Focus on support for Akio Toyoda at Toyota shareholder meeting: Report

Toyota Motor Chairman Akio Toyoda may not face issues when it comes to being re-elected at the company's AGM, the day after, but a further fall in shareholder support could lead to increased action with regards to governance reforms, Reuters reported. 

The AGM follows scandals that include certification test breaches at Toyota and its subsidiaries, including Hino Motors and Daihatsu, the newswire reported. 

Proxy advisory companies Glass Lewis and Institutional Shareholder Services (ISS) have suggested against the re-election of Toyoda, on the back of governance issues and board independence, the newswire noted.

Since then, a testing violations scandal has also come to the fore, Reuters further stated. 

The chairman's approval rating dropped to 85% in 2023, versus 96% the year before. However, Toyoda only requires a majority to be re-elected, and business has been good, besides the scandals, the newswire said. 

Toyoda, grandson of the company's founder is the longest serving director, having been on board since 2000, and is slated to have the backs of individual investors, besides that of suppliers and the group companies among its shareholders, Reuters reported.  

The results of the vote will be announced on Tuesday, although the approval rate will be revealed only on Wednesday, Reuters reported. 

On being questioned about Glass Lewis and ISS' recommendations, the company informed the newswire that assessing its mistakes was ingrained in its corporate culture and Toyota would lead from the front in reiterating that culture and working with group companies to guarantee effective governance. 

The company has retained its title as the world's top-selling car maker for the fourth straight year, bolstered by a weak yen and a surge in sales of hybrid vehicles, Reuters reported.