(Bloomberg) -- Toshiba Corp. shareholders rejected another term for Chairman of the Board Osamu Nagayama, a surprise decision that’s likely to stoke more turmoil within the 145-year-old Japanese conglomerate.

The departure of Nagayama, the 74-year-old outside director some investors opposed publicly, came after a contentious meeting with shareholders that extended for nearly three hours. It could sow more confusion at the fading nuclear energy to electronics conglomerate. The Japanese company is faced with another crisis after a report from lawyers appointed by largest shareholder Effissimo Capital Management Pte. alleged collusion with top government officials to influence last year’s board selection.

Nagayama, a former chairman of Chugai Pharmaceutical Co. who also served as an outside director for Sony Group Corp., has said repeatedly his wish is to take responsibility by resolving the crisis. He’ll depart the board after Nobuaki Kurumatani, the former chief executive officer who had been tough in confronting outside investors, left earlier amid rising pressure.

Toshiba will also start looking for candidates to fill other vacant seats on the board. It decided against nominating two current board members after the lawyers’ report.

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