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Renault, Nissan in board meetings before expected new Ghosn indictment

Kitco News

PARIS/TOKYO (Reuters) - Renault (RENA.PA) and Nissan (7201.T) directors were due to be updated on the investigation into suspected financial misconduct by alliance boss Carlos Ghosn at separate board meetings on Thursday, sources familiar with the matter told Reuters.

The meetings, first reported by French newspaper Le Figaro, come a day before Japanese prosecutors are expected to indict the Renault boss and former Nissan chairman on more charges.

Nissan declined to comment on the meeting, and a Renault spokesman did not return calls and messages seeking comment.

Both boards would be updated on the situation, people with knowledge of the matter told Reuters.

Nissan directors might discuss ongoing efforts to improve compliance controls in the wake of the scandal, while the Renault meeting would be informal, they said.

Ghosn and senior Nissan director Greg Kelly have been charged in Japan with failing to disclose $43 million in additional compensation for 2010-15 that Ghosn had arranged to be paid later.

Both men deny that the deferred compensation agreements were illegal or required disclosure.

Ghosn, who remains in detention, is likely to be formally charged with aggravated breach of trust for temporarily transferring personal investment losses to Nissan in 2008, and for understating his compensation for three more years through 2018, a person with knowledge of the matter said earlier.

A member of Ghosn’s Japan-based legal team earlier told Reuters that Ghosn did not attend an interrogation session scheduled for Thursday due to a fever, and that he had been advised by a detention center physician to rest.

Whereas Nissan ousted Ghosn as chairman within days of his arrest, Renault has so far maintained him as chairman and CEO, deepening tensions within their 20-year-old carmaking alliance.

Reporting by Laurence Frost and Naomi Tajitsu; Additional repoorting by Gilles Guillaume; Editing by Edmund Blair

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