Toshiba wins again the highest tier of the Tokyo Inventory Alternate and requires higher governance
© Reuters. FILE PHOTO: Reporters raise their hands for a question during a Toshiba press conference at corporate headquarters in Tokyo
TOKYO (Reuters) – The Tokyo Stock Exchange approved Toshiba (OTC 🙂 Corp's return to the first section of the exchange on Friday after some shareholders called for better governance in the Japanese industrial conglomerate.
Toshiba, which filed a return request last April, will return to the first section on January 29th. The company said the return could help attract buying investors in stock indices.
The Japanese company descended into the second stage in 2017 after massive write-downs in its U.S. nuclear business caused liabilities to exceed assets – a condition for an automatic downgrade.
The TSE's decision comes when two major shareholders – Effissimo Capital Management, based in Singapore and Farallon Capital Management, US hedge fund – demand an extraordinary general meeting for governance issues.
Effissimo Capital called for an investigation at Toshiba's general meeting last July, in which the company said the voting rights of several shareholders were affected.
Farallon Capital is asking the company to seek shareholder approval for a change in investment strategy.
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