Toshiba’s Response to Effissimo’s Proposal Is Deceptive and Inadvertently Factors to Additional Irregularities

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  • Toshiba’s response is deceptive and lacks factual foundation
  • Effissimo has addressed the inaccuracies in a point--point rebuttal for Toshiba and its shareholders to judge
  • Toshiba fails to grasp the inherent battle of curiosity in having elected administrators assessment the very course of which they have been elected
  • The price of Toshiba’s efforts to struggle an impartial assessment seemingly exceeds the price of an impartial assessment itself
  • Toshiba claims its assessment is full but it fails to handle the existence of as much as 1,600 reported ballots which might be nonetheless unaudited and uncounted.
  • Toshiba’s response inadvertently reveals additional irregularity admitting “sure” shareholders have been selectively urged to vote on-line on the 2020 AGM
  • Individually, Toshiba continues to disregard Effissimo’s request to right factual misrepresentations of their response, that are additionally contained within the Convocation Discover


Effissimo Capital Administration (“Effissimo”) has up to date its March 1 Presentation to focus on the factual errors in Toshiba Company’s (“Toshiba” or the “Firm”) March four response. The up to date presentation could be discovered right here and our response could be discovered on pages 78 way of 96.

Effissimo’s presentation highlights misstatements of truth contained in Toshiba’s Convocation Discover of the Extraordinary Normal Assembly of Shareholders dated February 26. Effissimo has requested the Firm to right their response, which can be contained within the Convocation Discover, with out response as of right this moment. The abstract of factual misstatements Toshiba is on web page 47 of Effissimo’s up to date presentation.

Toshiba has failed to supply convincing solutions to primary questions relating to the irregularities which have emerged for the reason that 2020 AGM. Effissimo believes the rationale for Toshiba’s lack of response shouldn’t be that the details are onerous to search out, however the lack of motivation to uncover them on the a part of the Audit Committee.

Toshiba continues to not perceive that its Audit Committee is conflicted on this matter. Candidates in an election shouldn’t be appointed to research the very course of which they have been elected, particularly if there are irregularities which will have helped safe their election. It’s extremely related that the chair of the Audit Committee was opposed greater than 40 p.c of shareholders voting.

Toshiba’s repeated objection that the proposed investigation three impartial investigators shall be too pricey and distracting is difficult to credit score in gentle of the sources it has seemingly spent on funding banks, legislation companies, and proxy solicitors at shareholder expense.

Toshiba’s up to date March four presentation inadvertently admits potential further irregularities within the conduct of the 2020 AGM. Toshiba states that “Toshiba actually urged sure shareholders to vote way of a voting facilitation vendor as they hadn’t confirmed their votes1” in response to Effissimo’s discovering that one management-friendly shareholder had voted on-line 21 minutes earlier than the vote deadline. Toshiba admits, however doesn’t appear to be delicate to the impropriety of, having its proxy solicitor selectively encourage and facilitate voting presumably pro-management shareholders. Is it not the Board’s obligation to deal with all shareholders equally?

Given its poor governance and compliance observe file, Toshiba ought to be taking all potential efforts to reassure its shareholders that their proper to vote is safe. Effissimo invitations the Firm to publicly endorse Effissimo’s proposal in order that shareholders can work hand-in-hand with the Board to again a good and neutral investigation.

1 Daring and underline added Effissimo.

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Minoru Koshida / Rie Sugiyama / Ayako Hitomi

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