Taming the Sokaiya: Can Economic and Corporate Reform Eliminate Extortion in Japan?

Teri Jane Ursacki

Chapter 8 in Corruption and Governance in Asia, 2003, pp 149-165 from Palgrave Macmillan

Abstract: Abstract Sokaiya literally means “general meeting handlers.” More specifically, they are corporate extortionists with (typically small) holdings of shares in targeted companies who extract payments from them in exchange for ensuring their annual shareholders’ meetings proceed quickly and smoothly. If not paid off, they may harass company executives at the meeting for hours with embarrassing questions about real or imagined corporate or personal shortcomings or wrongdoings. If paid off, they will not only refrain from causing trouble at the meeting themselves, but may also use verbal or physical intimidation to ensure no one else, including ordinary shareholders with grievances, is able to raise a question. It is illegal for the sokaiya to request such payments and for companies to provide them, yet many companies have been caught doing so in recent years, and some sokaiya groups still operate quite openly.

Keywords: Corporate Governance; Commercial Code; Option Trading; Online Edition; Weak Player (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50354-0_8

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DOI: 10.1057/9780230503540_8

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