1. Basic Explanation of Firm Organization
The company believes that a strong corporate governance function and improved competitiveness through expeditious decision-making are indispensable to achieving sustainable growth.
The company has adopted an Audit & Supervisory Board system. As of the date of submission of our annual securities report (May 23, 2025), the company had 8 directors (one of whom are outside directors) and three members of the Audit & Supervisory Board (two of whom are outside members). We appoint outside directors to the board of directors from whom we expect considerable advice in support of the Company’s sustainable growth and enhancement of medium- to long-term corporate value. In this way, we strengthen our management structure through highly effective oversight. At the same time, we maintain and strengthen management soundness by bolstering the functions of the members of the Audit & Supervisory Board. As a general rule, the board of directors and the Audit & Supervisory Board meet once a month. In addition to these mechanisms, the Company strives to disseminate information through committees led by general managers or other managers below the rank of a representative director. The purpose of these committees is to ensure efficient business activities.
We operate an audit system under which the Audit & Supervisory Board, our outside financial statement auditors, and the Management Auditing Department maintain a close working relationship, exchanging information and opinions as necessary. This system is designed to ensure improvements in the practicability and efficiency of our audits.Each member of the Audit & Supervisory Board attend board of director meetings, while full-time members of the Audit & Supervisory Board are always present at meetings of the Management Council and other important meetings.