Toshiba chairman ousted in victory for Japanese corporate governance

Toshiba headquarters in Tokyo

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Shareholders of Japanese industrial conglomerate Toshiba 6502, -0.62% voted against the re-appointment of chairman Osamu Nagayama to the board on Friday, two weeks after a report written by independent lawyers blamed the company for a campaign against foreign investors.

The outlook: The rare win for activist shareholders in Japan is likely to rekindle speculation that private equity funds are preparing competing bids to break up a group whose activities span from military equipment to elevators and from sewage systems to nuclear power plants.

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