Shareholders Defy Nintendo Board

According to Japanese reports, shareholders have voted against a Nintendo board recommendation for the first time in the company’s history - although over plans to alter how dividends are paid, rather than for any market-related reasons. The board of the Kyoto-headquartered game giant had suggested a proposal that would have allowed its members to decide the timing and size of dividends without the approval of shareholders, as well as changes to the company's corporate charter. Investors were apparently concerned that the changes could lead to lower dividends, despite the fact that Nintendo’s dividend yield is 2 percent, compared to a Tokyo Stock Exchange average of 1.15 percent. "The proposed change was intended to give Nintendo's board a bit more autonomy, so that dividends can be paid out quickly without waiting for approval at a general shareholders' meeting," a Nintendo spokesman is quoted as saying by the Reuters news agency. "But apparently we could not win enough understanding from shareholders." As a result, shares in Nintendo rose only 0.5 percent to ¥19,070 yesterday afternoon, below the Nikkei average of a 1.58 percent gain.