Business / Corporate

Tokyo Stock Exchange urges Nissan to submit improvement report by June 27

JIJI

The Tokyo Stock Exchange on Thursday urged Nissan Motor Co. to submit a report by June 27 on measures to improve its internal control system.

The exchange sees the need to examine the measures, as it has judged that Nissan violated TSE listing rules by underreporting former Chairman Carlos Ghosn’s pay in annual securities reports.

Nissan’s internal control system did not work properly due to a concentration of power over personnel and remuneration affairs in Ghosn, said the TSE, which is under the wing of Japan Exchange Group Inc.

But Nissan will not be put on the “securities on alert” list for possible delisting, given that only a handful of officials were involved in the listing rule violation, said Takeshi Hirano, standing governor of Japan Exchange Regulation, Japan Exchange Group’s self-regulatory unit in charge of investor protection.