Kao Corporation Addresses Shareholder Concerns and Governance

Kao Corporation Responds to Shareholder Inquiry on Governance

Kao Corporation has recently addressed inquiries raised by Oasis Management Company Ltd., a shareholder and investment management firm. The focus of this discussion revolves around the nomination of director candidates for the upcoming Ordinary General Meeting of Shareholders.

Commitment to Shareholder Value

The Board of Directors at Kao is dedicated to delivering long-term shareholder value. In alignment with its business strategy, Kao embraces a commitment to engage with stakeholders, valuing fresh perspectives that help tackle ongoing challenges. This collaborative approach reflects their dedication to improving corporate governance.

Selection Process for Board Candidates

Kao continues to refine its selection process for Board Directors. In the current year, the Committee for Examination of Nominees for Directors spent over six months deliberating to ensure that the board’s composition meets the highest standards. Notably, these discussions concluded before Oasis Management put forth any director candidates.

Timely Announcements of Leadership Changes

The announcement regarding the nomination of Director and Auditor candidates was strategically timed for December 2nd. This timing is intended to clarify that Director David Muenz will be retiring from his Executive Officer position at the end of the year, while remaining on the Board until the Shareholders' Meeting in March.

Transparency and Engagement with Stakeholders

Kao has made efforts to clearly communicate its selection process to Oasis Management. The company has actively addressed the specific director candidates recently proposed. They are being screened diligently according to the established Committee process, and this information has been shared directly with Oasis Management.

Addressing Misconceptions

In light of the recent statements from Oasis Management, Kao has responded to claims regarding transparency and fairness in its nomination process. Allegations stating that the Directors have refused transparency or that claims of disingenuousness regarding candidate interviews are not accurate. Kao remains firm in its position that it upholds high standards of governance and engagement.

Delegation of Authority and Governance Structure

Oasis Management has expressed concern regarding Kao’s governance practices, referring to a claim that the company has overly delegated authority to management, thus compromising oversight functions. Kao clarifies that this reflects its approach to delegation, as permitted under Japan’s Companies Act, while reinforcing supervisory roles to support effective and prompt decision-making.

Continued Focus on Corporate Value

As Kao navigates this dialogue with shareholders, the company reaffirms its commitment to maintaining transparent and effective governance. Additionally, it is focused on executing its K27 strategy to further enhance corporate value and improve overall stakeholder engagement.

Frequently Asked Questions

What is the main topic of Kao Corporation's recent statement?

Kao Corporation addressed concerns from its shareholder, Oasis Management, regarding the nomination process of directors at the upcoming General Meeting.

How does Kao Corporation approach shareholder engagement?

Kao actively engages with stakeholders, seeking fresh perspectives to enhance governance and tackle business challenges.

What does the selection process for directors entail?

Kao's selection process involves extensive discussions by a dedicated committee, ensuring optimal board composition.

What governance principles does Kao Corporation emphasize?

Kao places significant emphasis on transparency, effective delegation, and strong oversight within its governance framework.

What future strategy is Kao implementing to boost corporate value?

Kao is focused on executing its K27 strategy, aimed at enhancing corporate value and stakeholder relations.

About The Author

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