Formulation of Basic Policy for Corporate Governance
We recognize that our primary management responsibility is to achieve sustainable growth and increase long-term shareholder value through corporate governance initiatives. We are committed to taking the necessary measures to enhance effectiveness, including establishing efficient business operations and supervision systems, ensuring management transparency and soundness, ensuring thorough compliance, and improving management and systems.
For more details, please refer to our Corporate Governance Report.
Strengthening the Functions of the Board of Directors and Business Execution
We have adopted a governance structure of a company with an Audit and Supervisory Board. Additionally, in June 2005, we introduced an executive officer system to strengthen the decision-making and supervisory functions of the Board of Directors and to establish a system for prompt and efficient business execution. The Board of Directors is composed of 6 directors, including 3 outside directors (as of June 26, 2024), and meets once a month, in principle, to decide on important management matters and oversee the status of business execution. In accordance with the resolution of the Annual General Meeting of Shareholders held in June 2003, the term of office of the directors is set at one year in order to clarify management responsibilities, strengthen the management structure and enable a prompt response to changes in the business environment.
The 37 executive officers (as of April 1, 2024, including 2 who also serve as directors) have been appointed by the Board of Directors and execute the Company's business in accordance with the basic management policies decided by the Board of Directors. In addition, the Company holds Management Meetings, Approval Meetings, and Strategy Meetings to discuss and provide directions on important matters concerning management and business execution, and holds regular meetings of the Executive Board to inform the important matters concerning management and business execution and to report on the status of business execution. In the execution of business operations, the Rules on Office Organization, Rules on Division of Duties, Rules on Administrative Authority, and Rules on Decision-making Procedures stipulate the respective responsible persons, division of duties, execution procedures, and other matters.