Nissan shareholders vote to remove Carlos Ghosn from board

Shareholders at Nissan voted on Monday at an extraordinary meeting to remove former chief Carlos Ghosn from the company's board as he battles multiple charges of financial misconduct.

The shareholders meeting also voted to remove Ghosn's former right-hand man Greg Kelly, who also faces charges, from the board, and to appoint Renault chairman Jean-Dominique Senard as director.
Renault owns 43 percent of Nissan.

Nissan's top executive apologised to its shareholders for the unfolding scandal at the Japanese automaker before asking them to approve removal of former chairman Ghosn from its board.
Chief Executive Hiroto Saikawa and other Nissan Motor Co. 

executives bowed deeply in apology to shareholders attending the extraordinary meeting at a Tokyo hotel.

Angry shareholders demanded an explanation for how wrongdoing on an allegedly massive scale had gone unchecked for years. The meeting was closed except to stockholders but livestreamed.

One shareholder said Nissan's entire management should resign immediately. Saikawa said he felt his responsibility lay in fixing the shoddy corporate governance at Nissan first, and continuing to lead its operations. 

Another shareholder asked if Nissan was prepared for a damage lawsuit from shareholders since its stock price has plunged.

"I deeply, deeply apologize for all the worries and troubles we have caused," Saikawa said. "This is an unprecedented and unbelievable misconduct by a top executive."

He outlined the findings of an internal investigation, such as payments of a consultation fee to Ghosn's sister for 13 years. The investigation has also found too much power had been focused in one person, he said.

Ken Miyamoto, 65, a Nissan shareholder, said he was disappointed.

"It is really such a pity as he was a brilliant manager," Miyamoto said of Ghosn before heading into the meeting.

"I guess he became complacent as people kept praising him too much."

Ghosn says he is innocent of all allegations and has suggested the accusations were made by some people at Nissan hoping to remove him from power.

He has been charged with under-reporting his compensation in financial documents, and with breach of trust in having Nissan shoulder investment losses and making suspect payments to a Saudi businessman. 

Ghosn says the compensation was never decided on or paid, no investment losses were suffered by Nissan, and the payments were for legitimate services.

Ghosn was arrested in November, released on bail in early March and then re-arrested for a fourth time last week. The latest arrest was in connection with fresh allegations that $5 million sent by a Nissan Motor Co. subsidiary and meant for an Oman dealership was diverted to a company effectively controlled by Ghosn.

His detention on that allegation has been approved through April 14 but could be extended. The date of his trial has not been set.

Yokohama-based Nissan, which makes the Leaf electric ca r, March subcompact and Infiniti luxury models, was on the brink of bankruptcy when Renault sent Ghosn to turn it around two decades ago.

The Renault-Nissan-Mitsubishi Motors alliance now rivals auto giants Volkswagen AG of Germany and Japanese rival Toyota Motor Corp. in global sales.

Saikawa told shareholders the company will stick by the alliance, fix its governance problems and make the ouster of Ghosn "a turning point."

"We had allowed a system in which wrongdoing could be carried out without detection," he said.