had to check: toyota owns 5% of mazda which makes them the largest shareholder.
replies(4):
They also own Denso, which is the second largest auto parts company.
And they partner with Subaru on some things, such as the Subaru BRZ and Toyota GR86, which are basically the same car with different badging.
Due to typical Japanese corporation by-laws, it only takes 33% share ownership for uncontested control of a corporation, and >50% of 33% means they'll never lose a vote for simple majority matters, which is basically everything except selling or dissolving the company.
The 20% threshold is for a guaranteed seat on the board, which lets them put issues up for a vote.
It doesn’t make any sense.
Japanese law allows corporations to only require 1/3 of voting shares present for quorum, and then a majority of those present to pass resolutions. It also allows cross-shareholders (like Toyota) to have special privileges over regular class shareholders (typically right of first refusal over any resolution).
In practice, nothing much will pass without the largest shareholder's approval.
In practice in a hostile situation, they'll be courting the remaining shareholders to gain majority and won't miss those meetings, which tend to also have rules about how quickly or often they can be called.
It is also legal and typical for the bylaws to include poison pill provisions that would automatically protect the existing >33% shareholder, preventing a second >33% shareholder from existing (thus requiring multiple smaller existing shareholders to join forces to overthrow the largest shareholder).