Toshiba’s second-largest shareholder has demanded that the chairman and three other directors resign immediately
Toshiba’s second-largest shareholder has demanded that the chairman and three other directors resign after an investigation showed that the company had colluded with the Japanese government to pressure foreign investors. This was reported in an exclusive publication by Reuters, which had at its disposal a letter sent by 3D Investment Partners, which owns 7.2% of Toshiba shares. According to informants who are directly familiar with the issue, the letter was sent to the four mentioned today.
The source suggests the situation will be exacerbated by the management crisis at Toshiba, which erupted after Thursday’s shareholder-commissioned report, which marked an explosive turnaround in the long battle between the Japanese company’s management and foreign shareholders. In addition to 3D Investment Partners, these shareholders include activist investors and the Harvard University charity.
The aforementioned letter said that the letter disclosed in the report “is deeply troubling and represents one of the most visible and shocking corporate governance mistakes among large public companies in the world over the past decade,” the 3D letter said.
It also claims that current chairman, Osamu Nagayama, “is ultimately responsible for the recent disruptions in Toshiba’s governance, including flawed internal investigations and the board’s determination to oppose an external independent investigation.”
Toshiba declined to comment on the letter, telling Reuters that it “is carefully studying the contents of the investigation report and plans to release its comments on the results of the investigation after verification.”
Meanwhile, the company has just held an emergency meeting to discuss the reappointment of candidates for three key board positions ahead of its June 25 shareholder meeting.