The Economist (February 13)
2016/ 02/ 15 by jd in Global News
Japan’s corporate-governance code emphasizes “shareholder rights and the duty of outside board directors to promote them.” This means Sharp’s external directors will fear “being sued by shareholders if they opted for the INCJ’s much lower bid,” perhaps more than they fear pressure from METI and others to favor the Japanese bid. A deal with “Foxconn would show that Japan is changing its attitude to outsiders. One reason it may come off is that as a failing firm, Sharp matters less for national pride. A foreign takeover of a more successful firm would be different.”
Tags: Corporate governance, Directors, Foxconn, INCJ, Japan, METI, Shareholder rights, Sharp
