U.S proxy advisory firm Institutional Shareholder Services has recommended that Toshiba Corp.’s
shareholders vote against the company’s plan to split itself into two parts.
The breakup plan is set to be put to a vote at an extraordinary shareholders meeting on March 24.
The two-way split announced in February calls for Toshiba to spin off its device business and for its remaining unit to focus on energy and infrastructure.
“Years of corporate governance turmoil and attempted restructuring in the public eye, a split shareholder base, and an uninspiring management track record raise significant skepticism as to whether the current plan is superior to a privatization proposal,” ISS said.
ISS also advised to vote against a proposal made by Toshiba’s major shareholder, Singapore-based 3D Investment Partners Pte., asking the strategic review committee to consider alternatives, including selling the whole company to a private investor.
The proxy adviser said 3D’s proposal is premature, given that the company’s annual shareholders meeting is only three months away.