Yoshiaki Murakami failed to win approval for his plan to get seats on Kuroda Electric Co.'s board.
The activist investor's proposal to appoint himself and three others as outside directors at the electronics trading company was defeated with about 60 percent of shareholders voting against it, Kuroda Electric spokesman Mamoru Mochimaru said after an extraordinary general meeting in Osaka.
The proxy fight was Murakami's first since being convicted of insider trading. Kuroda Electric shares plunged 8.3 percent, their steepest decline since March 2011.