Daio Paper Corp. plans to commit up to 10 billion yen ($129 million) by March to buy up stock held by the founding family as a means of reducing its influence over company matters.
Mototaka Ikawa, the former chairman, was arrested in November on suspicion of aggravated breach of trust for borrowing billions of yen from group companies to pay off gambling debts.
The Ikawa family owns stock in 35 Daio Paper group companies and its influence over those subsidiaries was considered a major reason the loans were made without proper approval.
Daio Paper established a special investigative committee to look into the massive loans. (Asahi)
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