Japanese companies received a record number of shareholder proposals from institutional investors for this year’s annual general meeting season, reflecting rising activism in the country.
A total of 45 companies received proposals as of June 7, according to data compiled by Sumitomo Mitsui Trust Bank. The proposals range from sketching out a plan to boost valuations and selling down cross shareholdings, to requiring management to meet investors when requested.
More than 2,100 companies, or about 98% of listed firms whose financial year ends in March, are due to hold their AGMs during the coming two weeks, according to the Tokyo Stock Exchange.
The peak is on June 27, when 650 firms hold their meeting, mostly physically, though some have an online or hybrid format.
Although activists are typically voted down, support from other investors may increase this year. Some Japanese asset managers have said they will support proposals that they think will help to boost corporate value.
The Tokyo Stock Exchange launched a campaign this year to encourage companies to come up with plans to boost their stock market valuation. That has put pressure on management to pay more attention to investors’ opinion.