Embedding Group Governance and Restoring Credibility in the Capital Markets
First written in FY2024. 1 of 3 entries say "Worsened", first in 2026-04-20. Latest entry: FY2026.
The whole theme swung hardest in 2022: 1 of 10 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Since the management changed in June 2025, the Company has been strengthening group management control functions and rebuilding its governance structure. It will work to improve the effectiveness of its internal control system by strengthening the supervisory functions of the Board of Directors, enhancing internal audit functions and reinforcing the management of group companies.」
The policy of restoring confidence in the capital markets has taken concrete form through stronger Board oversight, internal audit and group company management following the management change. - 2026-04-20WorsenedOccurring Fact
「As described above, our response to this matter since receiving the internal whistleblowing document involved governance issues: insufficient consideration of expanding the scope of the investigation when commissioning the investigation to attorney Za, resulting in the original scope—Mr. Mae’s entertainment expenses from April through December 2024—being carried over; inadequate coordination with the investigators; insufficient independence and third-party status of the investigation; insufficient consideration of whether disclosure was required; and an aspect of the investigation aimed not only at responding to the whistleblowing but also at addressing the dispute over Mr. Mae’s position and control of the company.」
The Special Investigation Committee’s interim report identified issues concerning the scope of the internal investigation, coordination with investigators, independence and third-party status, consideration of disclosure, and consistency of the investigation’s purpose. It recorded deterioration in the canonical thread concerning entrenchment of group governance and restoration of trust, without changing the original thread. - FY2024First statedAnnual report
「For the fiscal year ending March 2025, the Group adopted “Embedding group governance and restoring confidence in the capital markets” as its group policy. Although this is the final year of the current medium-term plan, the Group formulated a “revised business plan for the fiscal year ending March 2025” and is working with full commitment across the Group to restore confidence based on a feasible budget.」
In response to the inappropriate accounting treatment in prior periods, the findings of the special investigation committee and the submission of an improvement report to the Tokyo Stock Exchange, the Group explicitly identified embedding governance and restoring confidence in the capital markets as its policy for the fiscal year ending March 2025. It is pursuing these objectives through the continued implementation and improvement of recurrence-prevention measures, preparation of a feasible budget and monthly budget-versus-actual management.