Our Shareholder Proposals for SeikitokyuStrategic Capital, Inc.

We attended the AGM and expressed our opinions.
Link in Japanese.

Key opinions in English are following.

Seikitokyu states “As a result, Shareholder proposals may damage shareholders’ value” in the opposite opinion of the board of director. Why do you think we, the second largest shareholder, propose to damage shareholders’ value which is equal to the value of our own assets?

The managements must have decided to reject our proposals without any consideration just because those are shareholder proposals. The sentences of the opposite opinion do not make sense. We suspect you had the conclusion of opposition from the beginning and made up the reasons later. We consider the shareholders’ value seriously. We are terribly sorry for such hostile attitude of the managements.

Accumulating equity capital to prepare for potential misjudgment of management lowers capital efficiency and damages shareholders’ value. It is necessary to construct mechanisms to prevent managerial mistakes. For example, you should make absolutely sure to prevent the recurrence of antitrust violation, instead of accumulating cash in hand to prepare for surcharge payments.

The policy of accumulating equity capital only helps the managements to pursuit comfortable situation and does not contribute to shareholders’ interest.

The board members, who are elected by shareholders, should manage the company complying with the intention of shareholders. It is annoying for shareholders to set a self-serving goal and accumulate equity capital without limitation. Such attitude harms the shareholder’s interests.