TOKYO (Reuters) -Proxy adviser Institutional Shareholder Services Inc (ISS) has recommended voting for an activist fund’s proposal to replace all six incumbent outside directors with their own candidates at Japanese elevator maker Fujitec Co Ltd.
Hong Kong-based Oasis Management, which owns 16.5% of Fujitec, has sought an extraordinary general meeting to reshuffle the board. It says the board has been protecting the former Fujitec Chief Executive Officer Takakazu Uchiyama, who stepped down following revelations of real estate transactions involving his family.
ISS backed all the proposals despite Fujitec’s opposition, while it recommended voting against the company’s proposal to add two new board directors, according to an ISS report seen by Reuters.
“There appears to be merit to the dissident’s argument for a complete board overhaul,” given the incumbent board’s apparent inability to overcome the former CEO’s strong influence at the company, it said.
In a statement, Fujitec called the ISS move “extremely disappointing” and said it would release its views on the proxy adviser’s report on Friday.
(Reporting by Makiko Yamazaki; editing by Jason Neely and Paul Simao)