Renault, which holds a 15% voting stake in Nissan, will abstain from voting on the appointment of Motoo Nagai as an external director at Nissan's general shareholders' meeting on June 23. Renault's decision stems from concerns regarding Nagai's independence, given his background as a former executive of Mizuho Financial Group, a major transactional bank for Nissan. Renault based its decision on international governance standards.
This move by Renault is part of a broader, long-standing tension between the two alliance partners. In June 2019, Renault had signaled its intention to block Nissan's adoption of a new governance structure at a June 25 shareholder meeting unless Renault secured representation on new Nissan committees. This demand, conveyed by Renault Chairman Jean-Dominique Senard, drew public criticism from Nissan, which called the demand "most regrettable."
The 2019 conflict highlighted deep strains in the two-decade-old partnership, exacerbated by the arrest of former Chairman Carlos Ghosn. Renault's abstention from the governance vote at that time would have effectively blocked the new governance system, which required a two-thirds approval. Nissan sources expressed concern about potential conflicts of interest if Renault executives were to sit on committees overseeing executive nominations and compensation.
More recently, in January 2023, Renault and Nissan were reportedly nearing an overhaul of their alliance. This included discussions where Nissan sought for Renault to reduce its 43.4% stake in Nissan to 15% in exchange for Nissan investing in Renault's electric vehicle unit. The ongoing disagreements over board appointments and governance reflect the continuing efforts by both companies to redefine their relationship and address long-standing concerns about each other's influence.
