Former Nissan Motor Co. Chairman Carlos Ghosn had the automaker’s board pass a special resolution giving his aide the authority to invest the foreign directors' remuneration, which was paid in yen, in currency swap transactions, according to sources.

The resolution is believed to have been made in connection with a scheme to transfer Ghosn's personal losses to Nissan.

Ghosn, 64, has been re-arrested on suspicion of aggravated breach of trust in violation of the Companies Law.

The aide is a senior official at the company’s secretary’s office, who has struck a plea bargain with prosecutors over the under-reporting of Ghosn’s annual remunerations in securities reports.

The resolution was approved at the board meeting after being disguised as one concerning a general rule, the sources said.

But it was aimed at shifting financial losses incurred by the investment of Ghosn's remuneration over to Nissan while hiding the actual purpose of the resolution from other directors.

Ghosn had signed a contract for a financial derivative known as a swap transaction between the company handling his asset management and Shinsei Bank, a Tokyo-based bank, according to the sources.

Ghosn described the contract as one intended to allow the remuneration he received in yen to be converted to U.S. dollars. However, he incurred a huge sum of unrealized losses due to the stronger yen around the time when U.S. investment bank Lehman Brothers collapsed in autumn 2008.

In October that year, Ghosn moved the rights to the contract from the asset management company to Nissan, transferring about 1.85 billion yen ($16.6 million) in unrealized losses.

Regarding the proposed transfer, the banking side asked for approval from Nissan’s board of directors.

But Ghosn proposed at a board meeting that the senior official at the secretary’s office be given the authority to make investments and convert remuneration paid to foreign directors in yen to foreign currencies.

The proposal was approved.

Ghosn has been also under investigation on suspicion of another special breach of trust by having a Nissan foreign subsidiary deposit a total of $14.7 million (1.63 billion yen at current rates) to an entrepreneur in Saudi Arabia.

The money was deposited in connection with the transfer of the rights to the contract back to Ghosn.

The entrepreneur cooperated with Ghosn in securing a credit guarantee when he sought the transfer. The deposit was paid by Nissan Middle East, which is based in the United Arab Emirates.

Ghosn told investigators that the money was paid to the individual as a reward for handling problems at Nissan dealers in Saudi Arabia, as well as for attracting investments from Middle East countries, according to the sources.

Ghosn denied the allegation of aggravated breach of trust, saying the money was paid from funds he was allotted to use at his discretion as Nissan CEO.