At YKT CORPORATION we have established Corporate Governance System in order to ensure Corporation Law Ordinance for Enforcement of the Companies Act
|1.||Framework to ensure business conduct of directors and employees according to by-laws and articles of incorporation|
|(1)||Rules and ethics on Compliance System refer to Code of Conducts with which directors and employees of YKT CORPORATION are expected to comply.|
|(2)||One responsible for compliance is elected from the board of directors and seeks to monitor and evaluate under cross-section control the compliance system and issues associated with it. Working with Administrative Headquarters, he reports the results of evaluation to the board of directors. Every director analyzes individual compliance risk and embodies prevention.|
|(3)||Corporate audit is established and makes an annual audit plan according to the corporate audit rules and fulfill it. The audit report is drawn up and advice and recommendation to improve the business conduct is given.|
|(4)||When directors and auditor notice any matters pertaining to compliance, they so notify General Affairs Department immediately.
|2.||Storage and management of information on business conduct of directors|
|Based on regulations on documents, information on business conduct of directors is stored in document form or in electromagnetic media, which directors and auditor can view at all times.
|3.||Regulations and system to manage risks of loss|
|Respective departments establish their own rules and guidelines on risks of environment, disaster, quality, information security and export control, and provide education and instructions, while Administrative Headquarters monitors the risk status under cross-sectional control and takes internal measures.
|4.||System to ensure that business conduct of directors fulfilled efficiently|
|Systems to make business conduct of directors efficient are established.|
|(1)||Rules on authority and decision making are established|
|(2)||Business targets and budgets on a department basis are defined and monthly and quarterly business reports by means of IT are practiced.|
|(3)||Monthly business results are reviewed by the board of directors and strategies are implemented.
|5.||System to ensure that YKT CORPORATION and its affiliated companies conduct business in an appropriate manner|
|Directors responsible for business on a group segment basis are elected and authorized to establish a system on compliance and risk management. Administrative Headquarters promotes and control it transversally.
|6.||Employees appointed by auditors to assist them and independence of the employees from directors|
|Consulting with and agreed by auditors, the board of directors may appoint staff members to assist auditors should be requested by auditors. During the assisting period, the auditors take the leadership of the assisting staff members, by which chain of command by directors is void.
|7.||System where directors and employees report to auditors|
|Consulting with auditors, rules on items to be reported to auditors are established. The board of directors reports the following matters accordingly:|
|(1)||Matters that may significantly harm the company|
|(2)||Monthly corporate governance|
|(3)||Important matters on audit and risk management|
|(4)||Breach of laws and articles of incorporation|
|(5)||Any importance matters on compliance
|8.||System to ensure audits are executed effectively|
|Auditors regularly hold a meeting with the president and accounting audits respectively.