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All Nine Nissan directors vote to fire Chairman Carlos Ghosn after arrest

All Nine Nissan directors vote to fire Chairman Carlos Ghosn after arrest

Japanese automaker Nissan’s nine-member board voted unanimously to remove Carlos Ghosn as Chairman after he was arrested on suspicion of financial misconduct on Monday. An internal investigation revealed that Ghosn understated his compensation over 5 years, and used company assets for his personal use. Nissan added that its alliance with Renault, where Ghosn is Chairman and CEO, remains unchanged.

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In an hours-long meeting, the company’s board of directors voted unanimously to dismiss Ghosn as chairman and as a representative director, Nissan said in a statement. It said its own internal investigation, prompted by a whistleblower, found serious misconduct including under-reporting of his income and misuse of company assets.

It was a stunning downfall for one of the biggest figures in the auto industry, a man who helped drive turnarounds at both France’s Renault SA and at Nissan and then managed an alliance between them that sold 10.6 million cars last year, besting its rivals.

Nissan said in a statement filed to the Tokyo Stock Exchange that its investigation uncovered misuse of company investment funds and expense money for personal gain.

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Earlier this week, Renault voted to keep Ghosn as its chief executive but appointed Thierry Bollore, its chief operating officer, as its interim chief.

Another Nissan executive, Greg Kelly, was arrested on suspicion of collaborating in the wrongdoing and also will be dismissed as a representative director, Nissan said. Their replacements will be decided later, it said.

Ghosn, 64, is suspected of under-reporting $44.6 million in income from 2011 to 2015, according to Tokyo prosecutors.

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Aditya Singh

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