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We believe that effective corporate governance is integral to the prosperous coexistence of SMBC Consumer Finance and its group companies with society as a trusted corporate citizen. To this end, we constantly strive to strengthen our management structure, improve our internal control and audit systems and further improve the efficiency, soundness and transparency of management through the prompt and fair disclosure of corporation information on a pillar of ethical and legal compliance.
Since June 2002, we has implemented an executive officer system by dividing business execution” and overseeing functions”.
The Board of Directors consists of eight (8) directors (as of June 27, 2023) in order to carry out accurate and quick decision-making based on adequate discussions. As a managerial/supervisory body and the highest decision-making body, the Board of Directors meets regularly once a month and convenes extraordinary Board of Directors’ meetings whenever necessary, deliberates over legally established matters and important management-related items, and continuously supervises the execution of business. Also, as and when necessary, matters that are discussed by the Board of Directors are subject to preliminary deliberation by the Management Committee, which is comprised of directors and other members, ensuring that adequate discussions are held.
Usually on a weekly basis, we a Management Committee made up of executive officers nominated by the president to deliberate over important management-related items based on policies and strategies resolved by the Board of Directors, as well as to share information relating to management tasks. Including those who hold concurrent posts as directors, sixteen (16) executive officers have been appointed (as of June 27, 2023).
We adopts an auditor system with three (3) nominated auditors. The auditors attend the company`s important meetings, including meetings of the Board of Directors, and receive business reports from the directors, as well as auditing directors’ execution of duties through browsing important documents for approval, as well as reports of hearings from the Internal Audit Department, SMBC Consumer Finance Group companies and financial auditors, etc. The auditors also observe and verify whether Internal Control Systems are appropriately maintained by SMBC Consumer Finance and Group companies, including Compliance and Risk Management Systems, from the viewpoint of strengthening systems to ensure suitable business at corporate groups, and whether these are functioning effectively. In addition, audit bureaus are established independently from directors’ chain of command with the aim of assisting auditors in their work and perfecting audit functions.
We has established all kinds of internal committees on a cross-departmental basis with the aim of strengthening its internal control functions and risk management. These committees are convened periodically or whenever necessary, deliberating over management tasks in their individual respective fields and offering opinions to the Board of Directors, etc.
A summary of the main committees is provided below.
In diagram form, our Corporate Governance System is as follows.
(Current as of June 27, 2023)
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