Japan to let companies shield directors from big liability claims
1 min read

Japan to let companies shield directors from big liability claims

Politics

Protection for top executives aims to encourage bold management decisions

Japan hopes that limiting liability claims against executives will encourage them to make growth investments. (Photo by Nanami Sato)

TOKYO — Japan will as early as 2027 limit the compensation directors must pay when found liable for business-related damages, aiming to ease concerns about shareholder lawsuits that could discourage investments in growth.

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