Nissan Motor Co shareholders yesterday voted 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 automotive sector titan on Nov. 19 last year.
The shareholders’ vote to remove Ghosn brings an end to the automotive 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 SA chairman Jean-Dominique Senard.
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.
“We have to admit that there was a significant problem with our corporate governance,” he said, adding that he had been “extremely shocked” when he learned of the misconduct.
Nearly 4,200 shareholders attended the meeting, with many taking the opportunity of a question-and-answer session to slam Ghosn, but also to 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 said before the meeting. “If there is no rebuilding of its governance, there will be no revival.”
Ghosn faces three separate charges: The first two relate to the alleged deferring of about US$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.
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