May 15, 2019
The Nikkei Asian Review reports that “Toshiba will shake up its board so that 80 percent of the directors come from outside the company, a rare move for a Japanese corporation. It will also name foreigners to the board, which is currently 100 percent Japanese.”
In recent times, Toshiba has been struggling so with this reorganisation, the OEM is hoping the restructuring will be implemented quickly.
According to The Nikkei Asian Review, new directors might “include Paul Brough, chairman of Noble Group, a Hong Kong-based commodities trader.”
“Toshiba expects the moves to improve the board’s oversight function and allow management to receive better advice on selling subsidiaries and on mergers,” the publication added.
The new directors were nominated earlier this week by Toshiba and are expected to be approved at a general shareholder meeting in June this year.
The chairman and president and COO are expected to remain on the board. Currently, seven of the independent directors on the board are Japanese but it is believed that four of them are to become “foreigners”, which is seen as unusual for a Japanese company.
According to the article in The Nikkei Asian Review: “Toshiba expects its annual operating profit to surge to 140 billion yen ($1.2 billion / €1.06 billion) for the fiscal year through March 2020, up fourfold from the previous year, helped by a series of restructuring moves made last year.”
Earlier this week, Toshiba released its full year results for fiscal year 2018, mostly achieving its forecasted targets.
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