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This article was published on July 21, 2015

    Toshiba CEO and vice-chairman resign after falsely declaring $1.2 billion profits

    Toshiba CEO and vice-chairman resign after falsely declaring $1.2 billion profits Image by: AFP/Getty Images
    Amanda Connolly
    Story by

    Amanda Connolly

    Reporter

    Amanda Connolly is a reporter for The Next Web, currently based in London. Originally from Ireland, Amanda previously worked in press and ed Amanda Connolly is a reporter for The Next Web, currently based in London. Originally from Ireland, Amanda previously worked in press and editorial at the Web Summit. She’s interested in all things tech, with a particular fondness for lifestyle and creative tech and the spaces where these intersect. Twitter

    Toshiba’s CEO Hisao Tanak is stepping down after an investigation unearthed that company executives were complicit in misreporting earnings of $1.2 billion (¥151.8 billion) over the past six years.

    The company’s vice-chairman Norio Sasaki and former president Atsutoshi Nishida have also resigned. Masashi Muromachi, Toshiba’s current chairman, will be taking over as an interim CEO.

    An independent panel hired by Toshiba implicated the company’s three most recent chief executives, saying each had an active role in inflating the company’s operating profits since 2008

    The report states:

    The improper accounting procedures were continuously carried out as a de facto policy of the management. And it was impossible for anyone to go against the intention in Toshiba’s corporate culture.

    Toshiba is believed to be considering the sale of property and other company assets to aid in its recovery. It is unclear whether the Securities and Exchange Surveillance Commission will seek a penalty from the company yet.

    ➤ Toshiba CEO quits after company lied about $1.2 billion profits [Engadget]

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