TOKYO, May 15 (Pulse News Wire) – Hokuryo CO.,LTD. (1384.T) rejected a shareholder proposal submitted by three shareholders on April 15, which called for the inclusion of provisions related to cage-free egg production methods in its articles of incorporation.
The proposal was made by Koshimizu Shunzo (holding 30,000 shares), Kurokawa Miyuri (holding 100 shares), and Yoshida Chiharu (holding 100 shares). The proposal aimed to establish a new clause in Article 4 of the company’s articles of incorporation emphasizing sustainability-focused management, particularly concerning animal welfare in egg-laying hen farming. It suggested transitioning towards cage-free systems and committing to disclose information on such initiatives. The rationale behind the proposal highlighted growing international concern over animal welfare in egg production, with numerous food and retail companies publicly announcing policies favoring cage-free eggs.
The trend is also increasing domestically, making a reversal unlikely. Early adoption of cage-free methods could enhance future market competitiveness and operational stability, according to the proposers. In contrast, Hokuryo's board of directors opposed the proposal, stating that while the company supports global trends toward animal welfare based on the Ministry of Agriculture, Forestry and Fisheries' technical guidelines for managing laying hens, incorporating specific measures into the articles of incorporation would limit the board's flexibility in responding to changing environmental and business conditions. The board believes that detailed policy decisions should be made considering external factors and business situations, allowing for flexible adjustments as needed.
Therefore, the board concluded that embedding individual issues within the basic framework of the articles of incorporation is not appropriate and could constrain their ability to make timely and adaptive judgments.
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