NASU Denki-Tekko Rejects Shareholder Proposals at Upcoming AGM

TOKYO, May 25 (Pulse News Wire) – Nasu Denki-tekko CO.,LTD. (5922.T) rejected five shareholder proposals set to be presented at its upcoming annual general meeting scheduled for June 26.

The proposals were submitted by NIPPON ACTIVE VALUE FUND PLC and cover topics such as abolishing large-scale share buyback policies, increasing self-share repurchases, changing director ratios, approving restricted stock compensation plans, and altering the record date for shareholders' meetings. In rejecting the proposal to abolish large-scale share buyback policies, the board argued that maintaining these measures ensures appropriate time and information for shareholders to make informed decisions during potential hostile takeovers. Additionally, the board opposed the request for increased self-share repurchases, citing concerns that such actions could undermine the company's ability to execute its three-year growth investment plan outlined in its mid-term business strategy.

Regarding changes to the number of outside directors, the board maintained its stance against the proposed alterations, emphasizing the importance of existing governance structures in ensuring sustainable corporate value and effective risk management. Similarly, the board rejected the introduction of restricted stock-based compensation plans, asserting that current incentive systems adequately align executive interests with long-term shareholder value. Lastly, NASU DENKI-TEKKO’s board also dismissed the proposal to shift the record date for shareholders’ meetings from March 31 to May 15, arguing that such a move would create confusion among shareholders due to mismatched dividend distribution schedules and increase administrative burdens without clear benefits to stakeholders.