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Toshiba director resigns warning company is more unstable

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Toshiba shareholders have long-term “instability and uncertainty” Troubled corporate group And their Shocked vote A director who had no choice but to resign after investors resisted last Friday said that the chairman of the company’s board of directors will be removed.

George Alcott expressed strong doubts about the recall vote in an exclusive speech to the Financial Times after his sudden resignation on Friday. Chang Shanxiu -He described as one of the few Japanese business leaders who can oversee the scale transformation that Toshiba is now demanding.

“The removal of him as chairman will only prolong instability and uncertainty while depriving the board of outstanding leaders. I cannot understand how this development represents a good result for the company or any of its stakeholders,” Olco Te said that he is a former investment banker of SG Warburg and he is a member of the board of directors of several Japanese companies.

His speech was delivered after Toshiba’s Annual General Meeting of Shareholders (AGM) held last Friday, which was held after months of the company’s turmoil deepened and the unprecedented victory of shareholder activists operating in Japan.

Nagayama was dismissed by shareholders at the annual general meeting. Earlier, some investors called for the removal of the entire board of directors because the company’s leadership had repeatedly failed, and many believed that the company had valuable technology and growth potential.

“I believe Mr. Nagayama’s plan to develop a new course for Toshiba to increase its corporate value is ambitious but achievable, and I look forward to helping him and the board of directors in this regard,” Alcott said.

But others strongly objected to Alcott’s warning about Toshiba’s instability, and instead claimed that despite the chaotic process, the main lightning rod for shareholder distrust of Toshiba’s leadership has been eliminated in the past two weeks.

Raymond Zage, Toshiba’s non-executive director, said that just after the annual general meeting of shareholders last Friday, the board of directors needed to be consistent and clear on the issues that need to be paid attention to.

“The root cause of Toshiba’s instability is the loss of trust in our shareholders, and independent investigations have confirmed that this loss of trust is justified. We are fully focused on the need to restore this trust, as well as providing stability and certainty to our employees and customers The importance of sex,” Zage told the Financial Times.

The removal of Changshan on Friday forced the company’s interim CEO Satoshi Tsunakawa to serve as interim chairman of the board until Toshiba can convene an extraordinary shareholders meeting to appoint a new leadership team that includes at least four new non-executive board members.

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 the days leading up to the annual general meeting of shareholders on Friday, more and more large institutional shareholders told the Financial Times that they could not prove their reason for voting for Changshan’s re-election.

Although Nagayama served as the chairman of the board of directors and head of the nomination committee after the 2020 annual general meeting, they believed that he should be responsible for handling Toshiba’s own investigation and concluded that there was no problem.

But other figures also participated in the debate to defend him, including Barack Obama’s former ambassador to Tokyo, John Rose, who issued a statement before the annual shareholder meeting praising Changshan as a “agent of positive change, not a protector of the status quo.”

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