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Corporate Governance

Corporate Governance

SHINNIHON KOGYO regards the establishment of corporate governance to increase competitiveness as a key challenge. We are striving to take it to the next level to pave the way for rapid response to the quickly changing external circumstances and for ensuring continued maintenance and improvement in corporate performance.

In addition to the legal functions performed by the Company's organizations such as the general meeting of shareholders and the board of directors, various other mechanisms for internal control are being developed. Meanwhile, we will continuously offer information on our business circumstances to our employees who also act as shareholders to achieve a high level of diligence, efficiency and transparency in corporate management.

Corporate Governance System Chart (as of December 2007)

Development of the Internal Control System

Internal control
This is a framework with established standards and procedures of different processes for implementing control and monitoring to ensure that there are no acts of violation or fraud inside the business entity and that the organization is operated in a sound, effective and efficient manner.
Japanese version of SOX Law
This is a law requiring public companies and their consolidated subsidiaries to upgrade their accounting audit schemes and to implement tighter corporate internal control. It has been set up to comply with the example of the Sarbanes-Oxley Act in the United States, often abbreviated as SOX.

Although SHINNIHON KOGYO is not a public company, we strive to increase our corporate value in an attempt to attain the managerial target of meeting the requirements to become listed on the stock exchange.