Nidec report blames Nagamori for systematic accounting failures

NIDEC

20/10/2026 12:18

TOKYO, Oct 20 (Reuters) - Nidec 6594.T founder Shigenobu Nagamori fostered a corporate culture that led to losses being deferred and improperly reflected in financial results, a board committee report found, as the electric motor maker seeks to avoid delisting.
The report said Nagamori breached his supervisory duties by failing to report suspected accounting misconduct at group companies to the board and auditors and seek the necessary investigations
Nagamori could not immediately be reached for comment
The report said a company culture that prioritised profit targets over proper accounting contributed to accounting failures, including delays in recognising losses, impairment charges and provisions
It concluded that Nagamori, former CEO Mitsuya Kishida and seven other current and former executives bore potential liability for damages under Japan's Companies Act and other laws
Kishida could not immediately be reached for comment
Nidec is seeking to regain auditor approval and show the Tokyo Stock Exchange that its internal controls have been repaired after accounting problems led auditor PwC Japan to withhold audit opinions on its financial statements
The Kyoto-based company said it received the report on October 16 and released a redacted version on Tuesday
It has already said it is considering damages claims and other legal action against Nagamori, Kishida and others named in the report

 (Reporting by Daniel Leussink. Editing by Mark Potter)
 ((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink;))