Nissan Motor Co. held an extraordinary board of directors meeting on Thursday to dismiss Representative Director and Chairman Carlos Ghosn, who has been arrested on suspicion of violating the Financial Instruments and Exchange Law.
The move is aimed at extricating Nissan from the 19-year "Ghosn regime" and improving its corporate governance.
The board of directors is also expected to relieve Representative Director Greg Kelly, 62, who was arrested along with Ghosn on Monday. Nissan will also consider holding an extraordinary shareholders meeting to oust the two suspects from the board of directors and select new board members.
Nissan is slated to decide as early as Thursday to establish a third-party investigative committee that will include outside directors and lawyers. The committee will study ways to prevent the recurrence of similar misconduct by examining, among other things, how power was concentrated in the 64-year-old chairman and why the company's internal checks failed to function.
Based on its internal investigation, Nissan alleges that Ghosn underreported his executive compensation and misused corporate investment funds and expenses for personal purposes, and that Kelly was also deeply involved in the misconduct.
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