June 9, 2019
(Reuters) – France’s Renault SA has told Nissan Motor Co Ltd that it will block the company’s plan to overhaul its corporate governance, the Financial Times reported on Sunday.
Renault Chairman Jean-Dominique Senard revealed the same in a letter to Nissan Chief Executive Hiroto Saikawa on Saturday, according to the report, which cited people familiar with the letter.
The letter comes two weeks before Nissan’s annual meeting, where it had hoped to vote through a long-overdue transition from having statutory auditors to a governance system of three committees covering nominations, remuneration and audit, FT reported. Renault’s decision to abstain from the vote denies the proposal the two-thirds majority it needs to pass.
Renault and Nissan did not immediately respond to a Reuters request for comment on Sunday.
(Reporting by Kanishka Singh in Bengaluru, editing by Louise Heavens)