renault-may-block-nissan-reform-over-boardroom-dispute-source

Renault may block Nissan reform over boardroom dispute: source

© Reuters. FILE PHOTO: Renault, Nissan and Mitsubishi chiefs hold a news conference in Yokohama© Reuters. FILE PHOTO: Renault, Nissan and Mitsubishi chiefs hold a news conference in Yokohama

PARIS (Reuters) - Renault (PA:) has signaled it will block reforms launched by alliance partner Nissan in the wake of the Carlos Ghosn scandal unless it is granted representation on new board committees, a source close to the French carmaker said.

Renault, which owns 43.4% of Nissan, informed its Japanese affiliate in a letter signed by Chairman Jean-Dominique Senard that it planned to abstain in a shareholder vote on the plans, the Financial Times reported earlier on Sunday.

An abstention by Renault would effectively block the reforms, which require a two-thirds majority to pass.

A Renault spokeswoman did not immediately return calls and messages seeking comment. A spokesman for Nissan could not be reached after hours in Japan.

The source said Senard's letter was motivated by concern about Renault's under-representation on the new Nissan board committees being introduced following the November arrest of their former chairman Carlos Ghosn, who is now awaiting trial in Japan on financial misconduct charges he denies.

"It's is not a final abstention, and Renault's position can still change," the Renault source said. "As things stand, Renault has not been assured of appropriate committee representation as Nissan's main shareholder."

Disclaimer: Fusion Media

would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.