TEPCO's nationalization approved

June 27, 2012

TEPCO shareholders approve public bailout plan

http://www3.nhk.or.jp/daily/english/20120627_34.html

Shareholders of the Tokyo Electric Power Company have accepted the utility's proposal to receive billions of dollars of public funds to help rebuild its finances.

The decision, made at TEPCO's annual shareholders meeting on Wednesday, formalizes a plan to effectively put the utility under government control.

The plan calls for the central government to acquire a stake of up to 75 percent in the utility in exchange for an injection of about 12 billion dollars in public funds.

The bailout is seen as a key step in proceeding with compensation for local residents affected by the crisis at the Fukushima Daiichi nuclear power plant.

TEPCO also decided to reshuffle its top executives, with Chairman Tsunehisa Katsumata and President Toshio Nishizawa resigning to take responsibility on the part of management. A majority of the new directors are being appointed from outside the company.

The shareholders rejected a proposal from the Tokyo Metropolitan Government, a major TEPCO shareholder, to allow a third party to examine the grounds for raising electricity rates.

With all its proposals endorsed by shareholders, the utility will begin compiling specific restructuring plans. As the top shareholder, the government will now have a major influence in how the company rebuilds itself and compensates people affected by the accident