Photo/Illutration The headquarters of Fuji Television Network Inc. in Tokyo (Asahi Shimbun file photo)

A major U.S. shareholder of Fuji Media Holdings Inc. demanded the resignation of Hisashi Hieda, saying the long-time executive is ultimately responsible for the series of problems plaguing the company’s broadcasting subsidiary.

The demand by Dalton Investments, a U.S. asset manager, was made in a letter dated Feb. 3 and sent to Fuji Media Holdings (FMH), parent company of Fuji Television Network Inc.

The letter said Hieda, 87, “retains absolute control and influence over the board of FMH and Fuji TV” and should be held accountable for the “dysfunctional” corporate governance at the company.

“Why has a single dictator been allowed to control this vast broadcasting group for nearly 40 years? It beggars belief!” the letter said.

Hieda, who has been a Fuji Television executive for about four decades, is currently an executive managing adviser to Fuji Television Network and FMH.

He also serves as a representative of the Fujisankei Communications Group.

This is the third letter sent to FMH by Dalton Investments, which is known as an activist shareholder, since a sex scandal involving former TV personality Masahiro Nakai was reported in December.

A Fuji Television employee was initially suspected to have been involved, but those reports have since been retracted.

However, Fuji Television’s initial news conference in response to the scandal was criticized as belated, vague and “closed.”

Corporate sponsors pulled their advertisements from the broadcaster, forcing it to take a more serious approach.

In the letter, Dalton Investments “thanked” Fuji Television for deciding to establish a third-party committee based on guidelines of the Japan Federation of Bar Associations and for holding a second news conference.

It noted that it was very disappointing that Hieda did not attend the second news conference.

To regain the trust of sponsors and viewers, the letter said Hieda must resign as a board director of both Fuji Television and FMH.

The letter noted that FMH is a huge corporation with many broadcasting stations under its umbrella. The letter emphasized that the principle of discouraging individual ownership of multiple media companies is intended to prevent a small number of specific people from controlling many broadcasters.

Dalton Investments also proposed that the majority of FMH board members be independent directors to promote further corporate governance reforms.

Dalton Investments, established in the United States in 1999, has been actively investing in Japanese stocks for more than 20 years.

In January, Dalton Investments held 7.19 percent of FMH’s shares.

It has called for a variety of reforms at FMH and has criticized Hieda’s long tenure as a director.

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