Danish Court Orders Carlos Ghosn To Pay Back $6 Million To Nissan And Mitsubishi

A court in Denmark ordered the fugitive former car executive Carlos Ghosn to repay 5 million euros ($6.1 million) in wages to Nissan and Mitsubishi in relation to a case that he had brought.  

At the core of this case is the Dutch-registered joint venture Nissan-Mitsubishi BV form where Ghosn was removed as chairman in 2019 and is among the series of cases that faced by one of the best known figures in the auto industry.

In his petition to the court, Ghosn had claimed that by removing him as the chairman, the Dutch labour law was violated by the Japanese companies and therefore demanded compensation of 15 million euros in lieu of wages and severance payments that he had not been given.

But the decision of the district court in Amsterdam favoured the Japanese car companies as it stated that a valid employment agreement with the joint venture was not in possession of Ghosn since such an agreement did not have the consent of the boards of Nissan and Mitsubishi.

Hence the country ordered Ghosn to pay back the 5 million euros in net payments he had been given by the Amsterdam-based joint venture between April and November 2018.

The verdict of the court will be appealed against by the former chairman of the Nissan-Mitsubishi-Renault alliance so that there can be hearing of the testimony of witnesses who would support his case, said a spokesperson for Ghosn.

They were glad that their allegations were supported by the court, said both Nissan and Mitsubishi.

“We are pleased that the court has dismissed Carlos Ghosn’s unfounded claims against NMBV and ordered Ghosn to repay the significant sums he appropriated unlawfully,” Nissan said in a statement.

At NMBV, his salary and sign-on bonus had been set by Ghosn himself which according to the country was wrong. In its ruling the country also said that the board member whose sign can be found on the agreement between him Ghosn and the company and one that was presented by him to the court, was not authorised to sign the agreement for the former executive’s salary.

Ghosn was the chairman of both Nissan and Mitsubishi and chief executive of Renault at the time of his arrest in Japan in November of 2018 over charges of underreporting his salary and using company funds for personal purposes – charges that Ghosn has repeatedly denied,

In December 2019, Ghson fled to Lebanon as he hid in carry-on luggage on a private jet that flew out of Kansai Airport. He has not returned to Japan since and has been staying in Lebanon.

(Adapted from Investing.com)



Categories: Economy & Finance, Entrepreneurship, Regulations & Legal, Sustainability, Uncategorized

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