28/05/2012

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:00:07. > :00:17.defended to replace officials there. Now for the financial news with

:00:17. > :00:21.

:00:21. > :00:26.World Business Report. The headlines: Whistleblower and

:00:26. > :00:34.ex- Olympus chief executive, Michael Woodford, goes to court

:00:34. > :00:43.seeking a record pay-out. China opens up its banking system

:00:43. > :00:50.to private investors as they seek growth.

:00:50. > :00:59.We looked at the EU's fight to find more female directors. -- we looked

:00:59. > :01:04.Michael Woodford, the former chief executive of Olympus, will try to

:01:04. > :01:11.persuade a London court his former employer fired him because he blew

:01:11. > :01:18.the cover on a corporate fraud. It will threw the spotlight back on to

:01:18. > :01:28.an accounting scandal that has cost the company its reputation. Mr

:01:28. > :01:29.

:01:29. > :01:35.Woodford is expected to sue for up to ten years of lost salary. Before

:01:35. > :01:44.we start with a look at the wider implications of the case, coming to

:01:44. > :01:51.London to seek legal action is quite unusual.

:01:51. > :01:57.It is clear that Japan is a lot less friendly to litigation and at

:01:57. > :02:02.the same time, like to settle everything out of court. Olympus is

:02:02. > :02:09.dealing with consumer products. It would be a bitter fight if he puts

:02:09. > :02:19.it on his own turf in the UK. seeking around $60 million in

:02:19. > :02:22.

:02:22. > :02:32.compensation, a lot of money. Japan that is unrealistic. The pay

:02:32. > :02:42.of a chief executive in Japan is relatively low. For a limp as, how

:02:42. > :02:44.

:02:44. > :02:53.damaging has this been? Very negative. There was the concealment

:02:53. > :02:58.of facts, it goes on and on and this is an edited impression. Not

:02:58. > :03:03.just negative on the reputation but on the share price and the future

:03:04. > :03:08.comeback scenario. Looking at the bigger picture, the Japanese

:03:08. > :03:12.government put out various statements saying they will look at

:03:12. > :03:19.corporate governance and regulation but what has happened? Not much.

:03:19. > :03:29.They are looking into auditors, the introduction of external executives.

:03:29. > :03:32.

:03:32. > :03:39.This is very difficult. You cannot change the tired all around because

:03:39. > :03:47.there is cultural variation, structural variations. -- change

:03:47. > :03:54.the tide. Thank you very much for coming in and giving you take on

:03:54. > :04:00.the story. No doubt there will be a lot of attention on that.

:04:00. > :04:04.We move on to talk about China. It has opened up its banking system to

:04:04. > :04:10.private sector investors, the latest move at underpinning

:04:10. > :04:16.economic growth. Tell us more about this latest

:04:16. > :04:21.development in China. Basically China is saying that

:04:21. > :04:28.private investors can have the same rights as state firms when trying

:04:28. > :04:33.to invest in Chinese domestic banks. We have seen China open up to other

:04:33. > :04:38.sectors and the hope is that by attracting a new investment, China

:04:38. > :04:46.can stimulate an enduring phase of economic development. It is

:04:46. > :04:53.beginning to slow and this is an attempt to boost that. The changes

:04:54. > :05:00.to Bank restrictions were announced by the regulatory Commission. They

:05:00. > :05:07.wanted to boost its lending and increase transparency. Private

:05:07. > :05:12.sector investors will be allowed to purchase a stake in Chinese banks

:05:12. > :05:22.using stop placements, new share subscriptions and a critique

:05:22. > :05:22.

:05:22. > :05:26.transfers as well as mergers and acquisitions. -- Equity transfers.

:05:26. > :05:31.The European Union is moving closer to introducing legislation to force

:05:32. > :05:35.companies to appoint more female directors. The campaign is being

:05:35. > :05:42.driven by the vice-president of the European Commission who has set

:05:42. > :05:48.today as the deadline for submissions.

:05:48. > :05:55.Despite years of trying to get more women into corporate boardrooms the

:05:55. > :06:00.number of female directors is at an average of 3%. It has prompted

:06:00. > :06:06.campaigners to call for legislation. This woman has enjoyed a successful

:06:06. > :06:16.career as a company director. She believes there is a pool of

:06:16. > :06:22.executives ready for investment. often have a temporary influence,

:06:22. > :06:28.we moderate the risk appetite, we come at the issues from a different

:06:28. > :06:34.perspective than most of the men in a room. Women are under-represented

:06:34. > :06:40.in Europe's boardrooms, especially when you bear in mind they make up

:06:40. > :06:45.60% of graduates and 34% of Europe's bigger companies have no

:06:45. > :06:51.women in the boardroom at all. At the current rate of recruitment it

:06:51. > :07:01.will take 50 years for women to make up 40% of board membership.

:07:01. > :07:03.

:07:03. > :07:08.Five EU countries have introduced quotas. Campaigners for gender

:07:08. > :07:13.equality believe legislation for Europe is the answer.

:07:13. > :07:18.experiences we have of countries which actually have implemented

:07:18. > :07:25.quotas including Norway shows that first, companies are able to find

:07:25. > :07:32.competent women and secondly, it does not harm the country, it

:07:32. > :07:38.improves economic productivity, the functioning of the company boards.

:07:38. > :07:42.In an ideal world a person would advance their position in the

:07:43. > :07:46.boardroom are based on merit but that is not happening. The European

:07:46. > :07:50.Commission it seems to be leaning towards legislation and if national

:07:50. > :07:59.parliaments fight the British one did not introduce laws as soon they

:07:59. > :08:04.might be forced to. The world's leading insurance

:08:04. > :08:13.provider, Lloyds, says it is making contingency plans for the collapse

:08:13. > :08:18.of the euro. The chief executive said they are ready to trade in

:08:18. > :08:26.drachma. Bankia out is expected to announce

:08:26. > :08:32.one of the biggest losses in Spanish history. The board meets

:08:32. > :08:36.today to discuss the accounts. They are seeking a bail out worth 19

:08:36. > :08:40.billion euros. The third instalment of men in

:08:40. > :08:49.black has knocked off the Avengers to take top spot at the American

:08:49. > :08:59.box office. The the norm top box offices around the world and is

:08:59. > :09:04.

:09:04. > :09:12.expected... The market's today in Asia. In

:09:12. > :09:19.Japan, this is the first sight of gains in several days, eight

:09:19. > :09:23.straight weeks of decline last week. Upside today because the euro is

:09:23. > :09:29.gaining verses the US dollar. Some of the opinion polls in Greece show

:09:29. > :09:39.that voters are now backing parties who are Protea bail out implying

:09:39. > :09:41.