How will Nissan board votes remove Carlos Ghosn from power?

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Nissan Board Set to Vote on Ousting Chairman Carlos Ghosn

Nissan's board of directors is convened to vote on the removal of Chairman Carlos Ghosn, following his arrest and accusations of financial misconduct. Ghosn, along with Representative Director Greg Kelly, has been detained and accused of conspiring to understate Ghosn's compensation. The company's internal investigation revealed instances of wrongdoing, including the personal use of company funds and the under-reporting of earnings over several years.
Ghosn and Kelly Detained, Unable to Vote

Carlos Ghosn and Greg Kelly are currently in detention, which prevents them from participating in the Nissan board meeting. The Tokyo District Public Prosecutors Office secured court approval to detain Ghosn for a period of 10 days, during which he cannot vote or defend himself. This situation means that any decision regarding their positions will be made by the remaining board members.
Board Composition Favours Removal

The structure of Nissan's nine-member board is a significant factor in the expected outcome of the vote. Nissan executives hold five seats, while two are occupied by Renault loyalists and two by unaffiliated outside directors. With Ghosn and Kelly detained, a majority vote from the seven remaining board members is sufficient to remove them from their executive roles.
Mitsubishi Motors Also Plans Action

Beyond Nissan, Mitsubishi Motors, a partner in the automotive alliance, also plans to take action against Ghosn. The company intends to remove him from his position as chairman during a board meeting scheduled for the following week. This move by Mitsubishi further underscores the widespread impact of the ongoing investigation and accusations.
Internal Investigation Uncovered Wrongdoing

Nissan's internal investigation, initiated after a tip-off, brought to light allegations of financial misconduct by Ghosn. These findings include the personal use of company money and the systematic under-reporting of his earnings over an extended period. Reports suggest that Ghosn instructed remuneration to be falsely stated, and evidence may include emails related to these instructions.

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How will Nissan board votes remove Carlos Ghosn from power?

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