Over the last 3 days, Nissan has been in the spotlight after their Chairman, Carlos Ghosn, was apprehended by Japanese authorities.
Now the logical conclusion has come to pass.
At an emergency board meeting held today Nissan's global headquarters in Yokohama, the Japanese automaker has decided to dismiss Carlos Ghosn from his position as Chairman of the Board. His close associate and representative board member Greg Kelly, was also voted out.
Ghosn was arrested in Japan on Monday on charges of under-reported compensation nearly JPY 5 billion in over 10 years in a scheme allegedly masterminded by Kelly, who was also arrested.
According to Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, Ghosn is still in detention after the Tokyo District Court approved detaining him for 10 days. This is according to a report by The Asahi Shimbun.
Kukimoto also said that Ghosn is being held at the Tokyo Detention Center and that the Tokyo District Court on Wednesday approved detaining Ghosn for 10 days.
The Nissan board is officially composed of 9 members, Ghosn and Kelly included. With their absence, only 7 members met to make the vote. President and CEO Hiroto Saikawa presided over the special board meeting. Other members of the board are: Hideyuki Sakamoto, Toshiyuki Shiga, Jean-Baptiste Duzan, Bernard Rey, former race driver Keiko Ihara and Professor Masakazu Toyoda (a former bureaucrat, not related to the Toyota family). A majority vote was all it took to remove them from their posts, but a shareholders vote is required to officially remove to two from the board of directors.
The board affirmed that "the long-standing Alliance partnership with Renault remains unchanged and that the mission is to minimize the potential impact and confusion on the day-to-day cooperation among the Alliance partners."
The board also voted to approve two aspects:
"To study the creation of a special committee to appropriately take advice from an independent third party regarding the governance management system and better governance of director compensation. Further to the mandate, the three independent directors – Masakazu Toyoda, Keiko Ihara and Jean-Baptiste Duzan – will lead this matter.
To approve establishment of an advisory committee chaired by Masakazu Toyoda and including Keiko Ihara and Jean-Baptiste Duzan. The committee will propose nominations from the board of directors for the position of Chairman of the Board."
Nissan has since decided to remove Ghosn from his chairmanship in its 'Executives' section.
The Mitsubishi Motors board will convene next week to decide on the fate of Ghosn, who also sits on its board as Chairman.