The plan proposed last month called for splitting
Some shareholders, including foreign investment funds and
Toshiba management had scrapped an earlier proposal for a three-way split and put forward the latest plan, which was put to a vote at Thursday’s extraordinary shareholders’ meeting.
That new plan failed to win a majority of votes, in a huge setback for Toshiba management, which had defended the new plan as less costly and more stable. One top executive had characterized the move as the company’s “last chance” to fix its brand power and win back people’s trust.
Shareholders also rejected a proposal from major shareholder 3D Investment Partners, based in
During the meeting, shareholders, including several who identified themselves as former Toshiba workers, got up and said the restructuring plan wasn’t in the best interests of Toshiba or its employees. Others said splitting a company won’t produce value.
Toshiba management had defended the new plan as less costly and more stable than possible alternatives.
Toshiba’s fortunes have fallen since the
The company’s reputation was also tarnished by an accounting scandal, which involved books being doctored for years.
The company has also seen managerial upheaval. Last year,
Kurumatani was replaced by
If approved at a regular shareholders’ meeting in June, Shimada will become Toshiba’s first chief executive with a background in digital technology.
“We will take into consideration the opinions of the shareholders and will continue to study how we can boost the value of our company,” Shimada told shareholders Thursday.
Founded in 1875, Toshiba was a manufacturing pioneer for everything from electric rice cookers to laptop computers. It also invented flash memory, but that division was sold off as its fortunes tumbled.
Toshiba acquired Westinghouse of the
Toshiba shares, which have recovered in price over the last five years, rose slightly in morning trading.
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