Toshiba Corporation which is facing an ongoing crisis over corporate governance practices has said on Sunday it will look to change its board’s nominees for a shareholders’ meeting as the two previous nominees have decided to step down.
The changes follow an investigation into the company’s involvement with the Japanese government to build pressure on foreign investors, which one of its second-largest shareholder has called for the world’s largest corporate governance crisis over the past decade.
Audit Committee Members
The report was authorized by firm’s shareholders, who voted in March for an independent inquiry into allegations that investors were under pressure from the company.
Audit committee chairman Junji Ota and audit committee member Takashi Yamauchi will retire as board directors, the company said in a statement following a four-hour emergency board meeting.
Who Else Is Leaving?
Toshiba’s audit committee has been scrutinized as the investigation suspects that the committee failed to take any action even when it learned of Toshiba’s attempt to prevent shareholders from exercising their rights.
Toshiba also said two officials, Masayasu Toyohara and Masaharu Kamo would leave this month.
Upcoming Annual Shareholders Meeting
In the statement, Toshiba said it “will take action to identify the root cause without delay, in an objective and transparent manner, including the participation of third parties.”
Toshiba is expected to hold an annual shareholders’ meeting on June 25.
