Corporate Governance

We recognize that the basis of corporate governance is to serve the interests of our shareholders and various other stakeholders. To achieve this, we are working to "accelerate decision-making," "ensure transparency of corporate actions," and "enhance accountability" based on the following.

• Recognizing the need to strengthen corporate governance in order to achieve continuous improvement of corporate value, we have established a management structure that clarifies management responsibility and enables rapid response to changes in the business environment.
• As part of our efforts to strengthen corporate governance, we are working to develop and enhance our internal control system.
• We have appointed four outside directors which enables oversite of corporate management with highly independent board members.
• In order to clarify management responsibility and build a management structure capable of quickly responding to changes in the business environment, we have adopted an Audit & Supervisory Committee system as our institutional design and introduced an executive officer system accelerate business execution.
• With the aim of obtaining appropriate involvement and advice from outside directors regarding the nomination and compensation of director candidates, the Nomination and Compensation Committee has been established and is utilized as an advisory body to the Board of Directors to further enhance the governance functionality.
• We have established the Council of Outside Directors, consisting of all outside directors, as an advisory body to the Board of Directors to ensure fairness and transparency in transactions between Tanaka Chemical Corporation and our parent company group (Sumitomo Chemical Group) and to contribute to the protection of the interests of our minority shareholders.