Qatar v. Ecuador to kick off FIFA World Cup 2022™ on 20 NovemberRead more Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster TradeRead more Ethiopia: Loan from United Nations Fund Allows Food and Agriculture Organization (FAO) to Scale Up Fertilizers for Farmers in TigrayRead more How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more Ambassador Jacobson Visits Gondar in the Amhara Region to Show Continued U.S. Support for the Humanitarian and Development Needs of EthiopiansRead more Voluntary Repatriation of Refugees from Angola to DR Congo ResumesRead more

Toshiba apologises to shareholders after vote probe

show caption
Toshiba's board is now composed of mostly external directors./AFP
Print Friendly and PDF

Jun 15, 2021 - 09:06 AM

TOKYO, JAPAN — Toshiba apologised to shareholders Monday and said it would remove two directors after a probe found the Japanese conglomerate had sought government help to try and influence a boardroom vote.

Board chair Osamu Nagayama acknowledged a “lack of awareness on our part, including our dealings with METI,” referring to the Ministry of Economy, Trade and Industry.

But he did not address specific allegations in the independent probe published Thursday, which said Toshiba had sought METI’s help to prevent activist shareholders from exercising their proposal and voting rights at an annual general meeting in July 2020.

“We apologise to our shareholders and all the other stakeholders in view of their concerns and anxieties that they have expressed with respect to this,” Nagayama said.

“The board of directors takes these comments seriously and we will continue to use them to improve management in the future.”

Toshiba was once a symbol of Japan’s advanced technology and economic power but has lurched from scandals and losses before staging a recovery in recent years.

The industrial group has worked on its financial woes and strengthened its governance, with a board now composed of mostly external directors.

But it has faced pressure from activist shareholders who want to see faster growth and a clearer long-term strategy.

Two board members on the audit committee, Junji Ota and Takashi Yamauchi, will be excluded from standing for re-election at a chairholders’ meeting this month, Nagayama said.

“It has become difficult to retain understanding of shareholders for the reappointment of both directors… based on the findings of the recent investigation report.”

An off-schedule general meeting has been proposed to discuss the pair’s replacement, he added.

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.