Carlos Ghosn will remain Renault CEO despite being detained

Carlos Ghosn will remain Renault CEO despite being detained

Nissan's board will decide on Thursday whether to remove the 64-year-old tycoon as chairman, a staggering reversal of fortune for the Brazil-born businessman credited with creating the three-way alliance which together sells more cars worldwide than any other automaker.

In a statement released after the meeting, the Renault board said it had made a decision to ask its partner Nissan to "provide all information in their possession arising from the internal investigations related to Mr Ghosn".

For its part, Renault's board indicated that it was in the dark about the details of the allegations against Mr Ghosn.

Securing a unanimous decision to oust Carlos Ghosn as chair will likely be hard because Nissan directors that used to work at Renault may not back the dismissal until the allegations against Ghosn are made clear.

The scandal - the latest in a string to affect Japan Inc. - wiped millions off the stock value of all three companies but Nissan bounced back marginally in opening Tokyo trade, climbing almost half a percentage point in a falling market.

"Japan will not tolerate executive greed".

The amount of stock-related pay makes up much of the ¥5 billion in remuneration the prosecutors allege Ghosn understated in violation of the Financial Instruments and Exchange Law.

Prosecutors on Wednesday (Nov 21) received court approval to hold Mr Ghosn for another 10 days, the Kyodo newswire reported.

Monday's arrest of the millionaire auto tycoon, who is credited with turning around the Nissan-Renault-Mitsubishi Motors alliance, sent shockwaves through the global vehicle sector and corporate Japan.

Monday's stunning arrest of the millionaire auto tycoon, who is credited with turning around the Nissan-Renault-Mitsubishi Motors alliance, sent shockwaves through the global vehicle sector, corporate Japan and beyond. He had harsh words for the detained boss.

The carmaker said an internal investigation prompted by a whistleblower had revealed "significant acts of misconduct" including "personal use of company assets". There was apparently great tension between Ghosn and Nissan CEO Hiroto Saikawa. Mitsubishi said Monday it would move to replace Ghosn as chairman of that company, although it's unclear when that may happen. It also has two external board members.

The board appointed Renault Chief Operating Officer Thierry Bollore as deputy CEO with the same powers as Ghosn. In a letter to Renault employees, he pledged "full support" for Mr Ghosn and to protect the Nissan partnership. France has examined Ghosn's local tax records and found "nothing particular", Le Maire said.

Through complex cross-shareholding arrangements, Renault owns 43 percent in Nissan, including voting rights, while Nissan owns a 15 percent non-voting stake in Renault.

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