Japanese automaker Nissan’s board of directors on Thursday dismissed the company’s Chairperson Carlos Ghosn, days after he was arrested in Tokyo for allegedly under-reporting his earnings, Japanese broadcaster NHK reported. The board members also resolved to sack senior executive Greg Kelly on charges of financial misconduct.
Ghosn – a French citizen of Lebanese descent who was born in Brazil – had played a major role in the formation of a strategic partnership between Nissan, its French partner Renault and Mitsubishi Motors, BBC reported. He allegedly reported a compensation of 730 million yen for the 2017 financial year, much lower than the 1.1 billion yen he had reported the year before, the Japanese broadcaster had reported at the time of his arrest.
On Wednesday, Renault replaced Ghosn with a temporary deputy chief executive on the request of the French government, which holds 15% stake in the company, asked the automobile manufacturer to replace Ghosn. Mitsubishi Motors will meet next week to take a decision on Ghosn’s future, BBC reported.
Nissan was close to bankruptcy in 1999 when Ghosn joined as its chief operating officer from Renault. He became the company’s chief executive officer in 2001 and helped turn around its fortunes. He retired from the post last year but remained the chief executive and chairperson of Renault.
Menawhile, Japanese prosecutors secured a 10-day extension for Ghosn’s custody on Wednesday, AFP reported. Deputy Chief Prosecutor Shin Kukimoto said the executive is accused of “one of the most serious types of crime” under Japan’s Financial Instruments Act. He faces a 10-million-yen fine and a 10-year prison sentence, the prosecutor added.