The long-running corporate drama at Toshiba has another bitter showdown. A victory for activist investors would be a positive signal for a company that has become an indicator of governance progress at Japan Inc. A victory for management could mean that future dividends from reform will turn out to be smaller than expected.
The beleaguered Japanese industrial giant said on Monday it would hold a non-binding shareholder vote next month on its proposal to split the company in two. Toshiba said the plan, announced last week, would be faster and more efficient than its previous proposal for a three-way split. Under the original plan, Toshiba would have been split into a device company, an infrastructure unit and a company holding its stake in flash memory company Kioxia. The new plan would simply be to turn its device business into a separate company.