Japanese carmaker Nissan Motor will hold a board meeting on Thursday which could seal the fate of chairman Carlos Ghosn, after he was unexpectedly arrested on suspicion of violating financial laws.

Tokyo prosecutors arrested the 64-year-old chairman on Monday for allegedly under-reporting his salary by 5 billion yen (44 million dollars) over five years from 2011.

An internal investigation by Japan’s second-largest carmaker concluded that Ghosn had fabricated his pay package for years.

The 64-year-old chairman’s "numerous other significant acts of misconduct have been uncovered, such as personal use of company assets,” the carmaker said.

Nissan will propose dismissing Ghosn as chairman at its board meeting on Thursday, Nissan Motor president Hiroto Saikawa said earlier this week.

Nissan could also remove representative director Greg Kelly, who allegedly collaborated with Ghosn.

French car firm Renault is involved in the affair, as Ghosn is its chairman and chief executive. He is also chairman of another Japanese carmaker, Mitsubishi.

French Economy Minister Bruno Le Maire said that he would meet his Japanese counterpart Hiroshige Seko in Paris on Thursday afternoon for talks on the future of the alliance between the three carmakers.

The Tokyo District Court on Wednesday approved a request from prosecutors to hold Ghosn and Kelly by 10 days.

The Brazilian-born business leader spearheaded a remarkable turnaround at Nissan about two decades ago, helping rescue the carmaker from near bankruptcy under a capital alliance with Renault.

Known as an aggressive cost-cutter, Ghosn became Nissan's chief operating officer in 1999 and later served as chief executive of the Japanese carmaker from 2001.