Nissan installed a camera surveillance system at the home of former executive Ashwani Gupta so the automaker's internal security team could monitor him.
Nissan directors were briefed on the preliminary findings of the investigation into the surveillance claim by U.S. law firm Davis Polk & Wardwell at a board meeting on June 20 at the company's Yokohama headquarters, the two people said.
The report from the U.S. law firm did not offer a finding on whether the use of cameras by Nissan to monitor Gupta was illegal, nor did it detail whether Gupta was made aware of the monitoring, the two people said. Nissan said it could not comment on ongoing investigations and declined to make the executives available for comment.Under Japanese law, a company can monitor communications on corporate phones and computers and investigate an employee's conduct outside work in protecting its business interests, said Akira Takeuchi, a lawyer and certified fraud examiner in Tokyo, emphasising he was speaking in general and not about Nissan.
Nissan had said in May that Gupta, who had been chief operating officer since 2019 and was widely seen as a possible successor to Uchida, would not be reappointed to the board. In its report presented to the board, Davis Polk told Nissan directors that it appeared the company's audit committee had used its investigative authority in an arbitrary way in taking up the complaint against Gupta in the way that it did, the sources said.In another report about the allegations about Gupta's conduct presented to the board, Japanese law firm Iwata Godo offered a view on the narrower question of whether the audit committee's actions were lawful, one the people said.
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