Company's chief executive resigns over $1.2bn profit scandal

Sources say he will be succeeded by chairman Masashi Muromachi, with vice-chairman Norio Sasaki also stepping down.

Toshiba is one of the largest tech conglomerates in the world

According to various reports, Toshiba's chief executive and president Hisao Tanaka is to resign after the company said it had overstated its profits for the past six years.

Sources say he will be succeeded by chairman Masashi Muromachi, with vice-chairman Norio Sasaki also stepping down.

On Monday, an independent panel appointed by Toshiba said the firm had overstated its operating profit by a total of 151.8bn yen ($1.22bn, £780m), according to media reports.

The overstatement was roughly triple the original Toshiba estimate.

The Japanese finance minister, Taro Aso, said the case could undermine confidence in corporate governance in Japan. He added the accounting irregularities at Toshiba were "very regrettable".

According to sources, Japan's government has been trying to regain global investors' confidence with better corporate governance after Olympus, was found to have covered up $1.7bn in losses in late 2011, in what was until now Japan's worst corporate governance scandal.

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