Toshiba shareholders removed the chairman of the company’s board of directors in a historic vote that pushed one of Japan’s most famous company names into uncharted territory and marked a watershed in Japanese investor activism.
Shareholders voted against the decision to reappoint Osamu Nagayama as chairman of the annual meeting on Friday, described by some of Toshiba’s largest investors as the inevitable result of the company’s long-term failure to establish better governance.
It’s not just that who voted against the chairman of the board Very rare In a corporate world where management is accustomed to unquestioned support, it is particularly compelling because it pulls down a widely respected business leader.
The Annual General Meeting of Shareholders issued a copy this month Explosive independent report Enter the activities surrounding Toshiba’s 2020 Annual Meeting. The report accused the company of colluding with the Japanese government to suppress activist shareholders.
In addition to disclosing the relationship between Toshiba and the Ministry of Economy, Trade and Industry of Japan on how to deal with shareholders, the report’s findings are consistent with The company’s own efforts Investigate allegations related to the annual general meeting.
The report concluded that the 2020 annual general meeting was not conducted fairly, and Toshiba’s own investigation under the supervision of its audit committee found no evidence of pressure on shareholders by the company.
Since publication, Independent file Investors and proxy consultants used it as a reason to vote against Changshan’s re-election. Changshan has been the chairman of the board of directors and the head of the nomination committee for the past year.
Nagayama was appointed to the position after the 2020 annual general meeting and was not criticized in the independent report, but investors believe He should be responsible Toshiba’s own way of investigating.
At the meeting lasting two and a half hours, the shareholders also rejected the re-election of another audit committee member, Nobuyuki Kobayashi.
Prior to his tenure at Toshiba, Nagayama was known for helping Sony turn losses into profitability and turning Chugai into a global player through a capital cooperation with Swiss Roche.