Tokyo Stock Exchange Inc. plans to introduce a ban in principle on listed firms adopting so-called golden shares, which grant owners veto powers on key matters such as a merger, sources said Saturday.
The exchange will incorporate the measure in its delisting standards after fine-tuning its views with the Financial Services Agency, the sources said.
The TSE plan is in stark contrast to a proposal made by a Ministry of Economy, Trade and Industry panel earlier this month.
According to the panel's proposal, golden shares should be permitted under certain conditions such as the shares being limited-term issues or with a provision that they could be voided through shareholder or board resolutions.
But the exchange is leaning toward a blanket ban to prevent excessive corporate defensive measures against takeover bids, which could undermine the principle of shareholder equality and the interests of general shareholders, according to the sources.
Major resource developer Inpex Corp., which went public last year and in which the government holds golden shares for national energy policy reasons, would be exempt from the ban, they said.
It is the only listed firm that has issued golden shares.
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