Nissan shareholders express anger as they agree to oust Ghosn
Executives bowed deeply as they apologised to investors over the scandal at a specially convened meeting in Tokyo.
Monday 8 April 2019 10:27, UK
Nissan shareholders voiced their anger with the company as they voted to oust former chairman Carlos Ghosn from the board after his arrest over claims of financial misconduct.
Chief executive Hiroto Saikawa and other bosses bowed deeply as they apologised to investors at a Tokyo meeting held to approve the move, attended by more than 4,000 people.
It comes days after Mr Ghosn was arrested for a fourth time by Japanese prosecutors in a move described by the former car industry titan as "outrageous and arbitrary".
He denies all charges against him and says he is the victim of a boardroom coup.
Mr Ghosn, known as "le cost cutter", is credited with reviving the fortunes of Japan's Nissan over the last two decades, leading the company in a global alliance with France's Renault.
But since his arrest last November he has been ousted from his leadership positions at both companies and the Nissan vote formally severs his ties with the Japanese car maker.
Shareholders voted to replace Mr Ghosn on the board with Renault chairman Jean-Dominique Senard. Renault owns 43% of Nissan.
During the three-hour meeting they also demanded an explanation for how Mr Ghosn's alleged large-scale wrongdoing had gone on unchecked for years.
One said the entire management should resign immediately.
Chief executive Mr Saikawa said: "I deeply, deeply apologise for all the worries and troubles we have caused.
"This is an unprecedented and unbelievable misconduct by a top executive."
He told shareholders that the company would stick by the alliance with Renault, fix governance problems and make the ousting of Mr Ghosn "a turning point".
"We had allowed a system in which wrongdoing could be carried out without detection."
Nissan shareholder Ken Miyamoto, 65, said: "It is really such a pity as he was a brilliant manager.
"I guess he became complacent as people kept praising him too much."
Mr Ghosn has been accused of failing to report $82m in Nissan pay as well as transferring personal investment losses to the company and steering $14.7m of funds to a Saudi businessman.
He had been released on bail last month but returned to detention after the latest arrest, relating to $5m (£3.8m) in funds said to have been funnelled from a Nissan subsidiary via an overseas dealership to a separate company that he controlled.
Mr Ghosn had previously announced plans to "tell the truth about what's happening" at a news conference this week.
The Foreign Correspondents' Club of Japan said that, instead of the conference, it would show a video statement from the former car boss on Tuesday.