Nissan governance panel observes no need to overhaul alliance agreement

Nissan Murano Z51

The external committee tasked with enhancing governance at Nissan Motor believes the company can deepen ties with Renault SA without overhauling the broader alliance agreed almost two decades ago, a person knowledgeable with the matter stated.

At the committee’s latest meeting held recently, members were at a “near consensus” to suggest stronger roles for outside directors and establishing committees for board member nominations, auditing and figuring out executive pay, the person who has direct knowledge of the matter informed Reuters.

The person was discussing on condition of anonymity as that final recommendations have yet to be announced. A spokeswoman for the committee refused to comment on the discussions.

The two automakers are retooling their collaboration to create a more equal footing and prevent the all-encompassing power wielded by ousted chairman Carlos Ghosn prior his November arrest in Japan on financial misconduct charges.

Last week, Nissan, Renault and junior partner Mitsubishi established a new joint board comprising separate executives of all three car manufacturers to oversee operations and governance, removing the past structure which in practice had placed control of the alliance with Ghosn.

Executives at all three automakers stated the new structure was not meant to replace or change their master agreement, which was drawn up in 2002 and gives biggest stakeholder Renault the right to appoint Nissan executives and directors.

The external committee tasked by Nissan to plan ways to bolster the firm’s corporate governance stated on Sunday it would announce its final recommendations on March 27.

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