Embattled Japanese company Olympus, the subject of so much adverse publicity over the past several months, has nominated a new Board of Directors, the most noteworthy of whom is already Senior Managing Director and Executive Officer of major Olympus creditor, Sumitomo Mitsui Banking Corporation.
In its statement, which can be found here the company also confirmed that all current board members and auditors have submitted letters of resignation today.
Many significant overseas investors have been reportedly disquieted by the creditor orientation of the new board. Southeastern Asset Management Inc, which holds 5.1% of the company was reported by Bloomberg as being “extremely disappointed” with the composition of the new board.
The company’s former Chief, Michael Woodford said; “Naming a person linked to the company’s main creditor creates a conflict of interest.”
In a phone interview with Bloomberg he said; “We’re back to the bad old days of the banks running the companies. Having a bank there can be counter to the interest of other shareholders.”
Source: Olympus, Bloomberg