Corporate Governance

In June 2017, Tsumura transitioned from the Company with Company Auditor(s) system described in the Companies Act of Japan to the Company with Audit and Supervisory Committee system. This move will contribute to the reinforcement of the oversight and monitoring functions of the Board of Directors and to improved management soundness and transparency. Also, the new system will establish a greater separation of the Board of Directors from the operational execution function and thereby help expedite operational decision making. In addition, as an optional advisory body of the Board of Directors, a "Nomination/Remuneration Advisory Committee" consisting mainly of outside directors is established, and directors and executive officers are appointed and dismissed, we will strengthen the independence, objectivity and accountability of the association.