To live up to the trust of our stakeholders, we focus on transparency and fairness in our management as an important business priority and strive to enrich our corporate governance to improve our corporate value.
SII has adopted the status of a company with a Board of Company Auditors.
Board of Directors
Our Board of Directors, consisting of 8 board members as of end-June 2021, supervises company management and makes important business decisions for the SII Group.
Ten meetings were held in FY 2020. Outside auditors ask questions and provide advice where appropriate with the aim of ensuring validity and appropriateness.
We also introduced the senior vice president system to separate business execution and supervision, and to improve the speed of business execution. There are 9 senior vice presidents (three out of them are also the board members) as of end-June 2021 and the term is one year which is the same as board members.
The Board of Auditors consists of 2 internal and 2 external auditors as of end-June 2020. They follow the audit policy and plans determined by the Board of Auditors, exchange opinions based on the information gained through audits at each site, and monitor the directors’ operations.
In addition to attendance by the full-time auditors at important meetings, including management strategy meetings, CSR committees, etc., audits are conducted as appropriate by holding web conference to hear about the status of business execution from the president and directors in charge of business, holding regular meetings with management divisions, and exchanging opinions with internal audit divisions. Moreover, SII has established systems that allow us to confirm the details of electronic approval decisions and collect information necessary for audits.
The outside auditors’ attendance at the Board of Directors and the Board of Auditors held in FY 2020 are as follows.
|Makoto Hirota||Board of Directors: 10/10
Board of Auditors: 15/15
|Norimasa Kuroda||Board of Directors: 10/10
Board of Auditors: 15/15
KPMG AZSA LLC was appointed as our accounting auditor. The Board of Auditors and the audit corporation conduct audits by understanding the audit plan and sharing information at regular meetings.
At SII, the internal control system is developed and the status of its operation is reported to the SII Board of Directors for supervision every year. This is based on the "Basic Internal Control System Policy" resolved by the Board of Directors.
For our internal control system with regard to financial reporting in compliance with the Financial Instruments and Exchange Act, our senior management evaluates the SII Group's internal control system and we report the results to a publicly listed parent company, Seiko Holdings Corporation (SHD), as one of their subsidiary companies. This is to evaluate and report the internal control system relating to SHD's financial reporting.
In terms of internal audits, the Internal Audit Division performs periodic audits and the management divisions conduct various kinds of audits on a regular basis.