporate culture. After a quite period of detailed reforms today’s corporate governance in Japan neither converges uniformly with the American-type model, nor it’s simply adjusted with two-tire system of the German model of corporate governance. Rather, a hybrid-type system is becoming dominant as a choice for Japanese company law, so it is endorsed as a type of the best practice in corporate governance. It is certain that the reforms sought to achieve a more efficient system of internal control of the company’s business, which gave its expression in a complex mixed system with an emphasis on increasing the number of outside members. Relatively recent company law reforms in Serbia have made it possible to choose between one-tire and two-tire system, so domestic companies are opening up the question of a choice that is more acceptable for our business environment. Solutions that Japanese company law applied can be an excellent example of persistent efforts for using past experiences, correcting mistakes and bringing successes to the future.