Menu
Toshiba adds outsiders to board amid accounting scandal

Toshiba adds outsiders to board amid accounting scandal

The manufacturer's board of directors is now dominated by outsiders

Scandal-hit Toshiba is trying to inspire investor confidence with a revamped board of directors following the resignation of executives amid a massive accounting fraud that came to light earlier this year.

The Japanese conglomerate, which makes everything from memory chips to nuclear power plant equipment, has shuffled its board so that seven of its 11 members are external. The outside directors are all Japanese.

Masashi Muromachi, who had been appointed interim leader of the company, will stay on as president, Toshiba said.

Former president Hisao Tanaka and other executives resigned after a committee reviewing its earnings said in July that the company padded its operating profit by about ¥156 billion ($1.25 billion) over six years to the end of 2014.

The sum included about ¥4.4 billion of incorrect earnings revealed in an internal probe by Toshiba. Other executives took pay cuts.

The company also said it expects to post a net loss for the year that ended March 31, 2015, and will book ¥127 billion ($1.02 billion) in impairment charges related to its nuclear power, semiconductor, appliance and automotive businesses. The firm's earnings report for the year is being revised amid the scandal, which erupted after securities regulators began probing company reports.

Last month, Toshiba acknowledged that it is being sued in a class-action lawsuit by securities owners in California related to information it provided about the cost of infrastructure projects.

Known for introducing flash memory in the 1980s, Toshiba is made up of nearly 600 companies around the world and has over 200,000 employees.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Show Comments