A Japanese research firm suggests that there may
be a record 14 shareholder proposals (all with the intention of
creating higher returns) that will be made in the next few weeks as
annual general meeting season begin in Tokyo and elsewhere.
Why is this surprising? In the past it has been uncommon for
shareholders in Japan's institutions to oppose company
resolutions. Activists were considered 'bad guys.' What has
changed this dynamic is the creation of the Stewardship Code (the "Code") under
the tutelage of the economically driven Prime Minister Shinzo Abe.
In force since May, it already has been followed by over one
hundred institutions and has been a magnet for foreign investors.
The Code is geared towards institutional investors and mandates
that they "enhance the medium- to long-term investment return
for their clients and beneficiaries by improving and fostering the
investee companies' corporate value and sustainable growth
through constructive engagement, or
