Implementation status of our efforts to improve corporate governance in the past year
In compliance with the Private Information Protection Law and the need to further strengthen the in-house information management system, in February 2005, "Inside Information Management Committee," "Security Control Committee" and "Personal Information Protection Committee" were established. At the same time, "Inside Information Management Regulations," "Security Control Regulations" and "Private Information Management Regulations" were established, reinforcing information management on an even more thorough level. Additionally, compliance committee meetings are held monthly where discussions about various in-house compliance-related problems are deliberated. Through these meetings, intracompany penetration of compliance is enhanced and risk cases in management are accessed. Ultimately, all matters are reported at the board meeting. In this way, with focus on the compliance system, we are building an internal control system integrated with risk management, with the goal of maximizing our corporate value.
Details of the organization of the company, improvement status of the internal control system and risk management system
In July, 1999, we introduced the operating officer system, and have been striving to vitalize the board of directors through the separation of management decision-making and enforcement at an early stage. At the same time, the roles and responsibilities of board members and operating officers have been clearly defined, thus endeavoring to enhance management transparency. In addition, our company has adopted the corporate auditor system, and has 3 auditors as of March, 2008. Of them, 2 are outside auditors as stipulated by Article 18, paragraph 1 of the "Act on Special Provisions of the Commercial Code Concerning Audits, etc. of Stock Companies," and in this way are monitoring the transparency and fairness of the management. The board meetings are held monthly as the highest decision-making body, and reporting and resolutions of basic management policies, strategies, resolutions of other important matters are handled therein. The auditors attend the board meetings each time and are in a position to sufficiently monitor the execution of duties of the directors. Furthermore, values and ethics required of business people as members of society are shared within the company, and in order to achieve creative growth and fair management of the company, a compliance committee has been set up with the executive director as the chairman. At this committee, an internal compliance-related manual is being prepared. Regarding all important legal and accounting issues, corporate lawyers and accounting auditors are consulted, and necessary consultations and review are carried out as needed.
Status of internal auditors, auditor's audit and accounting audit
Regarding internal auditing, we have a system where continuous and appropriate internal auditing is carried out by means of the audit office set up within the company. By means of this audit office, a corporate-wide business audit is implemented on a regular basis, thus strengthening risk management. As to the auditor's audit, full-time auditors attend important meetings such as the board meeting, browse important authorization memorandum and carry out auditing work for the board of directors' management. Concerning the accounting audit, we have commissioned Deloitte Touche Tohmatsu. Throughout the year, materials and information related to the audit plan of the accounting auditor are submitted, subject to impartial auditing. Accounting audit is carried out by 2 managing partners, 2 chartered accountants and 3 junior accountants.
Personal relationships, capital relationships, business connections and other vested interests of outside board members and outside auditors
In our company, outside board members are not elected. The 2 outside auditors have no personal relationships, capital relationships or business connections with our company.
