Toshiba fore­sees loss af­ter ac­count­ing scan­dal la­beled ‘big­gest cri­sis’ for firm

The China Post - - WORLD BUSINESS -

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.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.