The House of Representatives approved at a plenary session Tuesday an amendment to the Commercial Code aimed at easing regulations on granting and exercising stock options.
The Lower House immediately sent the amendment to the House of Councilors. The amendment is expected to be enacted during the current Diet session.
Stock options are the right given to the holder to buy a specific number of shares at a certain price. The options are used by companies, especially startup firms, as incentives to employees because they can earn capital gains by selling acquired shares when their prices rise above the exercise price. Under the existing system, companies are allowed to grant stock options only to directors and employees. But with the amendment, companies would be allowed to offer options to anyone.
Also under the amendment, companies would be allowed to notify shareholders about general meetings and receive shareholder votes by e-mail.