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Renault, Nissan in board meetings before expected new Ghosn indictment

Reuters  |  PARIS/TOKYO 

By Laurence Frost, and Mike Spector

PARIS/(Reuters) - directors were due to be updated on the investigation into suspected financial misconduct by alliance boss on Thursday, sources familiar with the matter said, as Nissan's board met to discuss ways to bolster governance.

The meetings, first reported by French newspaper Le Figaro, come a day before Japanese prosecutors are expected to indict the boss and former <7201.T> on more charges.

A did not return calls and messages seeking comment.

Both boards would be updated on the situation, people with knowledge of the matter told

Nissan's board said in a statement after a discussion on the latest developments surrounding Ghosn that it remained committed to its alliance with Renault and <7211.T>.

The board also said it had decided on a new interim process to determine compensation for directors and executives, and had agreed to widen the scope of company decisions that will be reviewed by the board, as part of a drive to improve governance.

Ghosn and senior have been charged in with failing to disclose $43 million in additional compensation for 2010-15 that Ghosn had arranged to be paid later.

Both men deny the deferred compensation agreements were illegal or required disclosure.

Ghosn, who remains in detention, is likely to be formally charged with aggravated breach of trust for temporarily transferring personal investment losses to in 2008, and for understating his compensation for three more years through 2018, a person with knowledge of the matter said earlier.

A member of Ghosn's Japan-based legal team earlier told that Ghosn, 64, did not attend an interrogation session scheduled for Thursday due to a fever, and that he had been advised by a to rest.

Carole Ghosn, the ousted Nissan chairman's wife, released a statement on Thursday pleading with Japanese authorities for more information about her husband's health.

"I recently learned that my husband is suffering from a high fever at the detention center in Tokyo, but my information is limited to reports as no one in his family has been allowed to contact him since November 19," she said, adding that Japanese authorities have not provided Ghosn's relatives with details about his treatment or condition, nor allowed them to speak to medical personnel at the detention center.

"We are fearful and very worried his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment," she added.

Ghosn said he was "wrongly accused and unfairly detained based on meritless and unsubstantiated accusations" during a court proceeding earlier this week, the car executive's first public appearance since his November arrest.

Whereas Nissan ousted Ghosn as within days of his arrest, Renault has so far kept him as and CEO, deepening tensions within their 20-year-old carmaking alliance.

(Reporting by and Naomi Tajitsu; Additional repoorting by Gilles Guillaume; Editing by Edmund Blair, and Jonathan Oatis)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 00:00 IST
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