Former CEO Carlos Ghosn of Nissan Motor Co., Ltd. was acquitted by former CEO Greg Kelly on the 3rd in the Tokyo District Court on charges of acquitting the former chairman's compensation in the securities report. Will be handed down.

With the prospect of a trial of former chairman Ghosn fleeing abroad, it will be interesting to see how the court finds the case.

Former Nissan CEO Greg Kelly (65) colluded with former chairman Carlos Ghosn (67), and for eight years until 2017, the former chairman's compensation was 9.1 billion according to the securities report. He has been accused of violating the Financial Instruments and Exchange Act along with Nissan as a corporation, saying that the amount is too small.

The main focus of the trials held more than 60 times was whether 9.1 billion yen was "unpaid compensation" paid after the retirement of the former chairman, and former CEO Kelly said, "There is no unpaid compensation, former chairman. There is no fact that he has colluded with the executives or the executives, "he consistently insisted on his innocence.

On the other hand, the prosecutor's office has sentenced him to two years in prison, saying, "In order to keep the amount disclosed in the securities report low, he supported the mechanism of" back compensation "that pays a part of the compensation later."

On the other hand, Nissan has admitted that it has been charged, and the prosecution is seeking a fine of 200 million yen.

The case is also characterized by the application of "plea bargaining," and the focus will be on how the court will judge the credibility of the testimony of former secretarial directors who escaped prosecution instead of cooperating with the investigation.

The ruling will be handed down in the Tokyo District Court at 10 am, and it will be interesting to see how the court finds the case as the trial of former chairman Ghosn, who fled to Lebanon in the Middle East, is unlikely to be held.

The main issue is

In a year and a half trial, former CEO Kelly and the prosecution's allegations were in direct conflict.

The main issue.

Was there any unpaid reward?

The biggest issue is whether or not the 9.1 billion yen that was not mentioned in the securities report was the "unpaid compensation" of former Chairman Ghosn.

Officer compensation is obliged to be disclosed when the amount is known, even if it is not actually paid.

The prosecution has decided to pay due to the existence of multiple agreement documents signed by the former chairman, saying, "In order to avoid criticism of former chairman Ghosn's high compensation, we turned part over and postponed payment." It is clear that it is an unpaid reward.

In response, the defense insisted, "There is no fixed unpaid compensation. We just considered paying it as an advisory fee after retirement in order to retain the former chairman at Nissan."

Was there a collusion?

The second issue is whether there was a collusion with former President Ghosn.

According to the prosecution, former CEO Kelly, under the direction of the former chairman, made preparations to ensure payment of compensation and was actively and actively involved.

On the other hand, the defense argued that the existence and amount of unpaid remuneration were not reported to former CEO Kelly, and he was not involved in the examination of payment methods.

The collusion is not established.

"False description" or "non-statement"

There is also a dispute over the interpretation of the law.

The defense is subject to criminal punishment, even if the report does not include unpaid remuneration based on the testimony of a company law expert who appeared as a witness, it is not a mere "non-statement" and is not a false statement. I insist that it should not be.

The prosecution, on the other hand, said the report contained a lie amount limited to what was paid, not the total amount of compensation, and was subject to criminal penalties.

Evaluation of "judicial transaction"

Another major feature of this case is the use of "plea bargaining," and the credibility of the testimony of former Nissan secretary generals who were not prosecuted instead of cooperating with the investigation is also an issue.

Former secretary generals testified at the trial that "there was unpaid compensation and I showed the agreement with the former chairman to former CEO Kelly," which is one of the pillars supporting the prosecution's allegations.

The defense said, "I have a motivation to lie because I am not prosecuted, and I cannot trust the testimony."

Judicial transactions were introduced in 2018, but there are three cases including this case, and the judgment of the court may affect the operation of the system in the future.

The history of the big impact incident at home and abroad

The arrests of former Chairman Ghosn, who has been the head of both sides for many years, and former CEO Kelly, who is also known as his aide, have had a great impact at home and abroad.

The two were arrested by the Tokyo District Public Prosecutors Office on suspicion of violating the Financial Instruments and Exchange Act in November 2018, four years ago.

Former CEO Kelly was detained for 37 days until bail was granted, and former chairman Ghosn, who was re-arrested on suspicion of special back office, continued to be detained for a total of 130 days. Has also increased.

Former Chairman Ghosn appeared in disguise as his hat, mask, and work clothes when he was released on bail.

At the end of the year, we will be even more surprised.

He broke the bail conditions that prohibited him from traveling abroad, boarded a private jet from Kansai Airport in a large case, and fled to Lebanon in the Middle East.

The Tokyo District Public Prosecutor's Office has taken an arrest warrant on suspicion of violating the Immigration Control and Refuge Act, alleging that the former chairman had left the country illegally without undergoing immigration examination, but there is no prospect that a trial will be held even now.

A former member of the U.S. Army Special Forces and his two sons, who helped former Chairman Ghosn escape, were detained by U.S. law enforcement authorities and sentenced to prison by the Tokyo District Court last year.

And in September, nearly two years after his arrest, a trial with former CEO Kelly and Nissan began in the absence of former chairman Ghosn.

Nissan acknowledged the charges, while former CEO Kelly pleaded not guilty.

At the end of the hearing, "I haven't committed any crimes. The former chairman is a very talented manager, and I thought it was important to take steps to stay with Nissan even after he retired, but it is legal. I searched for a way. "