Toshiba foresees loss after accounting scandal labeled ‘biggest crisis’ for firm
Japanese energy and electronics giant Toshiba Corp. has revamped its leadership lineup and is forecasting a net loss in the current fiscal year as it cleans up problems with its accounting and corporate governance.
The Tokyo-based maker of products ranging from submarine systems to semiconductors plans to trim its board of directors to 11 from 16 members, while appointing a majority of outsiders to help improve oversight.
The problems at the 140-year-old company have underscored the persisting weaknesses in Japanese corporate management. The government has been pushing companies to beef up their governance and be more accountable to their shareholders, with mixed results.
“Amid the biggest crisis facing Toshiba in 140 years since our founding, we need to improve corporate governance, internal controls and our corporate culture,” the Kyodo News Service quoted Masashi Muromachi, who will cede his post as chairman to be the company’s president, as saying.