FILE PHOTO: The logo of Toshiba Corp is seen as window cleaners work on the company’s headquarters in Tokyo, Japan, February 14, 2017. REUTERS/Toru Hanai
BOSTON (Reuters) – Effissimo Capital Management, which wants to install three directors on Toshiba Corp’s board, told the Japanese conglomerate’s directors that shareholders make good board members because they are invested in the company’s future.
“A major shareholder is incentivized to exercise judgments to maximize interest for the company,” Effissimo, which owns 15% of Toshiba, wrote in a letter to the directors that was seen by Reuters. “A major shareholder is in a superior position to tackle the ‘collective action problem,’” it said in the letter, which was dated July 13.
Effissimo, which is Toshiba’s top shareholder, is pushing back privately at Toshiba’s public message that shareholders should be disqualified from sitting on boards because they would be riddled with conflicts of interest. The standoff