Nissan chairman Carlos Ghosn arrested on charges of corruption, financial misconduct

Nissan chairman Carlos Ghosn was reportedly arrested in Tokyo in a corruption case, Yomiuri daily, a Japan-based newspaper published on its website on Monday. The Japanese automaker has accused Ghosn of "significant acts of misconduct" and said it would seek to oust him. According to local media outlets, Ghosn had been arrested after being questioned by Japanese prosecutors for various improprieties including underreporting his income.

"The Tokyo District Public Prosecutor's Office arrested Nissan chairman Ghosn on suspicion of violation of the Financial Instruments and Exchange Act," Japan's Public broadcaster NHK reported.

Issuing a statement over Ghosn's 'act of misconduct', Nissan said it had been conducting a probe into Ghosn for several months after receiving a whistle-blower report and had uncovered misconduct going back several years. However, the Tokyo prosecutor's office had no comment on the reports about Ghosn, who also heads an alliance of Renault, Nissan and Mitsubishi.

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Besides, Nissan had launched an investigation into Representative Director Greg Kelly several months ago.

"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 read.

"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."

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The company said it had provided information to Japanese prosecutors and would propose to the board of directors that it "promptly remove Ghosn from his positions" along with Kelly.

(With inputs from agencies)