Updated Mar 17, 2026 by GungHo Online Entertainment
GungHo Online Entertainment’s Board of Directors has formally opposed all shareholder proposals from Strategic Capital and LIM Japan Event Master Fund for the March 2026 Annual General Meeting.
The Board rejected a proposed 311-yen-per-share dividend and 21.3-billion-yen buyback, arguing that the outflow of 57% of cash reserves would threaten the company's financial stability.
In response to shareholder pressure, GungHo adopted a new capital policy targeting a 4% Dividend on Equity (DOE) and a minimum 50% consolidated payout ratio.
For the fiscal year ending December 2025, the company committed to a 90-yen ordinary dividend, a 5.0-billion-yen share buyback, and the cancellation of 16 million treasury shares, representing 23.1% of issued stock.
The Board rejected mandates to appoint an outside director as chair and to disclose sales by game title, citing the need for operational leadership and the risk of competitive disadvantage.
GungHo is voluntarily increasing its independent outside director ratio to 50% and doubling female board representation to 20% to address governance concerns without formal shareholder mandates.
GungHo Online Entertainment’s Board of Directors has formally opposed all shareholder proposals from Strategic Capital and LIM Japan Event Master Fund for the March 2026 Annual General Meeting.
The Board rejected a proposed 311-yen-per-share dividend and 21.3-billion-yen buyback, arguing that the outflow of 57% of cash reserves would threaten the company's financial stability.
In response to shareholder pressure, GungHo adopted a new capital policy targeting a 4% Dividend on Equity (DOE) and a minimum 50% consolidated payout ratio.
For the fiscal year ending December 2025, the company committed to a 90-yen ordinary dividend, a 5.0-billion-yen share buyback, and the cancellation of 16 million treasury shares, representing 23.1% of issued stock.
The Board rejected mandates to appoint an outside director as chair and to disclose sales by game title, citing the need for operational leadership and the risk of competitive disadvantage.
GungHo is voluntarily increasing its independent outside director ratio to 50% and doubling female board representation to 20% to address governance concerns without formal shareholder mandates.