U.S. Fund to Urge Toshiba to Reshuffle Board
Tokyo, March 12 (Jiji Press)--U.S. investment fund King Street Capital Management LP said Tuesday that it will propose board director candidates for Toshiba Corp. <6502> at a general meeting of shareholders of the major Japanese electronics maker in June.
"We intend to propose the nomination of a slate of new independent directors," including King Street's co-founder, Brian Higgins, "to replace a majority of the (Toshiba) board" to assist the firm's historic transformation, the fund said in a letter to Toshiba.
Candidates to be proposed by King Street are also expected to include a corporate turnaround expert.
A "dramatic change" in the composition of the board is important, said the fund, which has a 5.4 pct equity stake in Toshiba. The board of Toshiba currently has 12 members.
While noting that Toshiba's current directors have done "a commendable job" navigating the company in the last several years, King Street said that "a different type of board" is now needed to lead its turnaround plan.
[Copyright The Jiji Press, Ltd.]