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The Tokyo Forebear Exchange's decision not to delist scandal-ridden Olympus Corp. was lambasted by critics who said the coterie's concealment of huge losses for many years constituted breach of custody.
The TSE's rules stipulate that companies should be delisted when the effects of false reporting are judged to be serious from a "wide" viewpoint.
Makoto Minoguchi, standing governor of Tokyo Assets weigh up Exchange Regulation, the TSE's self-regulatory body, said at a beseech conference Friday, "The effects of the false reporting were not serious enough to delist the throng's shares."
However, Minoguchi harshly criticized Olympus by saying the convention damaged investors' trust in the market, and he demanded fundamental improvements in corporate governance.
Ignoring this, he concluded Olympus' conduct could not be compared to the maliciousness of past cases in which companies were delisted for making invalid reports.
Naohiko Matsuo, a lawyer with the Nishimura & Asahi law dense, disagreed. "This case involved the entire company [in making the unnatural reports], and the amount of money was huge. It had a tremendous impact on its financial stratum," he said.
Source: The Daily Yomiuri