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Greg Kelly, Nissan Motor Co.'s representative director, who was arrested on the same day as Chairman Carlos Ghosn for allegedly conspiring in financial misconduct, has denied that Ghosn's salary was falsely under-reported in the company's securities reports, sources close to the matter said Saturday.

Nissan Motor Co aims to nominate a new chairman within a month or two, hopefully before its next board meeting slated for around December 20, a source familiar with the matter said, after the automaker ousted Carlos Ghosn as chairman on Thursday.

Ghosn, who has been acting as chairman of all three automobile giants, was arrested in Japan on Monday. Under Japanese law, publicly listed companies are required to disclose executive compensation totalling ¥100m yen or more.

Under the law, companies themselves can also be held accountable for the falsified documents, Kukimoto said, following reports that prosecutors believe Nissan also has a case to answer.

Nissan said it would study the creation of a "special committee" to take advice from a third party on improving its internal governance and executive pay.

Concomitantly, Nissan is looking forward to gain more influence in its alliance with France's Renault. Prosecutors from the Japanese tax department have already raided the Nissan's Yokohama headquarters while the Renault board is expected to meet soon to decide Mr. Ghosn's future in their firm.

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Prosecutors allege Ghosn and Kelly collaborated to understate Ghosn's income by about 5 billion yen ($44 million) over a five-year period ending in March 2015. In the case of proof of guilt of the Gun could face up to 10 years in prison. Its acting chief, Deputy CEO Thierry Bollore, spoke publicly Thursday night for the first time since Ghosn was sidelined, and sought to soothe markets, auto buyers and his employees by promising continuity.

A Nissan lifer who was elevated to CEO when Ghosn stepped back from the role past year, Saikawa has a reputation as a fierce defender of Nissan's interests within its dealings with Renault.

Carlos Ghosn is a French citizen born in Brazil but of Lebanese descent.

On Wednesday, prosecutors successfully applied to extend his custody for an additional 10 days as they stepped up their questioning. Kelly is accused of helping Ghosn in his wrongdoings.

Reuters was not able to contact them.

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