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Regular-article-logo Thursday, 25 April 2024

Nissan dumps Carlos Ghosn

The shareholders voted to remove both Ghosn and co-accused Greg Kelly from Nissan’s board of directors

Reuters Tokyo Published 08.04.19, 07:31 PM
Former Nissan Motor Co. President and CEO Carlos Ghosn

Former Nissan Motor Co. President and CEO Carlos Ghosn (AP file picture)

Nissan Motor Co shareholders ousted Carlos Ghosn as a director on Monday, severing his last tie with the Japanese auto maker he rescued from near-bankruptcy two decades ago and from which he is now accused of siphoning funds.

Days after Ghosn’s latest arrest in Tokyo, shareholders gathered for an extraordinary meeting, expressing bafflement and disquiet about growing allegations of financial misconduct laid out before them — while seeking more clarity on how Nissan plans to recover from the scandal.

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Meeting shareholders for the first time since Ghosn’s initial arrest in November, Nissan chief executive Hiroto Saikawa and Jean-Dominique Senard, the chairman of its alliance partner Renault, said they needed to focus on collaboration and improving governance at the Japanese company. But they offered few concrete details about the way forward.

“I can’t comprehend how this could have happened, despite having auditors,” said Setsuko Shibata, a retired home maker who said her family had held Nissan shares for decades. “I can’t say I feel better about the situation after today’s explanation.”

Ghosn has denied all the allegations against him and said he is the victim of a boardroom coup.

Proceedings were at times interrupted by some hecklers on the floor of the meeting, which was attended by a near record-high 4,100 shareholders.

The shareholders voted to remove both Ghosn and co-accused Greg Kelly from Nissan’s board of directors. Kelly has also denied the charges against him. They also voted in Senard as a director, a move that was widely seen as an attempt to assuage concern about the future of the Nissan-Renault automaking alliance engineered by Ghosn.

Prosecutors last week took the highly unusual step of re-arresting Ghosn — who had been out on a $9 million bail — returning him to the Tokyo detention centre where he had previously spent more than 100 days. Under the latest allegations, he is suspected of trying to enrich himself to the tune of $5 million at the auto maker’s expense.

Ghosn’s lawyers called the arrest an attempt to muzzle him. He was due to speak at a news conference this week, but instead a video statement from him will be shown on Tuesday at the Foreign Correspondents’ Club of Japan (FCCJ), the FCCJ said on its website.

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