Corporate Governance

The Board of Directors is responsible for creating basic policies related to a system of internal controls at the Company. The Board of Directors shall design and implement this system of internal controls, systematizing corporate regulations, while at the same time reviewing and enhancing the Company's risk management system.

The Company has adopted an Executive Officer System designed to activate the Board of Directors and speed up the decision-making process, while also clarifying responsibilities related to the execution of duties within the Company. The Company has also implemented measures to clarify roles and responsibilities among directors and executive officers, adopting an executive performance evaluation system, tying corporate earnings with director and executive officer compensation.

Each Corporate Auditor shall attend Board of Director meetings, as well as important corporate meetings including, but not limited to, the Executive Officer Meeting, monitoring the state of directors in their pursuit of corporate duties.
The relevant departments shall maintain contact with the Audit Committee with respect to internal audits as they conduct audits of the operations of Company departments and/or group companies.
Financial statement audits shall be conducted by Ernst & Young ShinNihon LLC as the Audit Corporation with whom the Company has executed an audit engagement contract. Corporate Auditors and the Audit Corporation shall maintain communications with respect to periodic audit planning and the exchange of information related to audit results in order to increase audit efficiency.

Corporate governance report