Chubu Electric Power Company, Incorporated | Disclose information and engage in exchange of opinions with respect to compliance violations at Chubu Electric Power Company, Incorporated

Status
AGM passed
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
9502
Lead filer
Undisclosed filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Human rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Utilities
Company HQ country
Japan
Resolved clause
To add the following new chapter to the Articles of Incorporation: Chapter X. Proactive Information Disclosure and Exchange of Opinions Article X. The Company shall actively disclose information and engage in exchanges of opinions with respect to compliance violations.



Supporting statement
The Company was ordered by the Japan Fair Trade Commission to pay civil fine of approximately 27.5 billion yen for a cartel with the Kansai Electric Power Co., Inc. regarding electricity approximately 27.5 billion yen for a cartel with the Kansai Electric Power Co., Inc. regarding electricity sales. The Company filed an administrative suit against Japan Fair Trade Commission for revocation of the penalty. The Company rejected the shareholder's demand to seek Directors' liability, and the Company has joined the shareholder derivative suit as an intervener supporting Directors. There is no prospect of winning these lawsuits. These lawsuits will not only incur high litigation expenses but also inevitably undermine the Company's social reputation, and accordingly will cause losses on shareholders. The infringement of human rights through exchange of information with the Ogaki police station committed by C-Tech Corporation, which is a subsidiary of the Company, was severely criticized by the court. However, neither C-Tech Corporation nor the Directors of the Company show remorse. It must be said that there are serious defectsin the corporate governance. To improve this situation, the Company should endeavor to regain the trust by actively disclosing information and responding to the questions and criticisms of all stakeholders.

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