Prosecutors weigh bringing charges against Nissan over Ghosn case

Carlos Ghosn saved Nissan from collapse and brought it together with Renault SA and Mitsubishi Motors Corp

The Nissan board is due to meet on Thursday, when it is expected to strip Ghosn and representative director Greg Kelly - also arrested in connection with the allegations - of their roles.

The arrest of Nissan Chairman Carlos Ghosn's will encourage other whistleblowers to come forward, according to Steve Kalafer, Flemington Family of Brands Chairman.

The board, meeting later on Tuesday, will likely agree that director Philippe Lagayette should fill in as chairman, several people with knowledge of the deliberations said.

Renault SA named Thierry Bollore to lead the carmaker on an interim basis after Carlos Ghosn's arrest in Japan over allegations of financial impropriety, while declining to dismiss the French company's long-time chief.

On Wednesday the Tokyo District Court ordered the 64-year-old Brazil-born Ghosn to be held for a further 10 days as prosecutors step up their investigation into alleged underreporting of his pay package, sources said. "At this stage, the board is unable to comment on the evidence seemingly gathered against Mr Ghosn by Nissan and the Japanese judicial authorities", the board said in the statement. Media reports also spoke of a lavish Marie Antoinette-themed party in 2016 for Ghosn's second wedding, at the grandiose palace of Versailles.

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Mr Ghosn, who is chairman of Nissan as well as Renault and Mitsubishi, was accused of underreporting his income in a Tokyo Stock Exchange securities report. Mitsubishi said Monday it would move to replace Ghosn as chairman of that company, although it's unclear when that may happen.

According to the Asahi newspaper, Ghosn's alleged shady dealings were outed by a person in Nissan's legal department, who is said to have received a plea deal from prosecutors.

While both Le Maire and his Japanese counterpart, Hiroshige Seko, reaffirmed their support for the alliance, the structure of the partnership between the two companies has been increasingly controversial in Japan as Nissan outgrows Renault in sales and profits.

Even when his reputation was sky-high, he attracted criticism for a flashy lifestyle at odds with traditional Japanese corporate culture and over his salary - an estimated €13 million in total past year.

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