Status of Company Institutions

As of June 30, 2024, SII operates under a company-with-auditors system with the following structure:
The Board of Directors, composed of 7 board members, oversees business execution and makes key decisions regarding the SII Group. Directors serve a one-year term. In 1999, SII implemented the senior vice president system to distinguish between business execution and supervision, enhancing the speed and efficiency of operations.

The Board of Corporate Auditors, consisting of two auditors (including one outside auditor), exchanges opinions on information obtained through visits to each site and audits the execution of duties by the directors. Corporate auditors receive and exchange opinions on the status of business execution relayed from the President, among others, and confirm the status of business execution at regular meetings with the management divisions.

In addition, the designated auditor attends key meetings such as the Management Strategy Meeting and the CSR Committee. The company has also established a system that allows auditors to electronically review the contents of internal approval documents, thereby ensuring access to necessary information for audit purposes. Information from important meetings such as the Management Strategy Meeting is shared among the auditors to enhance the effectiveness of the audit process. 

KPMG AZSA LLC is our accounting auditor. The Board of Auditors and the audit corporation conduct audits by understanding the audit plan and sharing information at regular meetings.

For information on the corporate governance of Seiko Group Corporation, please refer to the following link:

Internal Control

The internal control system is developed and the status of its operation is reported to the Board of Directors for supervision every year. This is based on the Basic Internal Control System Policy determined by the Board of Directors. The Board of Directors is regularly informed of the status of compliance activities and risk management, and operation of the internal reporting system.

In addition, as part of internal control over financial reporting based on the Financial Instruments and Exchange Act, SII is subject to an evaluation by its parent company, Seiko Group Corporation. We evaluate our internal control and report the findings to the parent company.