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Nissan shareholders could kick a Brentwood man off the board after accusations of fraud

CORRECTION: This story was updated to show that Nissan accused Greg Kelly and Carlos Ghosn of underreporting Ghosn’s income. Home Page Media apologizes for the erroneous information in an earlier version of this story.

By MATT BLOIS

Nissan shareholders may have a chance to vote on whether to get rid of two members of the board of directors, including one man from Brentwood, after they were accused of underreporting Ghosn’s income.

In November, Nissan announced an internal investigation alleged that former Chairman Carlos Ghosn and former Representative Director Greg Kelly, of Brentwood, had been underreporting Ghosn’s compensation for years.

The company also accused Ghosn of using company assets for personal use, and claimed that Kelly was involved.

Days later, Nissan’s board of directors voted unanimously to remove Ghosn as chairman of the board. The board demoted Ghosn and Kelly from Representative Directors to Directors.

In December, Kelly and Ghosn were indicted for violating the Japan Financial Instruments and Exchange Act. They were accused of making false disclosures in annual securities reports.

On Thursday, Nissan announced that it is preparing for an extraordinary shareholders meeting in mid-April. Shareholders would vote on whether to discharge Ghosn and Kelly as directors, and would also appoint a new director nominated by French car manufacturer Renault.

Ghosn and Kelly remained directors following the board’s decision to demote them from representative directors in November. Now, shareholders may have a chance to remove them from the board completely.

Renault is the largest shareholder in Nissan, and until recently Ghosn was also the Chairman and CEO of Renault. On Thursday, Renault announced that Ghosn had resigned.

Renault will now split the roles of Chairman and CEO. The company elected Jean-Dominique Senard, the CEO of French tire company Michelin, as Chairman. Thierry Bolloré, Renault’s Chief Operating Officer, was appointed CEO.

Kelly joined Nissan North America, which is now headquartered in Franklin, in 1988. According to the New York Times, Kelly was released on bail on December 25. The Times reports that Ghosn and Kelly have denied all accusations.

By | 2019-01-29T20:28:16+00:00 January 24th, 2019|Categories: Business|Tags: |Comments Off on Nissan shareholders could kick a Brentwood man off the board after accusations of fraud

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