U.S. activist fund Dalton Investments and its affiliate on February 3 demanded Fuji Television Executive Managing Advisor Hieda Hisashi step down over the network’s response to a scandal involving former TV star Nakai Masahiro.

The letter said that “Hieda retains absolute control and influence over the Board of Fuji Media Holdings” and that its governance is “completely dysfunctional.”

It criticized that a “single dictator” being “allowed to control this vast broadcasting group” for 40 years “beggars belief,” and that FMH must have a new board that has a majority of independent directors. 

S/Saito Kiyoto, outside member of the board at Fuji Media Holdings / Following yesterday’s subcommittee meeting, we will compile measures and perhaps make a concrete proposal today.

Hieda, who was an influential figure in shaping Fuji TV's corporate culture, was absent from the 10-hour news conference that was held on January 27.

Dalton Investments and its affiliate hold over 7 percent of Fuji's stock.

Fuji TV’s committee for management reform plans to compile a proposal on how to create a new governance structure and ensure transparency in personnel matters.

The proposals will be discussed at an extraordinary meeting of the board of directors next week.