Amidst the rapid globalization of economic activities, a number of well-established corporations from around the world have wound up in bankruptcy due to corporate mismanagement or fraud and the resulting loss of public trust. Opaque management has negatively affected the evaluation of some firms in global capital markets, detracting from corporate competitiveness. These trends have prompted growing recognition from the Japanese corporate sector of the need for current corporate governance practices in Japan to be reviewed and strengthened.

Confronting a world-wide call for internationally acceptable corporate governance, Japanese corporate, management are actively discussing the need to re-examine Japan's customary system of appointing board directors and auditors from within the company and to attach more importance to enhancing shareholder value as in the style of corporate governance currently practiced in North America and Europe. In particular, with foreign institutional investors beginning to actively purchase Japanese corporate stock, the establishment of a sound relationship between these companies' management and foreign institutional investors is drawing closer attention globally.

The Forum has invited from the United States and Europe two distinguished speakers, with expertise in the issues and practices of corporate governance. These experts will share their insights and outline trends regarding the further strengthening of corporate governance and the role/responsibility of corporate board directors in the US and other OECD countries. They will be joined by a number of Japanese presenters.

The Forum will provide an opportunity to discuss and find ways to address various crucial issues for corporations in gaining the confidence of long-term Japanese and global institutional investors and in further strengthening their competitiveness in global markets.

The Forum sponsors look forward to a vigorous discussion among all participants on this timely and compelling issue.