SoftBank panel absolves Nikesh Arora of 'share demand' charge

Committee says claims against Arora's conduct during the tenure hold no merit

SoftBank Group today announced that a Special Committee of independent members of its Board of Directors has completed its review of allegations regarding SBG President and Chief Operating Officer Nikesh Arora in a purported shareholder demand. The Special Committee has concluded that the claims concerning the conduct of Arora during his tenure at SBG are without merit.

The allegations had been raised in a number of letters from a law firm which claimed to represent the interests of certain unidentified SBG and Sprint Corporation shareholders. The Special Committee was formed in February of this year. It conducted its review with the assistance of independent counsel at Shearman & Sterling LLP and Anderson Mori & Tomotsune.

A group of investors in a critical letter had asked the board to dismiss Arora and also questioned his track record and qualification to become the second highest authority at the Japanese firm. Billionaire and founder Masayoshi Son had also in the recent past hinted that he could well succeed him.

“As I said when these allegations first became public, I have complete trust in Nikesh and I am pleased the special committee has looked into these claims thoroughly and concluded they are without merit,” said Masayoshi Son, CEO, SoftBank.

SoftBank's investment in India had crossed $1 billion mark and it also stated that its investment in the country could cross $10 billion in the coming years. The company has invested in e-commerce players such as Snapdeal, Ola Cabs, Housing.com and Oyo Rooms.