TOKYO: A Singapore-based activist fund is asking four Japanese companies through shareholder resolutions to make their board members regularly available for one-on-one meetings with large investors.
The rare proposal by Global ESG Strategy, a fund managed by Swiss-Asia Financial Services (SAFS), would give investors a direct line to boards as the country’s corporate governance reform has caused firms to open up more communication with shareholders.
The shareholder resolutions were sent to industrial components supplier Nippo, cram schools operator With us, conveyors maker NC Holdings and Tokyo Cosmos Electric, SAFS’ chief investment officer Yasuto Monden, told Reuters.
Nippo and NC declined to comment. With us and Tokyo Cosmos said no one was available to comment.
Monden said many Japanese companies now agree to make available certain board members such as chief executive officer and chief financial officer for individual meetings, but it’s still rare to make all of their board members available.
“I believe individual meetings with shareholders are effective in creating a sense of urgency at the board,” he said. “It’s hugely important for many board members to talk directly with shareholders and hear their views.” — Reuters