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• TOSHIBA CHAIR RESIGNS AFTER $6.3BN NUCLEAR WRITEDOWN FULL

There's certainly concern about whether it can remain a going concern. Longer-term, it's clear there are going to have to be very, very profound changes at Toshiba, really just to keep the company going. And so the immediate consequence has been that the chairman of the company, Shigenori Shiga, has resigned and is taking the blame for a lot of what has gone wrong at Westinghouse. They're going to pull out of that business. So essentially what they're saying is they don't want to be a lead contractor for managing new nuclear plants in this way anymore. We still don't know exactly all of the details of what's gone wrong and why these big losses have built up, but it seems to be connected to contracts that Westinghouse has been working on in the United States.Īnd what seems to have happened is that the costs at those projects have ballooned. Toshiba bought that business from the British government back in 2006, and it's turned out to be a very, very bad deal for them. What's happened is that Toshiba has had to write off $6.3 billion because of problems at Westinghouse, which is their US nuclear unit.

TOSHIBA CHAIR RESIGNS AFTER $6.3BN NUCLEAR WRITEDOWN FULL

Major shareholder advisory firms recommended against some of the candidates, including the four addressed in the 3D letter.įour independent directors, all non-Japanese, have said in a sign of revolt that they were no longer in support of the full slate of director candidates nominated by Toshiba.You can enable subtitles (captions) in the video player

The company was holding an emergency meeting on Sunday to discuss reassigning the candidates for three key board committees ahead of a June 25 shareholder meeting. Toshiba declined to comment on the letter, telling Reuters in a statement it was "carefully reviewing the content of the investigation report and plans to announce its comments towards this investigation result after the review." "It is also troubling that you have been silent about the investigative report and have failed to accept responsibility for the misconduct that occurred under your oversight as chair of the board," the letter says. The letter, addressed to board chair Osamu Nagayama and three current audit committee members, describes Nagayama as "ultimately responsible for Toshiba's recent governance failures, including the flawed internal investigation and the board's determination to oppose an outside, independent investigation." The revelations in the report "are deeply troubling and represent one of the most prominent and shocking corporate governance failures among large public companies anywhere in the world in the last decade," the 3D letter says. In addition to 3D, these shareholders include activist investors and Harvard University’s endowment fund. The shareholder-commissioned report marked an explosive turn in a long battle between the Japanese company's management and foreign shareholders. It is likely to heighten scrutiny into governance at Toshiba, a renowned industrial conglomerate in crisis sparked by Thursday's report. It was sent to the four on Sunday, according to people with direct knowledge of the process. The letter, seen by Reuters, is from 3D Investment Partners, which owns a 7.2% stake in Toshiba. TOKYO, June 13 (Reuters) - Toshiba Corp’s (6502.T) second-biggest shareholder on Sunday demanded the board chairman and three other directors immediately resign after an investigation found the company had colluded with the Japanese government to pressure foreign investors.