Shareholders Reject Proposal for Ootoya Board Shake-up

Economy

Tokyo, June 25 (Jiji Press)--Shareholders of Japanese restaurant chain operator Ootoya Holdings Co. <2705> on Thursday rejected a proposal for a management shake-up made by its top shareholder, Colowide Co. <7616>.

At an annual general meeting of shareholders, however, two proposals submitted by Ootoya to appoint 11 board members, including reappointments, and two auditors were approved by a majority vote.

Restaurant and bar operator Colowide, which owns 19.1 pct of Ootoya, planned to gain control of the management through the leadership change before making the holding company a fully owned subsidiary. Ootoya opposed the plan.

According to Ootoya, nearly 70 pct of the shareholders who exercised their voting rights approved the company's proposals.

However, many shareholders grilled the company at the meeting, asking what the company will do to improve its performance. Ootoya incurred a consolidated net loss of 1,147 million yen in the year ended in March.

[Copyright The Jiji Press, Ltd.]

Jiji Press