Corporate Governance Basic Policy

Corporate Governance Basic Policy

Basic Philosophy

The TOA Electric Industrial Group (TOA Electric Industrial Co., Ltd. [artron group] and its affiliated companies; collectively, “we,” “us,” or “our”) recognizes sustainable growth and the enhancement of medium- to long-term corporate value to be key management priorities. To this end, we will establish a sound and highly transparent management structure, strengthen corporate governance, and deepen relationships of trust with all stakeholders.

1. Ensuring Shareholder Rights and Equality

We value our relationship of trust with our shareholders, respect the Annual General Meeting of Shareholders as our highest decision-making body, and disclose information in a timely and appropriate manner.

2. Appropriate Collaboration with Stakeholders Other Than Shareholders

We respect the interests of all stakeholders, including customers, suppliers, employees, and local communities, and we strive to be a company that is widely trusted by society.

3. Ensuring Appropriate Information Disclosure and Transparency

In order to enhance management transparency and deepen relationships of trust with stakeholders, we will disclose information regarding our financial condition and management policies in a timely and appropriate manner.

4. Responsibilities of the Board of Directors, etc.

Based on the Board of Directors Regulations, we will enhance medium- to long-term corporate value and ensure sound management by enabling the Board of Directors to perform agile decision-making and appropriate supervisory functions.

• Maintaining an Effective Supervisory System

  
  The Board of Directors will meet regularly and oversee the execution of duties by each director based on reports from them on the status of business operations. We will strictly require prior approval for competitive transactions and transactions involving conflicts of interest in order to protect the interests of the Company and its shareholders.

• Collaboration with Corporate Auditors and Ensuring Transparency

  
  We will respect the objective opinions provided through the attendance of Corporate Auditors and establish an environment conducive to proper auditing. Through the proper preparation and management of meeting minutes, we will maintain transparency in our management decision-making processes.

5. Dialogue with Shareholders

We promote constructive dialogue with shareholders in order to build long-term relationships of trust and enhance corporate value. We regard the Annual General Meeting of Shareholders as an important forum for dialogue and strive to provide accurate business reports and financial information. We respond sincerely to individual inquiries and requests from shareholders while maintaining transparency in management.