Toshiba drops 2 board member candidates before shareholder meeting
15 June, 2021
Toshiba Corp on Sunday dropped the names of two board directors accountable for auditing from its set of prospects pending shareholder approval later in June after revelations of the professional conglomerate's inappropriate handling of foreign activist investors.
The rare change to the lineup announced in May employs several independent legal professionals concluded earlier this month Toshiba had colluded with japan government to fight activist foreign investors in the business's general shareholders' meeting last summer.
The exclusion of both -- Junji Ota, chairman of Toshiba's audit committee, and its member Takashi Yamauchi -- brings the total number of nominees to 11 from 13.
In announcing your choice unanimously made at a board of directors meeting on Sunday, Toshiba said it has taken the independent panel's report "seriously."
"We will take action to identify the primary cause without delay, in an objective and transparent manner, including the participation of third parties," Toshiba said in a statement.
The audit committee in February found no issue with the general shareholders' meeting in July 2020, in stark contrast with the outcome of the independent investigation having said that it was not managed fairly.
Two senior executives mentioned in the independent panel's report -- Corporate Senior Executive Vice President Masayasu Toyohara and Corporate Senior Vice President Masaharu Kamo --will retire on June 25, when the shareholders' meeting is scheduled to be held.
Conducted by independent attorneys at the request of foreign investors, the independent investigation revealed Toshiba and the Ministry of Economy, Trade and Industry sought to block proposals by activist investors through the use of pressure.
Such investors include major Toshiba shareholder Singapore-based fund Effissimo Capital Management Pte Ltd and 3D Investment Partners Pte Ltd, also located in Singapore.
Toshiba has seen a bigger existence of overseas investors in recent years since it accepted foreign funds to handle its financial struggles.
Since the report premiered four outside directors have issued a statement saying that they will not support all candidates.
3D Investment Partners, Toshiba's second-largest shareholder, has sent a letter to Toshiba's board chairman Osamu Nagayama and three other executives demanding that they resign, according to Reuters news agency.
Source: japantoday.com
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