Japan government contacted Toshiba shareholders before AGM - sources

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Japan's government contacted several foreign shareholders in Toshiba Corp ahead of the conglomerate's annual meeting, three people familiar with the matter said, in what at least one investor saw as an attempt to influence voting.

TOKYO - Japan’s government contacted several foreign shareholders in Toshiba Corp ahead of the conglomerate’s annual meeting, three people familiar with the matter said, in what at least one investor saw as an attempt to influence voting.

Representatives of the powerful Ministry of Economy, Trade and Industry called at least three funds ahead of the meeting to inquire if they had collaborated with other investors, two of the people said. A representative for Effissimo said the fund could not comment. A Toshiba spokeswoman said the company would not comment on speculation.Last month, a major investor called for an investigation, saying its vote had not been recognised.

Under Japanese regulations, shareholders deemed to be “acting in concert” can be required to submit ownership disclosure filings or, in some cases, can be charged with insider trading. Nicholas Benes, head of the Board Director Training Institute of Japan and an expert on governance, said Japanese regulators should come up with “safe harbour” criteria, similar to those in Britain, that prohibit use of insider information but allow investors to make joint recommendations to companies.

 

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