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Nissan chairman arrested over allegations of ‘serious misconduct’

Carmaker Nissan’s chairman Carlos Ghosn has been arrested over allegations of “serious misconduct” and other “significant acts”, including personal use of company assets.

An investigation revealed that over many years both Ghosn and representative director Greg Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed sum of Ghosn’s compensation.

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Additionally, in regards to Ghosn, the group said numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, with Kelly’s “deep involvement” also being confirmed.

The company said the misconduct uncovered through the internal investigation constitutes “clear violations of the duty of care as directors”, and Nissan’s CEO Hiroto Saikawa proposed to the group’s board of directors to promptly remove Ghosn from his positions as chairman and representative director. Saikawa also proposed the removal of Greg Kelly from his position as representative director.

Nissan has been providing information to the Japanese Public Prosecutor’s Office and said it has been “fully cooperating with their investigation”.

A statement by Nissan read: “[The company] deeply apologises for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures.”

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