TCI Turns Up The Heat On J-Power Board

May 16 2008 | 11:08am ET

Its bid for a larger stake in Japan’s largest electric utility is on life support, but The Children’s Investment Fund is taking a new tack in its battle for better returns at the company. 

The activist hedge fund has asked Electric Power Development Co.’s auditors whether the company, better known as J-Power, should sue its board over a decline in profit.

TCI, in a letter to J-Power, suggested that the company should seek ¥6 billion (US$57 million) from the 13 board members in compensation, alleging that the board acted against the interests of shareholders in approving price cuts.

J-Power, which has resisted TCI’s demands for better corporate governance, rejected five proposals from the London-based firm last month. Last week, TCI’s bid to double its stake in J-Power to 20% was rejected by the Japanese government.

TCI’s continued activism at J-Power coincides with stern warnings to Japan from global investors. The Asian Corporate Governance Association this week presented a white paper calling for improved shareholder returns and greater transparency at Japanese companies.

The group, which includes the California Public Employees’ Retirement System, the largest public pension fund in the U.S., argues that Japan’s corporate governance regime does not meet international standards, and warns that foreign investors would avoid the country if the situation does not improve.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...