(Reuters) – The Tokyo Stock Exchange (TSE) will ask listed companies with publicly traded subsidiaries or equity affiliates to increase disclosure about corporate governance, Nikkei Asia reported on Tuesday.
TSE is looking to protect the rights of minority shareholders and enhance the appeal of the overall market through this step, according to Nikkei’s report.
The TSE will seek disclosure from more than 1,000 companies, including their listed subsidiaries and affiliates, as early as this month, the report said.
Public companies are urged to describe their efforts to address concerns like parent prioritising profit for the corporate group over the subsidiary in their governance reports to TSE, Nikkei reported.
(Reporting by Echha Jain in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli)