To this day, Japan has actively sought the introduction of external directors and external corporate auditors in order to strengthen its corporate governance, with the expectation they will provide objective monitoring of a company's management. "Monitoring" requires independence from executive directors of business. Yet, at present, a closer examination of the reality of external directors and external corporate auditors reveals that, while they satisfy legal requirements, they do not sufficiently fulfill their true roles as external function who monitor business while being objectively involved in management. This article reviews an example of a public-listed company in order to tease out the current situations and problems regarding external directors and external corporate auditors, so strategies to strengthen corporate governance can be recommended.
