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Nissan needs to fix its corporate governance system

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Carlos Ghosn, ousted as chairman of Nissan Motor Co. over allegations of financial impropriety, was indicted on Jan. 11 on two new charges of financial misconduct.

He is accused of aggravated breach of trust under the company law and a violation of the financial instruments and exchange law by under-reporting his remuneration from fiscal 2015 through fiscal 2017.

Since Ghosn denies all the charges against him, the outcome of his trial is unpredictable.

Given the enormous scale of Nissan's daily operations, the automaker needs to act swiftly to put its corporate governance back on a solid and healthy footing.

Shortly after Ghosn's surprise arrest in November, Nissan dismissed him as chairman and stripped him of the right to represent the company.

Nissan said several months of an internal investigation before his arrest had turned up serious wrongdoings. But the company has yet to disclose details of his alleged misconduct.

Clearly, there are limits to how much related information Nissan can disclose for fear of compromising the investigation into Ghosn's financial affairs by the Tokyo District Public........

© The Asahi Shimbun