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Toshiba management woes seen deepening after strong shareholder rebuke

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By Noriyuki Suzuki and Yuka Nakao

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The strong shareholder rebuke on Friday of Toshiba Corp's plan to retain two outside directors in charge of overseeing management is set to deepen the woes of the industrial conglomerate tarnished by its alleged collusion with the government.

It takes two to tango, how about the government's own image, It isn't tarnished as well?

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wasn't prepared for what would come after accepting foreign funds" said Shoichi Tsumuraya, a professor at Hitotsubashi University. "Foreign investors in particular normally wait for companies to change from within with the help of outside directors, but the latest case indicates that the board was dysfunctional."

When stakeholders try to speed things up by putting someone in charge, result can be like Carlos Ghosn. At least in this case there's no other Carlos Ghosn, especially when external investigation pointed by major shareholder reveal what they really did.

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Again no mention of Suga being involved JT?…

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What a mess

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Toshiba's consumer electronics division was bought out by a Chinese company, so now Toshiba is a company that has no presence for the average Japanese.

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Toshiba's consumer electronics division was bought out by a Chinese company, so now Toshiba is a company that has no presence for the average Japanese.

Midea bought an 80.1% stake but did not buy the division outright. Midea also bought Eureka in the US two years ago when the Electrolux Group bailed out of the North American market. Toshiba is working on quantum computing technology and hydrogen fuel cells that will touch everyone's life in Japan.

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I was expecting repercussions in the Japanese Stock Market.

Let's see what happens tomorrow when the stocks open again.

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but the latest case indicates that the board was dysfunctional.

You get the feeling that with all the branding and talk about opening up, becoming transparent and accountable there is little real will to reveal and scrutinize the inner workings of most Japanese firms. Even these big global players go down kicking and screaming and pull out all the tricks to get in the way of any real change. It’s the story of the lost decades, at least three of them now.

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I was expecting repercussions in the Japanese Stock Market.

Let's see what happens tomorrow when the stocks open again

i mean, idk if it's good or bad, but the shareholders won right? Actually, imo Nagayama's track record suggests that maybe he shouldn't have been removed this quickly. While i'm a bit skeptical about the decision, I hope whatever happened would fix Toshiba for good.

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Likely, it will be a foreign chairman of Toshiba next time. I bet that METI and Japanese bureaucrats are going to "Ghosn" him or her if foreign investors ever intended to make Toshiba foreign-owned.

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Isn't it possible to create an organization that has a fail-safe mechanism?

You mean like how the oyaji's in Toshiba are about to lose their jobs because of how incompetent they are and run to the government for "fail-safe" help? Right.

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I had the honor of sharing an office with an instructor who had been dismissed from his executive position at a nuclear facility due to misdealing. He asked me, "Do you know who I am?," and I said, "Yes." From our discussions, I learned the pressure these people have to meet unrealistic expectations. See the Amagasaki rail accident. https://en.wikipedia.org/wiki/Amagasaki_derailment

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This is not something that will stop at Toshiba, the investigation revealed something long suspected in many other cases and it is likely the consequences will grow much more, this may signal the beginning of very interesting times for Japan.

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@Septim Dynasty Toshiba is never going to be foreign owned. That's for sure.

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There needs to be a cleansing of the Augean stables, replace the entire board, and if the audit committee had no issue with how the vote was conducted then they are demonstrably unfit for purpose and should be fired and replaced in total.

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@Septim Dynasty Toshiba is never going to be foreign owned. That's for sure.

It is already the case.

https://www.toshiba.co.jp/about/ir/en/stock/stock.htm

Now, it is up to whoever foreign corporation wants to absorb it completely. That's a different story.

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Likely, it will be a foreign chairman of Toshiba next time. I bet that METI and Japanese bureaucrats are going to "Ghosn" him or her if foreign investors ever intended to make Toshiba foreign-owned.

Toshiba is a member of the Mitsui keiretsu and still has preferential arrangements with Mitsui Bank and the other members of the keiretsu. That limits who can chair and own Toshiba. Japan's corporate structure is not shared with the west. It more closely resembles the South Korean Chaebol than any western corporate structure. Indeed the anti trust laws of most western corporations would not allow keiretsu or chaebol to exist within their borders. Apply western expectations to Japanese corporations may not be very effective.

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