Broadridge’s joint venture with the Tokyo Stock Exchange will launch a new digital vote execution service that significantly accelerates end-to-end automation of proxy voting to Japanese issuers.
Investor Communications Japan (ICJ) will push the new service out to increase voting participation by international investors and enable the Japanese market to improve corporate governance practices.
Through the service participating listed companies will be able to obtain greater transparency of the voting intentions of investors, while local sub custodians will be able reduce risk and complexity from their operations, Broadridge said.
“We continue to use our global expertise to ensure the ICJ platform provides market leading solutions to improve the proxy voting life cycle for corporate governance events,” said Shigeo Imakiire, ICJ President. “Japanese issuers participating in ICJ are providing institutional investors with faster access to meeting materials, expanded voting deadlines and accelerated voting capability.”
In the 2022 Japan proxy season, 1,654 companies listed on the Tokyo Stock Exchange participated in the ICJ platform, representing 90% of the companies in that market and 98% by market capitalisation. Foreign institutional investors represented 81% of the total number of voting rights held by foreign institutional shareholders.
“This service evolution means all international investors and local sub custodians will benefit from its innovative and digitised e-voting service, driving efficiency and delivering greater transparency to both issuers and investors” said Demi Derem, managing director, international solutions banks, brokers, and dealers at Broadridge Financial Solutions. “ICJ has significantly improved corporate governance practices in Japan since its inception in 2004 and this new service offering is the latest example.”