Activist fund Oasis Management has said there is huge support from other investors for its proposal to shake up the board of Japanese cosmetics and chemical company Kao.

Oasis, which holds a 5.2% stake in Kao, has presented five candidates to become outside directors of the company as part of its campaign for faster growth. A showdown looms between Hong Kong-based Oasis and Kao on March 21, when the company’s annual general meeting is scheduled.

"We’ve heard an enormous amount of support for our proposals,” Chief Investment Officer Seth Fischer said in an interview in Tokyo. "We’ve heard from other shareholders about how hard it is to get in touch with management and have a meaningful dialog with them.”

Kao rejected Oasis’ proposals last month, saying all the candidates lack necessary credentials.

Fischer has complained that Kao’s CEO, Yoshihiro Hasebe, has met him only once, in a 45-minute meeting that Fischer described as "not substantial and lacking any real details.”

Since Hasebe took over as CEO in 2021, Kao’s profits declined for three straight years before rising for the first time last year. That recovery has helped its share prices post modest gains — roughly in line with the Topix index.

While activist investors are having an increased impact on corporate Japan and its stock market, proposals from shareholders at AGMs are still rarely approved.

Proposals that Oasis made to Kobayashi Pharmaceutical over outside directors and a health supplements scandal were rejected by shareholders last month despite Fischer’s optimism.

Still, Oasis has also had success, such as its victory in installing candidates on the board of Fujitec.