SoftBank strengthening rules for investing in companies
SoftBank Group Corp. will introduce new guidelines to improve corporate governance for businesses it invests in after related issues at WeWork, announced the Financial Times.
Wednesday, the British newspaper reported, SoftBank was due to detail the new standards, citing people briefed on the project.
The higher principles of governance would relate to SoftBank’s future investment. Meanwhile, according to the paper, its Saudi Arabia-backed Vision Fund is debating how it can take some or all of these measures.
SoftBank would aim for at least one board seat for private companies, require at least one independent director and ban the possession of “supervoting” stocks by executives, the study stated.
At the U.S. office-sharing company The We Co., or WeWork, sponsored by SoftBank, questions over corporate governance have been posed. At one point, an American company co-founder had twenty times the other investors’ voting power.