Please refer to the link below for the corporate governance of the parent company, Seiko Group Corporation.
SII has adopted a company with a board of auditors as its form of institutional design, and its current structure is as follows (as of June 30, 2023).
Our Board of Directors, consisting of 8 board members, supervises business execution and makes decisions on important matters concerning the SII Group (the term of office of directors is one year). We also introduced the senior vice president system to separate the functions of business execution and supervision, and to improve the speed of business execution.
The Board of Auditors consists of three corporate auditors (including one outside corporate auditor). The corporate auditors audit the execution of duties by the directors by exchanging opinions on information obtained through visits to each business location and other activities. Full-time corporate auditors conduct audits as appropriate by attending important meetings such as the Management Strategy Meeting and the CSR Committee, hearing the status of business execution from the President and Representative Director, holding regular meetings with the management division, and exchanging information with the Internal Audit Division. In addition, SII has established a system that allow us to obtain information necessary for audits, such as by confirming the details of decisions made in electronic meetings.
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.
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 resolved by the Board of Directors. The Board of Directors is regularly informed of the status of risk management and compliance activities, operation of the internal reporting system, and internal audits.
The internal audit divisions conduct internal audits on a regular basis, and the management divisions conduct various other audits.
As for internal control over financial reporting based on the Financial Instruments and Exchange Act, our senior management assesses the internal control of the SII Group and reports to the parent company, Seiko Group Corporation, as one of their subsidiary companies in order to evaluate and report on the internal control over financial reporting of the parent company.