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| Nissan board fires chairman Carlos Ghosn for financial misconduct - business live | Nissan board fires chairman Carlos Ghosn for financial misconduct - business live |
| (35 minutes later) | |
| The Japan Times have more details of the allegations against Carlos Ghosn, including that he instructed board representative Greg Kelly (also dismissed today) to under-report his true salary: | |
| Also this, in Japan Times #Ghosn #Nissan pic.twitter.com/4Lsf1UxGAV | |
| The speed of Carlos Ghosn’s fall from grace is quite astonishing. | |
| So much, in fact, that there’s speculation that he’s been deliberately bundled out by Nissan, perhaps to thwart plans for a formal merger with Renault. | |
| Christian Stadler, Professor of Strategic Management at Warwick Business School, explains: | |
| “The intriguing twist in this story is the speculation whether this was a deliberate move by Japanese executives to get Ghosn out of the picture. | |
| “I think it is unlikely they did not know about Ghosn’s financial arrangements. | |
| “However, it is possible that story this came to light because new rules for whistle-blowers in Japan made it easier for someone to come forward. | |
| Keiko Ihara could be the new broom that Nissan needs.... | |
| OK one of the coolest things about tonight's Nissan statement is that one of the most important people in the company, on both of the key newly-established committees, is kick-ass racing driver Keiko Ihara: pic.twitter.com/Ma16nJRuf7 | |
| She's an economics grad so should know her stuff. At the same time, she's only been with Nissan a few months -- which in the circumstances you can regard either as an asset or a deficit | |
| Nikkei has a graphic explaining the way Ghosn allegedly used to buy luxury homes in Lebanon and Brazil. According to the paper, he used companies in Netherlands and Lebanon, as well as a co in the Virgin Islands pic.twitter.com/nMkGsQ47fr | |
| Nissan is also setting up an advisory committee to find potential successors to Ghosn. | |
| It will be consist of three board members, including Keiko Ihara, a leading female Japanese racing driver -- but not Hiroto Saikawa, the CEO who has been suggested as a possible new chairman. | |
| Nissan has decided to consider creating a “special committee” to examine its corporate governance. This would include developing “better governance of director compensation”. | |
| Today’s decisions, including to dismiss chairman Carlos Ghosn, were unanimous, Nissan says. | Today’s decisions, including to dismiss chairman Carlos Ghosn, were unanimous, Nissan says. |
| The company adds that: | The company adds that: |
| At the beginning of the session, the board acknowledged the significance of the matter and confirmed that the long-standing Alliance partnership with Renault remains unchanged and that the mission is to minimize the potential impact and confusion on the day-to-day cooperation among the Alliance partners. | At the beginning of the session, the board acknowledged the significance of the matter and confirmed that the long-standing Alliance partnership with Renault remains unchanged and that the mission is to minimize the potential impact and confusion on the day-to-day cooperation among the Alliance partners. |
| It’s official: Carlos Ghosn has been removed as Nissan’s chairman, following the discovery of alleged financial misconduct which led to his arrest this week. | It’s official: Carlos Ghosn has been removed as Nissan’s chairman, following the discovery of alleged financial misconduct which led to his arrest this week. |
| Here’s the statement from Nissan, which largely echoes what the company said on Monday. | Here’s the statement from Nissan, which largely echoes what the company said on Monday. |
| Announcement regarding Changes of Representative Directors | Announcement regarding Changes of Representative Directors |
| On November 22, 2018 the Company resolved to remove representative rights and position of Chairman of its directors as follows: | On November 22, 2018 the Company resolved to remove representative rights and position of Chairman of its directors as follows: |
| 1. Reasons for Removals With respect to Carlos Ghosn, an internal investigation has uncovered the following misconducts directed by him: | 1. Reasons for Removals With respect to Carlos Ghosn, an internal investigation has uncovered the following misconducts directed by him: |
| (i) the misconduct of recording compensation amounts in the annual securities report that were less than actual, in order to reduce the amount of his compensation to be disclosed, over many years; | (i) the misconduct of recording compensation amounts in the annual securities report that were less than actual, in order to reduce the amount of his compensation to be disclosed, over many years; |
| (ii) the misconduct of expending our company’s investment capital for his personal use, under false pretenses; | (ii) the misconduct of expending our company’s investment capital for his personal use, under false pretenses; |
| (iii) other misconduct, such as expending our company’s expenses for personal use. | (iii) other misconduct, such as expending our company’s expenses for personal use. |
| With respect to Greg Kelly, as a result of an internal investigation he has been determined to be the mastermind of this matter, together with Carlos Ghosn. | With respect to Greg Kelly, as a result of an internal investigation he has been determined to be the mastermind of this matter, together with Carlos Ghosn. |
| The Company will further investigate this matter and consider measures to enhance the Company’s governance. | The Company will further investigate this matter and consider measures to enhance the Company’s governance. |
| Here’s Reuters’ latest take on Carlos Ghosn’s dismissal: | Here’s Reuters’ latest take on Carlos Ghosn’s dismissal: |
| Nissan’s board ousted chairman Carlos Ghosn on Thursday after the shock arrest of the industry heavyweight, Japanese broadcaster NHK reported without citing sources, ushering in a period of uncertainty for its 19-year alliance with Renault. | Nissan’s board ousted chairman Carlos Ghosn on Thursday after the shock arrest of the industry heavyweight, Japanese broadcaster NHK reported without citing sources, ushering in a period of uncertainty for its 19-year alliance with Renault. |
| A Nissan Motor Co spokesman declined to comment. | A Nissan Motor Co spokesman declined to comment. |
| The Franco-Japanese alliance, enlarged in 2016 to include Japan’s Mitsubishi Motors, has been rattled to its core by Ghosn’s arrest in Japan on Monday, with the 64-year-old group chairman accused of financial misconduct. | The Franco-Japanese alliance, enlarged in 2016 to include Japan’s Mitsubishi Motors, has been rattled to its core by Ghosn’s arrest in Japan on Monday, with the 64-year-old group chairman accused of financial misconduct. |
| Ghosn had shaped the alliance and was pushing for a deeper tie-up, including potentially a full Renault-Nissan merger at the French government’s urging, despite strong reservations at the Japanese firm. | Ghosn had shaped the alliance and was pushing for a deeper tie-up, including potentially a full Renault-Nissan merger at the French government’s urging, despite strong reservations at the Japanese firm. |
| Japanese prosecutors said Ghosn and Representative Director Greg Kelly, who has also been arrested, conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10 billion yen ($88 million). | Japanese prosecutors said Ghosn and Representative Director Greg Kelly, who has also been arrested, conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10 billion yen ($88 million). |
| Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, said on Thursday that court approval was received a day earlier to detain Ghosn for 10 days but he could not comment on whether he had admitted to the allegations. | Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, said on Thursday that court approval was received a day earlier to detain Ghosn for 10 days but he could not comment on whether he had admitted to the allegations. |
| Nissan executives have five seats on the nine-member board, Renault loyalists have two seats and the remaining two are held by unaffiliated outside directors, a former bureaucrat and a race driver. | Nissan executives have five seats on the nine-member board, Renault loyalists have two seats and the remaining two are held by unaffiliated outside directors, a former bureaucrat and a race driver. |
| With Ghosn and Kelly still in detention, neither of the men were able to vote or defend themselves at the meeting. | With Ghosn and Kelly still in detention, neither of the men were able to vote or defend themselves at the meeting. |
| Nissan has also voted to dismiss representative director Greg Kelly, according to the Nikkei newspaper. | Nissan has also voted to dismiss representative director Greg Kelly, according to the Nikkei newspaper. |
| Nissan: Dismisses Kelly As Representative Director – Nikkei | Nissan: Dismisses Kelly As Representative Director – Nikkei |
| Kelly, a lawyer by training, was a close ally of Carlos Ghosn and the first American to sit on the Japanese carmaker’s board of directors. | Kelly, a lawyer by training, was a close ally of Carlos Ghosn and the first American to sit on the Japanese carmaker’s board of directors. |
| On Monday, Nissan CEO Hiroto Saikawa labelled Kelly the “mastermind” behind Ghosn’s alleged misuse of Nissan funds. | On Monday, Nissan CEO Hiroto Saikawa labelled Kelly the “mastermind” behind Ghosn’s alleged misuse of Nissan funds. |
| Now this is interesting... Reuters is reporting that Renault had urged Nissan NOT to dismiss Carlos Ghosn today, before the meeting began. | Now this is interesting... Reuters is reporting that Renault had urged Nissan NOT to dismiss Carlos Ghosn today, before the meeting began. |
| #Renault board has urged #Nissan before board meeting to postpone decision on removing #Ghosn (sources via Reuters) | #Renault board has urged #Nissan before board meeting to postpone decision on removing #Ghosn (sources via Reuters) |
| Ghosn is also Renault’s CEO and chairman, on top of his duties at Nissan. | Ghosn is also Renault’s CEO and chairman, on top of his duties at Nissan. |
| Renault had two seats on Nissan’s nine-strong board (although there were only seven representatives today, as Ghosn and Greg Kelly were both arrested on Monday) | Renault had two seats on Nissan’s nine-strong board (although there were only seven representatives today, as Ghosn and Greg Kelly were both arrested on Monday) |
| Japanese broadcaster NHK is reporting that the Nissan board has voted to remove Carlos Ghosn as their chairman at today’s meeting. | Japanese broadcaster NHK is reporting that the Nissan board has voted to remove Carlos Ghosn as their chairman at today’s meeting. |
| Nissan Board Dismissed Ghosn As Chairman - NHK | Nissan Board Dismissed Ghosn As Chairman - NHK |
| Either way, there should be a statement soon.... | Either way, there should be a statement soon.... |
| Reuters is reporting that “multiple Nissan board members” have been spotted leaving the company’s HQ, suggesting the meeting may finally be over... | Reuters is reporting that “multiple Nissan board members” have been spotted leaving the company’s HQ, suggesting the meeting may finally be over... |
| Crowds of reporters have gathered in front of Nissan’s global headquarters in Yokohama, desperate to hear news from today’s board meeting: | Crowds of reporters have gathered in front of Nissan’s global headquarters in Yokohama, desperate to hear news from today’s board meeting: |
| Elsewhere, Ghosn’s face beams down from large electronic screens as the public keep up with events: | Elsewhere, Ghosn’s face beams down from large electronic screens as the public keep up with events: |
| The pound has jumped to its highest level since Dominic Raab resigned as Brexit secretary a week ago. | The pound has jumped to its highest level since Dominic Raab resigned as Brexit secretary a week ago. |
| Sterling has gained 1.5 cents against the US dollar to $1.292, clawing back most of last week’s losses. | Sterling has gained 1.5 cents against the US dollar to $1.292, clawing back most of last week’s losses. |
| The trigger: Britain and the EU have agreed a new, longer, text outlining the political declaration on the framework for the future relationship after Brexit. | The trigger: Britain and the EU have agreed a new, longer, text outlining the political declaration on the framework for the future relationship after Brexit. |
| Our Politics Live blog has full details: | Our Politics Live blog has full details: |
| Nissan flack tells Bloomberg no press conference today. Since it's subject to mandatory disclosure, a press release will be filed with TSE #tictocnews | Nissan flack tells Bloomberg no press conference today. Since it's subject to mandatory disclosure, a press release will be filed with TSE #tictocnews |
| It’s important to remember that Carlos Ghosn hasn’t been charged yet, let alone convicted. | It’s important to remember that Carlos Ghosn hasn’t been charged yet, let alone convicted. |
| But Tokyo prosecutors have already suggested that he could face a 10-year stretch, if convicted of breaching Japanese financial law. | But Tokyo prosecutors have already suggested that he could face a 10-year stretch, if convicted of breaching Japanese financial law. |
| JUST IN: Ghosn may be sentenced up to 10 years in prison, says Shin Kukimoto, deputy chief prosecutor at Tokyo’s Prosecutors Office. Here's what we know #日産自動車 #ゴーン会長 pic.twitter.com/z2Ihxq88Us | JUST IN: Ghosn may be sentenced up to 10 years in prison, says Shin Kukimoto, deputy chief prosecutor at Tokyo’s Prosecutors Office. Here's what we know #日産自動車 #ゴーン会長 pic.twitter.com/z2Ihxq88Us |