Basic Research on the Corporate Governance and Financial Market

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In Japan, as I mentioned before, the shareholders meeting is only a ceremony in many cases. Directors of the company hope shareholders meeting ends in peace and quite. They are sometimes too afraid that shareholders meetings will last long. So some Japanese professional shareholders take advantage of this situation. When they find some important information, but if it not important information, such as small rumor or even scandals about the director, it still works, and they threaten company. Although they only have a small amount of shares, they attend shareholders meeting, and pose many questions to obstruct the proceedings. Sometimes the company overreacts and gives extortionists money or goods. It is clearly prohibited to give shareholders money and goods relating to the exercise of shareholder rights. If somebody breaks the law, that person can be sued, and might be sent to jail, bribers and bribe takers alike.The Japanese system was a kind of one nation system in which every Japanese person work for individual internal groups. During confusion or recovering from War, this system works very well and is effective. In this kind of society, there is not so much difference between employee and employer. Inside groups like companies or associations, people don't need clear rules or judgment. Without clear rules, people can decide things by mutual agreement in advance. This is why this system is hard to understand for outsiders. They feel Japanese society unfair and unclear, not open. But Japan has become one of the developed countries, we make our rules clear and open to outsiders. Every company must disclose its information according to the law.