TOKYO (Reuters) – A major investor in Japan’s Toshiba Corp 6502.T> has called for a third-party investigation into the conglomerate’s annual shareholder meeting, saying its vote was not fully recognized in a potential breach of governance.
The demand from Singapore-based 3D Investment Partners is likely to sharpen scrutiny of the treatment of Toshiba’s foreign investors. It follows a contentious, but failed, attempt by foreign shareholders to elect some new independent directors to Toshiba’s board at the July 31 meeting.
3D said voting rights representing a 1.1% stake in Toshiba were not reflected in the results of the meeting, according to an Aug. 9 letter from the hedge fund to Toshiba’s outside directors seen by Reuters.
The fund, which holds a 4.2% voting stake and ranks among Toshiba’s top five shareholders, had nominated two candidates as independent directors and publicly said it would vote against Chief Executive Nobuaki Kurumatani.
“Such administration of shareholders meetings by Toshiba (including the manner of processing voting forms) was at least improper and was questionable from the viewpoint of corporate governance,” 3D said in the letter.
3D said it was told one of its voting forms did not reach the Tokyo office of Sumitomo Mitsui Trust Bank 8309.T>, Toshiba’s designated administrator, until July 31, which was after the voting deadline.
Yet the form had been mailed from a post office in Tokyo on July 27, meaning the delivery time should have been just one day, 3D said, citing the post office’s website.
Another voting form mailed from the same post office on July 28 reached Sumitomo Mitsui Trust a day later, and was in time for the meeting, 3D said.
“We don’t comment on communications with specific investors, but vote counting was done by our shareholder registry administrator and we are conducting investigations with the administrator,” Toshiba said in a statement.
“At the moment we’ve been told that counting process was done properly.”
A spokesman for Sumitomo Mitsui Trust Bank said it could not comment on specific cases.
SHAREHOLDER SCRUTINY
The incident is likely to raise fresh questions about the relationship between foreign investors, who make up 60% of Toshiba’s shareholders, and the company.
Reuters previously reported the Japanese government delayed approval until the last minute for another Singapore-based fund to vote at the same meeting.
Toshiba CEO Kurumatani held on to his job, but a breakdown of voting results from the meeting showed a precipitous slide in support to just 58% from 99% a year earlier – a rare rebuke of a Japan Inc chief executive.
3D’s 1.1% vote, even if counted, would not have changed the outcome. But the fund said it was “strongly concerned that many other shareholders might have been hindered in exercising their voting rights”.
It asked for a third-party investigation into whether shareholders’ voting rights had been processed properly.
The fund said it would consider starting proceedings to force Sumitomo Mitsui Trust Bank to disclose evidence and provide information to the Tokyo Stock Exchange if Toshiba did not “properly respond” to its request.
Toshiba has been under pressure from foreign hedge funds since it sold 600 billion yen ($5.6 billion) of stock to dozens of such funds during a crisis stemming from the bankruptcy of its U.S. nuclear power unit in 2017.
(Reporting by Makiko Yamazaki; Editing by David Dolan and Muralikumar Anantharaman)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
