Scandals, Profitability in Focus at Shareholders Meetings in Japan


Tokyo, June 11 (Jiji Press)--Investors are closely scrutinizing publicly traded companies in Japan over their legal compliance and earning power as the country's general shareholders meeting season enters full swing this week.

The strong interest in compliance follows a string of testing fraud scandals at automakers, while the focus on profitability has led to institutional and other investors submitting a flurry of shareholder proposals.

According to the Tokyo Stock Exchange, the shareholders meeting season will reach its peak on June 27, when 668 companies, or 29.5 pct of all TSE-listed firms that close their books in March, plan to hold general meetings of shareholders.

A Daiwa Institute of Research Ltd. tally showed that 91 companies had received proposals from shareholders as of Friday, topping last year's 90 to log a record high.

The TSE's request in March last year for listed firms to engage in management that takes capital efficiency and share price into consideration is believed to have invigorated activist investors.

[Copyright The Jiji Press, Ltd.]

Jiji Press