OSAKA (Kyodo) Sanyo Electric Co. said Wednesday that Vice President Seiichiro Sano will replace President Toshimasa Iue on Monday, putting an end to the founding family’s involvement in top management.

The reshuffle, approved by Sanyo’s board and formally announced later in the day, marks the first time the Osaka-based electronics company, suffering from poor earnings and an accounting scandal, will not have a member of the founding family in either the chairman’s or president’s position since it was founded in 1947.

Iue held a news conference in the evening to formally announce his resignation, also effective Monday.

Sano, 54, will be given the right to represent the company after becoming a board member after a general shareholders’ meeting at the end of June. Iue, 44, is expected to stay on the board until then.

Iue’s father, former President and Chairman Satoshi Iue, 75, will also leave. He is a senior adviser to the company.

Sano is an old hand in labor and personnel affairs at Sanyo and has the confidence of its labor union, company officials said.

The personnel changes come at a time when management is under fire for poor business performance and an accounting scandal. With the founding family out of the top posts, Sanyo is expected to proceed with reconstruction as advised by financial institutions, including Sumitomo Mitsui Banking Corp., that have major stakes in the company.

Iue, who became president in 2005, led Sanyo’s restructuring efforts, focusing management resources on its mainstay rechargeable battery business.

But the company has been performing poorly. It is expected to book a 50 billion yen group net loss for the business year ending Saturday.

Sanyo is also being investigated by the Securities and Exchange Surveillance Commission for accounting irregularities in the business year through March 2004. Iue, who was then vice president, would have been the one in position to endorse the financial statements.

The reshuffle comes after Tomoyo Nonaka resigned as chairwoman last week over an apparent conflict with other executives on how to handle the accounting scandal. The post is still vacant.

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