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Saturday, Feb. 25, 2006
Hiramatsu: Horie finished at Livedoor
Livedoor Co. President Kozo Hiramatsu said Friday that the firm will not let founder and former President Takafumi Horie rejoin the company even if he is acquitted of charges that he spread false financial information and allegations he committed accounting fraud.
"It will forever be true that (Horie) caused chaos in society," Hiramatsu told the Japan National Press Club. "However the court rules on (Horie) in the future, he will never be allowed to return to this company."
Hiramatsu said he would take the empty director's spot if named and approved by the shareholders.
He said the troubled Internet company has begun procedures for the court to appoint a provisional director to replace Fumito Kumagai, who was arrested Wednesday for alleged accounting fraud.
The court procedures, being handled by Livedoor lawyers, is expected to take one or two months to choose a director, meaning Kumagai probably will be replaced before Livedoor holds its general shareholders' meeting to be held by the end of June.
"When the court selects a director, Kumagai will be replaced," Hiramatsu said.
Kumagai was arrested Wednesday and four other former Livedoor executives, including Horie, were served fresh warrants for alleged accounting fraud.
According to the Commercial Law, a corporation needs to have at least three directors. After Representative Director Kumagai was arrested, Livedoor replaced Kumagai as representative director with Noriyuki Yamazaki.
Hiramatsu said Livedoor wants to appoint one or more directors from outside the company and map out ethics guidelines.