Sir Philip Green will be challenged by MPs over the "enormous sums" taken out of BHS in dividend payments while the firm was heading towards a crash.
Tips in restaurants, hotels and bars should go to workers and not their employers, the government said in a report published on Monday.
The controversial billionaire Sports Direct boss is planning to rescue stricken BHS, vowing to save all jobs and stores. Mike Ashley, who also owns Newcastle United football club, is mulling over whether to make a formal offer to administrators.
The Nikkei 225 closed down 518.67 points, or 3.11 percent, at 16,147.38, after initially tumbling as much as 4.14 percent in early trade.
Metals tycoon Sanjeev Gupta is seeking a $1billion (�684million) war chest to rescue the UK arm of Tata Steel and has lined up investment bank Macquarie as a backer.