Toshiba’s board chairman rejects call to stop governance scandal

Toshiba’s chairman of the board rejected the call for shareholders to resign, emphasizing his role in dealing with the turmoil of Japanese companies when conglomerates are deeply lurking in the governance crisis.

Osamu Nagayama refused to resign because he was preparing for the second general meeting of shareholders this year. Independent report It revealed cooperation between the company and the Government of Japan to suppress activist investors.

A disgusting report, including allegations that Toshiba executives had discussed “beating” certain shareholders with METI officials, concluded that Toshiba’s 2020 annual meeting was not running fairly. ..

The investigation also claimed that Prime Minister Yoshihide Suga was directly aware of Toshiba’s anti-activist campaign when he was Chief Cabinet Secretary of the Government last year. Suga denied the claim.

Mr Nagayama held a 75-minute press conference on Monday, blaming Toshiba’s crisis on former CEO Nobuaki Kurumatani, who was forced to resign in April. He said the root cause of the company’s misery was the “slightly confrontational attitude towards shareholders” raised by Mr. Kuriya.

Nagayama acknowledged the call for resignation at companies that have endured accounting scandals, bankruptcies and humiliating demotions since 2015, and acknowledged governance shortcomings.

“The board needs to respond to the situation by normalizing operations as soon as possible,” he said, adding that his responsibility was to deal with the turmoil.

“I may take responsibility [by stepping down] And the responsibility to fulfill my obligations and I want to focus on fulfilling my responsibilities, “he said.

Mr Nagayama’s comment said he recommends that the agency advisory service, Instituteal Shareholder Services, vote against his reappointment as chairman at next week’s annual shareholders meeting.

Large investors were “simply shocked” by Mr Nagayama’s comments, lack of apology, and failure to be accountable despite overseeing the board and nominating committee.

One of Toshiba’s largest shareholders said Mr Nagayama “sounded like a tourist,” not clearly stating why he thought he was worthy to lead the organization.

Nagayama press conference Marathon Emergency Toshiba Board of Directors On Sunday, one of its members explained that the company would be accompanied by some fierce clashes as it carried out its next move.

After the meeting, Toshiba announced that it would remove the two members nominated as directors from the nomination candidates. Both men were members of an audit committee that concluded that there was no misconduct surrounding last year’s annual shareholders meeting. The independent report was in direct conflict with this finding.

In response to Toshiba’s revised nomination of directors, the ISS said Nagayama “has the greatest responsibility for nominating candidates and is ultimately responsible for the operation of the board of directors.”

“Shareholder concerns will be exacerbated as he continues to chair the board. [AGM]I added.

Toshiba shares rose 2.7% on Monday.

Toshiba’s board chairman rejects call to stop governance scandal

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