In a statement, Nissan said it had been investigating Ghosn and Kelly for months, after receiving a report from a whistleblower. He could end up being dismissed from his position in the company, AFP reported.
Once dubbed "Le Cost Killer", Ghosn, who is 64, is the chairman and CEO of the Renault-Nissan-Mitsubishi Alliance.
"To have so greatly violated the trust of many, I feel full of disappointment and regret", Saikawa told a news conference. "I want to minimize the bewilderment and the impact on the operation and our business partners". A representative for the Tokyo prosecutors' office said they don't comment on individual cases and a spokesman for Renault also declined to comment.
Carlos Ghosn is set to be removed from his role as Nissan chairman and representative director after an internal investigation found that he has under-reported his salary to Japanese authorities.
Nissan said CEO Hiroto Saikawa would propose to the Nissan board to remove Ghosn and Kelly. "This is serious misconduct".
Nissan said it would brief reporters on Monday evening.
"The precipitous drop in the share price underscores both the importance of corporate governance for investors and the obviously key role of the CEO in the company's value", Mr Howladar said.
Carlos Ghosn to be arrested in Japan on suspected financial law breach, removed as Nissan chairman
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The statement came after local media reported that Ghosn was to be questioned on Monday night by prosecutors in Tokyo and was to be arrested on violation of financial regulations including misreporting his income.
Following that report, Nissan global depository receipts fell more than 11 per cent in Japan, while shares in Renault have dropped by more than five per cent, reaching their lowest level in almost four years. The news of Ghosn's troubles broke after Japanese markets had closed for the day.
Carlos Ghosn, chairman of the alliance between Renault SA, Nissan Motor Co and Mitsubishi Motors Corp, pauses during a Bloomberg Television interview at the Paris Motor Show in Paris on October 2 this year.
Among the best-paid executives in both Japan and France for several years, Mr Ghosn's compensation has regularly drawn criticism. He also earned a 735m Japanese yen (£5m) salary from Nissan and 227 Japanese yen from Mitsubishi for the year ending in March 2018, according to annual filings. Mitsubishi and Renault have also not commented, neither has Ghosn's side.
In June, Renault shareholders approved Ghosn's €7.4 million (US$8.45 million) compensation for 2017. That prompted the ire of then-President Francois Hollande. But his triumph in turning the company around and introducing greater efficiency made him something of a national hero.