Nissan Shareholders Formally Remove Carlos Ghosn From Its Board

Former chairman of Japanese car maker Nissan Carlos Ghosn, currently under arrest in Japan on charges of financial misconduct for a second time, has now been officially removed from the board of the company following a voting for the in favour of the motion by shareholders during an extraordinary shareholder meeting called by the company for this purpose. The meeting was called for and held on Monday and the proposal for the ouster of Ghosn form the board was reportedly made by the company.

Last week, after being out on bail for a short period, Ghosn was re-arrested in Tokyo. He is still facing case hearing in relation to other financial misappropriation charges for which he was arrested on November 19 last year and remained behind bars for more than three months. Shortly after he was first detained in November, the Japanese car maker had removed him as the chairman of the company.

In Monday’s meeting, Ghosn’s former right-hand man Greg Kelly was also voted out of the board by shareholders while they also voted in the affirmative to appoint to appoint Renault chairman Jean-Dominique Senard as a director to the board of the company .

There has been global attention to the manner of Ghosn’s arrest and his consequent fall from grace.

The largest and the very strong alliance in the auto industry between Nissan and French auto major Renault was created and forged by Ghosn. He later on also brought into the alliance Mitsubishi in 2016. Ghosn was also the architect of a historic turnaround of Nissan from the brink of bankruptcy as well as Renault some years ago.

The initial charges brought by Japanese prosecutors at the behest of Nissan included a number of charges of financial misconduct and breach of trust. The latest arrest of Ghosn is in connection to alleged transactions of funds form Nissan to the tune of $15m between 2015 and 2018 allegedly to an entity in the Middle East that was controlled by Ghosn. The prosecutors alleged that the amount had ultimately gone to Ghosn and used for his personal expenditure.

There had been previous news reports in Japan which hinted at a new case was being made by Japanese prosecutors against Ghosn about alleged payments to a dealership in Oman.

All of the allegations and charges brought against him have been repeatedly denied by Ghosn and he called his latest arrest to be “outrageous and arbitrary.” It almost unheard of to re-arrest someone after being released on bail, his lawyer said.

The first charge brought against Ghosn was related to him under reporting his pay package for the five years to 2015. Prosecutors filed a fresh charge in January in which they alleged that Ghosn had understated his compensation for another three years. He was also indicted on a new, more serious charge of breach of trust

(Adapted form BBC.com)

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