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2 Nikko Cordial executives to resign over accounting scandal

2 Nikko Cordial executives to resign over accounting scandal

Japanese brokerage Nikko Cordial Corp. said on Monday its two most senior executives will resign over alleged accounting irregularities.
The company, Japan's third largest brokerage house by revenue, said President Junichi Arimura and Chairman Masashi Kaneko will resign effective Tuesday.
The company has tapped director Shoji Kuwashima as the new president.
Last week, Japan's financial watchdog recommended a 500 million yen fine (US$4.21 million; euro3.19 million) against the company for allegedly padding profits. The amount was reportedly the largest fine in Japanese corporate history.
The recommendation came after an announcement by Nikko Cordial that it will correct earnings for fiscal 2004 and 2005, as inappropriate booking of proceeds from derivatives trading helped inflate its earnings.
The accounting irregularities stemmed from the issue of exchangeable bonds to Nikko Principal Investment Japan Ltd., a Nikko Cordial subsidiary, in 2004 and the August 2004 purchase of telecommunications company Bellsystem24 Inc. by Nikko Principal Investments Japan.
The Tokyo Stock Exchange has placed shares of Nikko Cordial on its supervisory list for review until the bourse finishes examining a correction in the company's financial statement and decides whether it violated listing rules.


Updated : 2020-12-05 22:59 GMT+08:00