Shareholders OK Nissan's Governance Reform Plan

Economy

Yokohama, June 25 (Jiji Press)--Nissan Motor Co. <7201> on Tuesday obtained shareholder approval for its governance reform plan, setting the stage for regaining trust in the firm, which has been tainted by a financial scandal involving former boss Carlos Ghosn.

The major Japanese automaker's proposal to amend its articles of incorporation to introduce a "company with committees" system received the green light at a general meeting of Nissan shareholders. Renault SA, Nissan's French partner and top shareholder, which had been reluctant to approve the plan, withdrew the opposition and cast a yes vote, after Nissan modified it by accepting a demand from the partner.

Nissan aims to accelerate its reform efforts under the new system, which gives a lot of management supervisory authority to outside board directors, after its governance system was shaken by the Ghosn scandal.

"We once again offer a deep apology to all of you for causing tremendous concern" over Ghosn's financial misconduct, Nissan President Hiroto Saikawa said at the shareholders meeting, held in Yokohama, south of Tokyo, where Nissan is headquartered.

On his own fate, Saikawa said that the shift to the new governance system is "a major turning point" for Nissan, adding that the company will "speed up work to study and prepare for the launch of a new management team."

[Copyright The Jiji Press, Ltd.]

Jiji Press