Tension at Toshiba erupts into public row as directors trade barbs

Boardroom tensions at Japan’s Toshiba erupted into a public row on Monday as two of its external directors traded criticism over governance and the nomination of hedge fund executives to the conglomerate’s board.

The rift is the latest in a long-running crisis that has seen management and shareholders locked in a dispute over the future of the company, once one of Japan Inc’s prized assets. It could undermine investor confidence in the board, just ahead of an annual general meeting.

External director Mariko Watahiki on Monday took aim at her colleague Raymond Zage saying he raised concerns about governance at Toshiba when he broke with the board’s stance in March and came out in favour of a shareholder proposal that the company solicit buyout offers from private equity.