Honda Motor (HMC) said Monday it has accepted the resignation of Shinji Aoyama, director, executive vice president, and representative executive officer, over an allegation of "inappropriate conduct," effective immediately.

The company said the resignation follows an audit committee investigation of an incident that took place "during a social gathering outside of work hours" over which the board of directors was scheduled to make a decision on a possible "disciplinary action."

In addition, "in light of the seriousness of this matter and based on his role as leader of the management team," President Representative Executive Officer Toshihiro Mibe also will voluntarily forego 20% of his monthly compensation for two months, the company said.