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Two people familiar with the matter told Reuters that directors of Toshiba Corporation (6502.T) will hold an emergency meeting on Sunday to discuss reappointment of candidates to three major board committees before the June 25 shareholder meeting.
People said the Japanese conglomerate’s board would consider reappointing candidates to audit, nomination and compensation committees, after it recommended advisory firms to major shareholders against some of the candidates.
They declined to be identified because the information is not public.
The emergency meeting comes as Toshiba is plunged into crisis over revelations this week that management and board members colluded with the Japanese government to pressure foreign investors. Read more
The public gave no further details about the reassignment of the candidates. Toshiba said in a statement that it does not disclose the schedule or topics of board meetings.
According to a shareholder investigation released Thursday, Toshiba’s leadership reached out to the Ministry of Economy, Trade and Industry (METI) to get it to “beat up” foreign shareholders.
Adding to the pressure, Institutional Shareholder Services (ISS) on Saturday recommended that shareholders vote against the reappointment of Chairman Osamu Nagayama and four other directors.
Four of the company’s independent directors, all non-Japanese, said they no longer support the full list of board member candidates nominated by Toshiba.
The ISS has designated the current members of the Nomination and Audit Committees.
“One could argue that since the investigation report was just released on June 10, there was no time to change director candidates,” the ISS said in its report, seen by Reuters.
But, she added, “It is inconceivable that members of the Nominating Committee were not aware of the significance of the incident and the shareholder concerns accompanying it,” as allegations have long been raised.
Glass Lewis, another US advisory firm, also urged shareholders at this year’s general meeting to vote against reappointing the same five directors.
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