Nidec shareholder seeks ¥5 billion suit against founder and eight executives

The company said it received the demand under Japan's Companies Act and will decide on possible claims after the Executive Responsibility Investigation Committee reviews alleged improper accounting.

Summary

Nidec Corporation said it has received a shareholder demand under Article 847, Paragraph 1 of the Companies Act seeking legal action over improper accounting, adding an official company response to a ¥5 billion claim previously disclosed by the shareholder's attorney against nine current and former executives including founder Shigenobu Nagamori and President Mitsuya Kishida. The company said its Executive Responsibility Investigation Committee, set up on March 13, 2026, will assess whether current and former directors, auditors and executive officers bear legal liability and whether claims for damages or other remedies should be pursued. If Nidec does not sue within 60 days, the shareholder can file a derivative lawsuit on the company's behalf. The dispute follows a third-party finding of multi-year improper accounting, including avoided impairment accounting on fixed assets, that reduced cumulative net profit by ¥160.7 billion.

Terms & Concepts
  • Companies Act: Japan's corporate law, including rules on director duties and shareholder lawsuits.
  • Derivative lawsuit: A lawsuit brought by a shareholder on behalf of a company against its executives or directors.
  • Impairment accounting: The requirement to write down an asset when its book value can no longer be justified.