Nissan chairman Carlos Ghosn arrested in Tokyo for financial misconduct

Nissan chairman Carlos Ghosn was arrested on Monday in Tokyo for financial misconduct, news agency AFP reported quoting Japanese media.

"The Tokyo District Public Prosecutor's Office arrested Nissan chairman Ghosn on suspicion of violation of the Financial Instruments and Exchange Act," AFP quoted public broadcaster NHK.

Ghosn was accused by automaker Nissan of "significant acts of misconduct" including underreporting his salary. The company also stated that it would move to fire him. Ghosn leads an alliance of Nissan, Renault and Mitsubishi.

Nissan, in a statement, noted that a probe has been underway on Ghosn for months after receiving a report from a whistleblower. The company added that it had uncovered misconduct going back several years. 

According to reports, Ghosn had used company money for personal use. Ghosn is charged of under-reporting nearly 10 billion yen ($88.70 million) in compensation as nearly 5 billion yen, Reuters reported quoting Jiji news agency. 

The reported arrest of Nissan chairman Carlos Ghosn will not affect the Japanese automaker's relationship with Renault and Mitsubishi, CEO Hiroto Saikawa said Monday. 

"The partnership among the three entities will not be affected by this event, rather we will closely work together with all the partners to contain any possible confusion," Saikawa told reporters after Ghosn's reported arrest for financial misconduct.

Nissan will hold a board meeting on Thursday to fire chairman Carlos Ghosn, who was reportedly under arrest over allegations of financial misconduct, the company's chief executive officer said.

Meanwhile, French automaker Renault's shares tumbled more than 12 per cent on Monday in late-morning trading in Paris after CEO Carlos Ghosn was accused of underreporting his salary as chairman of Japan's Nissan.

(With inputs from agencies)