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Voting in Japan |
Just like its landscape, people and culture, Japan’s proxy season has unique characteristics setting it apart from other countries. (See Graph 1) The concentration of over 50% of AGMs on one day (usually the last Thursday in June) is down from the 90%+ of a few years ago, but when you consider most voters still have only a three-day voting window, one can imagine the extra gallons of midnight oil being burnt by institutional investors.
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| The overwhelming majority of Japanese companies register a record date at the end of March, and Japanese corporate law stipulates that companies must hold a shareholder meeting within three months of the record date. Accordingly, the concentration of shareholder meetings taking place in late June causes a situation where thorough review of each proposal by institutional investors is virtually impossible. This year’s peak season in Japan saw over 1,750 AGMs held in the span of ten days, with over 1,000 taking place on June 29. (See Graph 2) |
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| While the Japanese proxy environment is beginning to change, the peak season in Japan still represents an extreme challenge for institutional investors in charge of properly executing shareholder voting rights. ICJ is firmly committed to providing a platform that adds value to the process for both beneficial owners and issuers alike. By shining the spotlight on some of Japan’s current proxy problems and ICJ’s corresponding competitive solutions, we hope to illustrate the distinct benefits of platform participation. |
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