Corporate Governance Structure
In order to speed up its response to management conditions and achieve enhanced transparency in management, Kubota Corporation has adopted the following its corporate governance structure. Moreover, by building an internal control system and implementing steady improvements continuously during its business activities, Kubota Corporation not only enforces the observance of laws and regulations, but also reduces risk.
Ensuring Quick Response to the Management Environment and Improving Management Transparency
In order to speed up its response to management conditions and achieve enhanced transparency in management, etc., Kubota Corporation has adopted the following corporate governance structure.
Corporate Governance Structure (as of March 25 , 2016)
Board of Directors
The Board of Directors makes strategic decisions and oversees the execution of duties by the Executive Officers. It is made up of eight Directors (two of whom are the Outside Directors). In addition to its regular monthly board meetings, it also meets as and when required, to discuss and make decisions relating to management planning, financial planning, investment, business restructuring and other important management issues.
The Board of Directors holds a meeting once a year to report the results of risk management activities. This is done in order to verify that there are no inadequacies in the internal control system that could have a serious impact on corporate management in regards to the organization and operation of the management system for key risks identified by Kubota Corporation.
Audit & Supervisory Board
Kubota Corporation is a company with an Audit & Supervisory Board that oversees and audits the execution of duties by the Directors. It consists of four Audit & Supervisory Board Members (two of whom are the Outside Audit & Supervisory Board).
In addition to regular monthly Audit & Supervisory Board Meetings, it also meets as and when required, to discuss and make decisions with regard to auditing policy, audit reports, and other matters.
Executive Officers' Meeting
Kubota Corporation has adopted the Executive Officer System. The Executive Officers' Meeting consists of the President and Representative Director (referred to below as “the President”) and the Executive Officers. In addition to its regular monthly meetings, it also meets as and when required. The President instructs the Executive Officers on policies and decisions made by the Board of Directors. The Executive Officers report to the President regarding the status of their execution of duties.
Management Committee and Investment Council
The Management Committee meets to deliberate important management matters such as investments and loans, and mid-term management plans before they are discussed by the Board of Directors. Two of the full-time Audit & Supervisory Board Members participate in the committee as observers. The Investment Council gives the President advice on matters to be decided by the President, except those deliberated by the Management Committee, as well as on special matters. The council does not include the President, and one of the full-time Audit & Supervisory Board Members participates in it as an observer.