Nissan to Seek Support from Renault for Governance Reform

Economy

Tokyo, June 10 (Jiji Press)--Nissan Motor Co. <7201> President Hiroto Saikawa indicated Monday that the Japanese automaker will seek support from its French partner, Renault SA, for a governance reform plan, to be proposed at a Nissan general shareholder meeting on June 25.

"We'll consult (with Renault) about any differences in our positions," Saikawa told reporters, in response to a Financial Times report that Renault, which is the top shareholder of Nissan with a 43.4 pct stake, is poised to block the reform plan.

At the shareholder meeting, Nissan plans to put to a vote a special resolution to amend its articles of incorporation in order to introduce a governance system with nomination, remuneration and audit committees.

The company needs support from at least two-thirds of the shareholders on a voting-rights basis to realize the shift to the so-called "company with committees" system, which gives outside board directors more authority to supervise its management.

According to the FT report, Renault Chairman Jean-Dominique Senard has sent a letter to Saikawa to notify the Nissan side that the French automaker will abstain from a vote on the three-committee plan, on concerns that the new system could weaken Renault's influence on the Japanese firm.

[Copyright The Jiji Press, Ltd.]

Jiji Press