Broadridge automates proxy voting on Tokyo Stock Exchange
“This service evolution means all international investors and local sub custodians will benefit from its innovative and digitized e-voting service, driving efficiency and delivering greater transparency to both issuers and investors.”
Broadridge and the Tokyo Stock Exchange have agreed to launch, via their joint venture Investor Communications Japan (ICJ), a new digital vote execution service further accelerating end-to-end automation of proxy voting in Japan.
The expectation is that the new service expansion will increase voting participation by international investors and enable the Japanese market to improve corporate governance practices.
Digitized e-voting service drives efficiency and transparency for issuers and investors
According to ICJ, participating listed companies will be able to obtain greater transparency of the voting intentions of investors; and local sub custodians will be able reduce risk and complexity from their operations.
In 2022, 90% of the companies listed in the TSE participated in the ICJ platform. Foreign institutional investors represented 81% of the total number of voting rights held by foreign institutional shareholders.
Shigeo Imakiire, ICJ President, 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. Japanese issuers participating in ICJ are providing institutional investors with faster access to meeting materials, expanded voting deadlines and accelerated voting capability.”
Demi Derem, managing director, International Solutions Banks, Brokers, and Dealers at Broadridge, said: “This service evolution means all international investors and local sub custodians will benefit from its innovative and digitized e-voting service, driving efficiency and delivering greater transparency to both issuers and investors. ICJ has significantly improved corporate governance practices in Japan since its inception in 2004 and this new service offering is the latest example.”
Yasuyuki Konuma, Executive Vice President, Tokyo Stock Exchange, commented: “This new service should further strengthen the dialogue between shareholders and listed companies, as well as improve operational efficiency for all parties involved. We believe digital transformation in capital markets will improve productivity and promote growth in Japan.”
