Japan: New draft legislation aimed at restricting shareholder activism
A government panel tasked with preparing a new company law has published a draft bill that would, if adopted, severely restrict shareholder activism. The draft proposes a limit of five or ten as to how many shareholder motions can be submitted, and would give management the prerogative to discard any motions that are ‘defamatory’ or ‘inappropriate’. Critics of the draft note that there has been increasing shareholder activism in electricity companies since the Fukushima nuclear disaster, and state that the draft seems to be targeting those activities.
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