28/05/2012 World Business Report

defended to replace officials there. Now for the financial news with

World Business Report. The headlines: Whistleblower and

ex- Olympus chief executive, Michael Woodford, goes to court

seeking a record pay-out. China opens up its banking system

to private investors as they seek growth.

We looked at the EU's fight to find more female directors. -- we looked

Michael Woodford, the former chief executive of Olympus, will try to

persuade a London court his former employer fired him because he blew

the cover on a corporate fraud. It will threw the spotlight back on to

an accounting scandal that has cost the company its reputation. Mr

Woodford is expected to sue for up to ten years of lost salary. Before

we start with a look at the wider implications of the case, coming to

London to seek legal action is quite unusual.

It is clear that Japan is a lot less friendly to litigation and at

the same time, like to settle everything out of court. Olympus is

dealing with consumer products. It would be a bitter fight if he puts

it on his own turf in the UK. seeking around $60 million in

compensation, a lot of money. Japan that is unrealistic. The pay

of a chief executive in Japan is relatively low. For a limp as, how

damaging has this been? Very negative. There was the concealment

of facts, it goes on and on and this is an edited impression. Not

just negative on the reputation but on the share price and the future

comeback scenario. Looking at the bigger picture, the Japanese

government put out various statements saying they will look at

corporate governance and regulation but what has happened? Not much.

They are looking into auditors, the introduction of external executives.

This is very difficult. You cannot change the tired all around because

there is cultural variation, structural variations. -- change

the tide. Thank you very much for coming in and giving you take on

the story. No doubt there will be a lot of attention on that.

We move on to talk about China. It has opened up its banking system to

private sector investors, the latest move at underpinning

economic growth. Tell us more about this latest

development in China. Basically China is saying that

private investors can have the same rights as state firms when trying

to invest in Chinese domestic banks. We have seen China open up to other

sectors and the hope is that by attracting a new investment, China

can stimulate an enduring phase of economic development. It is

beginning to slow and this is an attempt to boost that. The changes

to Bank restrictions were announced by the regulatory Commission. They

wanted to boost its lending and increase transparency. Private

sector investors will be allowed to purchase a stake in Chinese banks

using stop placements, new share subscriptions and a critique

transfers as well as mergers and acquisitions. -- Equity transfers.

The European Union is moving closer to introducing legislation to force

companies to appoint more female directors. The campaign is being

driven by the vice-president of the European Commission who has set

today as the deadline for submissions.

Despite years of trying to get more women into corporate boardrooms the

number of female directors is at an average of 3%. It has prompted

campaigners to call for legislation. This woman has enjoyed a successful

career as a company director. She believes there is a pool of

executives ready for investment. often have a temporary influence,

we moderate the risk appetite, we come at the issues from a different

perspective than most of the men in a room. Women are under-represented

in Europe's boardrooms, especially when you bear in mind they make up

60% of graduates and 34% of Europe's bigger companies have no

women in the boardroom at all. At the current rate of recruitment it

will take 50 years for women to make up 40% of board membership.

Five EU countries have introduced quotas. Campaigners for gender

equality believe legislation for Europe is the answer.

experiences we have of countries which actually have implemented

quotas including Norway shows that first, companies are able to find

competent women and secondly, it does not harm the country, it

improves economic productivity, the functioning of the company boards.

In an ideal world a person would advance their position in the

boardroom are based on merit but that is not happening. The European

Commission it seems to be leaning towards legislation and if national

parliaments fight the British one did not introduce laws as soon they

might be forced to. The world's leading insurance

provider, Lloyds, says it is making contingency plans for the collapse

of the euro. The chief executive said they are ready to trade in

drachma. Bankia out is expected to announce

one of the biggest losses in Spanish history. The board meets

today to discuss the accounts. They are seeking a bail out worth 19

billion euros. The third instalment of men in

black has knocked off the Avengers to take top spot at the American

box office. The the norm top box offices around the world and is

expected... The market's today in Asia. In

Japan, this is the first sight of gains in several days, eight

straight weeks of decline last week. Upside today because the euro is

gaining verses the US dollar. Some of the opinion polls in Greece show

that voters are now backing parties who are Protea bail out implying