JAPAN
Russia
China
N. Korea
Japan
S. Korea
Law and Practice Contributed by: Akira Matsushita and Hideki Ben Mori Hamada
Tokyo
Contents 1. Types of Company, Share Classes and Shareholdings p.121 1.1 Types of Company p.121 1.2 Types of Company Used by Foreign Investors p.121 1.3 Types or Classes of Shares and General Shareholders’ Rights p.121 1.4 Variation of Shareholders’ Rights p.121 1.5 Minimum Share Capital Requirements p.121 1.6 Minimum Number of Shareholders p.121 1.7 Shareholders’ Agreements/Joint Venture Agreements p.122 1.8 Typical Provisions in Shareholders’ Agreements/Joint Venture Agreements p.122 2. Shareholders’ Meetings and Resolutions p.122 2.1 Types of Meeting, Notice and Calling a Meeting p.122 2.2 Notice of Shareholders’ Meetings p.123 2.3 Procedure and Criteria for Calling a General Meeting p.123 2.4 Information and Documents Relating to the Meeting p.123 2.5 Format of Meeting p.124 2.6 Quorum, Voting Requirements and Proposal of Resolutions p.124 2.7 Types of Resolutions and Thresholds p.125 2.8 Shareholder Approval p.125 2.9 Voting Requirements p.125 2.10 Shareholders’ Rights Relating to the Business of a Meeting p.125 2.11 Challenging a Resolution p.126 2.12 Institutional Shareholder Groups p.126 2.13 Holding Through a Nominee p.126 2.14 Written Resolutions p.127 3. Share Issues, Share Transfers and Disclosure of Shareholders’ Interests p.127 3.1 Share Issues p.127 3.2 Share Transfers p.127
4. Cancellation and Buybacks of Shares p.128 4.1 Cancellation p.128 4.2 Buybacks p.128 5. Dividends p.129 5.1 Payments of Dividends p.129 6. Shareholders’ Rights as Regards Directors and Auditors p.129 6.1 Rights to Appoint and Remove Directors p.129 6.2 Challenging a Decision Taken by Directors p.130 6.3 Rights to Appoint and Remove Auditors p.130 7. Corporate Governance Arrangements p.130 7.1 Duty to Report p.130 8. Controlling Company p.131 8.1 Duties of a Controlling Company p.131 9. Insolvency p.131 9.1 Rights of Shareholders If the Company Is Insolvent p.131
10. Shareholders’ Remedies p.131 10.1 Remedies Against the Company p.131 10.2 Remedies Against the Directors p.132 10.3 Derivative Actions p.133 11. Shareholder Activism p.133 11.1 Legal and Regulatory Provisions p.133 11.2 Aims of Shareholder Activism p.134 11.3 Shareholder Activist Strategies p.134 11.4 Recent Trends p.135 11.5 Most Active Shareholder Groups p.135 11.6 Proportion of Activist Demands Met p.135 11.7 Company Prevention and Response to Activist Shareholders p.136
3.3 Security Over Shares p.127 3.4 Disclosure of Interests p.127
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