Nissan Moving To Compromise With Renault

Nissan moving to compromise with Renault

Nissan is now shifting its stance toward accepting some of the requests from its major shareholder, Renault, regarding the Japanese company's plan to reform its governance system.

The move is aimed at stopping the French automaker from abstaining from a vote on the plan.

Nissan plans to propose dividing up its governance structure at a shareholders' meeting later this month.

It wants to have three oversight committees: one for auditing, and one each for executive compensation and board nominations.

Renault demanded that its nominee be included on the new committees, otherwise it says the reform could weaken its influence over the Japanese automaker.

Renault indicated it may abstain from voting on the plan unless its wishes are respected.

Sources say Nissan is now considering nominating Renault CEO Thierry Bollore as a member of one of the committees, as well as Chairman Jean-Dominique Senard.

Nissan's reform plan comes after widely publicized allegations of financial wrongdoing by former chairman Carlos Ghosn. It aims to ensure management transparency by increasing the involvement of outside directors.

As Renault owns 43 percent of Nissan's shares, if it abstains from a vote it could block any reforms.