Police on Wednesday arrested three senior Sumikura Industrial Co. officials on suspicion of paying 5 million yen to three shareholders to ensure a June 2000 shareholders' meeting was not disrupted by racketeers.
The shareholders who received the money were also arrested on suspicion of violating the Commercial Code, the police said.
The Sumikura officials arrested are company president Hajime Oshima, 43, former Sumikura president Tetsuo Takemori, 60, and Osamu Ozumi, 60, head of the company's general affairs section. Sumikura is a Tokyo-based metal-working machinery maker.
The arrested shareholders, including Satoshi Doi, 41, who heads a management consulting firm, received the money in exchange for preventing "sokaiya" corporate racketeers from disrupting the event, police sources said. Sokaiya are professional blackmailers who typically threaten to disturb shareholder gatherings or embarrass management.
Oshima became the largest shareholder in Sumikura in 2000 after investing 700 million yen in 5 million shares allocated to third parties. He assumed the presidency at the general shareholders' meeting that year.
Sources close to the case said a conflict over Oshima becoming president may have prompted some within the firm to seek help from sokaiya. Some gangsters in Hiroshima Prefecture objected to the new share allocation, charging that the share price at the time of the transaction was inappropriately low, they said.
The June 2000 Sumikura shareholders' meeting was attended by more than 10 sokaiya suspected of having been contacted by Doi and the two other shareholders.
Prior to his arrest, Oshima told Kyodo News: "I understand my acts conflicted with the Commercial Code. I realize my responsibility, and I am prepared for arrest."
Former officers in the Metropolitan Police Department and the Kanagawa Prefectural Police were arrested in October on suspicion of demanding money from Sumikura to ensure a shareholders' meeting went smoothly.