The government released guidelines Friday for companies creating defense plans to counter hostile takeover bids.
The guidelines, drawn up by the Ministry of Economy, Trade and Industry, and the Justice Ministry, emphasize the importance of getting shareholder consent before putting up measures to fend off takeovers and advises having a plan in place before any takeover attempts are made.
The guide was created in reaction to the recent high-profile acquisition battle between Fuji Television Network Inc. and Internet portal Livedoor Co., which prompted a number of major Japanese companies to quickly come up with defense measures that would hold up under scrutiny by the courts. The ministries said firms had asked them for clarification on what actions were permissible to fight off hostile takeovers.