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Asian Corporate Governance Association(ACGA) visited

Conference Summary

cgc2013_img01B.JPGOn March 7, 2013, a delegation of Asian Corporate Governance Association("ACGA"), a worldwide investors' association, which conducts various activities on global basis, including research and proposals on corporate governance of eleven Asian countries, visited us and exchanged opinions with our executive members on the activities by the Audit & Supervisory Board Members. Their visit this time was the second one following the first in September 2010.
At the meeting, we first made presentation on the recent activities by JASBA and then made another presentation on the business audit and the accounting audit, referring to examples of the activities conducted by the Audit & Supervisory Board Members. After the presentations, members of the delegation expressed their frank opinions and asked questions on the points they were not certain of.
 They are particularly concerned with the supervisory functions of the Audit & Supervisory Board Members which are reflected in the recent change of the recommended English translation of Kansayaku (the Audit & Supervisory Board Members), their questions are focused on the functions actually fulfilled by the cgc2013_img02B.JPGAudit & Supervisory Board Members, such as difference between internal audit and functions of the Audit & Supervisory Board Members and specific examples of the accounting audit to be conducted by the Audit & Supervisory Board Members.
In reply to their questions, we explained to them that the Audit & Supervisory Board Members fulfill their supervisory functions in collaboration with the Board of Directors, that they contribute to sound and continuous growth of the company by exercising their power and authority appropriately and that for this purpose, they are in a position to review every and all transactions and affairs of the company like a head of management (president/CEO/managing Director) though the viewpoint is different from that of the head of management.
Exchange of views was made actively on some other issues, such as recent corporate scandals in Japan and influence of the expected amendments to the Companies Act of Japan over the Audit & Supervisory Board Members.
cgc2013_img03B.JPGWe felt that our explanation on the activities of the Audit & Supervisory Board Members by referring to specific examples would be effective to obtain their understanding on the functions of the Audit & Supervisory Board Members. In addition, due to active exchange of views at the meeting, both parties could facilitate mutual understanding further. We would like to continue exchange of views with ACGA to deepen mutual understanding.