HomeInsideNissan shareholders eject Carlos Ghosn from the board

Nissan shareholders eject Carlos Ghosn from the board

Reader's Pick

Nissan shareholders voted on April 8 to eject Carlos Ghosn from the board, as the detained former chairman fights multiple financial misconduct charges that have landed him in custody.

The extraordinary shareholders’ meeting at a Tokyo hotel was the first such gathering since the stunning arrest of the 65-year-old auto sector titan on November 19.

And its vote to remove Ghosn brings an end to the auto tycoon’s storied tenure at the firm, which he was once credited with having rescued.

The meeting also saw shareholders vote to remove Greg Kelly, a US executive who served as Ghosn’s right-hand man and who also faces charges in Japan, and approve a motion to replace Ghosn with Renault chairman Jean-Dominique Senard.

- Advertisement -

Nissan sacked Ghosn as chairman almost immediately after his initial arrest but an extraordinary meeting of shareholders was required to remove him from the board.

Nissan CEO Hiroto Saikawa and other top executives opened the meeting by offering a deep bow to thousands of shareholders.

Saikawa outlined the allegations against his former mentor, accusing him of misusing funds and seeking to conceal his compensation.

“Nissan expresses its deepest regret for any concern caused by the misconduct to our shareholders,” he said.

- Advertisement -

“We have to admit that there was a significant problem with our corporate governance,” he added, saying he had been “extremely shocked” when he learned of the misconduct.

Nearly 4,200 shareholders attended the meeting, with many taking the chance of a question-and-answer session to slam Ghosn but also raise concerns about how the scandal was allowed to occur.

“Nissan’s governance isn’t working well. I really regret that,” 77-year-old shareholder Isamu Beppu told AFP before the meeting.

“If there is no rebuilding of its governance, there will be no revival,” he added.

Ghosn faces three separate charges. The first two relate to the alleged deferring of around $80 million in income and concealing this in official documents to shareholders.

The third, more complex, charge is that he attempted to transfer personal losses to Nissan and paid a Saudi contact who provided collateral from company funds.

Last week, prosecutors rearrested Ghosn, who was out on bail, over an additional allegation that he transferred Nissan money to a dealership in Oman but siphoned off millions for personal expenses — including the purchase of a luxury yacht.

- Advertisement -

Prosecutors believe Ghosn moved Nissan funds totalling $15 million between late 2015 and the middle of 2018 and used $5 million of that for his own ends.

On Friday, the Tokyo District Court ruled that prosecutors could have until at least April 14 to interrogate Ghosn, who denies any wrongdoing.

This period can be extended for a further 10 days if the court allows, meaning Ghosn is unlikely to be released any time soon. And prosecutors could still announce additional allegations.

Ghosn’s wife Carole, who had been living with him in Tokyo while he was out on bail, told a newspaper on the weekend that she had fled Japan with the help of the French ambassador because she “felt in danger” after her husband’s rearrest.

Japanese prosecutors reportedly wanted to question her on a voluntary basis and are looking into claims that Ghosn routed suspicious funds transfers through a business run by his wife.

Ghosn’s rearrest on April 4 came less than a month after he dramatically won bail, paying around $9 million to secure his release.

He had kept tight-lipped during his bail period and was subject to restrictions on his contacts with others connected with the case, and his online communications. He was also banned from leaving the country.

Just before his rearrest, Ghosn had appeared on Twitter to announce a news conference for April 11.

Instead, his lawyers are to hold a briefing on April 9 and play a video Ghosn recorded before his latest arrest.

Ghosn also gave a combative interview to France’s TF1 television channel before he was detained, where he denounced a Nissan “plot” against him and voiced fears he might not receive a fair trial.

“It’s obvious it’s a plot,” said Ghosn, adding: “Everything needs to be put on the table. Of course, I have names.” “Some of them you have seen in the press, but there are others that haven’t been in the press,” he said.

He said his downfall was orchestrated by people scared of closer integration between Nissan and its French partner Renault.

The other reason for the “plot” was the “deterioration in Nissan’s performance for two years,” he charged.

close

Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.

close

Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.
 

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($2...

Sino-US trade war offers Europe’s chance to bank more Chinese reserves: Analysis

Should European countries want the euro to replace the dollar as the world's do...

1Win App: Review India Apk for Android and iOS

The company 1Win has been successfully operating in the markets of many countri...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sou...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the firs...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rah...

NASA astronauts to carry first ever all-female spacewalk on 29 March

Two NASA astronauts are scheduled to carry out the first ever all-female spacew...

How AI Is Crucial For Business Strategy Management

There is no doubt that AI has been reshaping the business strategies world over...

Feeding India through Ads: A TechGraph Campaign to feed India

As the second wave of Coronavirus (COVID-19) has affected millions of families ...

In Conversation With Kavita Shenoy, Founder & CEO of Voiro

Speaking to TechGraph’s Editorial team, Kavita Shenoy, Founder & CEO of Voi...