Toshiba CEO and eight other executives resign after the company lied about $1.2 billion in profits

[Bouzoo]

Toshiba CEO and president Hisao Tanaka as well as eight other board members have resigned after the company declared $1.2 billion in false profit as an attempt to recover from bad period. This is their way of taking responsibility for it, which I think is the appropriate thing to do. 

 

The Tokyo-based company said Tuesday it will correct earnings by at least 152 billion yen, based on the results of an independent investigation of its books stretching back about six years.

“For the company to rebuild there needs to be a renewal of the management structure,” Tanaka, a 42-year veteran, said during a briefing in which he, Chairman Masashi Muromachi and Vice President Keizo Maeda all bowed in apology.

 

Toshiba says chairman Masashi Muromachi will fill the vacant chief executive role for the time being and help appoint a new management team. Including Tanaka, vice-chairman Norio Sasaki and former president Atsutoshi Nishida, eight high-level executives have now resigned after it was found they'd been cooking the books. Toshiba estimated a 55 billion yen ($442 million) writedown, but today's report revealed it was almost triple that figure. The company will now explore selling property and other assets to raise money to cover the blots on its balance sheet.

 

I really loved Toshiba. I had few of their laptops for a long time as well as few other things and all of them were (are) great. It really saddens me to see what is happening with them. 

 

Sources: 1, 2

[Misanthrope]

Sadly this is probably the extend of the consequences. Sad to see people get thrown in jail for a joint and this guys destroy massive amounts of wealth and henceforth lives with their speculation and nothing happens. White collar criminals need to start doing hard time.

[NumLock21]

According to CNN, they say 8 board members including vice chairman Norio Sasaki, have resigned. Didn't know Toshiba has been here for this long, it was founded back in 1875.

http://money.cnn.com/2015/07/21/investing/toshiba-ceo-resigns/

[Bouzoo]

According to CNN, they say 8 board members including vice chairman Norio Sasaki, have resigned. Didn't know Toshiba has been here for this long, it was founded back in 1875.

http://money.cnn.com/2015/07/21/investing/toshiba-ceo-resigns/

 Checked few other sources, 8 it was. Fixed.

[NinjaTitan]

They committed a crime. Quitting doesn't get them off the hook. They'll just go to another company and do it again.

[RH00D]

They committed a crime. Quitting doesn't get them off the hook. They'll just go to another company and do it again.

It appears they resigned voluntarily. I'm sure its going to take a while before an official police investigation and trial happens.