The most-shorted stock on Japan's Nikkei 225 Stock Average, a shipping line, is facing rough seas again.
As Kawasaki Kisen Kaisha's annual shareholder meeting approaches on June 23, attention is focusing on whether its president and chief executive officer, Eizo Murakami, will win re-election. That's partly because the company's largest shareholder, Effissimo Capital Management, has increased its stake since voting against Murakami's reappointment last year.
Japan's third-largest shipping line encountered investor discontent in 2016 after swinging to an annual loss amid turbulent times in its industry. While Murakami won a second year in the role, just 57 percent of shareholders favored him, versus 86 percent the year before. Competitors saw similar voting patterns: Support for Junichiro Ikeda, president of Mitsui O.S.K. Lines, tumbled to 77 percent from 98 percent.