"Otoya" General Meeting of Shareholders Largest shareholder rejected Corowide proposal renewal proposal June 25, 14:19
The shareholders' meeting of Otoya Holdings Co., Ltd., a set meal chain, was held on the 25th, and the proposal to renew the management team, which was proposed by Corowide, the largest shareholder who operates Gyukaku etc., was rejected. As the business performance continues to decline, the current president will continue to lead management.
Since February of last year, monthly sales of Otoya Holdings have continued to fall below those of the previous year.
At the general meeting of shareholders on the 25th, the largest shareholder, who owns 19% of the stock, Corowide said that the management team needs to be reformed in order to rebuild its business performance. We have issued a shareholder proposal that asks people such as those from Corowide.
In response, the company proposed to elect 11 directors, including the current president, Kenichi Kubota.
As a result of the vote, the shareholder's proposal was rejected by the majority, and the company's proposal was approved.
As business performance continues to decline, President Kubota will continue to lead management.
After the general meeting, President Kubota held a press conference and said, "We received support in spite of the unwilling performance, so we will work together to improve the performance. However, since Corowide remains a major shareholder, We will continue to firmly discuss proposals that will contribute to increasing shareholder value and corporate value."
On the other hand, Corowide says, "I have no comment at this time."
The story so far
In October of last year, Corowide, which manages Gyukaku and other companies, bought over 18% of the shares of the founding family of Otoya Holdings and became the largest shareholder.
Since February of last year, monthly sales of Otoya are below those of the same month of the previous year due to the fact that the prices of menus have been virtually increased and part-time employees have posted inappropriate videos on the Internet. Is continuing.
For this reason, the Corowide side has made a shareholder proposal requesting that seven out of the 12 candidates for directors be graduates from Corowide, etc., in order to take the initiative in the management of Otoya Holdings and to rebuild the business performance. It was
They also sought to review the cooking process in the store and make the dishes together at another facility to improve work efficiency and reduce costs.
On the other hand, Otoya side proposed that Kenichi Kubota and other 11 directors will serve as directors, and that the cost reduction plan on the Corowide side leads to deterioration of quality and leads to customer departure, and opposed to the proposal. ..
Under the new medium-term management plan, we will close down unprofitable directly managed stores, and we will also focus on new businesses such as online sales of frozen foods. It was a situation to do.
Shareholders...
A man in his thirties who attended the general meeting of shareholders said, “At first, I thought that there was a shareholder proposal on the Corowide side, but after that, I felt that there was insufficient explanation, so I am glad that this result was good. There wasn't much, but the president of Otoya didn't deny rationalization, so I'd like you to proceed calmly and have a good discussion."
A man in his 40s said, “I was dissatisfied as a user with cooking time and price, amid poor business performance, so I was in favor of Corowide's shareholder proposal. The current management team also incorporates the content of the proposal. I don't think there will be a future for the company if we don't improve our management."