2024 Japan AGM Review

As shareholder activism grows in Japan, the number of shareholder proposals submitted at general meetings has rapidly increased. This report, based on data from Diligent Market Intelligence, analyzes the characteristics of these proposals and offers insights into the evolving trends at Japanese companies.  

Key Takeaways:  

• Surge in Proposals: The number of shareholder proposals has steadily risen since 2022, with 109 companies receiving 453 individual resolutions in the latest reporting period (July 2023 - June 2024). 

• Institutional Investor Influence: Institutional investors, especially activist funds, have significantly contributed to the rise in proposals. 

• Increasing Support: A growing proportion of shareholder proposals are receiving 20% or more of votes in favor, reflecting increasing shareholder backing. 

• Director Elections Dominate: Proposals related to director elections and dismissals remain the most successful, though very few resolutions pass. 

• Key Supported Proposals: Proposals for the abolition of anti-takeover measures, decisions on dividends, and disclosure of director remuneration tend to receive higher support from shareholders and institutional investors. 

• Environmental Proposals on the Rise: Environmental proposals are becoming more common, though they haven't gained widespread shareholder support yet. 

• Changing Investor Stance: The proportion of votes in favor of shareholder proposals by domestic institutional investors has been increasing, indicating a shift in their approach. 

Download the full report to dive deeper into the data and trends. For further queries, reach out to our expert team.