Mitsubishi Follows Nissan in Dismissing Ghosn as Chairman

Economy

Tokyo, Nov. 26 (Jiji Press)--Mitsubishi Motors Corp.'s <7211> board of directors on Monday voted to dismiss Carlos Ghosn, a board member, as its chairman and to strip him of his right to represent the company, following in the footsteps of its top shareholder, Nissan Motor Co. <7201>.

The decision was made at an extraordinary meeting of the board, convened after Ghosn's arrest by the Tokyo District Public Prosecutors Office on Nov. 19 on suspicion of understating his executive pay from Nissan in the firm's securities reports in violation of Japan's Financial Instruments and Exchange Act.

Mitsubishi Motors also decided that its chief executive officer, Osamu Masuko, will double as chairman for the time being.

Nissan dismissed Ghosn as its chairman and deprived him of his representative right at its extraordinary board meeting on Thursday. Ghosn, who is from French auto giant Renault SA, remains on the Nissan board.

Renault and the two Japanese automakers have an alliance partnership, with Renault being the top shareholder of Nissan, with a stake of 43.4 pct, and Nissan holding a stake of 15 pct in Renault and 34 pct in Mitsubishi Motors. Renault is owned 15 pct by the French government.

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Jiji Press