Japan Tightens Shareholder Proposal Rules Amid Corporate Activism Pushback
Japan is set to implement stricter rules for shareholder proposals in response to increasing pressure from activist investors. Influential lawmakers from the ruling party are recommending raising the thresholds for submitting proposals and limiting those related to business execution. This move comes after a record number of proposals were submitted by activist investors to 52 companies last year, driven by corporate governance reforms. Critics argue that the current rules are too lenient, allowing for what they describe as abusive proposals that divert company resources from long-term growth. The justice ministry is considering public comments on the proposed changes before submitting a bill to parliament next year. 
