More M&A and rights issues

Author: | Published: 1 Sep 2009

Rachel Evans
Asia editor

You won't find the phrase corporate governance in a dictionary of essential business Japanese. The translation of corporate governance is corporate governance. There is no widely recognised Kanji phrase. As this might suggest, corporate governance is a relatively recent imported concept, and a concern for foreigners – particularly from the US and UK – not the Japanese.

"Japanese company law is stronger in providing for shareholder rights than the US, on average"
Nicholas Benes, JTP Corporation

But corporate governance in Japan is actually healthier than in many other developed jurisdictions. As Nicholas Benes, president of boutique investment bank JTP Corporation, argues: "Japanese company law is already pretty strong in providing for shareholder rights; on average, it's stronger than in the US, especially regarding say-on-pay and access-to-the-proxy."

Unlike the US, for example, where shareholders face an expensive and uncertain battle should they wish to get their nomination for a director...