Renault SA has shown its intention to approve a new administration system that Nissan Motor Co. plans to propose at its shareholders meeting slated for Tuesday, it has been learned.
Nissan's largest shareholder Renault had expressed dissatisfaction with personnel management under the new administration system, and intended to abstain from voting.
Nissan and Renault, however, will likely end up compromising as the Japanese automaker made some concessions, according to sources.
The two companies are now in the final stages of getting things into shape, and thus the planned new administration will highly likely be approved, they said.
Reflecting on Nissan's failure to deal with misconduct by former Chairman Carlos Ghosn, the company has planned to submit a proposal to the shareholders meeting to transform itself into a "firm with a governance structure of nominating and other statutory committees" that clearly separate business execution and oversight of management.
Should the proposal be approved, three committees on nomination, remuneration and audit will be established to decide personnel matters and remuneration of board directors.
According to the sources, Nissan initially suggested appointing only Renault Chairman Jean-Dominique Senard as a member of the nomination committee, but Renault demanded more posts in the committees.
As part of a concession plan, Nissan suggested that Renault add Chief Executive Officer Thierry Bollore for membership on the audit committee, and this was accepted by the French automaker, they said.
Yet the two firms are still making the final adjustment as Renault has presented a new plan to set up another new committee, in addition to the three committees, and appoint a Renault member to that committee as well, according to the sources.
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