Sumitomo Mitsui Trust Bank has decided to review its response to the companies with which it holds, as the movement to review the unique Japanese practice of "cross-shareholding" between companies with which it has business relationships is spreading.
If the cross-shareholding company runs into the final deficit for the third consecutive year, it opposes the appointment of directors.
Sumitomo Mitsui Trust Bank has newly established a standard for exercising voting rights at a general meeting of shareholders for shares held with business partners called "policy-holding shares."
According to this, if the company with which the company has a cross-shareholding is in the final deficit for the third consecutive year, in principle, it opposes the appointment of directors who have been in office for three years or more.
In addition, even if a scandal occurs, if recurrence prevention measures and internal dispositions are not properly implemented, the appointment of directors will be carefully decided.
Cross-shareholding is said to be a practice peculiar to Japan, and in many cases it does not oppose the agenda proposed by the cross-shareholding party at the general meeting of shareholders. We are urging you to cut down on your stock.
Sumitomo Mitsui Trust Bank has already announced a policy of selling cross-shareholdings to zero in the future, but by clarifying the criteria for exercising voting rights until the sale, the corporate governance of business partners will be improved. I have an aim to connect to.
Sumitomo Mitsui Trust Holdings President Toru Takakura said, "We will exercise voting rights in the shares we hold in consideration of improving corporate value over the medium to long term."