As indictments in its financial scandal roll out, Nissan seeks to restore confidence among investors and the public.
Japanese authorities have announced charges for former Nissan Chairman Carlos Ghosn, for former Representative Director Greg Kelly and for the company itself. Along with the reputational damage to Nissan, Ghosn’s indictment means he will stay behind bars for the foreseeable future.
Ghosn was arrested in November for under-reporting his compensation in the company’s financial statements over a period of five years. The auto giant said in a statement in November that “over many years” Ghosn and board director, Greg Kelly, had been under-reporting compensation amounts to the Tokyo Stock Exchange securities report.
Nissan added that, in regards to Ghosn, “numerous other significant acts of misconduct have been uncovered, such as personal use of company assets.” The company said Ghosn had also made inappropriate investments.
On Monday, Nissan confirmed that both Ghosn and Kelly had been indicted for “violating the Japan Financial Instruments and Exchange Act, namely making false disclosures in annual securities report.”