More Japanese firms are appointing outside directors to strengthen their corporate governance, pushed by a revised law and new rules that are set to come into effect in the coming months.

Japan has been lagging behind other developed countries in appointing independent directors, partly due to its exclusionist corporate culture stemming from lifetime employment, where those who successfully climb the company ladder become board members.

The issue of outside directors also came under the spotlight after the chairman of furniture retailer Otsuka Kagu launched a proxy fight against his daughter, the president, over control of the company, raising questions about whether corporate governance was working to stop the family battle.