Shareholders enter the venue of a shareholders meeting of Rental apartment operator Leopalace21 Corp. on June 27, 2019, in Tokyo. (Kyodo)

Scandal-hit property firm Leopalace21 shakes up management

Harvi
Politics & Economic
News Flash Japan
Jun 27, 2019
2475
TOKYO - Rental apartment operator Leopalace21 Corp. reshuffled its management Thursday after defective construction work was found at more than 16,000 of its apartments.
While all three external directors remain on the board, seven of the other eight -- including Eisei Miyama who stepped down as president in May -- quit, as shareholders approved the management reform at the annual meeting.

The number of board members was cut from 11 to 10, of which five are now from outside.

"I sincerely apologize to everyone, especially to (apartment) owners and residents for causing worry and trouble," Bunya Miyao, appointed president in May, said at the outset of the meeting in Tokyo, referring to the scandal which came to light in spring last year. Miyao's appointment as president was approved by the shareholders.

The company has been repairing the faulty apartments, which had been built with inappropriate materials for more than a decade.

Miyao, promoted from managing executive officer, is the only board member -- other than the external directors -- reappointed.

After discovering defects in some 200 apartments in spring last year, the company launched an investigation into all 39,000. More than 16,000 were deemed structurally defective as of May this year, forcing some 14,000 residents to temporarily move out.

At the meeting, Miyama's appointment as a part-time advisor was also approved, though some shareholders voiced concern about the possibility of him continuing to influence management matters.

Miyama's uncle, Yusuke Miyama, founded Leopalace21 and led the company from 1973 to 2006.

Source: https://mainichi.jp/english/articles/20190627/p2g/00m/0bu/086000c

Business , Japan