Success of Japan’s Investor Communication Platform Leads to Better Governance

Investor Communications Japan (ICJ) reveals that the number of companies issuing shares on its electronic proxy voting platform has soared, improving communication between Japanese issuers and global investors.

ICJ was established as a joint venture for the administration of an “Electronic Voting Platform for Institutional Investors” by Tokyo Stock Exchange (TSE) and fintech Broadridge Financial Solutions.

It digitizes shareholder meeting processes to streamline operations and contribute to the competitiveness of Japanese capital markets. It helps listed companies engage constructively with institutional investors by providing the opportunity for well-informed engagement before, during and after shareholder meetings.

Platform Growth

Providing electronic proxy voting platform services for Japanese issuers and global institutional investors, the platform has attracted 1,738 Japanese issuers, six transfer agents, three main trust banks, six sub-custodian banks, 17 global depository banks and approximately 4,500 institutional investors worldwide. Since June 2021, the platform has seen an increase of 499 companies.

Companies listed on the TSE Prime Market participate in the platform, representing 87% of companies in this market or 98% by market capitalization. In addition, more than 100 companies listed on the standard market and more than 20 companies listed on the growth market participate in the ICJ.

Shigeo Imakiire, Chairman of ICJ, said: “A growing number of listed companies and institutional investors seek to ensure sufficient time to exercise their voting rights based on constructive dialogue and the platform better enables this process. This increase in the number of companies joining the platform is proof that the voting environment has improved significantly to facilitate the objectives of Japanese corporate governance and stewardship codes. »

“ICJ will continue to work to strengthen the competitiveness of Japanese capital markets and advance corporate governance through the digitization of shareholder meeting processes. ICJ aims to support effective dialogue between companies and investors, as well as the achievement of greater operational efficiency and the provision of valuable services for participants in the general meeting of shareholders.

Response from Broadridge

ICJ is part of Broadridge’s local market commitments to improve corporate governance and increase shareholder democracy at the national level in markets around the world.

Fintech infrastructure serves as a global communications hub, enabling higher standards of corporate governance and investor management by connecting thousands of public companies and mutual funds to tens of millions of investors individuals and institutions around the world.

“Broadridge is proud to support the continued growth of electronic proxy voting in Japan, providing innovative digital technology solutions to benefit issuers and investors and helping to modernize the industry,” adds Half DeremManaging Director of Global Investor Communications Solutions at Broadridge.

“Through our collaboration in the Japanese market, we are enabling greater issuer and shareholder participation, market-wide transparency, and setting the standard for proxy communications and voting.”