Basic Concept for Corporate Governance
SEKISUI KASEI aims to be "a new chemical solutions company that cares for people and the planet as it creates new value" while fulfilling its social responsibility to all stakeholders. The Company recognizes and understands that ensuring its effective corporate governance brings to the Company both management transparency and a management system capable to promptly adapt to changes in business environment, which is crucial for achieving the aim.
Corporate Governance System
Corporate Governance Initiatives
We adopt a corporate auditor system, with supervision and audits of business execution conducted by the Board of Directors and Audit & Supervisory Board.
Of the eight directors, three are outside directors, who supervise management from an objective perspective while ensuring the appropriateness and transparency of the Board of Directors’ decision making.
Of the five members of the Audit & Supervisory Board, three are outside members. By establishing a system of timely and appropriate reporting of important matters to the Audit & Supervisory Board and its members, we have strengthened the auditing function and ensure the rationality, transparency, and fairness of management decisions.
Further, in 2019, we established Nominating and Compensation Advisory Committee of which a majority of members are independent outside officers, which deliberates matters including candidates to succeed the president, director candidates, and director remuneration.
Through this current system, we have put in place a structure that functions both to ensure the rationality, transparency, and fairness of management decisions and to supervise management from an objective and neutral perspective.
Corporate Governance System Chart (As of July 21, 2022)
We set up Audit & Supervisory Board System, consist of five company auditors, who monitor and audit the execution of operations with directors. To enhance the auditing function and ensure the rationality, transparency and fairness in our management decisions, we appoint three outside company auditors made up of a majority of the audit & supervisory board. We also maintain the reporting system so that any important issue is communicated within audit & supervisory board thereof appropriately and on a timely basis.
In addition, for more effective supervising and monitoring the execution of operations, we implement several measures, based on our Internal Control Policy, such as;
-establishing internal control framework by internal audit department; and,
-facilitating linkage and cooperation among audit & supervisory board, our internal audit department, and independent accounting auditor.