Teikoku Tsushin Kogyo Co.,Ltd. [6763.T]
TOKYO, May 12 (Pulse News Wire) – Teikoku Tsushin Kogyo CO.,LTD. (6763.T) rejected shareholder proposals submitted by Nippon Active Value Fund Plc ahead of its upcoming annual general meeting scheduled for June 2026.
The board unanimously opposed four key proposals, including significant share buybacks and changes to external director roles. Regarding the proposal for substantial share repurchases within a year, the company cited concerns over disrupting its balanced approach to growth investments and shareholder returns. It plans to continue executing strategic buybacks based on its Mid-Term Business Plan 2030, aiming to enhance enterprise value through targeted investments and stable dividend payouts. On altering the composition of external directors, Teikoku Tsushin emphasized the effectiveness of its existing governance structure, which includes independent outside directors who ensure objectivity and fairness in nominations and compensation decisions.
The company believes maintaining the current setup ensures robust oversight and effective risk management without mandating a majority of external directors. Additionally, the firm opposes introducing restricted stock awards for external directors due to potential conflicts of interest. Instead, it maintains its current incentive system designed to align executive interests with long-term shareholder value creation. Lastly, Teikoku Tsushin disagreed with changing the record date for shareholders' meetings, arguing that early disclosure of important documents such as securities reports provides sufficient time for investors to make informed decisions.
The company asserts that current procedures adequately support transparent communication and responsible decision-making processes.
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