June 17 (Reuters) - Toshiba Corp's biggest shareholder, Effissimo Capital Management, labeled the company's board as "ineffective", the Financial Times reported on Thursday.
Effissimo, which holds about 10% of Toshiba's shares, said the company failed to adequately respond to a shareholder-commissioned report that showed that it colluded with the government to suppress activist investors, according to the FT https://on.ft.com/3iKrBoY.
Singapore-based Effissimo told the newspaper that the report gave a "sobering insight into dysfunctional corporate governance".
Effissimo and Toshiba were not immediately available to comment on the FT report.
The comment comes after Toshiba's shareholders called for the resignation of its chairman, Osamu Nagayama.
An independent investigation last week alleged that the company's management colluded with Japan's trade ministry to block foreign investors from gaining board influence, in what one top shareholder called the world's worst corporate scandal in a decade.