Toshiba's No. 2 shareholder calls for immediate resignation of chairman, 3 directors
13 June, 2021
Toshiba Corp's second-biggest shareholder on Sunday demanded the board chairman and three other directors immediately resign after a study found the company had colluded with japan government to pressure foreign investors.
The letter, seen by Reuters, is from 3D Investment Partners, which owns a 7.2% stake in Toshiba. It had been delivered to the four on Sunday, according to persons with direct understanding of the process.
Chances are to heighten scrutiny into governance at Toshiba, a renowned commercial conglomerate in crisis sparked by Thursday's report. The shareholder-commissioned report marked an explosive submit a long battle between your Japanese company's management and foreign shareholders.
Furthermore to 3D, these shareholders include activist investors and Harvard University's endowment fund.
The revelations in the report "are deeply troubling and represent one of the most prominent and shocking corporate governance failures among large public companies all over the world within the last decade," the 3D letter says.
The letter, addressed to board chair Osamu Nagayama and three current audit committee members, describes Nagayama as "ultimately accountable for Toshiba's recent governance failures, like the flawed internal investigation and the board's determination to oppose another, independent investigation."
"Additionally it is troubling which you have been silent about the investigative report and also have didn't accept responsibility for the misconduct that occurred under your oversight as chair of the board," the letter says.
Toshiba declined to comment on the letter, telling Reuters in a statement it had been "carefully reviewing this content of the investigation report and plans to announce its comments towards this investigation result after the review."
The business was holding a crisis meeting on Sunday to go over reassigning the prospects for three key board committees ahead of a June 25 shareholder meeting. Major shareholder advisory companies recommended against some of the candidates, like the four addressed in the 3D letter.
Four independent directors, all non-Japanese, have said in an indicator of revolt that these were no longer in support of the entire slate of director prospects nominated by Toshiba.
Source: japantoday.com
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