Basic Stance on Corporate Governance
The Company firmly believes that a corporation is a public institution, or a social apparatus with roles and functions for fulfilling people's wishes and living up to the expectations of society. Based on this philosophy, the Company aims to become a highly efficient corporate medium for exchanging value. Accordingly, the Company shall provide all stakeholders with higher value through the mutually beneficial relationships it builds with shareholders, customers, business partners, employees and all other stakeholders it interacts with in the course of conducting its corporate business activities. By continually enhancing corporate governance with this philosophy as an impetus, the Company shall realize sustainable growth and enhance corporate value over the medium to long term, while fulfilling its social responsibility to stakeholders.
Corporate Governance Structure
ESPEC is a company with an Audit & Supervisory Board. Auditors participate in the Board of Directors as well as in important committees and conduct appropriate audits. As of 23 June 2021, the Board of Directors is composed of eight members, including two outside members, and the Audit & Supervisory Board is composed of four auditors, including three outside auditors. The tenure of a director is set at one year, under which management responsibilities are defined. The two outside directors and the three outside auditors are registered with the Tokyo Stock Exchange as independent members.
Assessing the Effectiveness of the Board of Directors
Assessments are carried out to evaluate the effectiveness of the Board of Directors. In FY 2020, a survey-type self-assessment was carried out concerning the Board of Directors composition, roles, operation, and support. Interviews were conducted based on the responses, and were evaluated at a Board of Directors meeting in April 2021.
Corporate Governance Report
ESPEC has submitted a Corporate Governance Report, in which our corporate governance status is described, to the Tokyo Stock Exchange.