Corporate Governance

We position the establishment and enhancement of corporate governance as one of our most critical management issues, and it is our basic philosophy of corporate activities to pursue an efficient, fair and highly transparent operation in order to attain higher corporate values for the sake of all stakeholders.

Based on this philosophy, we endeavor to improve our management system and management organization mainly through reinforcing our monitoring function of our decision making, establishment of a compliance system, improvement and strengthening of an internal control system and establishment of good relations with stakeholders.

Ensuring Corporate Governance

At Leopalace21, the top executive of our Business Management Headquarters must unify the management of Leopalace21 and its affiliated companies to implement the optimal comprehensive group-wide governance, and is responsible for facilitating smooth information exchange and advancement of group activities. Additionally, directors in charge of each governance department in each affiliated company must establish a CSR promotion system, compliance systems, and risk management procedures in accordance with policies arising from the management plan and consistent with efficient work flow methods.

Our Systems of the Board of Directors and the Board of Auditors

While we set up the Board of Directors to enhance business performance through appropriate and rapid decision making, responding dynamically to the changes within our business and our management environment, we strive for the strengthening of our management monitoring function by setting up the Board of Auditors as a supervisory organ of the business execution by directors.

Board of Directors

The Board of Directors which is composed of 8 directors holds regular meetings once a month, while extraordinary meetings are held at any time as required, in order for decisions to be made on critical management issues as well as to monitor the performance of business operations. Furthermore, meetings of the Management Committee are held as needed to discuss policies on execution of business operations and to study measures for their implementation.

Board of Auditors

The Board of Auditors is composed of four auditors including two externally appointed auditors. We adopt a system to enhance the effectiveness of auditing by auditors’ participation in essential meetings such as the Board of Directors meetings and by conducting operational status investigations, based on an auditing plan prepared by the Board of Auditors. (The company has no business connection with the external auditors)

Two-headquarters system

We have newly organized Business Management Headquarters by consolidating three existing divisions Business Planning Headquarters, Administrative Headquarters and Business Structure Reform Headquarters on May 1, 2011, and took the Two-headquarters system of this Business Management Headquarters and Marketing and Sales Headquarters which controls each business department. In addition, General Planning Office was newly established as the organization which is directly connected to the president of our company to further strengthen the management system.

We are proactively disclosing information to our shareholders and investors in order to secure transparency and objectivity in our management. In addition to speeding up announcements of financial statements and timely disclosures, provided through distribution over the Internet, we enrich investor relations activities through our timely delivery of news releases, holding financial accounting explanation meetings, issuing business reports intended for investors, issuing Annual Report, as well as implementing timely overseas investor relations activities that reflect the proportion of shares held by our foreign shareholders.