In summer 2026, the Liberal Democratic Party proposed reviewing the requirements for exercising shareholder proposal rights. As debate continues over the conditions requiring ownership of at least 300 voting rights or 1% of voting rights, environmental groups are pushing back, warning that oversight of giant companies will be lost.
In summer 2026, changes to the rules governing shareholders meetings by the ruling party gained momentum against a backdrop of growing activism and concerns over concerted acquisitions. The Liberal Democratic Party's proposals include raising the threshold for exercising shareholder proposal rights and raising the threshold for requesting the convocation of an extraordinary shareholders meeting.
At the heart of the proposals is a review of the current requirements for exercising shareholder proposal rights: holding at least 1% of the total voting rights or at least 300 voting rights. This could change the hurdle for obtaining proposal rights.
The proposals under discussion also include limiting proposals concerning matters of business execution when made in the form of amendments to the articles of incorporation, as well as raising the threshold for requesting the convocation of an extraordinary shareholders meeting from the current 3% to 5% or more. The Legislative Council is also considering similar measures.
Environmental groups and experts are concerned that these changes could lead to threshold increases favorable to large companies and weaken critical voices directed at them. The arguments put forward by environmental groups are attracting attention as an issue likely to shape the debate.