MAINICHI URGES PROBE ON GOV’T PRESSURE ON TOSHIBA SHAREHOLDERS

Mainichi Shimbun has scored Japan’s Ministry of Economy, Trade and Industry (METI) to talk turkey about its alleged pressure on Effissimo Capital Management Pte. Ltd., Toshiba's top shareholder, which had demanded reforms on its scandal-wracked corporate culture.

In an editorial on June 12, 2021, Mainichi Shimbun said ahead of a general meeting of shareholders last year, METI allegedly worked to discourage shareholders from submitting a motion and exercising their voting rights.

“If the suspicions were true, it means the government acted in a way to warp corporate governance. The ministry and Toshiba must confirm the facts, and provide an explanation that makes sense to investors… Effissimo, known as an outspoken shareholder, had been preparing to submit a motion opposing the reappointment of then Toshiba President Nobuaki Kurumatani, and calling for the appointment of four external board members.”

The editorial said the response of Toshiba and the ministry to the hedge fund's move was seen as problematic as a METI section head “urged Effissimo to reconsider its decision, hinting that the ministry's powers under the Foreign Exchange and Foreign Trade Act, which regulates the influence of overseas shareholders, could be invoked.”

"The foreign exchange law restricts foreign investment in Japanese companies with ties to national security. Toshiba is involved in nuclear power and defense, and it is necessary for the government to be aware of the actions of investors. But in the latest case, it is possible that METI worked to eliminate a motion that ran counter to the will of management as a measure to deal with the shareholders' meeting. If the law were used as an excuse for that, it would undermine trust in government administration,” the editorial concluded.

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC