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Case
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Reference no. FA0538
Published by: IIMA Case Centre, Indian Institute of Management Ahmedabad
Originally published in: 2018
Length: 15 pages
Data source: Published sources

Abstract

In 2015, Toyota proposed to issue a separate class of shares to attract long term individual Japanese shareholders aligned with the company's long-term R&D programmes. The distinguishing feature of these shares was the exit option with no loss of capital. The proposal was not received well by US based institutional shareholders of the company and proxy. A major proxy adviser recommended voting against the proposal. The case provides an opportunity to discuss security design issues and their implications for corporate governance.

Time period

The events covered by this case took place in 2015.

Geographical setting

Region:
Asia
Country:
Japan

Featured company

Toyota Motors

About

Abstract

In 2015, Toyota proposed to issue a separate class of shares to attract long term individual Japanese shareholders aligned with the company's long-term R&D programmes. The distinguishing feature of these shares was the exit option with no loss of capital. The proposal was not received well by US based institutional shareholders of the company and proxy. A major proxy adviser recommended voting against the proposal. The case provides an opportunity to discuss security design issues and their implications for corporate governance.

Settings

Time period

The events covered by this case took place in 2015.

Geographical setting

Region:
Asia
Country:
Japan

Featured company

Toyota Motors

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