Toshiba shareholders may boot chairman

Toshiba shareholders on Friday voted out its board chairman and one other director, in a rebuke against the company.

Osamu Nagayama had been under pressure to resign as chairman after an independent investigation earlier this month accused Toshiba of colluding with the government to block foreign investors from gaining influence on the board.

Nagayama's supporters say his ouster will set Toshiba back, depriving the company of experienced leadership.

The vote's breakdown was not immediately disclosed, but according to a Toshiba source, foreign investors had voted in greater number than prior meetings.

For many, the probe and vote results marked a watershed moment for corporate governance in Japan, as experts say that the investigation would have been unthinkable just years ago.

A member of the audit committee, Nobuyuki Kobayashi, was also voted out.

The next chairman will be decided by the newly elected board, set to start that discussion later on Friday.

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