Corp. shares fell to their lowest in a decade after an outside committee concluded that founder Shigenobu Nagamori and other current or former executives bear civil liability for damages linked to years of improper accounting.

The finding, which was submitted to the board last week, deepens a crisis that has prompted the motor maker’s biggest shareholder to call for a review of privatization options. Nidec plans to publish a partially redacted version of the report on Tuesday.

While the announcement marks a break with Nidec’s founder-dominated past, it also raises questions over whether the company’s cleanup effort still has a long way to go. The manufacturer is seeking to regain auditor approval and convince the Tokyo Stock Exchange that its internal controls have been repaired. At the same time, newly appointed Chief Executive Officer Michio Kaida needs to restructure loss-making businesses and respond to activist pressure.

Nidec shares fell as much as 2.8% in early morning trading in Tokyo, to their lowest since 2016. The stock has lost more than a third of its value since late September, when Nidec announced the sudden exit of Mitsuya Kishida as CEO. The motor manufacturer now has a market value of ¥2.1 trillion, compared with almost ¥9 trillion less than six years ago.

Nidec said it recognized that multiple directors and other executives violated corporate laws and regulations while carrying out their duties and would consider claims for damages and other legal measures, then respond swiftly. The committee said the amount of any damages should be determined according to each person’s contribution.

Apart from Nagamori, the report on Friday named former CEOs Jun Seki and Kishida, former Chairman Hiroshi Kobe, former President Hiroyuki Yoshimoto and former Senior Vice President Akira Sato. Kazuya Murakami, identified by the committee as one of those bearing liability, was listed as the company’s chief legal officer and head of compliance as of Oct. 1. Nidec confirmed that he was still employed at the company.

The scope of any damages to be claimed should be determined according to their degree of contribution, Nidec said in the statement. The latest finding could help Kaida demonstrate that Nidec’s board is willing to hold its former leaders accountable.

Nidec has been designated a security on special alert since October 2025 because of the need to improve its internal management system. Accounting auditor PwC Japan withheld its opinion on the accounts after saying it was unable to obtain sufficient and appropriate evidence. The company is seeking to obtain the auditor’s signoff and submit a report to the exchange by Oct. 28 as it seeks to avoid a delisting notice.

Oasis Management Co. disclosed last week that its stake in Nidec had risen to 9%, making it the largest disclosed shareholder and placing it ahead of Nagamori’s direct holding. Oasis founder Seth Fischer has urged Nidec’s outside directors to hire financial advisers and seek preliminary, nonbinding proposals as protection against an unintended delisting.

Nagamori built Nidec through decades of aggressive acquisitions and a high-pressure operating culture, but struggled to hand over control. Yoshimoto and Seki were each tapped as potential successors before leaving, while Nagamori retained influence over the company. He relinquished his last formal title in February but remains one of Nidec’s largest shareholders.

The accounting fallout has devastated Nidec’s finances. It reported a ¥519 billion operating loss for the year ended March after recording a ¥632 billion impairment. The company forecast a return to ¥200 billion in profit on ¥2.8 trillion of sales in the current fiscal year.

The legal claims and ongoing uncertainty over the accounts and a potential delisting may also complicate a sale of the company. Any buyer would have to assess the legal claims, audit questions and whether Nagamori, who remains a major shareholder, would support any transaction.