The Cross Share Holding and Mnagement Strategies

The cross share holding' is regarded as a unique feature of the management system in Japan. As Zaibatsu were dissolved and holding companies were prohibited after the war, shareholders were widely diversified. It has been necessary that many companies should be protected against M & A of domestic and overseas investors. It was the reason why 'the cross share holding' has proceeded. Moreover, 'the cross share holding' has urged to advance mutual cooperations in forms of long-term and stable agreements of bussiness transactions and carte blanche at a general meeting of shareholders. It has made executive managers capable of seizing powers of management and corporate governance. It has been evaluated as a core of Japanese style management. On the other hand, it caused much harm of restricting competitions and making barriers to new comers. Therefore, it will be urged to change into open systems. But so far as Japanese style management exists, 'the cross share holding' will continue alive, making use of advantages.departmental bulletin pape