Company dispute raises governance questions in Japan

A high-profile dispute between computer giant Fujitsu and its former president has placed the corporate governance standards of Japanese firms under the spotlight once more.

Kuniaki Nozoe alleges he was forced to resign from the Tokyo-based company last September after being wrongly accused of links with organised crime by members of the Fujitsu board.

He has publicly challenged his dismissal and is now calling for an independent investigation into the conduct of senior figures at the firm.

The New York Times reports that while many global business analysts are used to Japanese organisations adopting an "idiosyncratic approach" to corporate governance, the Fujitsu case is unusual even by the Asian country's standards.

Governance analysts have previously raised concerns over issues such as board composition and the relative lack of independent directors in many of Japan's major businesses.

"It's still common for listed companies in Japan to be run as if management, not shareholders, were the owners," Jamie Allen, head of the Hong Kong-based Asian Corporate Governance Association, told the newspaper.