(April 7): One of Honda Motor Co’s senior-most executives resigned after the automaker’s board investigated allegations he’d engaged in inappropriate conduct during a social gathering outside of work hours.

Honda’s audit committee looked into the accusations against Shinji Aoyama, an executive vice president and board director, and had compiled a disciplinary action plan, the company said Monday. Aoyama, 61, submitted his notice of resignation before the board decided on carrying out its plan.

“It is deeply regrettable that an individual positioned as a leader in the management of the company, and who is expected to set an example for the respect of human rights and compliance with relevant laws and regulations, has become the subject of an allegation of conduct contrary to these principles,” Honda said in a notice to shareholders.

Honda chief executive officer Toshihiro Mibe will voluntarily return 20% of his monthly compensation for two months in light of the incident. The carmaker said it will soon announce a new management structure in response to the matter.

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