Following his arrest last week, Carlos Ghosn has been fired by Mitsubishi Motors.
The chairman of the car manufacturer was also sacked by Nissan last week after it emerged he had carried out financial misconduct at both firms.
The company said in a statement after the board met on Monday: “During today’s board meeting, it was decided that he is dismissed as chairman.”
CEO Osamu Masuko will replace Ghosn as the interim chairman.
“It was an agonizing decision,” he said on Monday.
“The priority was what to do to protect the company, what to do to protect our employees and their families. It was an unavoidable decision,” he added.
Ghosn was sacked from Nissan on Thursday. A spokesperson said the decision was “based on the copious amount and compelling nature of the evidence of misconduct presented.”
The chairman has denied allegations of financial misconduct but he is yet to speak publicly.
Executives of Mistibushi, Nissan and Renault are planning to meet this week. Japan’s Yomiuri Shimbun newspaper has reported that the meeting is due to be held in the Netherlands this week.
Shares in Nissan (TYO: 7201) are trading +1.76%. Renault (EPA: RNO) shares are +3.24% up and Mitsubishi (TYO: 8058) shares remain flat (1143GMT).