T) management to unduly affect a crucial investor vote last year, an independent probe discovered, undermining Tokyos efforts to enhance business governance and win over foreign investors.The private investigators report launched on Thursday marks an explosive turn in a long-running battle in between the Japanese companys management and foreign shareholders, which consist of activist financiers and Harvard Universitys endowment fund.It declares the Ministry of Economy, Trade and Industry (METI) leaned on the Harvard fund and other foreign financiers in an attempt to get them to vote along with management at last years annual shareholders meeting.The claims of METIs intervention – formerly reported by Reuters – are most likely to raise doubts about how dedicated Japan is to becoming more open to foreign capital – a goal set by former Prime Minister Shinzo Abe. Toshibas management “worked closely” with the ministry to put in “undue influence on some investors,” the report found.Contacted by Reuters, METI stated it was conscious of the report and was looking into its contents.Toshiba stated it would “thoroughly review” the report and remark at a later date.In one telling episode from the report, the ministry was stated to have actually called one foreign fund to warn it against “grilling next to your neighbour when there is a huge fire,” in an evident suggestion the fund should refrain from backing proposals by top shareholder Effissimo Capital Management, a Singapore-based fund, the report said.Effissimo had actually nominated three prospects, including its own co-founder, as directors to Toshibas board. Suga, now prime minister, on Thursday stated he was “definitely not mindful” when asked if the claims in the report were true.The probe, conducted by three attorneys, discovered that Toshiba, with the ministry, tried to force Effissimo to withdraw shareholder propositions for board nominees aimed at improving governance.Reuters previously reported Harvards endowment fund had actually been informed by a Japanese federal government advisor it might be subject to a regulative probe if the fund did not follow managements suggestions at the AGM last July.The Harvard fund eventually stayed away from voting.

T) management to unduly influence a crucial investor vote last year, an independent probe discovered, weakening Tokyos efforts to improve corporate governance and win over foreign investors.The private investigators report launched on Thursday marks an explosive turn in a long-running fight between the Japanese businesss management and foreign shareholders, which consist of activist financiers and Harvard Universitys endowment fund.It declares the Ministry of Economy, Trade and Industry (METI) leaned on the Harvard fund and other foreign financiers in an attempt to get them to vote along with management at last years yearly shareholders meeting.The claims of METIs intervention – formerly reported by Reuters – are most likely to raise doubts about how dedicated Japan is to ending up being more open to foreign capital – a goal set by former Prime Minister Shinzo Abe. Toshibas management “worked carefully” with the ministry to apply “excessive impact on some shareholders,” the report found.Contacted by Reuters, METI said it was mindful of the report and was looking into its contents.Toshiba said it would “carefully review” the report and comment at a later date.In one informing episode from the report, the ministry was said to have gotten in touch with one foreign fund to alert it against “grilling next to your neighbour when there is a huge fire,” in an evident suggestion the fund ought to refrain from backing propositions by leading investor Effissimo Capital Management, a Singapore-based fund, the report said.Effissimo had actually nominated 3 prospects, including its own co-founder, as directors to Toshibas board. Suga, now prime minister, on Thursday stated he was “absolutely not aware” when asked if the accusations in the report were true.The probe, conducted by three attorneys, discovered that Toshiba, with the ministry, attempted to require Effissimo to withdraw investor propositions for board nominees intended at improving governance.Reuters formerly reported Harvards endowment fund had been informed by a Japanese federal government adviser it could be subject to a regulative probe if the fund did not follow managements recommendations at the AGM last July.The Harvard fund ultimately abstained from voting.