Improving reputations
SUPPLEMENT - THE 2010 GUIDE TO JAPAN - February 17, 2010
Nagashima Ohno & Tsunematsu
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The globalisation of corporate activities coupled with borderless securities markets has created strong demand for better corporate governance of listed companies worldwide.
Both domestic and foreign investors have criticised Japan's corporate governance regime as being inferior to the US and many EU member states' regimes. Whether or not this is fair, one area of criticism is that the regime allows Japanese listed companies to obtain their funding from financial markets in an undesirable manner, and to dilute the voting rights of existing shareholders – potentially damaging their interests.
To address this criticism, the Tokyo Stock Exchange (TSE) made amendments to the Securities Listing Regulations and other related regulations which took effect on August 24 2009, and imposed new rules on private placements. The amendments' aim is to create a better market environment that will give investors security and restore the credibility of the TSE market.
(Please note that references to...
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