NISSAN is set to dismiss its chairman, Brazilian-born Carlos Ghosn after claims that he under-reported his income "over many years", among other allegations of misconduct.
The Japanese company said the violations were discovered during an investigation over several months that was instigated by a whistleblower.
Mr Ghosn, 64, also allegedly engaged in personal use of company assets, it said.
Nissan said it was providing information to the prosecutors and cooperating with their investigation. The allegations also concern another Nissan executive, its representative director Greg Kelly.
Nissan employs more than 5,000 workers at its plant on Wearside which is the UK's largest car factory. Mr Ghosn is credited with turning Nissan's fortunes around.
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