Proxy Adviser ISS Opposes Board Appointments at 4 Contractors

June 8, 2018

Tokyo- A U.S. proxy advisory firm has recommended shareholders to oppose proposed board appointments at four major Japanese general contractors ahead of their shareholders' meetings in late June.

Institutional Shareholder Services Inc. said the management of the four companies are responsible for their involvement in bid-rigging over the country's magnetic levitation high-speed train project.

The four--Obayashi Corp., Kajima Corp., Shimizu Corp. and Taisei Corp.--are owned about 20-30 pct by foreign investors. ISS recommendations may influence their voting decisions.

ISS suggested that shareholders oppose the planned reappointments of Obayashi Chairman Takeo Obayashi and Kajima Chairman Mitsuyoshi Nakamura as representative directors.

Shareholders were also advised to disapprove any leadership appointment plans at Shimizu and Taisei. This year, the two have no reappointment proposals for their chairmen or presidents because they are still in their terms of office.

In March, the four companies were indicted for violating the antimonopoly law over the construction of the planned Shinagawa and Nagoya stations for the Chuo Shinkansen maglev train line.

Obayashi and Kajima are slated to hold shareholders' meetings on June 26, and Shimizu and Taisei on June 28. Jiji Press