Nissan And Renault Chairman Carlos Ghosn Arrested

Carlos Ghos (64), chairman of Japan’s car company Nissan Motor, was arrested on Monday and that the board will propose removing the world’s best-known auto executive at a special meeting Thursday following allegations that he had used company money for personal use and committed several other serious acts of misconduct over many years. He is accused of violating Japan’s financial law.

An internal investigation was conducted over the past several months based on a report from a whistle blower regarding misconduct involving Ghosn and Representative Director Greg Kelly.

According to the investigation, Ghosn and Kelly have misinformed about their remuneration in Tokyo Stock Exchange Securities. Ghosn also used company money for his personal use and Kelly’s deep involvement has also been confirmed.

As a result, the Chief Executive Officer will propose to the Board of Directors to quickly remove Carlos Ghosn from his position as Chairman and Representative Director at a meeting.

The news came as a shock in Japan where Ghosn, a rare foreign top executive, is well regarded for having turned Nissan around from near bankruptcy.

Nissan and Renault together with Japan’s Mitsubishi Motors, make up the biggest global car making alliance, which manufactures one of every nine cars sold around the world.

Carlos Ghosn  began his career at Michelin in France, moving on to Renault. He joined Nissan in 1999 after Renault bought a controlling stake and saved Nissan from being bankrupt and became its CEO in 2001. Ghosn remained in that post till last year. Carlos is counted in Japan’s top executive. He is one of the most highly paid corporate bosses in Japan. According to reports, his annual income is more than 15 million. In 2010, Forbes included him in the list of 7 Most Powerful People of South America. The news of the Carlo’s arrest ripped through a powerful global alliance of automakers, slamming the stocks of Nissan and Renault, where Ghosn also serves as chairman.