Japan to Allow Firms to Hold Online-Only Shareholder Meetings

Tokyo, Feb. 4 (Jiji Press)--Japanese Justice Minister Keisuke Suzuki said Tuesday that he will seek advice from the Legislative Council on the idea of revising the companies law to fully allow businesses to hold online-only shareholders' meetings.

For better convenience of both companies and shareholders, the government plans to fully legalize online-only shareholders' meetings, which are permitted only in exceptional cases under the industrial competitiveness enhancement law based on a decision made during the COVID-19 pandemic.

The companies law stipulates that the venue of a general meeting of shareholders be determined before it is convened. The law does not allow it to be held only online.

The envisioned amendment will also include rules on measures to reduce the risk of canceling a resolution in the event of a communications failure.

The Legislative Council will also discuss a proposed system to allow companies to check information on beneficial shareholders who can effectively exercise voting rights at shareholders' meetings although they are not on the list of shareholders because they typically own shares indirectly.

[Copyright The Jiji Press, Ltd.]