One of automobile industry’s
most powerful leaders, Carlos Ghosn of Renault-Nissan-Mitsubishi Alliance was arrested
by the authorities in Japan on November 19, 2018.
Nissan, in a press release stated
that based on a whistleblower report, Nissan Motor Co., Ltd. has been
conducting an internal investigation over the past several months regarding
misconduct involving the company’s Representative Director and Chairman Carlos
Ghosn and Representative Director Greg Kelly.
“The investigation showed that
over many years, both Ghosn and Kelly have been reporting compensation amounts
in the Tokyo Stock Exchange securities report that were less than the actual
amounts, in order to reduce the disclosed amount of Ghosn’s compensation.
“Also, with regard to Ghosn,
numerous other significant acts of misconduct have been uncovered, such as
personal use of company assets, and Kelly’s deep involvement has also been
confirmed,” the release said.
Meanwhile, Nissan has been
providing information to the Japanese Public Prosecutors Office and has been
fully cooperating with its investigation. The company said it will continue to
do so. The release further added that since the misconduct uncovered through the
company’s internal investigation constitutes clear violations of director duty
of care, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the
Nissan Board of Directors to promptly remove Ghosn from his positions as
chairman and representative director. Saikawa will also propose the removal of
Kelly from his position as representative director.
“Nissan deeply apologizes for
causing great concern to its shareholders and stakeholders. Nissan will
continue its work to identify governance and compliance issues, and to take
appropriate measures,” the statement concluded.