Nissan board deciding Ghosn’s fate

Nissan’s board is meeting today to decide whether to remove Carlos Ghosn as chairman. He was arrested in Japan on allegations of financial misconduct and his custody period had been extended by a further 10 days.

The board is expected to confirm its decision to dismiss him from his post.

Nissan has accused him of ‘significant acts of misconduct’, including under-reporting his pay package and personal use of company assets. On Monday the firm said it had been conducting an internal investigation for several months.

Senior executive Greg Kelly, which Nissan accuses of having been ‘deeply involved’ in the misconduct, has also been arrested.

Prosecutors have said the two men conspired to understate Ghosn’s compensation, starting in 2010. He is accused of filing annual securities reports containing fake statements, which could mean up to 10 years in prison, or a fine of 10m yen, or both.

Broadcaster NHK has also reported that Nissan spent millions of dollars on luxury homes in four countries without legitimate business justifications.

Carlos Ghosn orchestrated the alliance of Nissan, Mitsubishi and Renault. Mitsubishi, like Nissan, has said it plans to remove him at chairman and CEO, while the French government, which has a 15% stake in Renault, has said he is ‘no longer in a position’ to head up Renault.

Nissan has insisted the alliance will not be affected by these developments.

Carlos Ghosn has not been charged and remains in custody in Japan.