Toshiba has announced that Vice President Goro Yanase has resigned due to improper handling of entertainment expenses.
It is said that there will be no particular impact on discussions with investment funds to delist stocks with the aim of resolving management turmoil.
According to Toshiba's announcement, in 2019, when Vice President Yanase was serving as a director of an energy business subsidiary, he improperly processed entertainment expenses without accurately applying for a dinner partner.
After receiving multiple reports, the Audit Committee conducted an investigation, and in response, the Board of Directors concluded that it was not desirable for Vice President Yanase to continue to be involved in management as top management.
According to the company, Vice President Yanase denies inappropriate processing, but the resignation of Vice President was accepted by the board of directors.
Toshiba is discussing a proposal to delist its shares through an investment fund in order to resolve the management turmoil that continues to conflict with overseas shareholders called activists.
Regarding the impact on the consultation, CFO Masayoshi Hirata said at the financial results conference, "It played a certain role, but I don't think it will have any particular impact."
Toshiba's earnings forecast for this fiscal year operating income down 40.2% year-on-year
On the other hand, in the financial results announced on the 14th, Toshiba said that the operating income forecast for this fiscal year will be reduced due to factors such as a decrease in demand for hard disks for data centers and an impairment loss due to a decline in the stock price of Toshiba Tec, a subsidiary. We have revised our previous forecast downward, and expect a 40.2% decrease compared to the previous year.