In order to clarify the management’s responsibility and accountability toward shareholders, customers, employees, and other stakeholders, and maximize corporate value, we work to ensure transparency and compliance in management and business operations, while at the same time promoting more efficient management. Through these initiatives, we seek to further enhance corporate governance.
Reasons for Adoption of Current Corporate Governance System
The Company has adopted the form of a company with a Board of Auditors and has established a management structure that enables appropriate performance of duties and swift decision-making. It has achieved this by establishing a Board of Directors that consists of internal directors who are highly knowledgeable about Company operations and outside directors who possess extensive experience, deep insights, and exercise a high degree of independence. The Company has also established an Board of Auditors in which the majority of members are outside auditors. The Company judges the current structure to be functioning appropriately in supervising and overseeing the execution of duties.
Independence Standards and Qualities of Independent Directors
The Company adheres to the standards of independence specified in the Companies Act and by Tokyo Stock Exchange, Inc. in appointing outside directors.
Prerequisites for Ensuring Effectiveness of the Board of Directors and Board of Auditors
To make Board of Directors meetings more substantive, the Company has designated a maximum of 10 directors in the Articles of Incorporation. The Company also appoints independent directors and independent auditors to maintain transparency and soundness of management. Two of the six directors are outside directors at present.
Internal directors are appointed from executive management for each function, such as sales, hiring, education, etc. The Company has a policy of appointing outside directors and outside auditors for their expected expertise and experience in key management issues. This ensures diversity in the Board of Directors in terms of knowledge, experience, and skills.