The success of the Japanese investor communications platform leads to better governance

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

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

It digitizes the processes of general meetings of shareholders to streamline operations and contribute to the competitiveness of Japan’s capital markets. It helps listed companies engage constructively with institutional investors by providing an opportunity for informed engagement before, during and after shareholder meetings.

platform growth

The platform provides electronic proxy voting platform services for Japanese issuers and global institutional investors and has attracted 1,738 Japanese issuers, six transfer agents, three master trusts, six sub-custodians, 17 global custodians and approximately 4,500 institutional investors worldwide. Since June 2021, the platform has grown by 499 companies.

Companies listed on the TSE Prime Market participate in the platform and represent 87 percent of the companies in that market, or 98 percent by market capitalization. In addition, more than 100 Standard Market listed companies and over 20 Growth Market listed companies participate in the ICJ.

Shigeo Imakiire, President of ICJ, says: “More and more listed companies and institutional investors want to give themselves sufficient time to exercise voting rights based on constructive dialogue and the platform better facilitates this process. This increase in companies joining the platform is evidence that the voting environment has improved dramatically to support the goals of the Japanese Codes of Corporate Governance and Stewardship.”

“ICJ will continue to work on strengthening the competitiveness of the Japanese capital markets and advancing corporate governance through the digitization of general meeting processes. ICJ aims to support effective dialogue between companies and investors, as well as the realization of greater operational efficiencies and the provision of valuable services to AGM attendees.”

Broadridge answer

ICJ is part of Broadridge’s local market commitments to improve corporate governance and strengthen shareholder democracy nationally in markets around the world.

The fintech’s infrastructure serves as a global communications hub, enabling higher standards of corporate governance and investor servicing, connecting thousands of public companies and investment funds with tens of millions of individual and institutional investors around the world.

“Broadridge is proud to support the continued growth of electronic proxy voting in Japan by providing innovative digital technology solutions that benefit issuers and investors and help modernize the industry,” he added Demi DeremManaging Director of International Communications Solutions for Investors at Broadridge.

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

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