Governance structure
The company stated that there were material weaknesses in its internal controls over financial reporting that were required to be disclosed and that the internal controls were not effective. It also stated that it was unable to express an opinion on the evaluation results. As remedial measures, it cited strengthening awareness of governance and compliance, subsidiary management, monitoring by the audit function, training on internal regulations, and oversight by outside directors.
| Item | Details |
|---|---|
| Committee | Special Investigation Committee (comprising independent external experts) / Percentage of external committee members: not disclosed |
| Changes this time | The company stated that there were material weaknesses in its internal controls over financial reporting that were required to be disclosed and that the internal controls were not effective. It also stated that it was unable to express an opinion on the evaluation results. As remedial measures, it cited strengthening awareness of governance and compliance, subsidiary management, monitoring by the audit function, training on internal regulations, and oversight by outside directors. |
Items this document does not state (6)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The former representative director submitted a written commitment concerning financial support for TEN without the Board of Directors’ approval; the systems for managing and monitoring subsidiaries and for closing the accounts and preparing financial reports were inadequate; and the shortage of qualified personnel and delays in responding caused the financial closing process to stall. Investigations by the Special Investigation Committee and US authorities are ongoing, and the company was unable to conduct evaluation procedures after revising the scope of the evaluation.