Toshiba Corp. shareholders voted to oust Chairman of the Board Osamu Nagayama, a rare victory for activist investors that will worsen the turmoil at an iconic nuclear-to-electronics conglomerate that’s grappled for years with scandal and allegations of shoddy management.
The surprise decision on Nagayama, the 74-year-old outside director some investors opposed publicly, came after a contentious meeting with shareholders that extended for nearly three hours. His departure marks a high point in the months-long campaign by largest shareholder Effissimo Capital Management Pte. to probe the company’s governance. An investigation prompted by its efforts uncovered alleged collusion with top government officials to influence last year’s board selection.
Toshiba’s shares erased losses and traded as much as 1.7% higher in Tokyo after the vote.