Nippon Steel Rejects Shareholder Proposal for Listed Subsidiary Committee

TOKYO, May 21 (Pulse News Wire) – Nippon Steel Corporation (5401.T) rejected a shareholder proposal aimed at establishing a committee to review strategies for its listed subsidiaries at its upcoming annual general meeting scheduled for June 23. The proposal, submitted by two shareholders representing less than 0.01% of voting rights, suggested amending the company’s articles of incorporation to create a strategic review committee focused on listed subsidiaries.

The committee would consist of five or more outside directors and advise the board on matters such as subsidiary holding policies and minority shareholder protection. In response, Nippon Steel's board argued against the proposal, stating that existing governance structures adequately address issues related to listed subsidiaries.

The company highlighted its ongoing efforts to enhance group-wide capital policy discussions and regularly evaluates listed subsidiaries’ performance through internal management reviews and independent external director oversight. Nippon Steel emphasized its commitment to maintaining robust governance standards and protecting minority shareholders while ensuring flexible decision-making aligned with changing business environments.

The company noted past actions, including the complete privatization of certain subsidiaries and adjustments to their capital structures, demonstrating its proactive approach to optimizing holdings.