Bond.az reports that Asset Value Investors Limited (AVI) has submitted shareholder proposals calling for the removal of two directors at Wacom Corporation (TSE:6727) ahead of the company's annual general meeting in June.
AVI, which holds 13.8% of Wacom as of April 30, making it the largest shareholder, is proposing the removal of Representative Director Mr. Ide and outside director Mr. Nakajima. The firm is also seeking the appointment of one external director.
The investment manager cited governance concerns including Wacom's acquisition of a loss-making company represented by Mr. Nakajima for over $10 million, followed by his transition to an internal director role. AVI also raised issues regarding Mr. Ide's conduct, alleging preferential treatment for his children using corporate resources.
Wacom's Branded Business segment has recorded losses since the fiscal year ending March 2023. AVI has been invested in Wacom since August 2021.
Kaz Sakai, Head of Japan Research at AVI, stated: "Wacom has demonstrated serious deficiencies in governance oversight." He added that the company must urgently restore its governance framework.
AVI is a signatory to Japan's Stewardship Code and has been investing in Japanese equities for over 40 years.
