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Toshiba chairman quits after government collusion revelations

Osamu Nagayama, former president of Toshiba.

Toshiba chairman Osamu Nagayama was ousted by shareholders at the company’s annual general meeting. Another director who was on Toshiba’s audit committee, Nobuyuki Kobayashi, was also ousted in the shareholder vote.

The annual general meeting held on Friday marked the first time that Toshiba shareholders have met since an independent inquiry, passed by shareholders, found that the company had agreed with Japanese officials to prevent certain shareholders from exercising their voting rights at the annual general meeting (AGM) last year.

The investigation, conducted by three lawyers, found that Toshiba had “devised a plan” with officials from the Ministry of Economy, Trade and Industry to prevent Effissimo Capital Management, which owns 9.9% of the shares. of Toshiba, to exercise certain shareholder proposals at Toshiba Annual General Meetings.

Interference

“Toshiba’s actions have directly or indirectly exercised undue influence over shareholders, with the intention of effectively interfering with the exercise of shareholders’ rights at this AGM. Therefore, we believe that this AGM was not managed in a fair manner ”, indicates the investigation report.

Earlier this week, Osamu Nagayama wrote an open letter expressing his “deep regrets” for Toshiba’s conduct, and pledging to be an agent of positive change.

“I would like to express my deep regrets about the recent unacceptable events that have occurred within the company, which have eroded your trust in us,” Osamu Nagayama wrote in his letter. “I promise you that I will continue to be an agent of positive change, not a protector of the status quo. “

Toshiba shareholders were not convinced by the former chairman’s promise, however, as the majority of them voted for the latter to step down.

Changes at the head of the group

With two board members ousted on Friday, Toshiba says details of directors and officers changes, including the makeup of each committee, would be made based on the outcome of the resolution at an upcoming board meeting administration.

“The company recognizes the seriousness of the rejection of some director nominees,” adds Toshiba.

On the same day as the annual general meeting, Toshiba also said it achieved operating profit of 104 billion yen for the fiscal year ended March 2021, a decrease of 26 billion yen from the full year. previous. During the year, Toshiba also saw the number of its employees drop by over 8,000 to 117,300.

Source: .com

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