30 CORPORATE GOVERNANCE Case Studies: Koito Manufacturing Company That was the most unusual shareholders meeting I have ever attended in my life. But many questions went unanswered: the meeting was a sham. We own 20% of that company, more than any other shareholder, and yet we were refused a seat on the board, when other shareholders have theirs. I'm beginning to wonder if the reason I'm denied this right is because I'm not Japanese. I will be raising this at Senate hearings next month.
Lamberton Professor: Florencio Lopez de Silanes Molina 2/7/2012 Denys La Tour Xinyi Pei Paul Michel Jean-Cyril Vaissié Alice Lamberton AGENDA: Case overview | Japanese corporate governance vs U.S. corporate governance | Foreign investors motivations and shareholders rights in the law | Shareholders rights and dividends policy | Self-dealing and organization in Keiretsu and shareholders control of the accounts | Take over of Koito, implication (about its activities with Toyota) and large
KOITO MANUFACTURING Ltd, CASE. Question 1: The Japanese corporate governance system differs vastly from the US system. Discuss corporate governance issues that may arise under the Japanese keiretsu system from the perspective of a) financiers b) owners c) suppliers and d) employees: The corporate governance in the United States is different from the corporate governance in Japan end especially in keiretsus. Firstly the corporate governance aims to ensure that resources of the whole society
Case 1 06/02/2012 INTERNATIONAL CORPORATE FINANCE & GOVERNANCE Professor: Florencio Lopez de Silanes Molina Koito Manufacturing, Ltd. M1 - Group C Karine CAO Ludwig HSIA Thomas MERCIER Aurélien MOURGUES Pauline TUCCELLA 1 Case 1 06/02/2012 1. The Japanese corporate governance system differs vastly from the US system. Discuss corporate governance issues that may arise under the Japanese keiretsu system from the perspective of a) financiers b) owners c) suppliers and d) employees
Question 1: In the U.S. corporate governance is concerned with ensuring the firm is run in the interests of shareholders and its objective is to create wealth for them. This fundamental idea is embodied in the legal framework in the U.S. In this country managers have a very strong duty to act in the interests of shareholders. In Japan there is no such consensus. Instead of focusing on the narrow view that firms’ should concentrate on creating wealth for their owners, corporate governance