Renault’s board of directors has taken a series of 'transitional governance measures' following the arrest of chairman and CEO Carlos Ghosn in Japan on allegations of financial misconduct - but has not stripped Ghosn of his roles. It has also asked alliance partner Nissan to share the information gathered by the Japanese firm's internal investigation.
The French company's board met this evening (Tuesday) to decide a course of action after Ghosn's arrest. The board had been widely expected to remove Ghosn from his posts, especially as it came under pressure to do so by the French government, which owns a share of the company. But instead of removing Ghosn, the board has instead taken a series of short-term measures.
Nissan to oust Carlos Ghosn due to 'serious misconduct'
The board meeting was chaired by Renault's lead independent director, Philippe Lagayette. In a statement following the meeting, Renault said it had "adopted transitional governance measures to preserve the interests of the Group and the continuity of its operations."
Lagayette will continue to chair the board meetings, while Thierry Bolloré, Renault's chief operating officer, has been named deputy chief executive officer and will take on day-to-day management of the firm, with "the same powers" as Ghosn.
The statement also said: "At this stage, the Board is unable to comment on the evidence seemingly gathered against Mr. Ghosn by Nissan and the Japanese judicial authorities. Mr. Ghosn, temporarily incapacitated, remains Chairman and Chief Executive Officer."
Renault said the board will hold regular meetings while the investigation against Ghosn is ongoing, to "protect the interests of Renault and the sustainability of the Alliance." The statement continued: "The Board decided to request Nissan, on the basis of the principles of transparence, trust and mutual respect set forth in the Alliance Charter, to provide all information in their possession arising from the internal investigations related to Mr. Ghosn."
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