Olympus ousted CEO to visit Japan

Reports state that Michael Woodford, Olympus Corporation’s expelled CEO will fly to Japan on Tuesday. Woodford aims to win back his job as reports in media revealed that prosecutors are planning to search the homes of suspects in an accounting fraud worth $1.7 billion. Furthermore, Woodford is planning to make a new management team and for this he is meeting new candidates. He is also seeking investors and shareholders backing at a shareholders

meeting which is scheduled in February. Meanwhile, Woodford’s assistant revealed that he will be leaving for Japan on Friday morning. The well known camera maker, Olympus is preparing to issue its earning before a Wednesday target as it may be delisted by the Tokyo stock Exchange. Furthermore, even if the company does issue its earnings before the deadline, it could still be thrown out from the Tokyo Stock Exchange if its accounting misstatements remain big enough.

Almost all the directors served during the camera maker’s thirteen year cover up of investment losses. Meanwhile, on Wednesday, Shuichi Takayama, Olympus’s president said that the earliest an extraordinary meeting can be held is in February. He said that the management would not quit prior to the meeting and will also be allowed to choose its own list of candidates. Media reports revealed that Japanese prosecutors accompanied by watchdogs and police offices are planning to
raid the homes of likely suspects.

Jiji news agency said that Japanese prosecutors have decided to investigate at 10 different locations. Furthermore, their investigation will also cover the head office of Olympus. Surprisingly, Tsuyoshi Kikukawa the former president of Olympus is also going to be investigated by the authorities. Last month, Kikukawa told the investment panel that he was unaware of the scandal and only heard about it recently. The shares of the company have declined by almost half since Woodford revealed the problems in accounting system. He said that the management team is full of corrupt officials. Woodford said that he needs positive support from share holders and stock holders in order to remove the corrupt officials.

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