As mentioned in last month's board report, TSE announced planned revisions to its listing systems, after the introduction of the 'going concern' into Japanese corporate accounting examination standards, as well as the fees related to stock listings. While no public comment was received for the listing systems revisions, some comments where received for the listing fees revisions but those comments will not alter the revisions to be made.
TSE plans to put both revisions into effect on April 1, 2003.
Adjustments Based on Commercial Code Revisions
TSE has made technical adjustments to its business and listing systems in response to establishment of a 'companies with three committee boards'* system within the Japanese commercial code. The main adjustment was to include the phrase 'Including the decision by executive committee's in cases of companies with three committee boards' in places where 'Resolutions by the Board of Directors' appears in TSE's rules and regulations.
This will take effect on April 1, 2003
(*'Companies with three committee boards' describes companies that have a board of directors separate from their executive officers, and the board members are prohibited from taking part in the execution of business operations within the company [although board members may serve as executive officers at the same time]. Within the board of directors must exist an audit committee, a nomination committee, and a remuneration committee, among other requirements.)
Strengthening Market Surveillance
After the Financial Services Agency released its report entitled "Measures for Ensuring Proper Operations of Stock Markets" on March 13, TSE announced its present efforts to strengthen its market surveillance.
TSE has always poured a lot of energy into its buying supervision activities, which preserve the fairness and reliability of its market. Now, in order to improve the efficacy and efficiency of those activities, TSE plans on a systemization of its surveillance activities. Already the following three systems have been put into place:
- An automatic detection system to detect trading in which the movement stock prices or trading volumes fall under certain standards;
- A trading conditions report system where trading participants can submit their trading conditions report on-line, and;
- An internet information collection and search system that will periodically collect information from the internet.
Due to recent events that have effected market trends, TSE will further strengthen its present efforts for market surveillance in order to prevent the spread of rumors and other market abuses.
TSE Promotion of Execution of Voting Rights by Shareholders at Shareholders Meetings
Based on policy released last year, and as requested through the Financial Services Agency's "Program for Promoting Securities Market Reform," TSE has asked listed companies to work more proactively to promote the execution of voting rights by shareholders in their company. In particular, TSE has asked companies to ensure that as many shareholders as possible are aware of the day the shareholders meeting will be held, to send invitations to the shareholders meeting at an earlier time, to announce the details of these invitations on the company's Internet homepage, and to create English invitations for foreign investors.
