Corporate Governance

We recognize corporate governance as an essential management policy that enables us to meet the expectations of stakeholders and continuously improve corporate value. We are committed to taking measures to improve the efficiency and transparency of management, as well as to reinforce the functions of the Board of Directors and the Audit & Supervisory Board and its members.

Corporate Governance System

In terms of the corporate body, we have introduced the executive officer system (embodied by vice presidents) as a company with Audit & Supervisory Board Members to separate “functions related to supervision and decision-making” from “functions related to task enforcement.” We are also making efforts to improve the promptness and mobility of decision-making by optimizing the number of directors. In addition, we have assigned four independent outside directors and two independent outside auditors to ensure the transparency of management, as well as set the term of the directors to one year so as to clarify the management responsibility and promptly respond to changes in the management environment. Moreover, the Board of Directors of the Company has established the Special Committee consisting of four outside directors as its advisory body to deliberate and discuss important transactions and acts in which interests of controlling shareholders and minority shareholders are in conflict. The Board has also established the Nomination Committee and the Compensation Committee consisting of five directors (of which, three are outside directors) and chaired by an outside director, as advisory bodies to strengthen the independence and objectivity of functions of the Board of Directors and the accountability thereof in relation to the nomination of candidates for director and auditor, appointment and dismissal of representative directors, etc., and compensation for directors and vice presidents. With regard to management supervision, directors supervise business execution, auditors conduct audits, the accounting auditor conducts accounting audits, and the Internal Audit Group conducts internal audits.

We also strive to enhance the internal control systems in terms of the effectiveness and efficiency of business operation, reliability of financial reporting, compliance with the laws and regulations of contracting business activities, and safeguarding of assets.

Corporate governance system

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