The traditional Japanese company Toshiba hangs in the balance.

At an extraordinary general meeting on Thursday, shareholders voted against management's proposal to split Toshiba into two.

The vote of the shareholders is not binding, but it makes a realignment of the group more difficult.

"We will consider all options that increase the value of our company," said Taro Shimada, who only took over the management in March.

Patrick Welter

Correspondent for business and politics in Japan based in Tokyo.

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In the long-standing dispute between the management and foreign investment funds, the extraordinary general meeting was sometimes stylized as the highlight.

After the negative vote, the situation is now more unclear than before.

This is also due to the fact that the shareholders rejected a counter-proposal by the Singapore investment fund 3D Investment Partners, according to which Toshiba should in particular consider withdrawing from the stock exchange by selling it to a private investment company.

The meeting thus reveals a deeply divided ownership.

Toshiba shares temporarily lost 5 percent on Thursday, but ended trading down just 0.5 percent.

After years of scandals and attempts at realignment, many shareholders lack confidence in management.

That is why shareholders such as 3D Investment Partners, the investment fund Effissimo from Singapore or Farallon Capital from the United States are calling for the expertise of private investment companies to be brought in when they withdraw from the stock exchange.

According to analysts, this option is not yet off the table, even if the option was rejected by the previous management and did not find a majority among the shareholders.

Unclear corporate structure

With the stalemate among the shareholders, some observers are hoping that the new Toshiba boss Shimada now has the leeway to push his own ideas through.

"I'm the first president who understands digital technology," the 55-year-old Shimada self-confidently described his role at the helm of Toshiba this month.

On Thursday, he again pledged to work hard to earn the trust of everyone involved, including shareholders, customers and employees.

He has not yet revealed his preferences as to the corporate structure in which Toshiba should continue.

Above all, it is unclear whether Shimada considers a delisting to be appropriate.

His interim predecessor, Satoshi Tsunakawa, who now serves as Chairman of the Board of Directors, is opposed because Toshiba would then lose public contracts.

It would also have to sell important parts of the nuclear and defense business.

Last year, Toshiba had initially planned to split the company into three, but then changed it into a two-part division after heavy criticism in February.

The split is expected to bring more efficiency and focus to businesses ranging from semiconductors and hard drives for computers to power plants and trains.