Carlos Ghosn To Continue As Renault Chairman Despite Corruption Allegations

Renault-Nissan Chairman and CEO- Carlos Ghosn will not immediately be ousted of the company as the Board is unable to comment on the gathered evidence against Ghosn by Nissan and Japanese judicial authorities. However, Ghosn is temporarily incapacitated of his position and the Board of Directors have appointed Thierry Bollore as the temporary Deputy Chief Executive Officer (CEO) who will be leading the management for the time being and will be exercising the same powers which Carlos Ghosn had as the CEO of the company.

Also Read: Carlos Ghosn Renault-Nissan Alliance Boss Arrested For Misconduct, Corruption Charges

A statement issued by Renault read, "The Board of Directors of Renault held today adopted transitional governance measures to preserve the interests of the Group and the continuity of its operations. The Board was chaired by the lead independent director Philippe Lagayette after the opening of judicial proceedings against Mr. Carlos Ghosn in Japan. At this stage, the Board is unable to comment on the evidence seemingly gathered against Mr. Ghosn by Nissan and the Japanese judicial authorities.

Carlos Ghosn, temporarily incapacitated, remains Chairman and Chief Executive Officer. The Board of Directors resolved to appoint Thierry Bollore; on a temporary basis as Deputy Chief Executive Officer. Bollore will therefore lead the management team of the Group, having the same powers as Mr. Carlos Ghosn.

Also Read: Carlos Ghosn Not Currently Fit To Lead Renault, Says French Finance Minister

Carlos Ghosn was arrested on Monday after Nissan alleged him of misconduct and corruption charges. An internal investigation had revealed that Ghosn was engaged in wrongdoing including personal use of company money and under-reporting for years how much he was earning. A day later, Le Maire- Finance Minister, France had also made a statement that Carlos Ghosn is no longer in a position capable of leading Renault.

The French state owns 15 percent of Renault, which in turn holds a 43.4 percent stake in Nissan. Le Maire said he would contact his Japanese counterpart over the matter, and reiterated that France's priority was to ensure the stability of Renault.