Business & Economy

Toshiba shareholders oust board chairman

Tokyo, Jun 25 (EFE).- Toshiba shareholders voted Friday against the re-election of two board members, including chairman Osamu Nagayama.

The votes were cast during the shareholders’ annual meeting and in the wake of scandals that have plagued the technology company in recent years.

Two of the 11 nominations to the board of directors were rejected, specifically that of Nagayama and audit committee member Nobuyuki Kobayashi.

Just a few weeks ago, Nagayama had declared his interest in strengthening the board of directors to improve the governance of the company, following the departure of two of its members.

Nagayama was already in the crosshairs of some investors when earlier this month an independent investigation found that Toshiba executives had allegedly colluded with Japan’s industry ministry to influence shareholder votes at the annual meeting last year in order to curb the influence of activist investors.

Its management has a long open conflict with activist shareholders, including foreign funds such as Singapore’s Effissimo Capital Management Pte., its largest shareholder, which proposed the independent investigation.

Effissimo was the promoter of another independent probe that uncovered irregularities in the vote to re-elect as president and CEO Nobuaki Kurumatani, who resigned in mid-April in the middle of a power struggle for control of the technology conglomerate.

Following the scandal, Toshiba’s second-largest shareholder and Singapore-based activist investor 3D Investment Partners called for Nagayama’s resignation.

Toshiba is one of Japan’s oldest and largest firms, with a portfolio spanning home electronics, nuclear power, defense equipment and semiconductors. EFE


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