Toshiba is one of the oldest and largest of the Japanese companies in business ranging from electronic devices to nuclear power plants.
The Chairman of the famous Japanese company Toshiba was removed from office after a shareholder revolt.
Osamu Nagayama’s ousting came after it was revealed that the company had conspired with the government to disregard the interest of foreign investors.
Corporate Governance Milestone
For some investors, this indicator is used as an important milestone in the corporate governance story of Japan.
The followers of the ousted Chairman Nagayama are of then opinion that this move will make the company go back even further and leadership during a time of crisis will be absent.
Beginning Of New Era At Toshiba
One of the main shareholders of Toshiba, 3D-Investment Partners who had previously called for the resignation of Mr. Nagayama was very happy to accept this result.
“We hope that today’s AGM (annual general meeting) marks the beginning of a new era at Toshiba – one that will be marked by a focus on value creation, transparency to all stakeholders and a renewed commitment to building trust with shareholders,” it said in a statement.
The Background
Today’s vote comes after activist shareholders of Toshiba won a battle earlier this year that forced an inquiry into allegations that foreign investors were forced to vote in accordance with the board of directors and management executives of the firm.
Mr. Nagayama joined Toshiba’s board of directors in the middle of last year after reportedly the pressuring incident of foreign shareholders took place.
He is a well-respected executive, who had led the Japanese pharmaceutical firm Chugai and been on the board of Sony. Both the electronics giant and former US ambassador to Japan John Roos had expressed their support for him.
However, critics said that he should resign to take responsibility for the management for resistance to the call for an independent investigation.
