TOKYO -- Japan's industry minister on Friday again dismissed a recent report's finding that the government went beyond its authority to interfere in a Toshiba shareholders meeting, asserting that there were "no problems" with how the foreign investment law was applied.
Speaking to reporters, Hiroshi Kajiyama also denied that the Ministry of Economy, Trade and Industry had asked a former adviser to influence foreign investors or that confidential information was shared illegally with Toshiba.
"It's natural for us to take an interest in technologies and industries that are important to our nation," Kajiyama said.
An independent investigation conducted by lawyers concluded in a report earlier this month that the ministry had colluded with the company to push foreign shareholders not to make proposals or exercise their voting rights. The probe has spurred Toshiba to reassemble its board , with two nominees already removed from the list ahead of next week's general meeting.
The ministry used revisions to the Foreign Exchange and Foreign Trade Act to shut out activist shareholders, counter to the law's intent, the probe found.
Guidelines on the revised legislation, which took effect in May 2020, stipulate that the law should be applied for the purpose of maintaining the technology and manufacturing bases of industries key to national security and stable supplies of necessary goods.
Excessive shareholder returns that could deprive the company of investment funds, or demands for management shakeups that could lead to business break-ups, could be factors considered in weighing whether to apply the law.
Hiroshi Kajiyama, Japan's minister of economy, trade and industry, holds a news conference on June 18. The report stated that the ministry had asked a former adviser to influence the Harvard University endowment fund. The advisor -- identified by the Financial Times as Hiromichi Mizuno -- earlier denied to the FT that he was representing the Japanese government, and Kajiyama criticized the report for not mentioning the denial.
Kajiyama also addressed another example of collaboration cited in the probe, involving a letter by Singapore-based Effissimo Capital Management seeking collaboration with other shareholders. Effissimo shared the letter with the head of the ministry's IT industry division, which oversees Toshiba, and the official passed the letter on to the company.
The report said that may have violated legal obligations of confidentiality, but Kajiyama argued that this was not the case. Because the letter was widely circulated among Toshiba shareholders, "it was not confidential," he said.