Shareholders Asked Not to Attend General Meetings amid Virus Crisis

Economy

Tokyo, June 4 (Jiji Press)--Listed Japanese companies are asking shareholders not to attend their upcoming regular general meetings as part of efforts to prevent the spread of the novel coronavirus.

A general shareholders meeting is the supreme decision-making body of a stock company and offers an important opportunity for its executives to communicate with shareholders, who have the right to appoint board directors.

While online meetings are drawing attention, listed companies are increasingly worried whether they can win full understanding from shareholders for management policies they have devised amid the virus crisis.

Despite the epidemic, many companies hope to hold shareholders meetings as usual. Among companies that are listed on the Tokyo Stock Exchange and closed their books in March, some 2,300 are planning to hold general shareholders meetings this month, with the number of such meetings expected to peak at about 750 on June 26.

Some companies are taking a two-tier approach, seeking shareholder approval for director appointments and other matters in the first phase and for earning statements in the second phase.

[Copyright The Jiji Press, Ltd.]

Jiji Press