Good Corporate Governance Principles Practices at Nissan Motor Co., Ltd. ?

Chair and chief executive officer (CEO) roles Yes, the Chair and Chief executive officer
should be separate. roles are separate at Nissan motors
Board of directors should provide a Board of Directors were not provided
supervisory role. adequate supervisory role
At least 50 per cent of board members Yes, more than 50% of board members
should be independent. were independent.
Transparency: There should be timely and No, in Nissan there was no timely and
accurate disclosure of all critical matters. accurate disclosure of all critical matters
The external auditor owes a duty of due No, in Nissan the internal auditors owed
professional care to the company. the duty of due professional care to the
company
The audit committee should review the No, in Nissan the audit committee didn’t
work of internal auditors and the reports of review the work of internal auditors and
statutory auditors the reports of statutory auditors
Remuneration policy and contracts should No, in Nissan the Remuneration policy and
be managed by an independent contracts were not managed by an
remuneration committee independent remuneration committee
An independent nomination committee
should facilitate and coordinate the search
of qualified board members
There should be a presence of strong
internal controls.
There should be adequate disclosure of
conflicts.
There should be adequate disclosure of
related-party transactions.
Stakeholders, including individual
employees and their representative bodies,
should be able to freely communicate to
the board of directors their concerns about
any illegal or unethical practices.

Institutional investors should be

encouraged to co- operate and coordinate
with the board.
Pyramid structures, cross-shareholding
plans, and shares with limited or multiple
voting rights should be avoided because
these structures can be used to diminish
the capability of non-controlling
shareholders to influence corporate policy.