Toshiba panel considers replacing president before shareholder meeting


Scandal-hit Toshiba Corp.’s Nomination Committee is considering replacing President Masashi Muromachi as early as June, informed sources have said.

Toshiba is bracing for a record group net loss of ¥710 billion for the year ending in March. By replacing the company’s chief Toshiba is hoping to head off criticism at a general shareholders’ meeting in late June.

However, the five outside directors who make up the committee are also considering delaying the replacement until September or even later — after the company is taken off a watch list by the Tokyo Stock Exchange.

Toshiba has been restricted from issuing new shares and bonds since September, when it was placed on the TSE’s list of companies required to improve internal governance.

In July 2015, Muromachi, then Toshiba chairman, began to double as president, following the resignation of former President Hisao Tanaka over a massive accounting scandal.

When the company launched a new management team in September that year, Muromachi was reappointed as president, a move that some criticized.