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TOKYO: Nissan Motor Co plans to give its partner Alliance Renault SA seats in the planned oversight committees after the French automaker expressed dissatisfaction with the proposed governance reform, a source said. .
The partnership between Nissan and Renault, two decades old, was plunged into a crisis earlier this week, as demand from the French automaker to strengthen its influence on Nissan's new governance system sparked public censorship on rare occasions. from the Japanese firm.
Renault, which owns 43.4% of the Japanese group, has announced that it would prevent Nissan from formally adopting a revamped governance structure at a shareholder meeting on June 25 – unless Renault is not represented in the new Nissan committees.
Nissan is now considering using Renault executives to sit on nominating, auditing and compensation committees, a person with direct knowledge said.
"Nissan will have to make concessions for our governance reform," said this person. "Whether it's two or three seats, we still do not know how many committees we will give to Renault, but we are negotiating with Renault to give seats to a person recommended by Renault."
Jean-Dominique Senard, president of Renault, said earlier in the week that he was confident of reaching an agreement with Nissan on the composition of the main board committees of the Japanese company. He said he would support Nissan's governance reform if the Japanese company allowed Renault's two representatives on the Nissan board to join its powerful committees.
Nissan had offered to let only Senard sit on committees, but Renault insists that its managing director, Thierry Bollore, also plays a role.
Another source close to Nissan's thinking said there was still no agreement on Renault's recommendations and that the two companies were still negotiating.
"There is still a gap … both sides have to make concessions. The question is whether they can reduce (the gap), said this person.
At the same time, the source with direct knowledge said Nissan had recommended Yasushi Kimura, advisor to leading fuel distributor JXTG Holdings Inc., to become chairman of Nissan's board of directors.
Kimura will have to be approved to become an external director at the shareholders' meeting scheduled for June 25th. His formal appointment as chairman of the board of directors will be decided at the meeting of the board of directors held after the shareholders' meeting.
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