Governance System/ Internal Controls
N.E. CHEMCAT is working to build a transparent and sound governance system and strengthening internal controls in order to increase stakeholder trust and enhance corporate value.
Corporate Governance System Chart
To conduct transparent and sound corporate management, we need to establish corporate governance that is in line with the true state of the company.
The company has put in place a general shareholders' meeting, a board of directors, corporate auditors, and accounting auditors to ensure appropriate corporate governance.
Corporate Governance System Chart
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Activities of the Board of Directors and Corporate Auditors
In accordance with the Companies Act and internal regulations, we held eight board of directors's meetings (three of which were held in writing) in FY2022 to discuss important matters and report on the state of business execution.
Corporate auditors also attended the general shareholders' meeting, the board of directors' meetings, and other important meetings to monitor and verify whether resolutions and reports have been made in accordance with laws, the Articles of Incorporation, and internal regulations, and whether appropriate business judgment was exercised in making decisions.
Overview of Directors and Corporate Auditors
| Number of directors | 6 |
|---|---|
| Number of corporate auditors | 3 |
| Number of board of directors's meetings held | 7 |
| Number of corporate auditors liaison meetings held | 6 |
Internal Controls
The company has formulated the Policy on Internal Controls as an effort to establish a system necessary to ensure the appropriateness of business operations as stipulated in the Companies Act. Based on this policy, the company has established a system for appropriate operational controls in terms of business processes, risk management, and compliance.
The company also conducts internal audits on business processes and compliance. Regarding internal audits, the Internal Audit Committee reviews and evaluates the status of the system's development and operation in terms of the appropriateness of the company's important business processes and compliance status.
When conducting internal audits, the company cooperates with external organizations as appropriate, and reports the existence of deficiencies and their causes to the Internal Audit Committee. If deficiencies are found, an issue log is released, and the General Manager of the Corporate Administration Dept. investigates and confirms the implementation of improvements in a timely manner and releases the summarized report to the Internal Audit Committee.