Basic concept

We believe that commitment to corporate governance is a prerequisite for the sustainable growth of the company.
Thus, we place top priority on meeting the requirements of all our stakeholders, including shareholders, management team, employees, and customers, in a fair manner; make decisions quickly through more effective, efficient management; and ensure high levels of transparency and compliance.

Basic policy regarding the internal control system

We have a basic policy regarding the internal control system to promote the following efforts to improve the duty execution system for directors and employees at PHOENIX Electric and group companies, the risk management system that underpins the duty execution system, the internal audit system, and the system for effective audits by the audit & supervisory board member.

1. Systems to ensure that the execution of the duties of a director or an employee complies with laws and regulations and the articles of incorporation
2. Systems related to the retention and management of information pertaining to the execution of the duties of a director
3. Rules and other systems related to management of the risk of loss
4. Systems to ensure that the execution of the duties of a director is performed efficiently
5. Systems to ensure the propriety of business activities in a group of enterprises comprised of PHOENIX Electric Co., Ltd. and any subsidiary companies thereof
6. Matters related to the independence of employees assisting the duties of the audit & supervisory board member from directors, and related to ensuring the effectiveness of instructions to such employees, etc.
7. Systems for the directors and the employees to report to the audit & supervisory board member, and other systems related to reporting to the audit & supervisory board member
8. Particulars related to policies concerning procedures for advance payment or reimbursement of expenses that arise in the execution of duties of audit & supervisory board member or any other processing of expenses or obligations related to the execution of duties
9. Systems to ensure that audits by the audit & supervisory board member are performed effectively
10. Systems for eliminating anti-social forces
11. Systems for ensuring the reliability of financial reports