Corporate governance

State of corporate governance

(1) Basic ideas about corporate governance

Developing and maintaining an organization system that can swiftly correspond to changes in management environment and a fair management system that places importance on shareholders are important management issues that should be handled for corporate governance to function effectively. We work hard on thorough compliance, ensuring management clarity as well as prudence, and practice of efficient management, in order to strengthen corporate governance.

(2) Implementation status of policies regarding corporate governance

Company status regarding management decision-making, execution, and internal control

We correspond to management environment that can change dramatically, maintain the competitive power, and achieve management clarity by building the following systems and organizations for decision-making, business execution as well as monitoring, and internal control.

Board of directors

The board of directors is comprised of six directors as of June 23, 2023. It is prepared for rapid discussion and decision-making of important affairs, for example the basic policy for company management and the efficient monitoring of business execution. It is held once a month as a general rule and four auditors attend it to give opinions as needed. Company executives also attend it so that they can provide opinions about related businesses as well as other tasks/operations.

Management execution meeting

A management execution meeting system was introduced in June 2006 as a body that discusses and decides important affairs excluding issues to be resolved at board of director meetings. It is held twice a month in principle, and directors and company executives are members of this meeting. Auditors attend it as necessary to provide opinions. A third party other than the above may attend as necessary to provide opinions or to ask for an explanation.

Board of corporate auditors

We have adopted a board of company auditors that is comprised of four auditors (two of them as outside auditors) as of June 23, 2023. Each auditor attends important meetings (such as board of director meetings), checks the decided items, and investigates business and property conditions in order to audit business performances of directors.

Internal auditing office

The audit office is comprised of three audit members. They regularly audit whether business operations and systems are performed appropriately according to company policies and various regulations in order to strengthen and enhance internal audit functions.