Nissan chairman arrested over financial misconduct allegations, shares slump

Nissan chairman Carlos GhosnWorld Economic Forum/YouTube

• Nissan on Monday said it uncovered “significant acts of misconduct” linked to Carlos Ghosn, its chairman.
• Nissan accused Ghosn and another board member of misrepresenting salaries over many years and Ghosn of using company assets for personal use.
• The company confirmed that Ghosn was arrested in Tokyo, Japan.
• Watch Nissan trade live here.

Nissan is sliding, down as much as 6% on Monday, after Carlos Ghosn, its chairman, was arrested in Japan and faces being removed from his role amid accusations of  “significant acts of misconduct.”

The chairman and the representative director Greg Kelly had been officially reporting lower compensation “in order to reduce the disclosed amount of Carlos Ghosn’s compensation,” Nissan said in a statement on Monday.

“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,” the statement said. 

The company added that CEO Hiroto Saikawa will propose removals from their respective positions to the board of directors. 

Earlier Monday, the Japanese newspaper Asahi News reported that Brazil-born Ghosn was to be arrested on suspicion of violating Japan’s Financial Instruments and Exchange Act. 

Ghosn stepped down as CEO of Nissan in 2017. Nissan has been part of the Renault-Nissan-Mitsubishi Alliance since 1999.

Nissan is down 15.5% this year.

Callum Burroughs contributed to the story.

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