Tokyo Star Bank said Monday that, subject to approval at a shareholders’ meeting scheduled for June 27, it will establish board committees aimed at boosting corporate governance.
In line with the move, Todd Budge, the bank’s vice president and chief operating officer, will be promoted to president and chief executive officer, the bank said.
Hiroshi Ohashi, the bank’s current chairman and president, will retain the chairmanship, it said.
Under Commercial Code revisions that took effect April 1, large companies have the option of setting up three separate board committees for nominations, remuneration and auditing as a means of improving corporate governance.
The remuneration and nomination committees at Tokyo Star Bank are expected to be headed by two non-Japanese outside directors, bank officials said.
Tokyo Star Bank, the reborn entity of regional lender Tokyo Sowa Bank, started operating in June 2001 after it took over the failed bank’s assets. Its capital adequacy ratio stood at 8.5 percent as of March.
Tokyo Sowa failed in 1999 under the weight of bad loans.
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