The basic concept of our corporate governance is that it is necessary for the management supervision function to be a fully functioning organization to pursue lasting profit and to increase in corporate value.

 

We have appointed outside corporate auditors to ensure that the monitoring and auditing functions of the management execution function work sufficiently. Also, we strive to disclose information in a timely, fair, and sufficient manner to increase the transparency of our management to shareholders and other stakeholders.

a. Overview of the Corporate Governance System

Our corporate governance system aims to shorten the cycle from information gathering to decision making, centralize information, and accelerate decision making by making the organization flat and slim. Our company has adopted an auditory system. Among the corporate auditors, we have one full-time corporate auditor and three part-time corporate auditors (including two outside corporate auditors).
 

We hold the regular board of directors meetings once a month to make decisions regarding matters defined by laws and regulations, essential matters in management and also to report on other important issues and the status of business execution. Besides, we hold an extraordinary board of directors meetings when an exceptional board of directors’ resolution is necessary. The Board of Directors is composed of five directors (including two outside directors).
 

b. Reason for Adopting the System

The reasons for adopting the above system are as follows.

 

1. To pursue lasting profit and increase corporate value in the FPD (Flat Panel Displays) industry, we believe it is essential to have a “dynamic and flexible organizational management system” that can cope with changes in the environment and diversification of customer needs.

 

2. We have appointed outside corporate auditors who have extensive experience, broad insights, and expertise in each industry, and we believe that we can perform our supervisory management functions sufficiently by executing their audit duties.

Structure of the Monitoring System of Company Organization and Management and the Status of Maintenance of Internal Control

As of June 26, 2019