A sign for Japan’s Financial Services Agency is seen in Tokyo. (Mainichi)
TOKYO (Kyodo) — Japan’s financial watchdog on Friday called on all listed companies to disclose their annual securities reports before their general meetings of shareholders, allowing investors to review them before exercising their voting rights.
The government hopes listed firms will release their securities reports “a day or a couple of days before” their general gatherings of shareholders, Finance Minister Katsunobu Kato, who also oversees the Financial Services Agency, said at a press conference.
“Securities reports contain valuable information for investors to make decisions,” Kato said. “We believe it is desirable for listed companies to ensure the reports can be reviewed” before their general meetings.
The FSA’s move comes amid growing demands from shareholders, particularly overseas institutional investors, for adequate time to scrutinize securities reports before finalizing their intentions and voting at general gatherings.
Given that around 90 percent of the about 4,000 publicly listed firms in Japan disclose their securities reports on the day of or a few days after their general meetings of shareholders, advancing the timing by several days is feasible, the FSA said.
The FSA plans to examine when and how listed companies submit their securities reports after the fiscal year ending in March and consider additional measures for those that fail to comply with its request. Many Japanese firms conclude their fiscal year in March.
AloJapan.com