While overall shareholder support still leans towards incumbent management, the shift in voting patterns points to a gradual erosion of deference. This development coincides with increasing pressure from the Tokyo Stock Exchange and activist funds to improve capital efficiency and deliver higher shareholder returns. "Shareholder pressure is likely to increase given there is still much room left for improvement," said Naoki Fujiwara, senior fund manager at Shinkin Asset Management. "The acceptance of activists' proposals is a significant change from the past." Alongside the rise in approved shareholder resolutions, there has also been a marked increase in the rejection of management-sponsored motions. According to Sumitomo Mitsui Trust Bank Ltd., 30 company proposals—primarily board director nominations—were voted down this year, a sharp rise from just six the year before.