Legendary Nissan Chairman Carlos Ghosn arrested

Nissan Motor Co. (NSANY)  CEO Hiroto Saikawa said Monday that chairman Carlos Ghosn has been arrested and that the board will propose removing the world’s best-known auto executive at a special meeting Thursday following allegations of “serious misconduct” that followed an investigation in cooperation with Japan’s Public Prosecutors Office.

The auto giant said in an earlier statement Monday that “over many years” Ghosn and board director, Greg Kelly, had been under-reporting compensation amounts to the Tokyo Stock Exchange securities report.

Nissan added that, in regards to Ghosn, “numerous other significant acts of misconduct have been uncovered, such as personal use of company assets.” The company said Ghosn had also made inappropriate investments.

In a press conference Monday, Nissan Chief Executive Hiroto Saikawa, said both men had been arrested and this Thursday he would propose to the Nissan Board of Directors to remove them from their roles.

The chief executive revealed that a whistle-blower had passed information to Nissan’s auditors who then began a wider investigation. The evidence was then passed to Japan’s public prosecutor.