According to the Wisdom Finance APP, at the annual shareholder meeting of Toyota Motor (TM.US) held on Tuesday, Toyota Chairman Akio Toyoda and his nine board of directors were re-elected, despite shareholders' concerns about corporate governance and certification test scandals, which did not seem to affect the election results.

Although two major proxy advisers had suggested that Akio Toyoda should not seek re-election, his re-election is almost certain due to the shares held by other Toyota Group companies, record-breaking performances, and his popularity among individual investors in Japan.

It is said that if Akio Toyoda's support rate drastically drops when it is announced on Wednesday, it will not only embarrass him personally, but also possibly promote further corporate governance reforms, and accelerate the possibility of lifting the mutual shareholding within the group as one of the expected reform measures.

Akio Toyoda's support rate has dropped from 96% in 2022 to 85% last year, due to a series of safety and certification test violations by the company, with overseas investors who hold a quarter of Toyota's shares mainly opposing him. Proxy advisory firm Institutional Shareholder Services (ISS) questioned Toyota's handling of these issues and institutional investors such as the New York City Employees' Retirement Fund also voted against it.

Another proxy advisory firm Glass Lewis had also advised against Akio Toyoda's re-election, citing concerns about the independence of the board of directors and its strategic holdings and return on equity.

Still, Akio Toyoda, as the grandson of Toyota founder Kiichiro Toyoda, remains popular with individual investors, who hold 12.6% of Toyota's shares. Last year's record profits and strong stock performance also won him support.

It is reported that in early June, Toyota disclosed violations in six different vehicle certification tests, including three models that were still on sale at the time. Some of the tests were conducted under more stringent conditions than government regulations, rendering the test results invalid. Since the news broke, Toyota's stock has fallen by 10%, but has still risen 18% this year.

Koji Sato, who took over from Akio Toyoda as CEO last year, once again apologized for the certification issues, but neither he nor Akio Toyoda directly addressed the advisory firm's recommendations. Shareholders also rejected a proposal by an investor calling for more disclosure of Toyota's climate lobbying, which was opposed by the company.

This year's annual shareholder meeting of Toyota Motor is not only a showcase of corporate governance, but also a test of confidence in the company's future development direction and market confidence. In the increasingly competitive global automotive industry, Toyota, as the world's largest automaker, every decision and trend affects investors' nerves.

In recent years, Toyota has faced numerous challenges, from violations of safety certification tests to controversies over corporate governance structures, which not only affect the company's reputation, but also have an impact on investors' confidence.

However, despite the controversies and challenges, Akio Toyoda's re-election demonstrates that shareholders' trust in the company's management remains strong. This trust is built on Toyota's long-standing sound management and innovation capabilities, particularly in the field of electric vehicles and autonomous driving technology.