Nissan Board Divided over Voting on Discharge of Carlos Ghosn
Last updated on December 3rd, 2018
The nine-member board of Nissan Motor Co. is supposed to vote on whether to dismiss the Chairman Carlos Ghosn, as he has been put in a Japanese jail over the allegations of financial misconduct. The board is due to vote on the motion on Thursday afternoon, in Japan.
According to the media reports, there has been some division among a few members in the course of concern that they don’t have enough information about the allegations on Ghosn, which have perplexed the powerful auto alliance.
The directors present in the meeting will be voting anonymously on a one-person-one-vote basis, and the outcome will depend completely on majority. Therefore, there needs to be at least four votes in favor to oust Carlos Ghosn.
Prior to the vote, Nissan Chief Executive Officer Hiroto Saikawa has been holding private conversations with the ignorant directors for explaining details of the probe into Ghosn, who was arrested on Monday after stepping off a jet at the Tokyo airport for under reporting his pay and using company assets for personal purposes.
In a heated press conference on Monday, Saikawa had condemned Ghosn’s behavior. According to the sources, the officer is likely to replace Ghosnas interim chairman if the vote is carried.
On the other hand, as the investigations are being conducted, new details of the alleged wrong doings of the embattled Ghosn are emerging. A Nissan official said that the company provided the chairman with six houses, including residences in Tokyo and New York.
Earlier, prosecutors have said that Ghosn may have undeclared income of as much as 5 billion yen ($44 million). Officials stated that as the details continue to emerge, the actual figures could be higher.
On Thursday, the deputy public prosecutor of Tokyo will hold a press conference at 4 p.m. local time. Besides, reporters are firm on paying attention to the case that has bewildered the business world and reverberated throughout the global auto industry.
Any outcome on Ghosn’s eviction (with or without a unanimous decision) is likely to raise questions about the future of the world’s biggest car alliance, as well as on the complicated shareholding and voting pattern between Nissan and Renault SA.
The meeting is scheduled for 4:30 p.m. Tokyo time.
Korean Peninsula Peace in Peril as North Korean Leader Inspects Submarine Construction
North Korean leader, Kim Jong-un is on the path to enhance the arms storage capacity of the country and develop submarine-launched ballistic missile (SLBM) programme. On Tuesday, North Korea’s state media KCNA revealed Kim’s visit to a construction site examining a submarine under construction. Kim’s…
Luxury brand Richemont in Loss due to Prevailing Hong Kong Protests
The prevalent Hong Kong protests, which resulted in huge unrest in the territory for months, have not only created a political crisis in the city but also affected the business category. In the latest hit, it came into notice that the Luxury brand Richemont was…