Corporate Governance

Overview of the Corporate Governance System

The Company positions its Board of Directors as the supreme organization that manages and supervises its operations. The Board of Directors that is convened, in principle, every month on a regular basis resolves the Company’s management policies and important matters related to the execution of operations in accordance with the laws and regulations, the Articles of Incorporation and the Board of Directors Rules. It also supervises the performance of the duties of the Directors. The Board of Directors comprises 18 Directors (all male), including four Outside Directors, and the term of office for the Directors has been reduced from two years to one year since June 2006 to clarify the responsibilities of the Directors over corporate management. Moreover, the Board of Corporate Auditors comprises five Corporate Auditors (all male), including four Outside Corporate Auditors, and it audits the performance of the duties of the Directors as an independent organization mandated by the Company’s shareholders.

Corporate Governance Structure