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Weekly News Roundup: Ecommerce in India, Corporate Carbon Emissions

From lowering carbon emissions to selecting board members, companies are becoming more transparent. Here’s other news impacting in-house counsel that you might have missed this week.

Nissan may offer outside directors a majority on its board

Nissan Motor Co.'s corporate governance committee may propose that non-Japanese directors make up a majority of the board. The suggestion is intended to create greater transparency and accountability following the arrest of former chief executive Carlos Ghosn, according to Japan Times.

Nissan's nine-member board has only three outside directors. Yet the imprisonment of Ghosn for allegedly falsifying his compensation reports is making non-Japanese executives wary of working in Japan. Ghosn's legal team has twice failed to win his release on bail. He is entering his fourth month in jail; his trial is several months away.

New ecommerce regulations for India

India has launched a new draft policy for its ecommerce sector. The proposals focus on data localization, improved privacy safeguards, and steps to combat the sale of counterfeit products. The policy is part of a movement towards greater data localization and local control over Indian data. Two months ago, the country modified regulations governing foreign direct investment in ecommerce, forcing retail giants, including and Walmart-owned Flipkart, to restructure their Indian operations.

In 2018, the central bank of India forced credit card companies such as Mastercard and Visa Inc. to store Indian users' data in the country, to develop local technology and infrastructure. The new rules would require storing more data centers in India and installing local servers, among other mandates that might increase operating costs, according to U.S. News & World Report.

Consumer goods companies bracing for climate change

Companies behind well-known consumer products are starting to factor climate change into their business plans. A survey of 16 major corporations by a non-profit group called CDP, revealed that many companies including Unilever, Nestle, Coca-Cola, and Procter & Gamble, are working to lower their carbon emissions, and are prepared for the effects of global warming on their supply chain.

The businesses are also responding to strong preferences among customers to purchase goods environmentally aware companies, reports the Associated Press.

Data breaches reported to UK Financial Services Sector last year increased 480 percent over 2017

Financial services companies in the United Kingdom experienced a five-fold rise in data breaches in 2018, compared to 2017. Companies reported 145 breaches to the UK's Financial Conduct Authority last year, up from 25 in 2017. Investment banks reported the highest number of incidents at 34, while banks suffered the sharpest rise in percentage terms, from 1 to 25, reports the Information Age.

Mastercard attempts to climb the Great Wall — Again

After years of failed attempts, Mastercard is again trying to enter China. This time, the credit card company is joining a local company, NetsUnion Clearing Corp., which has close ties to the regulator in charge of approving credit card businesses. Mastercard plans to set up a joint venture with NetsUnion Clearing (also known as Wanglian), and will refile its application with the People's Bank of China, which oversees approving card-clearing services.

Mastercard has had separate applications, with different Chinese partners, pending with the central bank for about a year. The credit card’s company new venture, with a new partner, highlights the hurdles facing foreign companies scaling the great wall protecting the Chinese market, according to the Wall Street Journal.

About the Author

Wendy R. Leibowitz is a freelance contributor. Her work has appeared in the National Law Journal, American Lawyer Register, and Chronicle of Higher Education.

The information in any resource collected in this virtual library should not be construed as legal advice or legal opinion on specific facts and should not be considered representative of the views of its authors, its sponsors, and/or ACC. These resources are not intended as a definitive statement on the subject addressed. Rather, they are intended to serve as a tool providing practical advice and references for the busy in-house practitioner and other readers.