Categories LATEST, Research Summary

Nissan might sue ousted chairman Carlos Ghosn

Renault SA chief and former Nissan Motor Co chairman Carlos Ghosn might be facing a civil suit from the carmaker after his arrest in Tokyo for allegedly using company funds for personal needs, according to a source who told Reuters.

Ghosn, who is still the chairman and chief executive of Nissan’s partner Renault SA, was charged with three counts of financial misconduct. He was held at a detention center in Tokyo, Japan for almost two months.

On Jan 15, Ghosn’s bail request was denied by a Tokyo court denied his request for release on bail, which might add to the troubles of the executive with him required to be in custody before his trial begins.

Ghosn has denied the alleged charges against him.

This civil suit might hint at the automaker moving to recover losses due to the alleged use of company funds.

 

Nissan to terminate Carlos Ghosn from chairman’s post
Carlos Ghosn (Courtesy: Nissan official press images)

ROAD TO THE AXE

Nissan has been proactive in the incarceration of Ghosn, as back in November 2018 the Japanese carmaker said that the then Chairman and CEO of the Renault-Nissan-Mitsubishi Alliance Carlos Ghosn will soon lose his post after allegations that he used company money for personal use and other acts of misconduct.

Earlier in June, when Renault shareholders approved Carlos Ghosn’s $8.5 million in compensation for 2017, they had not expected this to happen. He had also received 9.2 million euros in his final year as Nissan chief executive.

According to Nissan, it investigated what was alleged on a whistleblower report involving Ghosn and Representative Director Greg Kelly. “The investigation showed that over many years both Ghosn and 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 amount of Carlos Ghosn’s compensation,” read the Nissan statement in November.

The carmaker also said that CEO Hiroto Saikawa would push for a proposal to the Nissan board to remove both Ghosn and Kelly.

The news of misconduct then sent shockwaves since it was outed as Ghosn who was responsible for saving Nissan from near bankruptcy and turning it around.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Thermo Fisher Scientific (TMO) Q4 earnings drop despite higher revenues

Thermo Fisher Scientific Inc. (NYSE: TMO) announced fourth-quarter 2022 financial results, reporting a double-digit fall in adjusted earnings and an increase in revenues. Fourth-quarter revenues increased 7% annually to $11.5

Altria Group (MO) Q4 2022 Earnings: Key financials and quarterly highlights

Altria Group Inc. (NYSE: MO) reported fourth quarter 2022 earnings results today. Net revenues decreased 2.3% year-over-year to $6.1 billion. Net earnings attributable to Altria increased 65.6% to $2.6 billion

AMD Earnings: Advanced Micro Devices Q4 revenue up 16%, profit drops

Semiconductor company Advanced Micro Devices, Inc. (NASDAQ: AMD) reported a decline in fourth-quarter earnings, despite an increase in revenues. Earnings, excluding special items, dropped to $0.69 per share in the

Comments

  1. Pingback: Leandro Farland
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top