THE JAPAN NEWS


 

TOKYO (Jiji Press) — Toshiba Corp. held an extraordinary board meeting on Sunday after an investigation report by a group of independent lawyers concluded last week that the company’s annual meeting of shareholders last year was not managed fairly.

The directors of the major electronics and machinery manufacturer are believed to have discussed response to the report, as well as the company’s nominations of 13 board members to be submitted to its annual shareholders’ meeting on June 25.

The investigation report, published on Thursday, accused Toshiba of working with the industry ministry to exert undue influence on some activist shareholders to prevent them from exercising their rights at the shareholders’ meeting in July last year.

The report attributed the problem party to Toshiba’s dysfunctional audit committee.

Four outside directors of Toshiba have issued a statement expressing deep concerns over the report’s findings and opposing the company’s director nominations.

U.S. proxy advisory service company Glass Lewis & Co. has opposed the reappointments of five directors, including Junji Ota, an outside director who chairs the audit committee.

Major shareholder 3D Investment Partners Pte. has demanded the resignation of four officials, including Osamu Nagayama, an outside director and chairman of the board of directors, informed sources said Sunday.

At the forthcoming shareholders’ meeting, Toshiba plans to propose the reappointments of nine directors, including President and Chairman Satoshi Tsunakawa, who returned to the presidency in April, and the appointments of four new directors.

It has become uncertain whether the proposals will be approved.