Nissan Shareholders Reject Outside Director's Reappointment

Nissan Motor Co. shareholders voted against the reappointment of outside director Motoo Nagai during the company's annual shareholders' meeting, marking a rare rejection of a board nominee proposed by a major Japanese corporation, Kyodo News reported.

Renault, which controls 15 percent of Nissan's voting rights, had announced it would abstain from voting on Nagai and fellow nominee Junichi Shinbo. (Photo: Nissan Global)

The proposal reportedly failed in part because Renault SA, Nissan's largest shareholder, abstained from voting. Nagai, a former executive of Mizuho Financial Group Inc., was one of 12 board nominees proposed by the automaker.

The remaining 11 nominees, including President and Chief Executive Officer Ivan Espinosa and three newly nominated outside directors, were approved.

Renault, which controls 15 percent of Nissan's voting rights, had announced it would abstain from voting on Nagai and fellow nominee Junichi Shinbo because both previously served as executives at Mizuho Financial Group, one of Nissan's principal lenders.

The French automaker cited concerns about maintaining management independence.

US proxy advisory firm Institutional Shareholder Services (ISS) also recommended voting against both appointments.