‘Nissan board should have known about Ghosn issues’
HONG KONG: A leading corporate governance advocate said the board of Japanese carmaker Nissan must accept collective responsibility over alleged disclosure failings that led to the ousting of chairman Carlos Ghosn.
The remarks by Jamie Allen, secretary-general of the Asian Corporate Governance Association (ACGA), come as a biennial survey by the ACGA and CLSA, an Asia-focused brokerage, showed Japan sliding three places to seventh in a regional ranking of governance standards – the worst decline in performance of any country.
“If the chairman has been shown to be fraudulently disclosing information, then it’s not just the chairman that is responsible. The board of Nissan needs to do some soul-searching,” Allen told reporters.
“The board does have collective responsibility and if they didn’t know about this remuneration then shame on them, they should have done, it speaks very poorly about their internal controls.”
Nissan chief executive Hiroto Saikawa said after Ghosn’s arrest that the company would need to “look back on what happened seriously and take immediate and fundamental counter-measures”. — Reuters