By Peter Landers 

TOKYO--Nissan Motor Co. Chief Executive Hiroto Saikawa, in an unusual criticism of his French partners, said it was "most regrettable" that Renault SA was refusing to support his proposed governance changes at Nissan.

In a statement Monday, Mr. Saikawa confirmed reports over the weekend that Renault sent him a letter indicating it intended to abstain at Nissan's shareholder meeting on June 25 in a vote on the proposed changes. Nissan has asked shareholders at the meeting to establish board committees on nomination, compensation and audit, part of governance changes adopted after its ouster of former Chairman Carlos Ghosn.

In the letter, Renault Chairman Jean-Dominique Senard wrote that the governance changes "should not serve as a tool directed or used against Nissan's largest shareholder," according to people familiar with its contents. Renault is Nissan's largest shareholder, with a 43.4% stake.

"This transition was discussed thoroughly by Nissan's board and approved by all board members, including Renault's own nominees," Mr. Saikawa said. "Nissan finds Renault's new stance on this matter most regrettable, as such a stance runs counter to the company's efforts to improve its corporate governance."

It is rare for Nissan to issue statements in Mr. Saikawa's name, and he has typically avoided direct criticism of his partners at Renault.

At the shareholder meeting, votes representing a majority of Nissan shares must be cast on a proposal, or it doesn't get decided. Two-thirds of those voting must approve for it to be passed. If Renault carries through with its threat and some other shareholders also abstain, the threshold for shareholder participation wouldn't be met.

People close to Renault said Mr. Senard's letter was meant to start a discussion with Nissan, not state a final position. In particular, they said, Renault wants to discuss the composition and powers of the new board committees and ensure they wouldn't be used to dilute the French car maker's influence.

Renault and Nissan, partners for two decades, have been at odds over several issues since the arrest in November of Mr. Ghosn, who had led both car makers. He has been charged with several financial crimes and says he is innocent. In April, Renault broached the idea of a merger with Nissan, but Mr. Saikawa said it wasn't the right time to discuss the idea.

Last week, Fiat Chrysler Automobiles NV withdrew a proposal to merge with Renault after Mr. Saikawa expressed concerns that Nissan wasn't consulted about the proposal and needed time to study it.

Sean McLain and Nick Kostov contributed to this article.

Write to Peter Landers at peter.landers@wsj.com

 

(END) Dow Jones Newswires

June 10, 2019 05:08 ET (09:08 GMT)

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