A group of Japanese politicians is calling for changes to the law that would make it more difficult for small shareholders to make proposals and to call extraordinary company meetings.

The reforms, which were submitted to Prime Minister Sanae Takaichi on Thursday by Liberal Democratic Party lawmakers seeking to make Japan into a leading financial center, would bring the market more in line with the standards in other countries, where it is normally more difficult for shareholders to directly participate in governance.   

The group is calling for a review of the Companies Act and for a change in the 300-unit minimum needed for shareholders to get proposals on the agenda. In the Japanese market, the minimum trading unit is set at 100 shares, meaning the threshold of 300 units is 30,000 shares.

Under the current rules, it is possible for shareholders with just tens of millions of yen of shares to force companies with market values in the tens of trillions of yen to accept their proposals. Dealing with these proposals takes time and costs companies money.

As the Tokyo Stock Exchange wants to create a more accessible environment for individual investors, many companies have split their shares to lower the purchase price and make investment less costly. Some critics have pointed out that this has led to a rise in shareholder proposals that might be abusive from those holding only a minute fraction of total voting rights. 

According to the Daiwa Institute of Research, the number of companies receiving shareholder proposals during the June 2025 annual general meeting season reached a record high of 141. 

In February last year, the Kansai Economic Federation, a business lobbying group in the Kansai region, published a policy recommendation regarding revisions to the Companies Act. It said abolishing the 300-unit requirement would be effective in curbing abusive proposals.

The LDP lawmakers also proposed changing the requirements for convening extraordinary general meetings. At present, shareholders holding at least a 3% voting stake can force a meeting. The Kansai Economic Federation has suggested lifting the threshold to at least 5%, in line with other countries. 

In addition to those matters related to companies and shareholders, the LDP group’s policy proposal covers measures to support Japan’s growth strategy from a financial perspective, such as transforming its long-languishing corporate bond market. 

The group, which is headed by former Prime Minister Fumio Kishida, also proposed introducing measures to facilitate household asset building through tax-advantaged programs — the Nippon Individual Savings Account and the Individual Defined Contribution pension plan.