Renault retains Ghosn as chairman despite his arrest

As the preliminary findings presented by the Ethics and Compliance Committee at Renault's board meeting did not furnish any proof of financial misconduct against Ghosn, the board of directors decided to let Ghosn continue as the group's chairman.

Renault recently announced that after a diligent investigation on the matter which involves charges of financial misconduct against Carlos Ghosn, the investigators have not been able to gather sufficient evidence of wrongdoing against Ghosn and consequently, the Renault board of directors released an official statement stating that Ghosn will continue to be the group's chairman and chief executive until further notice while the lawyers, along with the ethics and compliance committee, will continue with their review and assessment  of the situation in conjunction with Nissan's team of lawyers. The investigation in question revolved around the compensation of Ghosn between 2015 and 2018. Renault further stated that all payments made to Ghosn were 'in compliance with applicable law' as well as the French corporate governance code.    

The move comes as a bit of a surprise since Ghosn was officially charged this week by prosecutors in Tokyo for underreporting his income by about 5 billion yen (USD 44 million) over a five-year period which ended in March 2015. The prosecutors also served him a fresh warrant alleging that he did the same for his income over the past three years, allowing authorities to extend his detention. 

In Ghosn's absence, Renault will work under the temporary leadership of Thierry Bollore, who has been associated with the group since September 2012.

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