LDP proposes stricter activist disclosure rules

Japan's ruling Liberal Democratic Party (LDP), led by lawmaker Fumiaki Kobayashi, plans to propose stronger enforcement of shareholder disclosure rules for activist investors. The proposals include increasing resources for the United States — United States Securities and Exchange Commission (SESC) to investigate suspected violations, reviewing the shareholder proposal framework, and requiring disclosure of agreements between activists and private equity firms. The LDP aims to balance the benefits of activism with concerns about short-termism and rule compliance. The proposals come amid a record number of activist proposals at Japanese companies, including Oasis Management Company's campaign against Donny Kadokawa.