Nissan Board Removes Ghosn as Chairman

Nissan Motor Co.’s board voted unanimously today to remove Carlos Ghosn as chairman and a representative director.

The board also has take away Greg Kelly’s representative director position. In Japan, a representative director has the power to directly enter into contracts on behalf of the company.

The board says its three external directors will chair a new committee to find an independent advisor to help Nissan reform its governance system for management and management compensation. The panel also will nominate a new chairman from the existing list of directors.

Ghosn and Kelly, who were arrested on Monday on suspicion of financial misconduct and conspiracy, will retain their seats as regular Nissan directors. But both men appear likely to be removed from those positions as well by a shareholder vote, which has not yet been scheduled.

Separately, the board reiterates its continuing support for Nissan’s 19-year-old equity alliance with Renault SA. The company says it aims to minimize the potential impact of and confusion on day-to-day operations caused by the crisis.

Earlier this week Renault’s board agreed that Ghosn will continue as the French company’s chairman and CEO, pending further details on Nissan’s evidence of wrongdoing. The Renault board also named Thierry Bollere, the carmaker’s chief operating officer, as interim CEO.