”The latest activist showdown involving billionaire investor Dan Loeb has the makings of a test case for the progress Japan Inc. boards have made in improving governance.
Category: Governance
”Foxconn agrees to buy Japan’s Sharp Corp. for $3.5 billion”
Acquisition comes after weeks of uncertainty over deal at higher price
”TAIPEI, taiwan — The Taiwanese company that assembles Apple’s iPhones agreed Wednesday to buy control of financially struggling Sharp Corp. for $3.5 billion in the first foreign takeover of a major Japanese electronics producer.
WSJ (Benes) – ”Japan’s Pension Funds Could Help Curb Cash Hoarding”
”Almost three years after I first proposed in these pages that Japan adopt a governance code to raise productivity, the country now not only has a Corporate Governance Code but also a Stewardship Code for institutional investors. There has since been much discussion, and even exhortation by the government, about the urgent need to change the corporate mindset, engage with investors and increase companies’ return on equity. These are all major achievements. But when it comes to increasing corporate profitability through reinvesting in the real economy, there is still much progress to be made.
Japanese companies continue to sit on a mountain of excess cash. According to Japan’s Ministry of Finance, this mountain actually grew to $1.5 trillion in 2015 from $1.4 trillion in 2011, despite substantial increases in dividends and stock buybacks. During that same period, capital expenditure shrank by more than half……….”
BCCJ ”Corporate Governance Code in Japan”
At a joint event hosted by the American Chamber of Commerce in Japan (ACCJ) and the British Chamber of Commerce in Japan (BCCJ) on 23 March 2016, Lady Barbara Judge spoke to members about the development of Corporate Governance Code in the US, UK, and Japan.
”Lady Judge, a former member of the U.S. Securities and Exchange Commission, chair of the U.K.’s Institute of Directors, and now an independent outside director on the board of LIXIL Group Corporation, opened the session with her definition of corporate governance:
”How the ESG landscape is changing in Japan” – A participant’s personal observation of RI Asia 2016
”RI Asia 2016 took place at the Tokyo Stock Exchange on the 23-24th February, and was attended by approximately 400 domestic and international participants. As an ex-resident of London now based in Tokyo, it has been interesting to observe the changingESG landscape in Japan. RI Asia acted as a useful milestone to stop, reflect […]
Gary Giampetruzzi et al ”Another Life Sciences Company Gets Hit Hard: Olympus Pays $646M to Resolve Corruption Allegations in a Unique Dual FCA / FCPA Resolution”
”Demonstrating the continued focus of the Department of Justice (“DOJ”) on the life sciences industry, on March 1, 2016, the U.S. Attorney’s Office for the District of New Jersey (“USAO”) announced a major settlement with Olympus Corporation of the Americas (“Olympus”), the U.S. subsidiary of Olympus Corporation, a Japanese company and the largest U.S. distributor […]
David A. Katz et al ”Gender Diversity on Boards: The Future Is Almost Here”
‘‘A board composed of directors representing a range of perspectives leads to an environment of collaborative tension that is the essence of good governance. In a room where everyone has different points of view and there is a greater opportunity for cross-pollination of ideas, there are fewer unspoken assumptions, less “group think” and a greater likelihood of innovation. This allows the board to ask the probing questions and tackle the challenging issues, such as risk management and succession planning, which are at the center of good corporate governance.
”Exxon Mobil must allow climate change vote: SEC”
THE ISSUE – ”Corporate Governance an important issue”
Should more attention be paid to corporate governance issues? ”Over the past few years, institutional investors have held boards increasingly accountable for company performance and have demanded greater transparency and engagement with directors. Investors’ interest in more disclosure and interaction arises from their desire for improved performance, both on the part of boards and in […]
”Japan changes tax treatment of D&O liability insurance premiums”
”Japan’s National Tax Agency (NTA) has announced a new tax treatment of premiums for directors’ and officers’ liability insurance.