Outsiders to Fill 10 of 12 Seats on Toshiba Board

Economy

Tokyo, June 26 (Jiji Press)--Toshiba Corp. <6502> shareholders green-lighted on Wednesday the major Japanese machinery and electronics maker's proposal to have outsiders fill 10 of the 12 seats on its board.

The proposal, approved at the company's general shareholders meeting in Tokyo, was apparently designed to meet the demand from activist shareholders, including a U.S. investment fund.

Among the approved outside directors is a person with foreign citizenship who hails from an overseas investment fund that is a major Toshiba shareholder.

"I want people with diverse values and skills, such as foreign nationals, former investors and business managers, to join us to help achieve as many targets as possible included in our medium-term business plan," Toshiba Chairman and Chief Executive Officer Nobuaki Kurumatani said when asked by shareholders about the reason for the increase in outside directors.

Some shareholders criticized the nomination of multiple outside candidates with work experience at investment companies, questioning their skills in directing a manufacturing company.

[Copyright The Jiji Press, Ltd.]

Jiji Press