About our Shareholder Proposal to Toray
Our shareholder proposal is as follows.
Revision of the provisions of articles with regard to management of subsidiaries
（For more details please refer here）
Purpose of the Shareholder Proposal – To have Toray fulfil its responsibilities as a parent company
Toray’s Representative Director, Murayama, says Chori is a “good company” (For more details refer here). However, even if Toray believes that Chori is a “good company” for them, the same cannot be said for Chori’s minority shareholders.
First, directors of parent companies are responsible for maintaining and improving the value of its subsidiaries (For more details on duties of the parent company refer here). However, Chori’s shareholder value has not increased while their net income has increased, because they have adopted a capital policy that accumulates equity capital (For more details refer here). It is difficult to say that Toray’s directors have fulfilled their responsibilities.
Therefore, we propose that Toray follows the “Practical Guidelines for Group Governance Systems” issued in June 2019 by METI (For more details refer here) and takes appropriate action regarding its subsidiaries.
TOPIC：Practical Guidelines for Group Governance Systems (Group Guidelines) Executive Summary
（Source：Guidelines for Group Governance Systems (Group Guidelines) Executive Summary Page 18 highlights by Strategic Capital）
The ratio of favour votes to our proposalsThe ratio of favour votes to our proposals is below. Please see here for details.
（Source: Strategic Capital based on extraordinary report in 2020)