Nissan chairman Ghosn to be ousted for "serious misconduct", could face arrest

Carmaker Nissan said it would seek to remove its chairman Carlos Ghosn for “serious misconduct” following an internal probe into his conduct.

Ghosn, who is also chief executive and chairman of French automaker Renault, and representative director Greg Kelly have been under investigation for months following a whistleblower report concerning the reporting of his pay and bonuses.

READ: Aston Martin recovers some ground after post-results drop as two more brokers initiate coverage on the stock

“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 amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation,” Nissan said in a statement on Monday.

“Also, in regards 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.

“Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.”

The Japanese carmaker said its probe into Ghosn had revealed numerous other significant acts of misconduct, such as personal use of company assets, the maker of cars such as the Leaf, Micra and Qashqai said.

Nissan said it had been providing information to the Japanese Public Prosecutors Office and had been fully cooperating with their investigation. Press reports suggested that Ghosn could be arrested in Japan for violating financial trading laws.

“As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, 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,” Nissan’s statement added.

Ghosn, one of the most powerful executives in the auto industry, oversees the alliance between Nissan, Renault and Mitsubishi and has led recoveries at all three brands.

Renault shares hit their lowest level in more than four years on the news – down almost 15%. Trading in Nissan shares has already ceased for the day.

Story by ProactiveInvestors