Toshiba sought ministry help to swing key vote, probe finds
control, unfairly influence, prevent (shareholders) from
Toshiba Corp. tried to unfairly influence a vote by shareholders, according to a probe by several law firms. | AFP-JIJI
Jun 10, 2021
Toshiba Corp. sought (<seek) government help
in an attempt to influence a key shareholder vote (Effissimo Capital Management,) that installed its slate of directors,
an independent probe has found
in a vindication for investor activism in Japan.
The voting, which went against nominees put up by
Singapore-based Effissimo Capital Management, wasn’t fairly managed,
according to the results of an investigation by several law firms that Toshiba shared.
The Japanese electronics-to-energy conglomerate “devised a plan to effectively prevent shareholders” from exercising their rights, working with
the trade ministry to counter activist investors.
The firm exerted pressure on 3D Investment Partners, now its third-largest shareholder, which impacted its voting decisions, and worked to exert influence over how
Harvard University’s endowment fund
As a result, “the AGM was not fairly managed,”
anual general meeting, 定時株主総会
the 139-page report overseen by three lawyers concluded.
The report emerged from a probe proposed by Effissimo — Toshiba’s largest shareholder — and approved in March. The standoff between
the secretive fund and one of the country’s most storied conglomerates has become a litmus test for Japan Inc. and corporate governance in the world’s No. 3 economy.