Takata Urges Shareholders to Retain Current Board

Takata Corp. is urging shareholders to reappoint its six-member board of directors, including reclusive Chairman Shigehisa Takada, in spite of the company’s failure to resolve exposure to recalls covering about 100 million of its flawed airbag inflators.

Takata has been trying for more than a year to avert bankruptcy with a financial rescue worth about 200 billion yen ($1.8 billion). That amount is tiny fraction of the actual cost being largely borne by 19 carmakers to replace the devices. Takata’s inflators have been blamed for at least 16 fatalities worldwide because they may explode when triggered by a crash.

The most likely suitors appear to be private equity firm Bain Capital and U.S. supplier Key Safety Systems. But an agreement that once was expected last autumn still hasn’t materialized.

Chairman Takada offered a year ago to resign after a rescue plan is finalized and a “new management regime” is created. Until then, he says he needs to continue to attend to the turnaround plan. The Takada family owns 60% of the company.