In a critical turn of events, Toyota's chairman, Akio Toyoda, is set to face disgruntled shareholders as two major proxy groups demand a vote against keeping him on the company's board. The vote, expected at the upcoming annual shareholders meeting on June 18, comes in the wake of Toyota's recent apology over fraudulent certification tests for vehicles, which tarnished the company's reputation for excellent quality.

While the scandals involving Japanese automakers, including Toyota, do not involve any safety issues or recalls, production of three models by Toyota group companies in Japan was temporarily suspended. These setbacks have had a significant impact on Toyota's stock prices, which plummeted, resulting in a loss of about 3 trillion Japanese yen ($18 billion) in market value.

Institutional Shareholder Services (ISS), a majority-owned subsidiary of Deutsche Borse Group, has issued a proxy report stating that Toyoda should be held accountable for the company's failings. ISS cited Toyoda's promises for change, which did not involve reshuffling the board, as a cause for concern. According to ISS, Toyota's corporate culture is suspected of contributing to the recurrence of testing misconduct, and Toyoda should be held responsible for it.

Another major shareholder, proxy advisory company Glass Lewis & Co., has recommended voting against the reappointment of Toyoda and another top executive, Shigeru Hayakawa. Glass Lewis believes that Toyoda failed to ensure appropriate internal controls and governance measures within the company. The advisory company also advocates for the addition of more independent board members and calls for increased disclosure on lobbying by Toyota regarding climate change.

Despite the mounting opposition, it is unlikely that Toyoda will be ousted at the general shareholders' meeting. The majority of Toyota's nearly 1 million shareholders are Japanese companies with longstanding loyalties to the automaker. Toyoda won re-election last year with nearly 85% of the vote, highlighting the support he still enjoys within the company.

Toyota, the world's leading automaker, recorded doubled profits in the fiscal year ending in March, totaling 4.9 trillion yen ($31.9 billion), surpassing its own projections. However, the recent scandal, which led to the suspension of production, may impact deliveries for a few months, according to analysts.

Toyoda, who previously faced a massive recall scandal in the US shortly after becoming chief executive in 2009, expressed his commitment to addressing any issues within the company. He acknowledged that while Toyota is not perfect, they will continue to strive for improvement and rectify any wrongdoing.

As the shareholders' meeting approaches, all eyes will be on Toyota's chairman as he navigates the challenges ahead and addresses the concerns raised by shareholders. The outcome of the vote will determine the future direction of the company and its commitment to restoring its reputation for quality and reliability.