Renault to Support Nissan's Governance Reform Plan

Paris, June 20 (Jiji Press)--Renault SA will vote in favor of Nissan Motor Co.'s <7201> governance reform plan at a meeting of shareholders of the Japanese automaker next week, officials at the French company said Thursday. The French automaker reached the decision as Nissan, its alliance partner, agreed to give both Renault Chairman Jean-Dominique Senard and Chief Executive Officer Thierry Bollore seats on planned board committees. Nissan's governance reform plan, which will be presented at the shareholders' meeting, set for Tuesday, calls for creating nominating, compensation and audit committees led by outside board members. The governance overhaul is designed to address the concentration of power in the hands of a single executive seen when Carlos Ghosn headed the company. Ghosn, who once headed both Nissan and Renault, has been charged with financial wrongdoing in Japan. Nissan initially offered a board committee seat only to Senard. In response, Renault had threatened to abstain from a vote on the reform plan unless Bollore is given a seat as well. If Renault, the top shareholder of Nissan with a 43 pct stake, abstains, the reform plan will fall apart. Renault said in a statement that it welcomes Nissan's decision to grant Renault's representatives a seat on the committees of the Nissan board. The agreement confirms the spirit of dialogue and mutual respect that exists within the alliance, it said. In Tokyo, Nissan President and CEO Hiroto Saikawa said the Japanese automaker's intentions are fully understood by Renault. END