The First Year of The Shareholder's Proposals Era


This year Kabunushi Ombudsman filed two shareholder's proposals
against Sony. The first proposal asks the board of directors to
disclose details of individual directors' salaries and retirement
bonuses. The second proposal asks that a proposal for election of
directors at a general meeting shall be made based upon the
fundamental principles underlying the Basic Law for a Gender-equal
Society.

Sony held the 85th general meeting on June 20, 2002. The first
Proposal won the approval of 27.2% of total votes, and the second
proposal won 17.5%. We have had great victory in our grasp. But we
are not sure whether the company will change their policy soon. At
the same we are sure that we will make the same proposals next year,
if Sony's board of directors would not disclose details of individual
directors' salaries and retirement bonuses.

This year KO also filed a shareholder's proposal against Snow Brand
Milk Products. It asks the boards of directors to elect an independent
outside director, who is nominated by nation-wide consumer groups and
takes charge of food safety system, and to establish a safety monitoring
committee. KO withdrew the proposal, because Snow Brand accepted our
proposal and we could turn our purpose into reality.

Snow Brand held the 52nd general meeting on June 27, 2002. It elected
Ms. Nobuko Hiwasa, who is a former secretary-general of the Consumers
Japan (national confederation of consumer groups), as the independent
outside director. This is the first success brought by the cooperation
of groups of consumers and shareholders.