The board of Mitsubishi Motors will meet to decide whether to oust Carlos Ghosn as chairman at the Japanese auto maker, which is allied with Renault-Nissan.
Ghosn was arrested a week ago on suspicion of under-reporting his income by millions of dollars for five years.
Nissan Motor Co, which already ousted him as its chairman, has said an internal investigation found Ghosn abused company money and assets.
Mitsubishi Motors Corp said the seven members of its eight-member board will meet on Monday.
Ghosn's arrest on November 19 marked a stunning fall for an executive who dominated the Japanese auto industry for two decades and spearheaded Nissan's alliance with Renault SA of France.
Tokyo prosecutors accuse Ghosn of under-reporting his income by five billion yen ($A70 million) over five years.
Japanese media, citing unidentified sources, have reported Ghosn and Greg Kelly, an executive who was arrested on suspicion of collaborating with Ghosn, are asserting their innocence.
Neither Ghosn nor Kelly has been charged.
Under Japanese law, a suspect can be held in custody for up to three weeks per suspected charge without any charges being filed.
Renault has kept Ghosn as chief executive. There is little opposition expected at Mitsubishi to Ghosn's ouster.
Nissan aims to nominate a new chairman within a month or two.