NIPPONKOA’s oppression

June 12, NIPPONKOA Insurance Company, Limited announced that they will not file an action for pursuing the liability of their directors.

One of their share holders who is former NIPPONKOA’s director demanded them to file the action.

He said present directors intentionally did not pay the insurance and  padded the profit of the company.

But NIPPONKOA said such facts are not and rejected the demand.

According to Companies Act, after company’s reject, shareholder may file an action on behalf of the company, so, in this case, he will file an action.

NIPPONKOA is planning to be merged with Sompo Japan Insurance Inc. , major insurance company in Japan.

This may be an obstacle to the merger.