Carlos Ghosn: Nissan's board of directors decides the fate of its chairman

Nissan's board of directors will meet on Thursday to decide to send Carlos Ghosn back to the presidency after his arrest for financial reasons.

The board should remove Mr. Ghosn from his post.

He was accused by Nissan of under-reporting his salary and using the company's assets for personal purposes.

Some see it as an attempt to rebalance power in its alliance with Renault and Mitsubishi, also chaired by Ghosn.

Iconic figure of the industry, the arrest of the Brazilian businessman this week caused a shock wave in the sector.

The 64-year-old believes that Nissan and Renault have been revolutionary. It is he who designed the rapprochement between the three companies where Renault is considered a dominant partner.

What are the charges?

Nissan has accused Mr Ghosn of "serious acts of conduct", including the underreporting of his treatment and the personal use of the company's assets.

On Monday, the company said it had conducted an internal investigation for several months, at the initiative of a whistleblower.

Senior executive, Greg Kelly, accused by Nissan of being "deeply involved" in the misconduct, has also been arrested.

Prosecutors said the two men had conspired to underestimate Mr. Ghosn's compensation as of 2010.

Mr. Ghosn has not been charged and remains in custody in Japan.

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What was the reaction?

Nissan CEO Hiroto Saikawa said he felt "indignant" and "resentful".

He added that Nissan would now try to "stabilize the situation and normalize the daily operations" of staff and business partners.

Nissan and Mitsubishi both said they would propose the removal of Mr. Ghosn as president.

Renault said Ghosn would remain as chairman and chief executive, but appointed a deputy chief executive ad interim to head the automaker.

French Finance Minister Bruno Le Maire said Ghosn was "no longer in a position" to lead the automaker in which the French state holds a 15% stake.

But he added that Renault's partnership with Nissan remained in the interest of France and Japan, as well as the two companies.

The market has not taken the news well. Nissan shares have fallen more than 5% since the start of the week, while those of Renault have fallen more than 8% this week.

Will the Alliance survive this?

Mr. Ghosn is the President and CEO of the Renault-Nissan-Mitsubishi Motors strategic alliance.

But the future of the partnership remains uncertain as a result of the revelations.

Despite the sale of fewer vehicles, Renault holds a 43% stake in Nissan, while Nissan's stake in Renault is only 15%.

Mr Ghosn sought to strengthen it before his arrest, according to the Financial Times, which announced that it was considering a merger between Renault and Nissan – an agreement that the Nissan board of directors opposed .

But sources told the BBC that a complete merger – to create a single company – "has never been considered".

Nissan boss Saikawa said the partnership "will not be affected by this event".

Osamu Masuko, general manager of Mitsubishi Motors, said the alliance would be difficult to manage without Mr Ghosn.

Who is Carlos Ghosn?

• His hero status was so great that his life was serialized in one of Japan's famous comics.
• This boss of Lebanese origin and of French origin born in Brazil says that his background has left him with a sense of difference, which has helped him to adapt to new cultures.
• In France, he was known as The Cost Killer, a comment on the deep cuts he's made to revive Renault.
• He has already been tipped as Lebanon's potential president, ruling that he finally rejected because he already had "too many jobs"
• In a survey conducted in 2011, the Japanese wanted to run their country. Ghosn ranks seventh, ahead of Barack Obama (ninth)