Toshiba asks for government assistance to influence the votesal shareholders: probe

 

Toshiba has slid from scandal and loss with recovery in the last few years of AFP / Kazuhiro NOGI

Tokyo: Toshiba Japan sought government assistance to try and influence the selection of board space proposed by activist shareholders at the last annual general meeting, according to an independent probe published Thursday (June 10).

Troubled industrial conglomerates "develop a plan to effectively prevent shareholders to exercise their shareholders' proposal rights and voting rights to the GMS" in July 2020, the researchers said.

The meeting, where the activist shareholder resolution was rejected, "not enough managed", concluded reporting their 140 pages.

It also details how Toshiba has pursued intervention from the Ministry of Economy, Trade and Japan (Meti), which did not respond to requests for comments.

"Toshiba requested Meti's support for what was called the steps to fight activists at the GMS," said the report by three law firms, the Toshiba was not immediately commented on.

Toshiba was a symbol of Japanese advanced technology and economic strength but had slid from scandals and losses for recovery in recent years.He group has worked on financial misery and strengthens its governance, with the council now consisting of most external directors.

But it has faced the pressure from the activist shareholders who want to see faster growth and a clearer long-term strategy.

Probe said Toshiba had worked "so speak simultaneously" with the Ministry of Commerce to deal with shareholders who proposed to appoint new external directors at the GMS.

On May 2020, the CEO of Nobuaki Kurumati met Yoshihide Suga, who at that time was the cabinet secretary of the head of the government and now the prime minister, the report was suspected.

Suga denied involvement on Thursday, told reporters: "I don't know at all. There's no such thing."

The probe did not find evidence that Toshiba had disturbed ballots at the GMS.

"Based on digital forensics and interviews with relevant parties, there is no situation that suggests that Toshiba hides or intentionally does not calculate the voting form to ensure that the resolution will be continued," said the report.

The probe was launched after shareholders accused the sound irregularities pushing Toshiba to hold an outstanding off-schedule general schedule in March.

In April, Kurumati resigned in a step of surprise because the current purchase offer was stopped from the private equity funds moving further chaos within the company.

Amir Anvarzadeh, a strategist at Asymmetrical adviser, said the allegations were "hardly surprising for years Toshiba had used his political connection to get the way".

"The release of the results of the investigation looks a big victory for Toshiba shareholders and must force in new management and the Board structure," he added.