Toshiba Investors Oust Chairman Osamu Nagayama
- ByStartupStory | June 26, 2021
Toshiba investors oust chairman Osamu Nagayama in an unanimous vote. It has been a day of triumph for the investors who seek fundamental reforms after years of complaint of scandal and allegations of mismanagement. Nagamaya was a director, but some investors opposed publicly. The 74 year old director was therefore removed from position, and his departure marks a high point in the months-long campaign by largest shareholder Effissimo Capital Management Pte. to probe the company’s governance. An investigation prompted by its efforts uncovered alleged collusion with top government officials to influence last year’s board selection.CEO Satoshi Tsunakawa retook the helm in April after the company’s previous controversial leader left but has said he does not plan to stay for too long. Toshiba’s shares spiked as much as 1.7% before ending largely unchanged Friday. While investors hailed the vote as a promising sign of change, the larger task of resuscitating the ailing 145-year-old giant remains ahead. Beyond finding ways to revive revenue growth, the new leadership will have to rebuild shareholder trust.
Toshiba, was once one of the biggest names among companies in Japan but a series of missteps and reputation has led to its downfall. It got involved in an accounting scandal, and had to pay a huge fine. It also suffered lost, amounting to billions, in a nuclear deal. Overall, the company was sinking down to a total mess. They invested fash memory ,three years ago, but had to sell it because of the losses incurred in 2018 Nuclear power operation. Now the investors are hoping with a fresh mind as the director, things will take a change for the better. Toshiba is the future of Kioxia Holdings Corp, it has the memory chip division which is it’s biggest stake at the moment. If they bank on it wisely, they will soon regain their lost position. Bloomberg also reported that the company has sought to go public via an initial public offering.
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