Nissan chairman Carlos Ghosn arrested over 'misconduct'

Japanese automobile giant Nissan on Monday said it has decided to remove the company's Representative Director and Chairman Carlos Ghosn from his position.

Ghosn is considered a major figure in the global automobile industry.

"Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly," the company said in a statement.

Nissan further elaborated on the charges against Ghosn and said: "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."

The company said, "In regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed."

Nissan said it has been providing information to the Japanese Public Prosecutors Office and has been 'fully cooperating' with their investigation.

"We will continue to do so," the company added.

As the misconduct uncovered through the internal investigation indicates clear violations of the duty of care as directors, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director.

Saikawa will also propose the removal of Greg Kelly from his position as Representative Director, the company said.