Tokyo Stock Exchange: Improving The Condition Of Shareholder Voting And Preserving The

TSE has been a driving force in advancing the condition of shareholder voting at shareholders meetings in Japan. Recently, demands from a wide variety of shareholders - foreigners, institutional investors, and individual investors - have grown greater for reforming the condition of shareholder voting in Japanese companies, and with a view to increasing the vitality of the securities market TSE has made such reform an issue of utmost importance.

To promote shareholder voter reform, TSE has taken the following measures:

Requests to companies

• Increase distribution of information on when shareholders meeting will be held
• Send invitations to shareholders meeting at an earlier date
• Announce the invitation on company's Internet homepage
• Create an English version of the invitation

• Starting with end of year settlement after March, all listed companies must disclose information related to corporate governance in their financial reports.

• TSE will conduct a survey of the dates on which companies send their shareholder meeting invitations and will announce the results of that survey on its it Internet homepage.

TSE has endeavored to provide an environment where investors can make informed investment decisions based off of proper corporate disclosure. Recently, investor demands concerning the correction of previously released information have grown, and as a result TSE has improved upon its systems for checking corporate information after it has been released to make sure it maintains accuracy. Furthermore, TSE plans to enact the following policies.

Strengthening responses for disclosure rules violationsul>

• Clarifying and making stricter the requirement standards for corrections
• Releasing data on the number of demands for corrections TSE has made
• Familiarizing companies with these rules by introducing examples of violations

• TSE will appoint supervisors to check on the appropriateness of released timely disclosure documents and will create a system that can adequately deal with violations of these rules while also work to prevent further infractions.

• TSE will establish a capability on its website to collect information on corporate disclosure.

• TSE plans to establish information exchanges with related organizations to discuss the present condition of timely disclosure within Japan.