France seeks Renault board meeting to replace Ghosn - sources

Reuters  |  PARIS 

By and Gilles Guillaume

France, Renault's biggest shareholder, had until now supported the company's decision to keep Ghosn in office while he awaits trial in for alleged misconduct at <7201.T>, the French carmaker's alliance partner he also chaired until his dismissal in November.

But the government, which commands a 15 percent stake and two board seats, has asked the company to convene its nominations committee followed by a full board meeting on Jan. 20 to begin the process of appointing one or more successors to Ghosn, according to three people briefed on the process.

A for and a French both said they had no knowledge of plans for a weekend board meeting.

Ghosn's Nov. 19 arrest in and swift firing by have deepened tensions with Renault, which owns a 43.4 percent stake in the Japanese carmaker.

The French move to replace Ghosn follows a decision by the District Court earlier on Tuesday to deny the ousted chairman's request for release on bail.

Ghosn has been charged over allegations he failed to disclose close to $80 million in additional compensation for 2010-18 that he had arranged to be paid later. and the company itself have also been indicted.

Both men deny the deferred pay agreements were illegal or required disclosure, while former alliance boss Ghosn has denied a separate breach of trust charge over personal investment losses he temporarily transferred to Nissan in 2008.

Jean-Dominique Senard, who is soon to step down as of Michelin, is likely to replace Ghosn as chairman, according to two sources.

The French state and its advisers are also considering candidates for the Renault role currently occupied on an interim basis by Ghosn's deputy

Bollore is among contenders for the permanent appointment. Others under consideration include senior <7203.T> Didier Leroy, boss and one other potential candidate, a source involved in the discussions said.

"denies being a candidate for Ghosn's succession," said a for group "It's possible that people considered him, but no more than that."

Senard could alternatively be appointed and CEO, taking over both of Ghosn's current roles, the source said. "All these options are on the table."

Leroy declined to comment, and attempts by to reach Senard at were unsuccessful. Headhunting firms and Emeric Lepoutre & Partners, which are involved in the search, could not be reached after hours.

French officials had said Ghosn should be kept in office unless it became clear he would remain "incapacitated" for much longer, also hinting that Tuesday's court decision would be an "important development".

Two senior French finance ministry officials were travelling to on Tuesday for talks with Nissan stakeholders aimed at stabilising the alliance with Renault, daily reported.

Nissan CEO said in a Monday interview he expected Renault to back the Japanese carmaker's ouster of Ghosn when its board of directors were finally given full access to the findings of its internal investigation.

(Reporting by Laurence Frost; Editing by Georgina Prodhan, and Chris Reese)

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First Published: Wed, January 16 2019. 05:05 IST