Toshiba Shareholders Oust Chairman in Rare Investor Victory
- Nagayama’s exit is likely to worsen turmoil at Toshiba
- He had hoped to stay and work on governance rehabilitation
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Toshiba Corp. shareholders voted to oust Chairman of the Board Osamu Nagayama in a rare triumph for activist investors seeking fundamental reform after years of scandal and allegations of mismanagement.
The surprise decision on Nagayama, the 74-year-old outside director some investors opposed publicly, came after a contentious meeting with shareholders that extended for nearly three hours. 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.