The Allied Telesis Group considers the assurance of sound, transparent, and efficient management, and the continuous enhancement of corporate value, to be the fundamental policy and objective of its corporate governance.

Outline of Allied Telesis Group’s Corporate Governance Framework

Based on the resolution adopted at the 32nd Annual General Meeting of Shareholders held on March 28, 2019, the Company transitioned from a company with an Audit & Supervisory Board to a company with an Audit and Supervisory Committee.
This transition was implemented with the aim of further enhancing corporate governance by strengthening the supervisory function of the Board of Directors, while also enabling prompt decision-making and improving management efficiency through the delegation of authority to directors responsible for the execution of business.

Board of Directors

The Board of Directors currently consists of a total of seven directors: four directors who are not Audit and Supervisory Committee members and three directors who are Audit and Supervisory Committee members, of whom two are outside directors.
The Board of Directors, in principle, meets once a month, and also holds extraordinary meetings as necessary. It makes decisions on matters stipulated by laws and regulations or the Articles of Incorporation, as well as other important management matters, and supervises the execution of duties by directors.

Audit and Supervisory Committee

The Audit and Supervisory Committee currently consists of three directors who are Audit and Supervisory Committee members, of whom two are outside directors.
The Audit and Supervisory Committee, in principle, meets once a month and, in accordance with laws and regulations, the Articles of Incorporation, and the Audit and Supervisory Committee Regulations, audits the execution of duties by directors.
In addition, the Committee conducts on-site inspections at major business locations of the Company and its group companies, and carries out audits and supervision of management in cooperation with the internal audit department and the accounting auditor.

Status of Development of the Internal Control System

With respect to the Company’s internal control system, the basic policy for the development of the internal control system was revised at a meeting of the Board of Directors held on September 29, 2015, and the Company strives to ensure thorough compliance with laws, regulations, and the Articles of Incorporation by directors and employees of the Company and its subsidiaries, while endeavoring to strengthen and enhance its risk management framework.

Overview of the Operational Status of the System for Ensuring the Appropriateness of Business Operations

With respect to the system for ensuring the appropriateness of business operations within the development of the internal control system, the Company has established an Integrated Compliance Committee and confirms its effectiveness.

Corporate Governance Structure

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