(Bloomberg) -- A Japanese fund scored a major victory in securing board positions at clothing firm Daidoh Ltd., in a show of growing influence of activist investors in the country.

Shareholders of Tokyo-based Daidoh backed three of six board candidates proposed by Japanese activist fund Strategic Capital Inc., while rejecting one put forth by Daidoh, the company said in a statement Thursday. The fund is the largest shareholder with a 29% stake, according to data compiled by Bloomberg.

While stopping short of winning a majority of the loss-making company’s board, the results show a marked change in a country where activist proposals have rarely passed. Just one day before, the president of a small stock brokerage Toyo Securities Co. was forced to withdraw his candidacy for reappointment to the board due to lack of shareholder support.

The Tokyo Stock Exchange’s pressure on companies to focus more on shareholders has emboldened activists and prompted Japanese asset managers to become more open to siding with them. That has helped push the nation’s stock market to multi-decade highs, on expectations of improving returns.

Shares of Daidoh, which sells brands including Brooks Brothers in Japan, jumped 7.8% Thursday in a volatile trading session as the market digested the AGM results. The stock has more than tripled since Strategic Capital built a stake in the firm in November 2022, handily beating 38% gains in the Topix index.

Tsuyoshi Maruki, president of Strategic Capital Inc., said the results were epoch-making even as he acknowledged the difficulty in gaining a majority on the board.

“The era where companies’ proposals automatically get approved is coming to an end,” he said at a briefing in Tokyo, adding that it will continue to seek to rebuild the firm’s apparel and real estate business. 

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