© Reuters. FILE PHOTO: The Toshiba Corp. logo. can be seen next to a traffic light on a building in Tokyo, Japan, June 11, 2021. REUTERS / Issei Kato
From Makiko Yamazaki
TOKYO (Reuters) – Toshiba Corp directors will hold an emergency meeting on Sunday to review the reassignment of candidates to three key board committees ahead of a shareholders' meeting on Jan.
The Japanese conglomerate's board of directors will consider reassigning candidates to the audit, nomination and compensation committees after large shareholder advisory firms recommended against some of the candidates, people said.
They refused to be identified because the information is not public.
The emergency meeting comes as Toshiba (OTC 🙂 is in crisis after revelations this week that management and board members have worked with the Japanese government to pressure foreign investors.
The people did not provide any details about the reassignment of the candidates. Toshiba said in a statement that it did not disclose the schedule or topics of the board meetings.
According to a shareholder-commissioned investigation published Thursday, Toshiba's leadership has reached out to the Department of Economy, Trade and Industry (METI) to "beat up" foreign shareholders.
To increase the pressure, the shareholder advisory firm Institutional Shareholder Services Inc (ISS) recommended on Saturday that shareholders vote against the reappointment of CEO Osamu Nagayama and four other directors.
Four of the company's independent directors, all non-Japanese, have already stated that they would no longer support the entire list of Toshiba nominees for directors.
ISS has selected the current members of the Nomination and Audit Committees.
"One could argue that the investigation report wasn't released until June 10th, there was no time to change directors," ISS said in its report, which was viewed by Reuters.
However, it is "unthinkable that the members of the nomination committee were not aware of the importance of the incident and the related concerns of the shareholders", as allegations have been made for a long time.
Glass Lewis, another US consultancy, also called on shareholders at this year's AGM to vote against the reappointment of the same five directors.
Disclaimer: Fusion Media would like to remind you that the data contained on this website is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, meaning that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.
Fusion Media or any other person involved in Fusion Media assumes no liability for any loss or damage that might arise from reliance on the information contained on this website, including data, prices, charts and buy / sell signals. Please inform yourself fully about the risks and costs associated with trading in the financial markets, as this is one of the riskiest forms of investment.