Nissan considers giving Renault some seats in the supervisory committee
TOKYO: Nissan Motor Co is considering giving its alliance partner Renault SA some seats on scheduled oversight committees after the French machine expresses dissatisfaction with the predetermined governance reform, a source said. [19659003] The two-decade-old partnership between Nissan and Renault was drawn into a crisis earlier this week, as the French automaker's demand for a greater expression in Nissan's new management system rarely exclaimed public censorship by the Japanese firm.
Renault, which owns 43.4% of the Japanese firm, signaled that it would block Nissan from formally adopting a revised governance structure at a June 25 general meeting – unless Renault received representation on new Nissan committees.
Nissan is now considering having Renault executives as members of nomination, auditing and compensation committees, a person with direct knowledge said.
"Nissan must make concessions for our governance form," said that person. "Whether it's two or three seats, we still don't know how many committees we'll give to Renault, but we're talking to Renault to give some seats to someone recommended by Renault."
Renault chairman Jean-Dominique Senard said earlier this week that he was confident of reaching an agreement with Nissan on the composition of the Japanese company's main committees. He said he would support Nissan's governance reform if the Japanese firm allowed Renault's two representatives on Nissan's board to be part of its powerful committees.
Nissan had offered to let only Senard sit on the committees, but Renault insists on his CEO Thierry Bollore also has a role.
Another source familiar with Nissan's thinking said there is no consensus on Renault's recommendations and the two companies are still negotiating.
"There is still a gap … both sides must make concessions. The question is whether they can limit (the gap)," said the person.
In a related development, the source with direct knowledge said that Nissan has recommended Yasushi Kimura , advisor to leading fuel distributor JXTG Holdings Inc, to become the head of Nissan's board of directors
Kimura must be approved to become an external director at the general meeting expired on June 25. His official agreement as chairman of the board will be decided at the board meeting after the general meeting.
