Renault Urges Nissan Shareholder Meeting on Ghosn Crisis

Renault SA has asked Nissan Motor Co. to convene a general shareholder meeting as soon as possible to discuss indictments against the Japanese carmaker and the future of two Nissan board members appointed by Renault, Reuters reports.

Carlos Ghosn, who had been serving as chairman of both companies, and Nissan itself, were indicted on Dec. 10 of underreporting $43 million in compensation for Ghosn between 2010 and 2014. Prosecutors also filed new charges that another $37 million was hidden between 2015 and 2017.

Renault Deputy DEO Thierry Bollore requested the shareholder meeting in a letter on Friday to Nissan CEO Hiroto Saikawa, according to Reuters. The letter also says the crisis challenges the stability of the 19-year-old alliance between the two companies.

Renault owns 43% of Nissan, with voting rights. Nissan holds a 15% nonvoting stake in Renault. Nissan also owns a controlling 34% stake in Mitsubishi Motors Corp., which joined the Renault-Nissan alliance two years ago.

The Japanese company has repeatedly expressed its desire for a more balanced equity position within the alliance. Nissan currently generates roughly 60% of the alliance’s annual sales.