Publication of the independent committee's investigation report and reduction of executive compensation
eMnet Japan.co.ltd.
The Mizuho Bank account in the company's name and the company's accounting and disclosure materials
The concentration of authority in the former director in question, the lack of checks and balances, and the company's failure to give sufficient weight to audits by the Audit & Supervisory Committee and the parent company, among other factors
Company response
The company resolved to establish an independent committee on 11 January 2026 and appointed its members on 19 January 2026. The committee is chaired by Matsuyama Haruka (松山遙), with Yamada Kazuhiko (山田和彦) and Fujita Daisuke (藤田大介) as members. The investigation period runs from 19 January through 27 March 2026.
Decentralization of management authority relating to accounting and finance, strengthening of checks and balances by the internal audit department and the Audit & Supervisory Committee, strengthening of the Board of Directors' oversight function, and a review of the internal whistleblowing system
The monthly basic compensation of the Representative Director and President will be reduced by 30%. The reduction will apply for the three-month period from April through June 2026.
¥460 million (the amount of damage caused by the misconduct; the impact on financial results is currently under review)
The impact of the misconduct on financial results for the current fiscal year is currently under review. The company plans to disclose the earnings summary for the fiscal year ended December 2025 on 31 March 2026.
Related procedures
Investigation by a third-party committee
The company plans to submit correction reports for prior-year annual securities reports and other filings and to disclose corrected earnings summaries and other materials on 31 March 2026. It will promptly formulate measures to prevent recurrence and strengthen its internal control and corporate governance systems. The company will take steps to pursue legal measures against the former director in question, including filing a criminal complaint and seeking civil damages.
The company plans to disclose a correction report, the corrected earnings summary and supplementary earnings materials on 31 March 2026. Measures to prevent recurrence will be promptly announced once determined.
| Item | Details |
|---|---|
| Event name | Publication of the independent committee's investigation report and reduction of executive compensation |
| Date of occurrence | 5 January 2026 (the date on which suspicions of the misconduct became known; the final version of the investigation report was completed and the reduction in executive compensation was approved on 30 March 2026) |
| Date recognized / date notice received | 5 January 2026 (the date on which suspicions of unauthorized expenditures of company funds became known) |
| Subject Entity | eMnet Japan.co.ltd. |
| Target Locations / Products | The Mizuho Bank account in the company's name and the company's accounting and disclosure materials |
| Cause | The concentration of authority in the former director in question, the lack of checks and balances, and the company's failure to give sufficient weight to audits by the Audit & Supervisory Committee and the parent company, among other factors |
| Amount of Impact on Business Performance | ¥460 million (the amount of damage caused by the misconduct; the impact on financial results is currently under review) |
| Impact on Earnings Forecast | The impact of the misconduct on financial results for the current fiscal year is currently under review. The company plans to disclose the earnings summary for the fiscal year ended December 2025 on 31 March 2026. |
| Type of litigation or proceeding | Investigation by a third-party committee |
| Investigation structure | The company resolved to establish an independent committee on 11 January 2026 and appointed its members on 19 January 2026. The committee is chaired by Matsuyama Haruka (松山遙), with Yamada Kazuhiko (山田和彦) and Fujita Daisuke (藤田大介) as members. The investigation period runs from 19 January through 27 March 2026. |
| Measures to prevent recurrence | Decentralization of management authority relating to accounting and finance, strengthening of checks and balances by the internal audit department and the Audit & Supervisory Committee, strengthening of the Board of Directors' oversight function, and a review of the internal whistleblowing system |
| Directors' and officers' liability | The monthly basic compensation of the Representative Director and President will be reduced by 30%. The reduction will apply for the three-month period from April through June 2026. |
| Outlook | The company plans to submit correction reports for prior-year annual securities reports and other filings and to disclose corrected earnings summaries and other materials on 31 March 2026. It will promptly formulate measures to prevent recurrence and strengthen its internal control and corporate governance systems. The company will take steps to pursue legal measures against the former director in question, including filing a criminal complaint and seeking civil damages. |
| Planned follow-up disclosure | The company plans to disclose a correction report, the corrected earnings summary and supplementary earnings materials on 31 March 2026. Measures to prevent recurrence will be promptly announced once determined. |
Items this document does not state (11)
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 investigation found and identified the former CFO's fraudulent transfer of company funds, falsification of materials submitted to the accounting auditor, the concentration of authority in the former CFO, and the lack of checks and balances, among other matters. The company states that it will reduce the Representative Director and President's executive compensation to clarify management responsibility.