People walk near a Nissan signage at Nissan Motor Co.'s global headquarters in Yokohama, Japan November 22, 2018. REUTERS/Toru Hanai

TOKYO (Reuters) - Nissan Motor Co’s 7201.T former representative director Greg Kelly denies allegations of financial misconduct at the automaker, his lawyer said on Thursday.

Kelly and former Nissan Chairman Carlos Ghosn were arrested on Nov. 19 on suspicion of falsifying the Japanese firm's annual reports to understate Ghosn's remuneration over several years, rocking Nissan's alliance with Renault RENA.PA.

“There was no additional compensation that needed to be stated” in the annual reports, the lawyer, Yoichi Kitamura, told Reuters.

“All Ghosn received in compensation was included in Nissan’s annual financial statements,” he said.

Kitamura said Nissan’s top management had discussed making some payments to Ghosn after he left the company to prevent him from being hired by rivals.

But no agreement had been made between Nissan and Ghosn on such payments and no amount had been set, he said, and Nissan itself had not decided to make the payments.

Kelly and Ghosn have not been formally charged. They are being held in the Tokyo Detention Center, and have been unable to speak publicly. They can be detained for 23 days under Japanese law before being charged.

Japanese media have reported that Ghosn also denies the allegations. He is reportedly represented by former prosecutor Motonari Otsuru, but he has not responded to requests for comment.