Business / Corporate

Nissan weighs giving some seats on planned oversight committee to Renault

Kyodo

Nissan Motor Co. is considering giving its alliance partner Renault SA some seats on planned oversight committees after the French automaker expressed discontent with the envisioned governance reform, people close to the matter have said.

Renault Chairman Jean-Dominique Senard said earlier last week that he was unhappy with Nissan’s proposed measures to improve corporate governance and that the company, which has a 43 percent stake in the Japanese firm, would abstain from voting on the proposal at the general shareholders meeting on June 25.

Nissan is seeking to establish committees to oversee executive nominations, compensation and audits, but Renault’s discontent has clouded the outlook for its monthslong efforts to reform its management structure after the arrest of former Chairman Carlos Ghosn.

The automaker is now considering having Renault executives as members of the nomination and audit committees, the sources said Friday.

Following Ghosn’s arrest last November, differences have surfaced between the two carmakers over how to strengthen their alliance.

Renault and the French government — the carmaker’s top shareholder — apparently want to retain influence over Nissan, while some Nissan executives feel that the structure of the alliance is unfair. Nissan holds a 15 percent stake in Renault without voting rights.