Toshiba’s largest shareholder has declared the Japanese conglomerate’s board of directors “invalid” and accused Toshiba of not responding appropriately to the report. Collusion with the government Suppress activist investors.
Singapore-based fund Effissimo told the Financial Times about explosives in its first comment since the report was released last week. Survey results It provided “a cool insight into dysfunctional corporate governance.”
Remarks come as other investors want Osamu NagayamaClean up the Toshiba chair, or the entire board.
Toshiba held an emergency board meeting on Sunday after the report was released and announced it. Delete Two members of a five-member audit committee who accused investors and individual board members of misleading the board.
Effissimo said the hesitation to remove the remaining three members indicates that Toshiba “does not want to hold board members accountable,” and the move is inadequate. I criticized it.
“This latest move only adds to Toshiba’s list of outstanding governance and compliance shortcomings that Toshiba’s board of directors will not continue to remedy,” Effissimo said. “Therefore, we believe that the current board of directors is ineffective.”
An independent investigation conducted by an outside lawyer was forced by Effissimo on the company to investigate Toshiba’s 2020 annual meeting. The report found that the meeting was not running fairly and portrayed a collusion between the company and the Ministry of Economy, Trade and Industry.
The report also claims that the campaign against activist shareholders was carried out with the knowledge of then Chief Cabinet Secretary Yoshihide Suga. Suga denies that claim.
In contrast, Toshiba’s internal report on fraud at the 2020 Annual General Meeting found no issues. This is a conclusion that has increased criticism of the board.
Effisimo, which holds a 9.9% stake in Toshiba, demanded an extraordinary shareholders’ meeting in March, defeating management and demanding an independent investigation. Many observers see the campaign as a turning point for corporate Japan.
However, the conclusion that the annual shareholders meeting was not held fairly rekindled concerns that Japanese companies did not appreciate the rights of shareholders.
Effissimo said the corporation’s foundation is the ability of meetings and shareholders to express their rights through voting.
“We are wary that the report has revealed that the foundation may have been seriously damaged by Toshiba,” the fund added.
Toshiba’s biggest shareholder labels board ‘ineffective’ Source link Toshiba’s biggest shareholder labels board ‘ineffective’