Renault Now Likely to Back Nissan Governance Reform Plan

Economy

Tokyo, June 19 (Jiji Press)--French automaker Renault SA is now likely to support a governance reform plan to be presented by the management of Nissan Motor Co. <7201>, its Japanese alliance partner, at a general meeting of Nissan shareholders next week, it was learned on Wednesday.

The two sides are in talks to avoid confusion at the shareholders' meeting on Tuesday, according to informed sources.

Renault, Nissan's top shareholder with a stake of some 43 pct, had earlier told the Japanese automaker of its intention to abstain from a vote on the reform plan, which calls for shifting to a governance system featuring nomination, remuneration and audit committees.

Renault's abstention would leave the Nissan reform plan unapproved at the shareholders' meeting.

Nissan initially offered to invite Renault Chairman Jean-Dominique Senard to be a member of a new committee, but the Renault side demanded another committee seat for Chief Executive Officer Thierry Bollore.

[Copyright The Jiji Press, Ltd.]

Jiji Press