Notice of Partial Revision to Basic Policy on Internal Control System

Overview of Partial Revision to Basic Policy on Internal Control System

At the Board of Directors meeting, Chubu Shiryo Co., Ltd. resolved a partial revision to the basic policy on the internal control system. The main revisions include strengthening the compliance framework to ensure legal and Articles of Incorporation compliance, designating the General Affairs and Human Resources Department to oversee compliance, collaboration with the Internal Audit Office, establishment of a whistleblower system, formulation of risk management regulations and establishment of a Risk Management Committee, and improving the efficiency of directors’ execution of duties using a management control system.

Enhancement of Audit & Reporting System

Measures to ensure the independence of assistants to the corporate auditors, policies on expense processing, strengthening the reporting system from directors and employees to corporate auditors, prevention of unfair treatment, and periodic opinion exchanges between the Audit Committee and the President, Internal Audit Office, and Accounting Auditor are also stated to enhance the effectiveness of audit functions. These efforts aim to ensure appropriate business operations and preserve corporate value across the corporate group.