The House of Representatives approved a bill Tuesday to revise the Commercial Code to pave the way for corporations to make quick management decisions with a small number of executives.

The new Commercial Code would allow board members at corporations capitalized at 500 million yen or more to name executive officers that can make flexible management decisions on important matters.

The U.S.-style corporate governance system would be allowed on the condition that at least two outside board members are involved.

The government aims to secure passage of the new Commercial Code through the House of Councilors during the current Diet session, due to end June 19.

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