Nintendo Co. shareholders have voted against a new plan to change the way dividends are paid - marking the first time in the company's history that a board proposal has been rejected.
The proposal was designed to let the board decide the size of dividends and when they were paid out, without requiring shareholders' approval. Changes were also proposed to the company's corporate charter - but Nintendo said it was likely to be the dividends proposal which caused shareholders to reject the plan.
"The proposed change was intended to give Nintendo's board a bit more autonomy, so that dividends can be paid out quickly without waiting for approval at a general shareholders' meeting," a Nintendo spokesman told Reuters.
"But apparently we could not win enough understanding from shareholders."
The spokesman said some investors were thought to be concerned that they would receive lower payouts if the plan was approved. He added that Nintendo's strategy is to provide a relatively high dividend.
According to figures from Reuters, Nintendo offers a 2 per cent dividend yield; the average figure for all issues listed on the first section of the Tokyo Stock Exchange is 1.15 per cent. Nintendo's share price rose by 0.5 per cent yesterday afternoon to 19,070 Yen.