LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Renault, Nissan spar over governance reforms as tie-up strains worsen

The rift exposes the deepening strain between France`s Renault SA and Nissan Motor Co, whose 20-year-old tie-up has been under pressure since the arrest of former Chairman Carlos Ghosn in November. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Renault, Nissan spar over governance reforms as tie-up strains worsen
The relationship was further tested when a proposed merger of Renault and Fiat Chrysler was scrapped last week. Photo: Reuters
Written By: Reuters
Updated: Mon, Jun 10, 2019
02:07 pm
Paris/Tokyo, Reuters
RELATED NEWS
Car discounts September 2020: Get up to Rs 70,000 off on Renault Duster Turbo, Kwid, other cars Car discounts September 2020: Get up to Rs 70,000 off on Renault Duster Turbo, Kwid, other cars
Renault names Volkswagen's De Meo as its new CEO Renault names Volkswagen's De Meo as its new CEO
Renault cars owner? What you should know about improving your vehicle's performance Renault cars owner? What you should know about improving your vehicle's performance
Year-end discount on cars 2019 that Maruti Suzuki, Hyundai, Tata, Mahindra, others are offering Year-end discount on cars 2019 that Maruti Suzuki, Hyundai, Tata, Mahindra, others are offering
Over 10,000 Renault Triber units sold in 2 months; customers bought 11,516 cars in Oct, 63% growth registered Over 10,000 Renault Triber units sold in 2 months; customers bought 11,516 cars in Oct, 63% growth registered

Renault has signalled it will block alliance partner Nissan from adopting planned governance reforms unless the French automaker gets more say in the new system, a demand which Nissan said was "most regrettable" and which one source derided as a potential conflict of interest.

The rift exposes the deepening strain between France`s Renault SA and Nissan Motor Co, whose 20-year-old tie-up has been under pressure since the arrest of former Chairman Carlos Ghosn in November. 

The relationship was further tested when a proposed merger of Renault and Fiat Chrysler was scrapped last week. 

Nissan on Monday said it had received a letter from Renault stating the French automaker planned to abstain from a shareholder vote on the reform plans, effectively blocking them as they require a two-thirds majority to pass.

At issue in the letter seen by Reuters was Nissan`s shift to a new corporate governance structure which includes statutory committees comprised mainly of independent outside directors, which Renault warned may dilute the influence of the French automaker, Nissan`s biggest shareholder.

"(W)e firmly believe that Renault`s rights as 43.4% shareholder of Nissan need to be fully recognised and, at a minimum, one or two directors proposed by Renault should be members of each of the three committees," the letter said.

"As currently proposed, this does not seem to be the case."

On Monday, Nissan pointed out that its board, which includes Senard and other Renault executives, voted unanimously in favour of the three committee system, adding that it would keep advocating for the need for the change in governance.

"Nissan finds Renault`s new stance on this matter most regrettable, as such a stance runs counter to the company`s efforts to improve its corporate governance," it said in a statement. 

A Renault spokeswoman did not immediately return calls and messages seeking comment. 

A Renault source said Senard`s letter was motivated by concern about Renault`s under-representation on the new Nissan board committees being introduced following the arrest of Ghosn, who is now awaiting trial and denies the financial misconduct charges against him.

"It`s 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."

Renault had yet to receive specific details on the proposed composition of each of the committees, another source with knowledge of the issue told Reuters.

A Nissan source said Renault CEO Thierry Bollore had expressed a desire to sit on new Nissan committees to oversee executive nominations and compensation, and a planned corporate governance auditing committee.

But such a move would raise concerns about a possible conflict of interest, as it would give Renault a say in Nissan salaries and corporate governance, the Nissan source said.

DIFFERENCES OF OPINION

Japan`s Jiji news agency earlier quoted Nissan Chief Executive Hiroto Saikawa as saying: "We are preparing for the shareholder meeting and will discuss necessary issues at the appropriate time. If there are differences of opinion (with Renault), then I`d like for those to be discussed".

In March a Nissan-appointed outside team recommended the formation of the three committees to improve its corporate governance. Under the proposal, Renault directors would be free to serve on the nominations committee, but would be barred from the compensation and audit committees. 

The two companies have struggled to repair their relationship after Ghosn`s arrest exposed simmering tensions, including Nissan`s long-held concerns about the alliance`s capital structure.

Nissan also appears to have been largely left in the dark on merger discussions between Renault and Fiat Chrysler, which had attempted to join forces to create the world`s third-largest automaker before talks fell apart last week.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
RenaultNissan
RELATED NEWS
Car discounts September 2020: Get up to Rs 70,000 off on Renault Duster Turbo, Kwid, other cars Car discounts September 2020: Get up to Rs 70,000 off on Renault Duster Turbo, Kwid, other cars
Renault names Volkswagen's De Meo as its new CEO Renault names Volkswagen's De Meo as its new CEO
Renault cars owner? What you should know about improving your vehicle's performance Renault cars owner? What you should know about improving your vehicle's performance
Year-end discount on cars 2019 that Maruti Suzuki, Hyundai, Tata, Mahindra, others are offering Year-end discount on cars 2019 that Maruti Suzuki, Hyundai, Tata, Mahindra, others are offering
Over 10,000 Renault Triber units sold in 2 months; customers bought 11,516 cars in Oct, 63% growth registered Over 10,000 Renault Triber units sold in 2 months; customers bought 11,516 cars in Oct, 63% growth registered

LATEST NEWS

Association with cricket, Virat Kohli helped attain market-leading position in India: Puma

India's Marvel! World's highest rail bridge arch on Chenab in Jammu and Kashmir nears completion, says Piyush Goyal

7th Pay Commission Latest News: How pensioners will benefit from DA, TA, salary hike for central government employees?—EXPLAINED

Big development! Government announces new guidelines to curb misuse of social media platforms; 3 tier mechanism for OTTs

Ceasefire: Hotline contact! Modi government issues statement after discussion of India-Pakistan's DG Military Operations

Greaves Cotton: Sharekhan maintains Buy rating with the revised price target of Rs 150

Iconic! Deepika Padukone to become Levi's global brand ambassador

Money earning scheme: This SBI plan will give you more than Rs 81,000 interest

NASA releases panoramic view of Mars rover landing site

Big gift for Tamil Nadu! PM Narendra Modi inaugurates these important projects - All details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved