Tokyo Stock Exchange parent urges Toshiba to disclose governance information
TOKYO (Kyodo) – The head of the Tokyo Stock Exchange operator’s parent company on Wednesday urged Toshiba Corp. to quickly disclose the result of its investigation into governance issues, following an independent investigation showing that the industrial conglomerate had colluded with the government to block activist foreign investors.
“We call on Toshiba to conduct a swift re-investigation and disclose its findings in a timely manner,” Akira Kiyota, CEO of Japan Exchange Group Inc., said at a press conference, calling the Japanese-listed conglomerate to Tokyo to restore the confidence of investors and other stakeholders.
An investigation by attorneys last week revealed that Toshiba had requested the Industry Ministry’s help in blocking proposals from foreign activist investors and concluded that a shareholders’ meeting held last year had failed. not conducted fairly.
According to Kiyota, JPX, the parent company of Tokyo Stock Exchange Inc., will pay close attention to Toshiba’s shareholders meeting on Friday next week.
Kiyota added that he was concerned the issue could damage the reputation of the Japanese market with foreign investors, who account for about 70 percent of the market value of the first section of the Tokyo stock market.
Toshiba admitted on Monday that the company lacks governance and compliance awareness, and will investigate the root cause with third party participation. The Ministry of Economy, Trade and Industry subsequently said it was not considering an investigation.
The revelations of collusion between Toshiba and the ministry have raised doubts about corporate governance. The Japanese surname has been committed to improving governance since an accounting scandal in 2015.
The investigation by a group of independent lawyers at the behest of foreign investors came after the audit committee concluded earlier this year that there was no problem with the shareholders meeting of July 2020.
Toshiba just returned to Section One in January, more than three years after being demoted to Section Two following massive losses at its bankrupt US nuclear unit.
Kiyota defended JPX’s decision to approve Toshiba’s promotion as appropriate at the time, given improvements to problem-solving, including the accounting scandal.