We are pleased to share the January 2025 issue of Japan Corporate & Finance Insights. This newsletter is designed to keep you current on what we consider to be important recent legal developments involving Japanese corporate and finance matters.

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Transparency of Beneficial Shareholders in Japan’s Legal Framework (By Issei Shinohara)

On December 25, 2023¸ the Working Group on Tender Offer Regulations and Large Shareholding Reporting Systems organized by the Financial Services Agency (“FSA”) released a report including the direction of the rules concerning transparency of beneficial shareholders.

Subsequently, it is currently being discussed by the Expert Council on the Stewardship Code in the FSA that the introduction of the principle of institutional investors’ conduct would be initially encouraged under the Stewardship Code. Discussions regarding legal obligations are expected to take place at a later stage.

This article explores beneficial shareholder transparency in Japan under relevant laws, ongoing discussions on possible reforms, and their potential impact on corporate practices.