Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nissan shareholders reject proposal to deem Renault as parent for disclosure purposes

Stock Markets Jun 28, 2022 04:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. FILE PHOTO: The logos of car manufacturers Nissan and Renault are pictured at a dealership Kyiv, Ukraine June 25, 2020. REUTERS/Valentyn Ogirenko/File Photo 2/3

TOKYO (Reuters) - Japan's Nissan (OTC:NSANY) Motor Co Ltd on Tuesday rejected a shareholder proposal at its annual general meeting (AGM) that would have led to the disclosure of a decades-old agreement with 43% stakeholder Renault SA (OTC:RNLSY).

Ahead of the AGM, one investor proposed deeming Renault (EPA:RENA) as Nissan's parent company for disclosure purposes which by law would force the publication of the agreement which stipulates the automakers' capital and business alliance.

Lack of publication prevents shareholders discussing the alliance which consequently remains "unequal", the investor said. Nissan owns only a 15% non-voting stake in Renault.

Observers expected opposition from the French automaker to scupper the proposal. Still, Nissan last month said it would disclose the agreement's content in its annual securities report to the extent it does not violate a confidentiality obligation.

Full disclosure of the Restated Alliance Master Agreement would reveal the scope of the 23-year-old tie-up, formed when Renault rescued Nissan from the brink of bankruptcy. The deal has long been the source of tension as it allows Renault to increase its involvement in Nissan's management.

The alliance, which in 2016 added Japan's Mitsubishi Motors (OTC:MMTOF) Corp, was rocked by the 2018 ouster of alliance founder Carlos Ghosn amid a financial scandal. The automakers have since pledged to pool more resources and work closer to make electric vehicles (EVs).

Still, Renault in April said all options were on the table - including a possible public listing of its EV unit - when it comes to overhauling its business in response to the swift electrification of the auto industry.

For Nissan - an EV pioneer with its 2010 Leaf - it is too early to consider spinning off its EV division, its chief operating officer said last month.

(This story corrects headline and second paragraph to clarify the proposal was for disclosure purposes only)

Nissan shareholders reject proposal to deem Renault as parent for disclosure purposes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email