5 Lottery Scenarios in Shareholder Meetings & Board Meetings [For Listed Companies]

"Want to fairly select questioners from 500 people at shareholder meeting" "Need to ensure transparency in auditor selection" "Want to keep records of IR session participant lottery"

For listed companies, transparent decision-making is the foundation of corporate governance. Especially at shareholder meetings and board meetings, proof of fairness and record retention are legally required.

This article explains five lottery scenarios requiring transparency in listed companies, and methods to balance compliance and audit readiness.

Why "Transparent Lotteries" Are Required for Listed Companies

Important Notice: This article is for general informational purposes only and does not constitute legal advice. For legal judgments regarding corporate governance and shareholder meeting operations of listed companies, please consult with your legal counsel or specialists.

Reason 1: Legal Compliance and Governance

General Requirements:

• Fair shareholder meeting operations
• Principle of shareholder equality
• Appropriate information disclosure and record-keeping
• Transparent decision-making processes

Listed companies have obligations based on various laws including the Companies Act and Financial Instruments and Exchange Act. Please consult specialists for details.

Reason 2: Stakeholder Trust

Investors:

• Institutional investors emphasize governance structure
• ESG investment perspective

Audit Firms:

• Internal control effectiveness assessment
• Fraud risk reduction

Shareholders:

• Expectations for transparent operations
• Fairness in voting rights exercise

Reason 3: Reputation Risk

Risks:

• Stock price decline if unfair operations discovered
• Media coverage
• Shareholder derivative lawsuit risk

Five Lottery Scenarios in Shareholder Meetings & Board Meetings

Scenario 1: Questioner Selection at Shareholder Meeting

Background:

• Q&A time at shareholder meeting: 30-60 minutes
• Questioners: 50-500 people
• Cannot accommodate everyone due to time

Traditional Methods:

• Hand-raising order
• Chairman's designation
• Pre-submitted questions

Issues:

• "Vocal shareholders" get preference
• Suspicions of arbitrary chairman designation
• Lacks transparency

Solution with Amidasan:

1. Pre-register questioners (distribute QR code at reception)
2. Lottery 10 people due to time constraints
3. Record results in minutes (URL storage)
4. Written responses to unsuccessful applicants

Effects:

• Proof of fairness
• Permanent storage as minutes
• Reduced shareholder derivative lawsuit risk

Scenario 2: Auditor/Outside Director Selection (Multiple Candidates)

Background:

• Auditor candidates: 5 people
• Planned selection: 3 people
• All are qualified

Traditional Methods:

• Board majority vote
• Nomination committee recommendation

Issues:

• Difficult to explain "why these 3?"
• Suspicions of arbitrariness

Solution with Amidasan:

1. List 5 qualified candidates
2. Lottery at board meeting
3. Record in minutes
4. Proof of transparency

Note:

• Final decision is board resolution
• Lottery is means to increase transparency in candidate selection

Scenario 3: IR Session/Earnings Call Participant Lottery

Background:

• IR session capacity: 100 people
• Applicants: 300 people
• Lottery needed

Traditional Methods:

• First-come-first-served
• Institutional investor priority
• Excel random numbers

Issues:

• First-come disadvantages retail investors
• Institutional priority draws criticism
• Excel random lacks transparency

Solution with Amidasan:

1. Register 300 applicants
2. Lottery 100 people
3. Notify results via email
4. Recording distribution for unsuccessful

Effects:

• Retail/institutional investor equality
• Proof of transparency
• Enhanced IR activity credibility

Scenario 4: Shareholder Benefit Lottery

Background:

• Shareholder benefit: Company products (limited 100)
• Shareholders: 10,000 people
• Lottery needed

Traditional Methods:

• Computer random lottery
• Third-party lottery

Issues:

• Black box
• Suspicions of "was it really random?"
• Third-party costs high

Solution with Amidasan:

1. Register 10,000 shareholders
2. Lottery 100 people
3. Notify results to shareholders
4. Prove transparency via URL

Note:

• For large numbers, implement in batches (1,000 at a time, etc.)
• Amidasan supports up to 299, so implement multiple times

Scenario 5: Internal Board Role Distribution

Background:

• Board members: 10 people
• Assignment to various committees
• Fairness required

Traditional Methods:

• Chairman/president designation
• Rotation system

Issues:

• Suspicions of arbitrariness
• Burden concentration on specific people

Solution with Amidasan:

1. List qualified candidates for each committee
2. Decide by lottery
3. Record in minutes

Effects:

• Proof of transparency
• Fair burden distribution

Compliance Key Points

Point 1: Record Retention

Essential Items:

• Lottery date/time
• Target list
• Results
• Lottery method

Amidasan Advantages:

• Permanent URL storage
• Verifiable anytime
• Tamper-proof

Point 2: Audit Response

Audit Firm Questions:

• "Was this lottery fair?"
• "Are there records?"
• "Can third parties verify?"

Amidasan Answers:

• URL verifiable
• All participants involved in lottery process
• Mathematically 100% fair

Point 3: Shareholder Derivative Lawsuit Risk

Risk Scenario:

• Shareholder sues claiming "lottery was unfair"
• Cannot prove without records

Amidasan Countermeasure:

• Permanent URL storage
• Proof of transparency
• Reduced litigation risk

FAQ

Q1: OK to include URL in shareholder meeting minutes?

A: No problem. Rather recommended:

Example Entry:

"Questioner selection was conducted fairly through digital amidakuji (URL: https://amida-san.com/event/xxxxx). From 50 questioners, 10 were selected by lottery, and the following shareholders asked questions."

Q2: Will audit firms accept digital tools?

A: Accepted if transparency is proven:

Audit Firm Verification Items:

• Is lottery process fair?
• Are records retained?
• Can third parties verify?

Amidasan satisfies all requirements.

Q3: What if shareholder says "can't use digital tools"?

A: Hybrid response:

Method:

• Digital participation: Participate via smartphone/PC
• Non-digital participation: Proxy operation at reception
• Everyone can participate equally

Q4: How to handle large numbers (10,000 people)?

A: Batch implementation:

Method:

1. Divide 10,000 into 35 groups (285 each)
2. Lottery in each group
3. Final 100 lottery from 35 winners

Q5: Can combine with pre-submitted questions at shareholder meeting?

A: Yes, combinable:

Operation Example:

• Pre-submitted questions: Written response
• On-site questions: Lottery selection

Q6: Any personal information protection issues?

A: No issues:

Reasons:

• Shareholder registry already exists
• Amidasan doesn't send information externally
• URL shared internally only

Q7: What are the costs?

A: Basic features free:

What's Free:

• Questioner selection
• Auditor selection
• IR session lottery (up to 299 people)

Paid Option (1,490 yen):

• 3D display (presentation at shareholder meeting)

Summary: Listed Company Transparency Starts with "Record Retention"

For listed companies, transparent decision-making is the foundation of trust. Lotteries at shareholder meetings and board meetings require proof of fairness and record retention.

Key Points:

1. Permanent URL record storage
2. Audit/litigation preparedness
3. Enhanced stakeholder trust

What You Can Do Now:

• Test questioner selection at next shareholder meeting
• Coordinate with IR/legal departments
• Pre-consult audit firm

Listed company transparency improvement starts with proper tool selection.

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• Compliance and Fairness
• Security & Privacy Guide
• Ensuring NPO Operational Transparency