Nissan Shareholders Nix Proposal To Name Renault As Parent

Nissan Motor Co. of Japan Ltd. rejected a shareholder proposal at its annual general meeting on Tuesday, June 28, 2022, that would have resulted in the disclosure of a decades-old agreement with 43% stakeholder Renault SA, according to Reuters.

Photo Insert: Observers predicted that the French automaker would oppose the proposal. Nonetheless, Nissan indicated last month that it would publish the terms of the deal in its annual securities report if it did not violate a confidentiality requirement.

One investor proposed naming Renault as Nissan's parent company ahead of the meeting, which would require the publishing of the agreement governing the manufacturers' capital and business cooperation.

The lack of transparency prohibits shareholders from criticizing the alliance, which remains "unequal," according to the investor. Nissan has only a 15% non-voting share in Renault.

Observers predicted that the French automaker would oppose the proposal. Nonetheless, Nissan indicated last month that it would publish the terms of the deal in its annual securities report if it did not violate a confidentiality requirement. The full disclosure of the Restated Alliance Master Agreement would show the scope of the 23-year-old alliance, which was founded when Renault saved Nissan from bankruptcy.

The agreement has long been a source of contention since it permits Renault to expand its influence in Nissan's administration.

The 2018 removal of alliance founder Carlos Ghosn amid a financial scandal shocked the alliance, which absorbed Japan's Mitsubishi Motors Corp in 2016. Since then, automakers have committed to pool more resources and collaborate more closely in order to produce electric vehicles (EVs).

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