Sumary of 4 directors call for Toshiba shake-up in revolt after explosive probe:
- Four Toshiba Corp directors called on Friday for a shake-up of its management and board, in a sign of revolt after an investigation found the conglomerate colluded with the Japanese government to “beat up”.
- It comes a day after an explosive, shareholder-commissioned investigation revealed – in startling detail rare for such probes in corporate Japan – how management reached out to the powerful Ministry of Economy, Trade and Industry (METI) to strong-arm activist investors..
- that some members of Toshiba’s management and board took actions that “were unacceptable and directly against the interests of our shareholders”, the four directors, Jerome Black, Paul Brough, Ayako Weissman and George Zage, said in a statement..
- Both board and management changes were needed, they said, calling some parts of the report “deeply disturbing”..
- The investigators detailed one email among top Toshiba managers about the company’s largest shareholder, Singapore-based hedge fund Effissimo Capital Management..
- The probe’s findings mark a critical turn in a long battle between the company’s management and foreign shareholders, which include Effissimo, another Singapore-based fund, 3D Investment Partners, and Harvard University’s endowment fund….