TOKYO, June 28 (Reuters) - Activist investor Oasis

Management has called for governance overhaul at scandal-hit Ain

Holdings ( AINPF ), Japan's largest drug store chain, in its

latest activist campaign targeting a Japanese company.

Oasis said there was no independent oversight of management

at Ain and has proposed the appointment of four new outside

directors, a new compensation plan for outside directors, and

the dismissal of two incumbent directors.

Ain had disclosed earlier it received Oasis' shareholder

proposals in early June and responded on June 26 saying the

company believed their board had sufficient independent

oversight and that Oasis' proposed outside director compensation

plan would leave it unable to respond flexibly to the external

market environment.

An Ain spokesperson said on Friday the company was in the

process of studying Oasis' campaign announcement.

In 2023, a director from Ain and another from an Ain

subsidiary were prosecuted for mishandling documents related to

a public contract bid. Both were found guilty in April 2024.

Ain shares fell 3.5% on Friday morning, compared with a 1%

gain on the benchmark Nikkei index.

Hong Kong-based Oasis launched in April a campaign aimed at

cosmetics and skincare firm Kao, demanding it redefine

its brand portfolio and improve marketing.

(Reporting by Anton Bridge; Editing by Christopher Cushing and

Muralikumar Anantharaman)