Toshiba shareholders have ousted the company’s board chair in a historic vote that has pushed one of the country’s best-known companies into uncharted territory and turned a corner on investor activity in Japan.
Some of Toshiba’s biggest investors described the shareholder’s decision Friday to vote against reappointing Osamu Nagayama as president at the annual meeting as an inevitable consequence of the company’s longstanding failure to establish better governance.
The vote was not only against the chairman of the board of directors exceptionally rare In a corporate world where management used to offer unquestionable support, it was especially eye-catching because it brought down a widely respected business leader.
The General Assembly followed this month’s issue of Explosive independent report In the events surrounding Toshiba’s 2020 annual meeting, the report alleged collusion between the company and the Japanese government to suppress activist shareholders.
In addition to revealing communications between Toshiba and Japan’s Ministry of Economy, Trade and Industry on how to deal with shareholders, the report’s findings contradict The company’s own efforts To investigate the allegations surrounding the AGM.
The report concluded that the 2020 general assembly meeting did not take place fairly, while Toshiba’s own investigation, under the supervision of its audit committee, found no evidence of the company’s pressure on shareholders.
since it was posted, separate document Investors and advisors cited the agency as a reason to vote against the reappointment of Nagayama, who has been chairman of the board for the past year and chairs the nominating committee.
Nagayama was appointed to the roles after the 2020 AGM and was not criticized in the independent report, but investors argued He must take responsibility for how the Toshiba investigation was conducted.
Shareholders also refused to reappoint Nobuyuki Kobayashi as another member of the review committee at the two-and-a-half hour meeting.
Prior to his work at Toshiba, Nagayama was known for helping Sony transform and transform Chugai Pharmaceutical into a global player through a capital partnership with Swiss company Roche.