TOKYO -- With company-appointed outside investigators digging up dirt on management's responsibility for inappropriate accounting at Toshiba, more than half of the electronics giant's directors will likely step down.

President Hisao Tanaka and Vice Chairman Norio Sasaki are among those fingered by a third-party investigative committee led by attorney Koichi Ueda, a former superintending prosecutor in the Tokyo High Public Prosecutors Office.

The panel has already found that Tanaka and predecessor Sasaki had effectively instructed subordinates to delay booking losses in the infrastructure business and that the audit committee did an inadequate job of identifying and preventing problems. Former Corporate Senior Executive Vice President Makoto Kubo, who chairs the audit committee, will likely be held accountable as well.

The investigators are also looking at business segments' leaders, who did not address the problems themselves.

The committee will soon compile a report highlighting how management failed in its oversight responsibilities and turned corporate governance into a mere formality.

To prevent a recurrence, Toshiba will revamp its board at a special shareholders meeting in September. More than half of the 16 members are seen leaving. The board itself may also shrink, with outside directors increasing from just four to a majority for greater objectivity.

(Nikkei)