Key facts
- Japan's financial watchdog is investigating how major shareholders report their positions.
- The probe aims to ensure shareholders disclose sufficient information about their intentions.
- Activist investors have submitted a record number of proposals to Japanese companies.
- Many proposals focus on board appointments and executive changes.
- Notable activist campaigns include Dalton Investments at ASKA Pharmaceutical and Oasis Management at KADOKAWA.
Japan's financial regulator has initiated an investigation into how major shareholders report their positions in listed companies, focusing on the adequacy of disclosed intentions. This move comes as activist investors are increasingly submitting proposals, with a record number targeting board appointments and management changes ahead of annual general meetings.
According to a report by the Daiwa Institute of Research, shareholder proposals have been submitted to 104 companies this June, with 54 filed by institutional investors and activist funds. This marks an increase from the previous year's record of 51.
Notable activist campaigns include a fund affiliated with US-based Dalton Investments proposing two outside directors for ASKA Pharmaceutical Holdings, a move opposed by the company. Meanwhile, Hong Kong-based Oasis Management is seeking the dismissal of KADOKAWA CEO Tsuyoshi Natsuno due to the company's performance.
Oasis Management previously played a key role in the delisting of Fujitec after a campaign against its founding family. Separately, Aya Nomura, daughter of former Murakami Fund leader Yoshiaki Murakami, has been increasing her stakes in railway operators, acquiring significant holdings in companies like Kintetsu Group Holdings and Keikyu Corporation. Investment groups linked to the former Murakami Fund have also acquired shares in Fuji Media Holdings.