Nissan has released a statement confirming it plans to remove Carlos Ghosn as chairman after an internal investigation revealed the 64-year-old had been involved in “misconduct” over “many years”.

The statement said the Japanese automaker had been conducting an internal probe over the past “several months” based on a whistleblower report. The investigation focused on alleged misconduct involving Ghosn and another representative director, Greg Kelly, both of whom have reportedly been arrested.

“The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation,” the statement said.

“Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.”

Nissan added it had been providing information to Japanese public prosecutors and was “fully co-operating with their investigation”.

“As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan’s chief executive officer Hiroto Saikawa will propose to the Nissan board of directors to promptly remove Ghosn from his positions as chairman and representative director. Saikawa will also propose the removal of Greg Kelly from his position as representative director,” Nissan said.

The firm said it “deeply apologised” for causing “great concern to our shareholders and stakeholders”.

Of course, Renault and Mitsubishi are in an alliance with Nissan, with the French brand having since released a statement saying its directors "wish to express their dedication to the defence of Renault’s interest in the Alliance". Mitsubishi, meanwhile, said it had proposed to its board of directors to "promptly remove Ghosn from his position as chairman and representative director".

Original article from Car