TOKYO, May 11 (Pulse News Wire) – NHK Spring CO.,LTD. (5991.T) rejected a shareholder proposal submitted by LONGCHAMP SICAV for changes to its board structure at a May 11 board meeting.
The proposal, set for discussion at the company's 106th ordinary shareholders' meeting scheduled for June 25, includes altering the constitution to ensure external directors constitute a majority and changing the record date for annual general meetings. Regarding the first proposal to increase the number of external directors, NHK Spring’s board opposes the move, citing concerns it would limit flexibility in selecting appropriate talent and hinder effective board operations. Currently, four out of nine directors are independent, and the company plans to maintain a balanced and diverse board composition with sufficient independence and diversity.
For the second proposal to delay the record date for annual general meetings, NHK Spring also opposes, arguing it could disrupt the alignment between voting rights and dividend distribution dates, affecting investor decision-making processes. Additionally, it might extend the reporting period, complicating timely information dissemination and potentially undermining transparency. In conclusion, NHK Spring maintains its stance against both proposals, emphasizing its commitment to maintaining robust governance structures aligned with long-term value creation and stakeholder interests.
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