The firm had overstated their operating profits, claiming that they made 151.8bn yen ($1.22 billion). This amount ended up being triple of what Toshiba later estimated their profits to be.
The Japanese corporate culture has strong roots in the art of Kabuki, or public contrition. While speaking at a news conference at the company’s headquarters in Tokyo, Tanaka said, “We are taking what has happened very seriously and we would like to apologize from our hearts, starting with the shareholders and all the stakeholders.” This statement was followed by the act of plunging into a deep bow.
The resignation was overseen by eight board members including the vice chairman Norio Sasaki.
Shares for Toshiba have dropped 20% since early this April when the accounting issues arose.