Toshiba board to hold emergency meeting on Sunday, sources say

imageStock Markets3 hours ago (Jun 12, 2021 14:40)

© Reuters. FILE PHOTO: The logo of Toshiba Corp. is seen next to a traffic signal atop of a building in Tokyo, Japan June 11, 2021. REUTERS/Issei Kato

By Makiko Yamazaki

TOKYO (Reuters) -Toshiba Corp directors will hold an emergency meeting on Sunday to discuss reassigning the candidates for three key board committees ahead of a June 25 shareholder meeting, two people with direct knowledge of the matter told Reuters.

The Japanese conglomerate’s board will consider reassigning the candidates for the audit, nominating and compensation committees, after major shareholder advisory firms recommended against some of the candidates, the people said.

They declined to be identified because the information is not public.

The emergency meeting comes as Toshiba has been thrown into crisis by revelations this week that management and board members colluded with the Japanese government to pressure foreign investors.

The people gave no further detail on the reassignment of the candidates. Toshiba said in a statement it does not disclose the schedule or topics of board meetings.

According to a shareholder-commissioned investigation released on Thursday, Toshiba’s leadership reached out to the Ministry of Economy, Trade and Industry (METI) to get it to “beat up” foreign shareholders.

Adding to the pressure, shareholder advisory firm Institutional Shareholder Services Inc (ISS) on Saturday recommended that shareholders should vote against the re-appointment of board chairman Osamu Nagayama and four other directors.

Four of the company’s independent directors, all non-Japanese, have already said they were no longer in support of the full slate of director candidates nominated by Toshiba.

ISS singled out current members of the nomination and audit committees.

“One could argue that as the investigation report was just released on June 10, there was no time to change director candidates,” ISS said in its report, which was seen by Reuters.

However, it added it was “unthinkable that members of the nomination committee were unaware of the significance of the incident and accompanying shareholder concerns,” as allegations have long been raised, it said.

Glass Lewis, another U.S. advisory firm, has also urged shareholders at this year’s AGM to vote against the re-appointment of the same five directors.

Toshiba board to hold emergency meeting on Sunday, sources say

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Please enter your comment!
Please enter your name here