Taiyo Holdings Removes CEO After Vote Draws Only 46% Support

Taiyo Holdings said Vice President Saito became president and chief executive on 21 June after shareholders rejected the reappointment of longtime leader Eiji Sato at the company’s annual meeting. A regulatory filing released on 23 June showed Sato’s bid to stay on the board drew just 46.09% support, well short of the simple majority required. The revolt was driven by the chemical maker’s largest shareholder, DIC, which holds about 20% of the stock, founding family members, and Hong Kong-based activist fund Oasis Management. The rare defeat for an incumbent chief underscores the growing influence of activist investors in Japan’s corporate governance and ends Sato’s tenure amid criticism of the firm’s expansion into medical businesses and discussions about potential privatisation.