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Internal Control

Establishment of Internal Control System

  1. Framework to ensure that officers and employees, in execution of their duties, comply with the applicable laws and the company articles of incorporation
    1. 1.1 In order to ensure that corporate activities are predicated on adherence to the applicable laws company articles of incorporation and social ethics,President of the Company will thoroughly communicate with officers and all employees on an ongoing basis.　
    2. 1.2 The Company has established an “Internal Control Committee” for which President assumes ultimate responsibility, and which operates broadly across divisions so as to build, maintain and improve on a compliance risk management framework.
  2. Matters pertaining to maintenance and management of information concerning Directors in execution of their duties
    Information concerning Directors in execution of their duties must be maintained in accordance with the "in-house rules concerning documentation management."
    Directors and Auditors shall be entitled to access such documents when necessary.
  3. Regulations and other framework pertaining to managing risk of losses
    Total control of the Company's risk management shall be executed by the "Internal Control Committee" specified in Item 1 (2) above, which shall improve its framework of company-wide risk management.
  4. Framework to ensure the efficiency in the execution of Directors' duties
    1. 4.1 As a basis of the framework to ensure Directors in executing their duties efficiently, the Company will hold the Board of Directors' meeting once a month, and hold an extraordinary Directors' meeting when necessary so as to make prompt decisions regarding important issues.
    2. 4.2 In relation to execution of duties based on decisions at Directors' meetings, responsible persons and their responsibilities shall individually be specified in accordance with the "in-house rules on organization."
    3. 4.3 The Company shall establish mid-term and annual management plans, as well as policies for business execution and numerical targets. In addition, each division will work to achieve their goals and conduct reviews on a regular basis.
  5. Framework to ensure the appropriateness of business activities carried out by the corporate group comprising the Company and its affiliated companies
    With regard to the management of affiliated companies, such management shall be performed in accordance with the "in-house rules on management of affiliated companies," and departments specified in the "in-house rules on management of affiliated companies" shall work closely with the "Internal Control Committee" to improve group management.
  6. Matters concerning Auditors' request for assigning assistants to support their duties
    Upon request by Auditors, employee(s) who assist their duties shall be assigned. Assignment, transfer, assessment and reprimand of employee(s) shall be performed with consideration of the Auditors' opinions in order to ensure the independence of such employee(s) from Directors.
  7. The frameworks for facilitating communication with Auditors by Directors and employees and other reporting, and the framework for promoting increased efficacy in the execution of Auditors' auditing activities
    1. 7.1 Directors and employees shall notify Auditors about important issues which affect work or business performance of the Company and its affiliated companies, and make reports without delay in cases in which they have known the facts of violation of the applicable laws or the company articles of incorporation or dishonest act in relation to performance of duties, or facts that cause damage to the Company or its affiliated companies. Auditors shall be entitled to request Directors and employees to make reports.
    2. 7.2 Auditors shall be entitled to attend the Board of Directors' meeting as well as meetings of the Company and its affiliated companies when necessary to identify the state of business performance, and request explanations from Directors and their employees.
    3. 7.3 Auditors shall exchange opinions with the President on a regular basis to foster communications, and strive to exchange information with accounting auditors and the internal auditing division to ensure effectiveness of auditing of the Company and its affiliated companies.
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