Support for Toshiba CEO tumbles in shareholder vote

Platform news: Toshiba Corp

Toshiba CEO Nobuaki Kurumatani might have held on his occupation but a breakdown of results in last week’s shareholder meeting revealed a slide to only 58 percent from 99 percent.

And while two activist funds fell short in their bid to put in a total of 5 nominees to the board, 1 nominee – Yoichiro Imai, the co-founder of activist finance and Toshiba’s top shareholder Effissimo Capital Management – won considerable backing with 43 percent of the vote.

Both outcomes, revealed on Tuesday, imply that stress from activist capital on the Japanese industrial conglomerate is very likely to stay for a while.

Singapore-based Effissimo, that possesses a 9.9% stake, had hunted further supervisors, mentioning false transactions Toshiba revealed this year as proof that its own corporate governance hasn’t made considerable progress since a significant accounting scandal in 2015.

Consultants Institutional Shareholder Services Inc and Glass, Lewis & Co had sided with Toshiba, asserting that the management group is varied and fresh.

Toshiba continues to be under pressure by activist funds because it marketed 600 billion yen (approximately $5.6 billion) of stock to heaps of overseas hedge funds throughout a crisis coming from the insolvency of its own US nuclear energy unit in 2017.

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Effissimo along with activist funds hold about 30 percent of Toshiba’s voting rights. Approximately 60% are accounted for by traders in total.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our content partners at Thomson Reuters. Reporting by Makiko Yamazaki. Editing by Edwina Gibbs.

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