Goodbye, Tosh

15 Jul 2015 By Quentin Webb

An accounting scandal is set to force out the CEO of the Japanese firm. Its new leader will have an opportunity to bolster governance, auditing, and financial flexibility. After that, the question must be: do toll booths, nuclear plants and laptops really belong together?

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Toshiba Chief Executive Hisao Tanaka will step down in September along with other board members including Vice Chairman Norio Sasaki to take responsibility for accounting irregularities, Reuters reported on July 15, citing sources familiar with the matter.

Over half of the board was likely to be replaced at the company’s next shareholders’ meeting in September, the sources told Reuters, declining to be named because they were not authorised to speak with media.

The Japanese conglomerate has hired a third-party committee to investigate past book-keeping practices, and sources have previously told Reuters that the probe was focusing on the role top officials played in the irregularities.

A Toshiba spokeswoman said the company had not yet made any decision on the matter and was waiting for the third-party committee to release its findings.

Toshiba shares stood 1.9 percent lower at 374.4 yen by 13:37 Tokyo time on July 15 (04:37 GMT). That means they have fallen nearly 27 percent since the problems first emerged on April 3.

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A Toshiba spokeswoman said the company had not yet made any decision on the matter and was waiting for the third-party committee to release its findings.

Toshiba shares stood 1.9 percent lower at 374.4 yen by 13:37 Tokyo time on July 15 (04:37 GMT). That means they have fallen nearly 27 percent since the problems first emerged on April 3.

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