Toyota was accused of limiting Koitos profits by influencing the prices charged for the supplies.

Its position as a key customer responsible for approximately half of the revenues of the business and large shareholding in the firm grants Toyota strong influence over business decisions. Self-dealing is involved as the low prices benefit Toyota (it bears lower costs) at the expense of the other shareholders who may have realised part of the extra profits via dividends Pickens can compare the entire cost of producing or acquiring the supplies against the prices charged to Toyota. If the Profit margin is minimal or almost non-existent, he can make a strong case for his accusations. Material difference between the amounts charged to Toyota and that charged to other customerscan make a strong case for his accusations. The Income Statement and notes to the accounts can be examined to validate Pickens claims. The Cost of Sales section of the income statement (and the notes to the accounts) should provide a general idea of costs. Invoices written upon sales to Toyota and its competitors should provide an accurate breakdown of revenues. The Balance Sheet and notes to the accounts can be examined to validate Pickens claims. Unjustified increases in Accounts Receivable may be evidence of Toyota trying to extend its payment period favouring Toyotas financial cycle at the expense of that of Koito. Loans provided on favourable terms and asset transfers by Toyota to Koito could also support his claim To eliminate self-dealing the firm should change the procedures of elections of board of directors. Minority shareholders should nominate and elect their own directors to the board through cumulative voting or proportional representation. Alternatively independent directors should sit on the board. .