A House of Councilors panel approved a bill Tuesday to update Japan's corporate legal system, paving the way for the enactment of new legislation to facilitate mergers and acquisitions while strengthening countermeasures against hostile takeovers.
The Upper House is expected to pass the bill at a plenary session Wednesday with a majority vote from the ruling coalition of the Liberal Democratic Party and New Komeito, as well as support from the Democratic Party of Japan and the Social Democratic Party.
The legislation, designed to respond to changes in the international business environment amid rapid globalization, is scheduled to take effect in 2006 in principle, except for provisions pertaining to M&As.