Tokyo Kikai Seisakusho (6335) - Poison Pill Approval Appealed and Possible Silver Linings

A bit over a week ago on 22 October, Tokyo Kikai Seisakusho (6335 JP) held its EGM to have shareholders vote on its Poison Pill designed to limit the expansion of voting rights of its major shareholder Asia Development Capital (9318 JP) ("ADC") and its affiliated funds (but not specifically including any other shareholders who may or may not be acting in a highly correlated manner).

The Shareholder Approval of the Poison Pill was discussed in Tokyo Kikai Seisakusho (6335) - Shareholders Approve Poison Pill.

The shareholder vote announcement at the time did not provide results, but later that night, ADC announced that it objected to the fact that its votes had not been counted, and noted that had its votes been counted, it the combination of its votes and the other objectors would have defeated the Poison Pill.

Because of the treatment of the major shareholder, it meant that this would definitely end up being decided by the Tokyo District Court last week, then likely appealed. But we knew that beforehand.

That's where it went a little weird.

While at first glance it appears as if the Tokyo District Court decision sets a terrible precedent (it does), one could imagine there may be legal ramifications if the Tokyo District Court decision is upheld in higher courts.