Toshiba parachutes in new board

ToshibaThe $1.2 billion accounting scandal that exposed cracks in the management of Toshiba has lead to the company suggesting outsiders should join its board of directors.

Investigators said staff at Toshiba misreported financial results because there was a corporate culture that meant employees just did as they were told, without question.

But interim president Masashi Muromachi is likely to stay on in role as the number of external directors will number seven on the board of 11.

Proposed members include Mitsubishi Chemical chairman Yoshimitsu Kobayashi, Asahi Breweries’ Koichi Ikeda, and Shisheido’s former president Shinzo Maeda.

The new appointments will be presented to shareholders next month for approval.

The company is expected to report a loss for the financial year that ended in March 2015, with write offs worth over $1 billion in different sectors of its business including semiconductors and appliances.