Nidec shares fell to their lowest in a decade Monday after an outside committee concluded that founder Shigenobu Nagamori and other current or former executives bear civil liability for damages linked to years of improper accounting. The finding, which was submitted to the board last week, deepens a crisis that has prompted the motor maker’s biggest shareholder to call for a review of privatization options. Nidec plans to publish a partially redacted version of the report on Tuesday.
While the announcement marks a break with Nidec’s founder-dominated past, it also raises questions over whether the company’s cleanup effort still has a long way to go. The manufacturer is seeking to regain auditor approval and convince the Tokyo Stock Exchange that its internal controls have been repaired. At the same time, newly appointed CEO Michio Kaida needs to restructure loss-making businesses and respond to activist pressure.
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