TOKYO (dpa-AFX) - Japanese conglomerate Toshiba Corp.'s (TOSYY.PK, TOSBF.PK) shareholders voted to reject re-election of Chairman Osamu Nagayama to the Board.
At the ordinary General Meeting of Shareholders on Friday, the company had nominated Nagayama, the 74-year-old outside director, for another term. Toshiba nominated 11 directors at the AGM. In the voting, shareholders also rejected the re-election of Nobuyuki Kobayashi, a member of the audit committee.
The newly elected board reportedly will meet later on Friday to discuss the nomination of new chairman.
Bloomberg reported that it is a rare victory for activist investors, and the result of long campaign by largest shareholder Effissimo Capital Management Pte. to investigate the company's governance.
Nagayama joined Toshiba's board in mid-2020. He was former Chugai Pharmaceutical chief executive officer and Sony Group Corp. board director.
In an open letter to the company's shareholders, Nagayama last week had said that the company will accelerate the selection process for a successor to Satoshi Tsunakawa as CEO that can drive the changes needed in Toshiba in the medium term.
Nagayama also said then that the company will conduct an inquiry, with third party participation, into why the recent unacceptable events occurred.
An earlier investigation showed unfair practices in last year's board selection process. The company aims to stop recurrence of such incidents.
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