Nissan shareholders sack ex-chief Ghosn

Tuesday, 9 April 2019 00:00 - - {{hitsCtrl.values.hits}}

TOKYO, (AFP): Nissan shareholders voted Monday 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 auto sector titan on November 19.

And its vote to remove Ghosn brings an end to the auto tycoon’s storied tenure at the firm, which he was once credited with having rescued.

Former Nissan Chairman Carlos Ghosn

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 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 added, saying he had been “extremely shocked” when he learned of the misconduct.

Nearly 4,200 shareholders attended the meeting, with many taking the chance of a question-and-answer session to slam Ghosn but also 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 told AFP before the meeting.

“If there is no rebuilding of its governance, there will be no revival,” he added.

Ghosn faces three separate charges. The first two relate to the alleged deferring of around $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.