<SEC-DOCUMENT>0001140361-23-010611.txt : 20230308
<SEC-HEADER>0001140361-23-010611.hdr.sgml : 20230308
<ACCEPTANCE-DATETIME>20230308094329
ACCESSION NUMBER:		0001140361-23-010611
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20230228
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20230308
DATE AS OF CHANGE:		20230308

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JAPAN SMALLER CAPITALIZATION FUND INC
		CENTRAL INDEX KEY:			0000859796
		IRS NUMBER:				133553469
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0228

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05992
		FILM NUMBER:		23715026

	BUSINESS ADDRESS:	
		STREET 1:		WORLDWIDE PLAZA
		STREET 2:		309 WEST 49TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		8008330018

	MAIL ADDRESS:	
		STREET 1:		WORLDWIDE PLAZA
		STREET 2:		309 WEST 49TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	JAPAN OTC EQUITY FUND INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>brhc10049470_8k.htm
<DESCRIPTION>8-K
<TEXT>
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    <div>
      <div style="text-align: center; font-size: 14pt; font-weight: bold;">UNITED STATES</div>
      <div style="text-align: center; font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
      <div style="text-align: center; font-size: 12pt; font-weight: bold;">Washington, D.C. 20549</div>
      <div style="font-size: 18pt;">
        <div style="font-size: 10pt;">
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      <div style="text-align: center; font-size: 18pt; font-weight: bold;">Form 8&#8209;K</div>
      <div>
        <div>
          <hr noshade="noshade" align="center" style="height: 2px; width: 25%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;"></div>
      </div>
      <div style="text-align: center; font-weight: bold;"> <br>
      </div>
      <div style="text-align: center; font-weight: bold;">CURRENT REPORT</div>
      <div style="text-align: center; font-weight: bold;">Pursuant to Section 13 or 15(d) of the</div>
      <div style="text-align: center; font-weight: bold;">Securities Exchange Act of 1934</div>
      <div>&#160;</div>
      <div style="text-align: center; font-weight: bold;">Date of Report (Date of earliest event reported):&#160; February 28, 2023</div>
      <div style="font-size: 24pt;">
        <div style="font-size: 10pt;">
          <hr noshade="noshade" align="center" style="height: 2px; width: 25%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;"></div>
      </div>
      <div style="font-weight: 400;"> <br>
      </div>
      <div style="text-align: center; font-size: 24pt; font-weight: bold;">JAPAN SMALLER CAPITALIZATION FUND, INC.</div>
      <div style="text-align: center; font-weight: bold;">(Exact name of registrant as specified in its charter)</div>
      <div>
        <div>
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      </div>
      <div style="text-align: center; font-weight: bold;"> <br>
      </div>
      <div style="text-align: center; font-weight: bold;">Investment Company Act File Number:&#160; 811-05992</div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" border="0" id="z40130d12a5eb44419ee74bf101f18213" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

          <tr>
            <td style="width: 49%; vertical-align: top;">
              <div style="text-align: center; font-weight: bold;">Maryland</div>
              <div style="text-align: center; font-weight: bold;">(State or other jurisdiction</div>
              <div style="text-align: center; font-weight: bold;">of incorporation)</div>
            </td>
            <td style="width: 2%; vertical-align: top;"><br>
            </td>
            <td style="width: 49%; vertical-align: top;">
              <div style="text-align: center; font-weight: bold;">13-3553469</div>
              <div style="text-align: center; font-weight: bold;">(IRS Employer</div>
              <div style="text-align: center; font-weight: bold;">Identification No.)</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <div style="text-align: center; font-weight: bold;">Worldwide Plaza</div>
      <div style="text-align: center; font-weight: bold;">309 West 49th Street</div>
      <div style="text-align: center; font-weight: bold;">New York, NY 10019</div>
      <div style="text-align: center; font-weight: bold;">(Address of principal executive offices, including zip code)</div>
      <div>&#160;</div>
      <div style="text-align: center; font-weight: bold;">1-800-833-0018</div>
      <div style="text-align: center; font-weight: bold;">(Registrant&#8217;s telephone number, including area code)</div>
      <div style="text-align: center; font-weight: bold;">(Former name&#160; or former address, if changed since last report)</div>
      <div>
        <div>
          <hr noshade="noshade" align="center" style="height: 2px; width: 25%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;"></div>
      </div>
      <div> <br>
      </div>
      <div>Check the appropriate box below if the Form 8&#8209;K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</div>
      <div>
        <table cellspacing="0" cellpadding="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;" id="z104df9a6a56244bb938c04a18bc92d15" class="DSPFListTable">

            <tr style="vertical-align: top;">
              <td style="vertical-align: top; width: 27pt;">
                <div style="text-align: left;">&#9744;</div>
              </td>
              <td style="align: left; vertical-align: top; width: auto;">
                <div style="text-align: left;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellspacing="0" cellpadding="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;" id="z585a9164ead64709949354c2e23dcd26" class="DSPFListTable">

            <tr style="vertical-align: top;">
              <td style="vertical-align: top; width: 27pt;">
                <div style="text-align: left;">&#9744;</div>
              </td>
              <td style="align: left; vertical-align: top; width: auto;">
                <div style="text-align: left;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <div>
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              <tr style="vertical-align: top;">
                <td style="vertical-align: top; width: 27pt;">
                  <div>&#9744;</div>
                </td>
                <td style="align: left; vertical-align: top; width: auto;">
                  <div>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <table cellspacing="0" cellpadding="0" id="z40730dd8cebc452bbb7d105fa4a826ee" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 27pt; vertical-align: top;">&#9744;</td>
            <td style="width: auto; vertical-align: top;">
              <div>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</div>
            </td>
          </tr>

      </table>
      <div>&#160;</div>
      <div>Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:</div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" border="0" id="zf31ae87e652a4653b99ec24a9cda450c" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

          <tr>
            <td style="width: 33.33%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">
              <div style="text-align: center; font-weight: bold;">Title of each class</div>
            </td>
            <td style="width: 32.07%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">
              <div style="text-align: center; font-weight: bold;">Trading Symbol(s)</div>
            </td>
            <td style="width: 34.6%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">
              <div style="text-align: center; font-weight: bold;">Name of each exchange on which registered</div>
            </td>
          </tr>
          <tr>
            <td style="width: 33.33%; vertical-align: top;">
              <div style="text-align: center; font-weight: bold;">Common stock, par value $0.10 per share</div>
            </td>
            <td style="width: 32.07%; vertical-align: top;">
              <div style="text-align: center; font-weight: bold;">JOF</div>
            </td>
            <td style="width: 34.6%; vertical-align: top;">
              <div style="text-align: center; font-weight: bold;">NYSE</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <div>Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</div>
      <div>&#160;</div>
      <div style="text-align: right;">Emerging growth company &#9744;</div>
      <div>&#160;</div>
      <div>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
        Act.&#160; &#9744;</div>
      <div>&#160;
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            <td style="width: 72pt; vertical-align: top; font-weight: bold;">Item 8.01</td>
            <td style="width: auto; vertical-align: top;">
              <div style="font-weight: bold;">Other Events.</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <div style="font-style: italic; font-weight: bold;">Report of Special Committee of Independent Directors</div>
      <div><br>
      </div>
      <div style="text-indent: 36pt;">The Report of Special Committee of Independent Directors (the &#8220;Special Committee&#8221;) of Japan Smaller Capitalization Fund, Inc. (the &#8220;Fund&#8221;), performed in accordance with the Charter of the Special Committee adopted on
        September 9, 2022, was provided to the Board of Directors of the Fund on February 28, 2023.</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">A copy of the full Report of Special Committee of Independent Directors is filed as Exhibit 99(i) to this Form 8-K.</div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" id="zb7fba87c2a8c4d57aa49c88d48f28f83" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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            <td style="width: 72pt; vertical-align: top; font-weight: bold;">Item 9.01</td>
            <td style="width: auto; vertical-align: top;">
              <div style="font-weight: bold;">Financial Statements and Exhibits</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <div>(d) Exhibits</div>
      <div><br>
      </div>
      <table cellspacing="0" cellpadding="0" border="0" id="z9c0698ec3a9243c09df962a582114706" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

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            <td style="width: 11%; vertical-align: top;">
              <div style="font-weight: bold;">Exhibit No.</div>
            </td>
            <td style="width: 89%; vertical-align: top;">
              <div style="font-weight: bold;">Description</div>
            </td>
          </tr>
          <tr>
            <td style="width: 11%; vertical-align: top;">&#160;</td>
            <td style="width: 89%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 11%; vertical-align: top;">
              <div><a href="brhc10049470_ex99-i.htm">99(i)</a></div>
            </td>
            <td style="width: 89%; vertical-align: top;">
              <div>Report of Special Committee of Independent Directors, dated February 28, 2023</div>
            </td>
          </tr>

      </table>
      <div> <br>
      </div>
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      <div style="text-align: center;">SIGNATURES</div>
      <div>&#160;</div>
      <div style="text-align: justify; text-indent: 36pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" border="0" id="zf10c6fc60f4849cf88a8dd1e138b2b77" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

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            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="vertical-align: top;" colspan="3">
              <div>JAPAN SMALLER CAPITALIZATION FUND, INC.</div>
            </td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="vertical-align: top;" colspan="3">&#160;</td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
            <td style="width: 3%; vertical-align: top; padding-bottom: 2px;">
              <div>By:<br>
              </div>
            </td>
            <td style="width: 39%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">/s/ Amy J. Robles</td>
            <td style="width: 8%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="vertical-align: top; padding: 1px 0px 0px;" colspan="3">
              <div style="margin-left: 27pt;">&#160;&#160; Amy J. Robles</div>
            </td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="vertical-align: top;" colspan="3">
              <div style="margin-left: 27pt;">&#160;&#160; Treasurer, Principal Financial Officer</div>
            </td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="vertical-align: top;" colspan="3">&#160;</td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">
              <div>Date:&#160; March 8, 2023</div>
            </td>
            <td style="vertical-align: top;" colspan="3">&#160;</td>
          </tr>

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<DOCUMENT>
<TYPE>EX-99.(I)
<SEQUENCE>2
<FILENAME>brhc10049470_ex99-i.htm
<DESCRIPTION>EXHIBIT 99(I)
<TEXT>
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    <div>
      <div style="text-align: right; font-weight: bold;">Exhibit 99(i)</div>
      <div>&#160;</div>
      <div style="text-align: center; font-weight: bold;">Japan Smaller Capitalization Fund, Inc.</div>
      <div>&#160;</div>
      <div style="text-align: center; font-weight: bold;">Report of Special Committee of Independent Directors</div>
      <div>&#160;</div>
      <div style="text-align: center; font-weight: bold;">February 28, 2023</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">This Report of the Special Committee of the Independent Directors of Japan Smaller Capitalization Fund, Inc. (the &#8220;Fund&#8221;) informs the Board
        of Directors (the &#8220;Board&#8221;) and the shareholders of the Fund of the work undertaken by the Special Committee, including the process for its deliberations and its conclusions.</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt; font-weight: bold;">Background</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">The Special Committee of Independent Directors was convened pursuant to its Charter, dated September 9, 2022, for the purpose of evaluating
        suitable alternative investment managers to replace the Fund&#8217;s current investment manager.&#160; The Charter was discussed in the Fund&#8217;s Proxy Statement for the 2022 Annual Meeting of Shareholders of the Fund (the &#8220;Proxy Statement&#8221;), as filed with the
        Securities and Exchange Commission on November 7, 2022.&#160; A copy of the Charter is available at <u><font style="font-style: italic;">https://www.nomura-asset.com/investmentsolutions/funds/closed-end funds/jof.</font></u></div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">The Proxy Statement contained a precatory proposal submitted by a shareholder of the Fund requesting that the Board of the Fund evaluate
        suitable alternative investment managers to replace the current investment manager.&#160; The Special Committee understood that this proposal encompassed the management agreement between the Fund and Nomura Asset Management U.S.A Inc. (&#8220;NAM-USA&#8221;), and
        the investment advisory agreement between NAM-USA and Nomura Asset Management Co., Ltd. (&#8220;NAM-Tokyo&#8221;).&#160; This shareholder proposal did not receive enough votes at the 2022 Annual Meeting of Shareholders of the Fund to pass.</div>
      <div>&#160;</div>
      <div style="font-weight: bold;">Special Committee&#8217;s Analysis</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">Nonetheless, in order to carry out the specified tasks contained in its Charter, the Special Committee met regularly by Zoom conference call
        during the period December 2022 to February 2023.&#160; The Special Committee began its work to evaluate potential alternative investment managers for the Fund by casting a wide net, including using a large database of potential alternative managers.
        The Special Committee developed a set of criteria for the database.&#160; This process resulted in a list of 12 possible alternative managers that the Special Committee researched further and discussed in detail.</div>
      <div>&#160;</div>
      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
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      </div>
      <div style="text-indent: 36pt;">Based on its research, a number of these potential managers were eliminated based, among other factors, on the identity of the domicile of
        the manager and/or its funds (outside the US), lack of closed-end fund expertise, absence of experience managing an investment strategy specific to the Fund&#8217;s investment objective and strategy, and lack of clear ability to compare performance or
        expense ratio data on a systematic basis.</div>
      <div>&#160;</div>
      <div style="font-weight: bold;">Special Committee&#8217;s Conclusions</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">Based on a thorough consideration of potential suitable alternatives to the Fund&#8217;s investment manager, the Special Committee finds no
        alternative manager to be as suitable and capable to manage the Fund as are NAM-USA and NAM-Tokyo.&#160; This conclusion is buttressed by our analysis of their strong and deep Japanese small capitalization equity research capability, Japanese equity
        trading capacity, long experience managing closed-end funds (such as the Fund) in the US, clear and timely reporting to the Board, as well as strong demonstrated compliance, US regulatory reporting, cybersecurity and risk management policies and
        procedures.&#160; In addition, the Special Committee has addressed the Fund&#8217;s performance directly and clearly with NAM-USA and NAM-Tokyo.</div>
      <div>&#160;</div>
      <div style="text-indent: 36pt;">Pursuant to the Special Committee&#8217;s Charter and as described in the Proxy Statement, this report is being made to the Board of the Fund and
        publicly disclosed to the Fund&#8217;s shareholders.</div>
      <div>&#160;</div>
      <div><br>
      </div>
      <div>
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