(Adds CEO statement in paragraph 9)
By Makiko Yamazaki
TOKYO, March 18 (Reuters) - Toshiba Corp shareholders voted on Thursday in favour of an independent probe into allegations that investors were pressured ahead of last year's annual general meeting - a watershed victory set to spur more shareholder activism in Japan.
The vote marks only the fourth time an activist shareholder motion has won approval in Japan and the first at a major company that is a household name, albeit one sullied by a string of scandals.
It is also notable for the gravity of allegations that emerged after the AGM. Some Toshiba shareholders had felt pressure to vote in line with management's wishes on director nominations after contact from a government adviser or the trade ministry, sources have previously told Reuters.
Pressure on Toshiba Chief Executive Nobuaki Kurumatani, who resisted calls for an independent probe, is expected to grow and some investors have said any finding that shareholders were pressured could cost him his job.
The proposal from Singapore-based Effissimo Capital Management, an activist investor and Toshiba's biggest shareholder with a 9.9% stake, was backed by proxy advisers and required a simple majority of votes at Thursday's extraordinary general meeting (EGM) to pass.
A breakdown of the vote results was not immediately disclosed.
"This result shines a very public spotlight on the likelihood that EGMs, which in Japan can be called by a shareholder that has owned only 3% for 6 months, will probably be used more by activists," said Nicholas Benes, a corporate governance expert and representative director of the Board Director Training Institute of Japan.
The number of activist funds operating in Japan has more than doubled in three years to 44 in 2020, according to data from IR Japan Holdings.
Kurumatani said at the EGM that Toshiba had made much effort to reach out to shareholders and listen to their concerns. He later said in a statement the company would sincerely cooperate with the investigation.
GOVERNMENT CONTACT
Battered by accounting scandals, massive writedowns for its U.S. nuclear business as well as the sale of semiconductor unit, the once-storied conglomerate is a shadow of its former self. Even so, Toshiba is one of the few domestic manufacturers of nuclear reactors and remains hugely important to the Japanese government.
Shares in Toshiba, which has a market value of more than $15 billion, jumped after the vote results were released but pared some of those gains to close 1.5% higher.