On May 20, 2024, Chemipro Kasei Kaisha, Ltd. announced in its press release that it had received a shareholder proposal from Care Systems Co., Ltd, for its 43rd Annual General Meeting of Shareholders. The shareholder proposal is as follows, i) Election of 3 Directors: Appointment of Mr. Hiroyuki Hioki, Ms. Yoko Funasaka, Mr. Yasushi Furukawa. The company has opposed the proposal stating that this proposal is limited to condemnation of the current management structure and appointment of 3 new directors, and does not specify any specific policies or strategies to improve the company's growth or business performance.

The suggestion in the proposal that the current management team is not profitable for shareholders and not valued by the market is also not correct. Further, it stated that the management situation of the company and the management issues to be addressed as described in the proposal are not based on a correct understanding. Additionally, the management structure constituted by the proposal is not appropriate as the management structure would have only one director in charge of business execution (Mr Hioki in this proposal), and the composition of executive directors and non-executive directors would be compromised.