Hibiki Path Advisors (“Hibiki” “we” “our”) CIO Yuya Shimizu was interviewed by the Japanese famous media DIAMOND aiming for providing shareholders with a better understanding of the background and purpose of the campaign, including the shareholder proposal, for JAPAN PURE CHEMICAL CO., LTD. (the “Company”). The article was published today.
Figure 1: Screenshot from the beginning of the article
（Source: DIAMOND online）
In this 9-page article¹, CIO Yuya Shimizu discusses our long standing history of engagement, the painful decision to take a hard stance reflects deep concerns about fundamental flaws in the company’s governance that can no longer be ignored.
The article starts with the following headline, followed by detailed interview with CIO Yuya Shimizu.
“Hibiki regards Mr. Watanabe, Director and Honorary Advisor, as the true mastermind behind the scenes—much like Mr. Hisashi Hieda, who wielded real power at Fuji Media Holdings while holding the same titles. Hibiki is now considering launching an unprecedented public campaign to expose the backgrounds and connections of the board members who continue to support Mr. Watanabe.
On the next page, Mr. Shimizu reveals in a direct interview the strong sense of discomfort he felt in his dialogue with Mr. Watanabe, the “internal dynamics” that emerged from his meeting with the current president, Tomoyuki Kojima, and the control structure established by people from Mizuho Bank and Mr. Watanabe’s brother-in-law.”
We are deeply concerned that Mr. Masao Watanabe (“Watanabe”), while holding formal titles as Director and Honorary Advisor, continues to exert significant influence behind the scenes over the Company’s management. Equally troubling is the network of directors who support and enable his covert control.
As illustrated by the chart in the article, we firmly believe that despite Mr. Watanabe’s failure to improve the Company’s performance over the past two decades, he has persistently remained involved in its management without assuming accountability. Moreover, his influence remains undiminished to this day. This situation closely parallels the case of Mr. Hisashi Hieda at Fuji Media Holdings, who exerted significant behind-the-scenes control.
Also, the uniquely structured board of directors (including independent directors), where repeated appointments from limited corporate groups have created conditions that hinder effective oversight, as Yuya Shimizu states in the article as follows.
“At the time of the MBO, Mr. Yasutoshi Ohata served as the primary representative for Mizuho and maintains a close relationship with Mr. Watanabe. Consequently, he is unlikely to express strong or independent opinions. We believe the board remains firmly entrenched in a “seniors dominate juniors” hierarchy, fostering an environment where dissent is stifled and meaningful reform is impossible.
The board of directors should serve as a forum for open and candid discussion in the interest of effective management. However, the current composition of the board fails to fulfill this essential role. Consequently, the Company is unmistakably falling behind its peers in terms of growth.”
We will continue our proactive actions to improve the Company’s governance, taking advantage of our past reflections. We kindly ask you to read the article.
(For Reference)
22/May/2025 – Commentary of the shareholder proposal to JAPAN PURE CHEMICAL CO., LTD.
2/Oct/2024 ー About Letter to the board of directors in Japan Pure Chemical Co., Ltd.
¹ Number of pages printed on A4 paper
This post does not constitute a solicitation for an offer to acquire or recommend the purchase or sale of specific securities, or advice on investment, legal, tax, accounting, or any other matters. In the event of any discrepancy or conflict between the English and Japanese versions, unless otherwise noted, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated.