Leading Proxy Advisors ISS and Glass Lewis Support Effissimo’s Proposal for an Independent Investigation of Shareholder Pressure and Vote Tabulation Irregularities at Toshiba

Effissimo welcomes the support of ISS and Glass Lewis.
Effissimo believes that its proposal is clearly aligned with the long-term interests of other asset managers, including index funds and Japanese asset managers, that call for stronger governance practices at Japanese companies to protect their clients’ interests.

SINGAPORE--(BUSINESS WIRE)--Effissimo Capital Management (“Effissimo”) welcomes the support of Institutional Shareholder Services (“ISS”) and Glass, Lewis & Co. (“Glass Lewis”), the world's leading proxy advisors, for Effissimo’s shareholder proposal to carry out an independent investigation of the conduct of Toshiba Corporation’s (TYO: 6502) 2020 Annual General Meeting (“AGM”).

Effissimo’s proposal will be voted on at an Extraordinary General Meeting (“EGM”) scheduled for March 18, 2021.

Effissimo appreciates ISS and Glass Lewis’s careful and independent evaluation of the relevant facts and background that has led them to recommend that shareholders vote FOR Effissimo’s proposal.

According to its public disclosure, the California State Teachers’ Retirement System (CalSTRS), the second largest public pension fund in the United States, has decided to vote FOR Effissimo’s proposal.1

The recently published white paper “Making voting count” by the UN Principles for Responsible Investment (“PRI”) states, “a vote in favour of a shareholder resolution should not be seen as a criticism of the company overall. It is an avenue to provide feedback on a particular issue in line with an investor’s voting principles.” 2

Effissimo believes that its proposal is clearly aligned with the long-term interests of other asset managers, including index funds and Japanese asset managers, that are advocating for governance reform through their public voting policies at Japanese companies to protect their clients’ interests.

If Japan is serious about serving as a leading global financial market, its listed companies should be expected to meet nothing less than the highest corporate governance standards, which start by respecting shareholders’ right to vote.

Effissimo’s proposal represents an important opportunity for Toshiba to strengthen its governance and create value at a time when the company’s shareholder base is expanding in size and diversity.

1 https://viewpoint.glasslewis.com/WD/MeetingDetail/?siteId=CalSTRS&securityId=38671
2 https://www.unpri.org/stewardship/making-voting-count/7311.article?adredir=1