Nissan Motor Co., responding to the shocking arrest of Chairman Carlos Ghosn, plans to reform its management setup, and is considering moving its shareholders meeting forward to remove both Ghosn and Representative Director Greg Kelly from their executive posts, sources said.
Nissan will hold an extraordinary meeting of its board of directors Thursday and propose the ousting of both Ghosn, who also holds a position as representative director, and Kelly as board members.
In order to remove them from their executive posts as well, it is necessary to hold a shareholders meeting to vote on the appointment of new directors.
The shareholders meeting would be brought forward from its originally scheduled date of June next year.
Nissan will soon set up an investigative committee, which will include outside experts and will be tasked with looking into the issue of corporate governance as it comes up with a new management structure.
Based on the investigation, the company will select new directors and search for ways to quickly rebuild its management, the sources said.
Currently, Ghosn, as chairman of the board, is in charge of setting the amount of compensation for board members based on three points: actual performance as a director, stipulations of their contract, and relative evaluation among directors.
Nissan will also likely review the validity of such a system for determining their pay.
Mitsubishi to dismiss Ghosn
Mitsubishi Motors Corp. plans to hold a board of directors meeting as early as next week in order to propose the dismissal of Ghosn as chairman of the board and representative director.
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