Renault to Abstain from Vote at Nissan Shareholders Meeting

Economy

Tokyo, June 10 (Jiji Press)--Nissan Motor Co. <7201> said Monday that its top shareholder, Renault SA, will abstain from a vote on governance reform proposals at a Nissan general shareholders meeting June 25.

Renault, which has a 43.4 pct stake in Nissan, said in a letter to the Japanese automaker that it will abstain from voting on a proposed shift to the so-called "company with committees" system for stronger supervision of Nissan's management by outside directors.

The abstention by Renault, which hopes to maintain its control of Nissan, would make it difficult to implement the governance reform measures devised in response to financial scandals by former Chairman Carlos Ghosn.

"Nissan finds Renault's new stance on this matter most regrettable, as such a stance runs counter to the company's efforts to improve its corporate governance," Nissan said in a statement.

Under the new system, Nissan would establish nomination, remuneration and audit committees whose majorities are held by outside directors.

[Copyright The Jiji Press, Ltd.]

Jiji Press