TOKYO Reuters -- Japan's Nissan Motor Co Ltd rejected a shareholder proposal at its annual general meeting AGM on Tuesday that would have led to the disclosure of a decades-old agreement with 43% stakeholder Renault SA.
A shareholder proposed designating Renault as Nissan's parent company, which would force the publication of the agreement which specifies the automakers' capital and business alliance by the end of the AGM.
The investor said that the lack of publication prevents shareholders from discussing the alliance. Nissan has only 15% of a non-voting stake in Renault.
Observers expected opposition from the French automaker to scupper the proposal. Nissan said last month it would disclose the agreement's content in its annual securities report to the extent that it does not violate a confidentiality obligation.
The scope of the 23 year old tie-up that Renault rescued Nissan from the brink of bankruptcy would be revealed by the full disclosure of the Restated Alliance Master Agreement. The deal allowed Renault to increase its involvement in Nissan's management, which has been a source of tension for a long time.
The alliance, which added Japan's Mitsubishi Motors Corp in 2016, has been rocked by the ouster of alliance founder Carlos Ghosn in 2018 due to a financial scandal. The automakers have pledged to pool more resources and work closer to make electric vehicles EVs Still, in April, Renault said all options were on the table - including a possible public listing of its EV unit when it comes to overhauling its business in response to the rapid electrification of the auto industry.
For Nissan -- an EV pioneer with its 2010 Leaf -- it is too early to consider spinning off its EV division, its chief operating officer said last month.