UPDATE 1-US proxy firm against TCI dividend plan for J-Power

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By Junko Fujita and David Dolan

TOKYO, June 13 (Reuters) - Japanese electricity wholesaler J-Power (9513.T: Quote, Profile, Research, Stock Buzz) got a boost in its battle with fund TCI on Friday, after proxy advisory firm Glass, Lewis & Co said shareholders should oppose the fund's push for a higher dividend.

The news sent shares in J-Power lower, and the stock finished down nearly 3 percent in Tokyo.

The management of Electric Power Development Co, commonly known as J-Power, is preparing to meet with shareholders later this month at an annual stakeholders meeting, for which the UK-based TCI has launched a proxy fight.

The Children's Investment Fund (TCI), J-Power's largest shareholder, has proposed an increase in dividend payments and limits on cross shareholdings, and opposes the re-election of President Yoshihiko Nakagaki to the company's board.

U.S.-based Glass Lewis said shareholders should vote against the proposal for higher dividends.

Dividend policy should be set by a company's board and management, Jun Frank, the San Francisco-based director of Asia proxy research for Glass Lewis, told Reuters in a telephone interview.

"Unless we see a clear showing of mismanagement or disregard of shareholder value we generally don't go against the board (on dividends)," Frank said.