In an about-face, the Tokyo Stock Exchange plans to conditionally allow listed companies to issue so-called golden shares as a defense measure against hostile takeovers, sources said Saturday.
The TSE had previously proposed draft guidelines in November to prohibit, in principle, listed firms from issuing golden shares, which grant veto powers on key matters such as mergers.
But the bourse has met opposition from financial services minister Kaoru Yosano and the Ministry of Economy, Trade and Industry. Companies seeking to strengthen their antitakeover measures have also opposed the TSE's draft guidelines.
The TSE now plans to allow listed companies to issue golden shares under certain conditions -- including that the shares would be valid for a limited time and that a resolution at a general shareholders' or board meeting can make them invalid, the sources said.
Companies seeking to issue golden shares would have to obtain authorization from the bourse in advance, they said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.