New York (CNN Business) Carlos Ghosn has been arrested. His fate is now in the hands of Japanese prosecutors and the directors of three of the world's top car companies. 
 
 Ghosn — the chairman of Nissan, Renault and Mitsubishi Motors — was detained Monday by Japanese authorities after an internal investigation at Nissan revealed "significant acts of misconduct." 
 
 It was a stunning turn for one of the biggest names in the global auto industry who is credited with turning around the businesses at both Nissan and Renault . Shares in the companies plunged on the news. 
 
 More details are expected to emerge in the coming days and weeks about Ghosn's alleged wrongdoing. Nissan said it includes significantly under-reporting his compensation and misusing company assets. Ghosn is yet to respond to the allegations. 
 
 His arrest has unleashed a corporate crisis that spans continents. He's the linchpin of a powerful alliance between Nissan ( NSANY ), Renault ( RNSDF ) and Mitsubishi ( MMTOF ), which together make one of every nine cars sold around the world. 
 
 The allegations against Ghosn 
 
 Nissan said Monday that it carried out a months-long investigation into Ghosn, 64, and another board member after receiving a whistleblower report. 
 
 The company found that Ghosn and the other board member, Greg Kelly, had been misreporting Ghosn's earnings in filings to the Tokyo stock exchange. 
 
 Prosecutors said the two men allegedly collaborated to under-report Ghosn's income by about 5 billion yen ($44 million) over a five-year period ending in March 2015. The maximum punishment in Japan for filing a false financial statement is up to 10 years in prison and a fine of up to 10 million yen ($89,000). 
 
 Nissan said it also uncovered "numerous other significant acts of misconduct," including the personal use of company assets and misuse of the company budget. 
 
 According to Japanese public broadcaster NHK, Nissan provided Ghosn with homes in Rio De Janeiro, Beirut, Paris and Amsterdam. He allegedly paid only a portion of the rent and did not declare the benefit. 
 
 NHK also reported that prosecutors suspect Ghosn may have pocketed money meant for other Nissan executives. 
 
 CNN hasn't so far been able to reach Ghosn, Kelly or their representatives for comment on the allegations. 
 
 Nissan, Mitsubishi and Renault call board meetings 
 
 Following his arrest, Ghosn seems all but certain to be ousted from his leadership roles at Nissan, Mitsubishi and Renault. 
 
 Nissan CEO Hiroto Saikawa said the company will meet Thursday to remove Ghosn and Kelly from the board. 
 
 Mitsubishi said it is starting an internal investigation and will ask the board of directors to "promptly remove" Ghosn as chairman. 
 
 Renault on Tuesday appointed its chief operating officer as acting CEO , but it stopped short of removing Ghosn. In addition, Renault said an independent director would chair board meetings "during this period." 
 
 Stocks in all three companies tanked. Renault closed down more than 8% in Paris on Monday, and fell another 2% on Tuesday. In Tokyo, Nissan fell 5.5% Tuesday while Mitsubishi dropped nearly 7%. 
 
 According to NHK, prosecutors in Tokyo are considering whether to bring criminal charges against Nissan. The carmaker told CNN it was aware of the reports, but declined to comment further. 
 
 Alliance in doubt 
 
 Ghosn is the architect of a strategic alliance between the three automakers. The partnership has allowed the companies to better compete against auto industry powerhouses such as Volkswagen ( VLKAF ), Toyota ( TM ) and General Motors ( GM ). 
 
 Nissan, Renault and Mitsubishi are well integrated. Many top executives in the alliance report to three separate CEOs — but Ghosn held it all together. 
 
 "He was the alliance," said Rebecca Lindland, senior auto analyst for Cox Automotive. "He was the creative genius behind all of this, and set the parameters to run these fairly disparate companies." 
 
 The three carmakers share ownership, too. Renault holds a 43.5% stake in Nissan, while Nissan owns 15% of Renault. Mitsubishi got on board in 2016, when Nissan purchased 34% of its stock. 
 
 After the bombshell of Ghosn's alleged misconduct, there are concerns the alliance could falter . Much hinges on whether the three companies can agree on how to handle the allegations against him and settle on a replacement. For now, they say they are committed to the alliance. 
 
 The carmakers could struggle to compete solo should the alliance break up. The auto industry is under intense pressure to develop mass-market electric cars and autonomous vehicles. Tech companies are eager to beat them to the punch. 
 
 France's stake 
 
 Ghosn's arrest has particular significance for France. The French government owns 15% of Renault. 
 
 "Today, Mr. Ghosn clearly cannot lead the company," French Finance Minister Bruno Le Maire said Tuesday. 
 
 Le Maire told radio station France Info that he would be asking Renault representatives to put in place new temporary leadership for the company. 
 
 The story dominated newspaper coverage in the country. Four of France's top dailies put Ghosn on their front pages Tuesday under headlines like 'A fallen icon' and 'The fall of emperor Carlos Ghosn.' 
 
 US links 
 
 There's a chance American authorities could get involved, too. 
 
 Though Nissan and Renault are foreign companies, their shares trade indirectly on US exchanges as American depositary receipts, or ADRs. To sell this type of security, banks buy up stock in foreign companies and then issue certificates that track the companies' share prices. US investors can trade the certificates like other securities. 
 
 That could provide an opening for the US Securities and Exchange Commission to get involved, according to David Chase, a former SEC prosecutor. 
 
 If Ghosn's alleged misconduct affected Nissan or Renault's financial statements relied upon by US investors — or if his behavior exposes internal compliance problems — it could be the basis for a lawsuit, Chase said. ||||| Image copyright Getty Images Image caption French president Emmanuel Macron and Carlos Ghosn visit the Renault factory in Maubeuge, northeastern France, earlier this month 
 
 Carlos Ghosn should not remain in charge of Renault following his arrest in Japan over claims of "misconduct", the French finance minister has said. 
 
 Bruno Le Maire said he was "no longer in a position" to lead the carmaker in which the French state has a 15% stake. 
 
 The Renault board confirmed it would meet on Tuesday to discuss temporarily replacing Mr Ghosn as chief executive. 
 
 The minister hinted that directors could ask Renault chief operating officer Thierry Bollore to step up. 
 
 Mr Bollore is already in charge of many day-to-day activities at the firm and the company's latest statement makes it clear work at the company is continuing as normal. 
 
 "We need to have an interim management structure in place as quickly as possible," Mr Le Maire said. 
 
 Renault's partnership with Nissan remained in the interests of both France and Japan and of both companies, he added. 
 
 On Monday, Japanese prosecutors said Mr Ghosn had under-reported his income from running Nissan by 5bn yen ($44.4m; £34.5m) over five years. 
 
 Japanese broadcaster NHK also reported that the company had spent millions buying luxury homes for Mr Ghosn. 
 
 Mr Ghosn is also chairman of both Nissan and Mitsubishi Motors and leads an alliance of the three carmakers. 
 
 Nissan and Mitsubishi are both preparing to remove him from his posts. Shares in Nissan fell 5.5% and Mitsubishi slid 6.8% in Tokyo, while Renault shed 2.5% after dropping 8% on Monday. 
 
 Mitsubishi Motors chief executive Osamu Masuko said the alliance would be difficult to manage without Mr Ghosn. Nissan has a 34% controlling stake in the smaller Japanese carmaker. 
 
 What has happened so far? 
 
 In a press conference on Monday, Nissan said an internal investigation prompted by a whistleblower had revealed "significant acts of misconduct" including "personal use of company assets". 
 
 The announcement sent shockwaves through the automotive industry where Mr Ghosn, 64, is seen as a titan, responsible for a dramatic turnaround at Nissan in the early 2000s. 
 
 Nissan chief executive Hiroto Saikawa said "too much authority was given to one person in terms of governance". 
 
 "I have to say that this is a dark side of the Ghosn era which lasted for a long time," he said, adding he was still debating whether Mr Ghosn was "a charismatic figure or a tyrant". 
 
 What are the accusations? 
 
 Prosecutors later said in a statement that Mr Ghosn and senior executive Greg Kelly had conspired to understate Mr Ghosn's compensation, starting in 2010. 
 
 Mr Ghosn is accused of filing annual securities reports containing fake statements, which could mean up to 10 years in prison, or a fine of 10m yen, or both. 
 
 From 2010, Japanese firms have been required to disclose the salaries of executives who earn more than 100m yen. 
 
 Japanese prosecutors also said they had already raided Nissan's Yokohama headquarters, near Tokyo, as part of their investigation. 
 
 Image copyright Getty Images Image caption Carlos Ghosn unveils the Renault K-ZE electric car aimed at the Chinese market last month 
 
 BBC Tokyo correspondent Rupert Wingfield-Hayes said the charges against Mr Ghosn had come to light because of a new law that came into effect in Japan in June, aimed at improving corporate governance and uncovering corporate misdeeds. 
 
 He said under Japanese law, Mr Ghosn can be kept in custody for up to 23 days without charge. 
 
 No further details of his alleged misconduct have been given. But some specifics were being reported by Japanese media. 
 
 Broadcaster NHK reported, citing unnamed sources, that Nissan provided Mr Ghosn with houses in four countries without legitimate business justifications. 
 
 Millions of dollars had been spent to purchase and renovate the homes in Brazil, Lebanon, France and the Netherlands, NHK said. 
 
 There has been no comment from Mr Ghosn or Mr Kelly. 
 
 How will this affect the Alliance? 
 
 As misconduct revelations emerged, the future of the car alliance led by Mr Ghosn remained unclear. 
 
 He has been credited with turning around both Nissan and Renault before becoming the linchpin of the alliance the companies later formed. 
 
 The Renault-Nissan-Mitsubishi Alliance sold 10.61 million passenger cars and light commercial vehicles in 2017, making it the number-one automotive group worldwide. 
 
 Nissan chief executive Mr Saikawa insisted the partnership "will not be affected by this event". 
 
 Janet Lewis, Macquarie's head of industrials research in Asia, said it was "in the interests of all three companies to get through this as there aren't a lot of alternatives for them, especially in light of the investments they have made together so far". 
 
 Five notable Japan Inc scandals 
 
 The Olympus affair: Michael Woodford blew the whistle on a vast accounting fraud at the camera firm 
 
 Michael Woodford blew the whistle on a vast accounting fraud at the camera firm Toshiba's irregular accounting: the industrial group revealed it had overstated operating profit by nearly $1.2bn 
 
 the industrial group revealed it had overstated operating profit by nearly $1.2bn Takata's deadly airbags: faulty airbags produced by the firm led to injuries and deaths around the world 
 
 faulty airbags produced by the firm led to injuries and deaths around the world Kobe Steel data scandal: the country's third-largest steelmaker falsified data on quality of some of its goods 
 
 the country's third-largest steelmaker falsified data on quality of some of its goods Nissan emissions failure: the carmaker admitted some emissions and tests "deviated from the prescribed testing environment". 
 
 The corporate scandals that rocked Japan
– About to be ejected as chairman of Nissan Motors, Carlos Ghosn's future at Mitsubishi and Renault is now very much in doubt. A day after Ghosn was arrested on suspicion of understating his Nissan income by more than $44 million, Mitsubishi said it would ask its board to "promptly remove" the chairman, while France's finance minister said the 64-year-old CEO was "no longer in a position" to lead Renault, which is partially state-owned, per CNN and the BBC. Indeed, Ghosn is likely to spend the next several weeks in a jail cell, the Wall Street Journal reports, noting that Japanese courts typically grant prosecutor requests to hold suspects without charge for up to 20 days after an initial arrest. What's more, suspects can't request bail for that period and may be subject to daily interrogations without a lawyer, per the Journal. If prosecutors bring any new charges against Ghosn, which is likely, the process could be repeated. French finance minister Bruno Le Maire on Tuesday hinted at COO Thierry Bollore as a possible replacement at Renault, noting the "need to have an interim management structure in place as quickly as possible." Renault's board will meet Tuesday evening. (Ghosn may have conspired with another Nissan board member.)