[AMG Power]

A nightmare scenario for Nissan could arise if prosecutors fail to bring a successful case against Ghosn and he returns as Renault chairman. The SC Capital analysts speculated that Ghosn could retaliate by trying to kick Nissan out of the alliance and seeking a tie-up with a bigger rival.

Ghosn is being represented by one of Japan's leading lawyers. Don't know how effective that would be when you have the government on the other side.

[ajmat]

This article in the BBC provides 5 key points giving a great insight of the factors which might have triggered the whistleblower.

Summarising

1: The Alliance was moving towards a merger

2: Nissan was growing faster than Renault - its dominant partner

3: While Ghosn restored the company to profitability, profits have suffered over the past six months. Besides Nissan did not really recover after the financial crisis

4: Ghosn was paid a little too much

5: Shares have been lagging

[Sutripta]

^^^
The other view is that the Empire strikes back. Japanese have never tolerated foreigners in positions of power in their boardrooms.

Remember the uproar (quite a few years back though) in a relatively small company like Stanley?

Regards
Sutripta

[AMG Power]

From the BBC:

Nissan reportedly formed a "secret" team earlier this year to look into alleged financial misconduct by Mr Ghosn, who had been hailed a hero in Japan for turning around the ailing Nissan.

1. Under what authority does a company form a "secret" team to investigate the Chairman of the Board without the approval of the Board? A Chairman may or may not do something wrong but it has to be discussed in the Board and a decision taken at the Board level to have an investigation. If he has the majority support to overrule such findings, too bad, it just means the majority on the Board have authorized such acts. No one else can take a decision in this regard.

2. Hence, isn't the forming of a secret team illegal and void in itself (extra constitutional authority)?

3. As the secret team is an illegally formed team how can the Board act on illegally found findings?

4. All of this and a lot more may not stand in Japan given the item on the agenda is vendetta but in a lot of other countries would be enough to throw the findings out.

[D33-PAC]

Originally Posted by AMG Power

From the BBC:
1. Under what authority does a company form a "secret" team to investigate the Chairman of the Board without the approval of the Board? A Chairman may or may not do something wrong but it has to be discussed in the Board and a decision taken at the Board level to have an investigation. If he has the majority support to overrule such findings, too bad, it just means the majority on the Board have authorized such acts. No one else can take a decision in this regard.

Don't forget, they apprehended him in the airport with the police.

First, of all, if they had a secret team - this was a very pre-empted investigation with a lot of time.

So instead of a normal civil proceeding - why a criminal apprehension as if you are dealing with a criminal ? Financial misconduct can be taken care of in a civil court.

[volkman10]

Mitsubishi Motors fires Carlos Ghosn, CEO to be interim chairman.

The board of Japanese automaker Mitsubishi Motors, which is allied with Renault and Nissan, voted Monday to dismiss Carlos Ghosn as its chairman after his arrest last week, citing a lack of trust.

Link

[volkman10]

Official announcement from Mitsubishi corporation:

[Ithaca]

A senior executive at Mitsubishi Motors Corp said on Tuesday its alliance with Nissan Motor and Renault SA can survive management upheaval, a day after it fired Carlos Ghosn as chairman citing financial misconduct.

The future of the 19-year alliance, one of the biggest automotive groups in the world, has been thrown into doubt after the Nov. 19 arrest and subsequent ousting of Ghosn as chairman of both Nissan and Mitsubishi Motors.

Source: Reuters

[AMG Power]

More than a week after the arrest of Carlos Ghosn, the French car group has still not received any detailed evidence of allegations against its chief executive and chairman.Just days before the first meeting a gulf is widening between the two main partners. Tensions have rarely been more strained between Renault and Nissan in their near 20-year alliance.

In particular, frustration is deepening in France at the lack of information provided since Mr Ghosn was placed in custody last Monday on suspicion of submitting company accounts that he intentionally understated his pay in financial documents at Nissan. Mr Ghosn is said to have denied the charges.This information includes evidence produced in internal investigations at Nissan, where Mr Ghosn has been stripped of his chairmanship, according to people familiar with the situation.

Source: Gulf between Renault and Nissan widens after Ghosn arrest

[volkman10]

The alliance leaders pledge for their strong commitment to the Alliance.

The Alliance has achieved unparalleled success in the past two decades.

"We remain fully committed to the Alliance."

The chiefs of the Renault, Nissan and Mitsubishi have agreed to share the role of CEO of the Alliance.


Link

[volkman10]

Japan to indict Nissan as well as Carlos Ghosn

Nissan scandals put CEO Saikawa's oversight in question. CEO's signature was on documents promising Ghosn's future pay

Nissan Motor's latest vehicle inspection failure, coming on the heels of the arrest of former Chairman Carlos Ghosn, is yet another sign of weak corporate governance at the automaker and is likely to fuel criticism of the management team led by CEO Hiroto Saikawa.

An internal investigation has found problems with how brakes and other parts were inspected. The new problems surfaced after the Ministry of Land, Infrastructure, Transport and Tourism conducted on-site probes at Nissan factories in October.

Link

[volkman10]

Carlos Ghosn re-arrested on further allegations of under-stating his pay, which is likely to keep him in detention until 30 December.

Mr Ghosn was arrested in November after the allegations first surfaced. Monday was the last day he could be held by authorities before he either had to be charged or released.

Link

[volkman10]

France plans Renault CEO hunt.

The French government is seeking candidates to replace Renault's embattled boss Carlos Ghosn, as board members began to voice doubts about keeping him in office following his indictment in Japan for suspected misconduct.

Link

[deehunk]

I want to correlate this incident with the resignation of CEO of my previous company. He was solely responsible for making it the second largest semiconductor machinery company in the world. A down to earth person who could mingle with everyone was asked to leave unceremoniously. These MNC's no longer have any core values and are filled with dead woods.

[AMG Power]

Renault Board maintains Carlos Ghosn as CEO, says pay was legal:

The Board of the French Automaker Renault says it is keeping Carlos Ghosn as CEO after an internal review of his pay package found that it had conformed to French law.

Watch this space. The action's starting.

Quoting my earlier post when this episode started:

Originally Posted by AMG Power

The Chairman of a Global conglomerate isn't going to spoil his future by dipping his hand into the till for what appears to be peanuts.

If he were to "dip his hand into the till" it would be for something on a very large scale yet not noticeable.

This is similar to being caught for taking the company car for shopping when he should have used his personal car. Maybe wrong and a violation by Japanese rules.

While turning around any company you build enemies and in turning around Nissan he would have rubbed a lot of people including Japanese on the wrong side.

He probably has enough enemies in Japan and who would want to see him out and were probably waiting for such an opportunity.

Under reporting Income is a crime?? Even if it were true or a mistake or whatever, he just has to pay the tax and penalty and continue as is done everywhere else.

Arrested for under reporting income shows there is a LOT MORE than meets the eye and clearly a hidden agenda by some folks whose feathers Carlos had obviously ruffled!

Link