Toshiba, Industry Ministry Pressured Shareholders: Report

Economy

Tokyo, June 10 (Jiji Press)--Japanese electronics and machinery giant Toshiba Corp. <6502> worked closely with the industry ministry to exert undue influence on some shareholders last year, an investigation report said Thursday.

The investigation by independent lawyers was prompted by allegations of pressure on some Toshiba shareholders not to exercise their voting rights at the annual general meeting of shareholders in July last year.

"We believe that the (meeting) was not fairly managed," the report said, adding that Toshiba and the ministry "worked in unison...to deal with shareholders."

The findings are expected to increase suspicion about the management of shareholders meetings in Japan.

Toshiba and the ministry "engaged in acts that bring to naught" efforts made so far under the corporate governance code, Shinji Hatta, Aoyama Gakuin University professor emeritus, said. "The impact will not be limited to Japan."

[Copyright The Jiji Press, Ltd.]

Jiji Press