Carlos Ghosn turned Nissan around but is now facing an ignominious end to his Nissan career

Carlos Ghosn turned Nissan around but is now facing an ignominious end to his Nissan career

As reports in Japan circulate on Nissan chairman Carlos Ghosn's arrest by prosecutors looking into suspected under-reporting of income, Nissan has issued a statement saying that it has been investigating 'misconduct' involving Ghosn.

It also appears that he will be imminently removed from his position as Nissan chairman.

The company said that 'based on a whistleblower report', it 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'.

Nissan 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'.

Also, it said that 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,' it said.

It would appear also that Carlos Ghosn is to be removed from post. The statement reads:

"As the misconduct uncovered through our internal investigation constitutes 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."

Nissan also said it 'deeply apologizes for causing great concern to our shareholders and stakeholders'. The statement added: "We will continue our work to identify our governance and compliance issues, and to take appropriate measures."

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