Notice Regarding the Release of the Results of the Internal Investigation and Future Actions
株式会社TANT (a consolidated subsidiary of Livero Inc.)
株式会社TANT and the transactions and diversion of funds subject to the matter at that company
①The lack of compliance awareness among TANT’s former representative director and others, ②the failure of mechanisms at TANT to deter misconduct, and ③insufficient monitoring of subsidiaries by the Company as the parent company
Company response
An internal investigation committee was established pursuant to a resolution of the Board of Directors dated 24 April 2026. The chair is the head of the Internal Audit Office, who also serves as an Audit & Supervisory Board Member of TANT. The committee members are the manager of the Internal Audit Office, the senior staff member of the Legal and General Affairs Department, and a staff member of the Legal and General Affairs Department. The committee received advice from external attorneys, certified public accountants, tax accountants and others.
①Conducting company-wide compliance training across the Group, ②reviewing TANT’s internal structure and strengthening its governance, and ③strengthening subsidiary management by the parent company
The monthly compensation of the Company’s representative director and president and its director and chief of the Administration Headquarters will be reduced by 30% for 3 months. TANT’s former representative director has already been dismissed as TANT’s representative director, and disciplinary action has been taken pursuant to the employment regulations. The outsourcing agreement with the former director has been terminated. Disciplinary action has been taken against 2 employees involved.
For the amounts identified as of the initial investigation, the Company reversed cost of sales and selling, general and administrative expenses and recorded the amounts as other assets. The specific amount is Not disclosed. The approximately ¥4.6 million in total illicitly diverted funds has already been returned to TANT.
First quarter of the fiscal year ending December 2026
Related procedures
Internal investigation
The Company will promptly implement the measures to prevent recurrence and work across the Group to ensure their thorough implementation and strengthen governance.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Release of the Results of the Internal Investigation and Future Actions |
| Date of occurrence | 13 April 2026 (the date on which concerns came to light following the provision of information internally) |
| Date recognized / date notice received | 13 April 2026 (the date on which the concerns were identified following the provision of information internally) |
| Subject Entity | 株式会社TANT (a consolidated subsidiary of Livero Inc.) |
| Target Locations / Products | 株式会社TANT and the transactions and diversion of funds subject to the matter at that company |
| Cause | ①The lack of compliance awareness among TANT’s former representative director and others, ②the failure of mechanisms at TANT to deter misconduct, and ③insufficient monitoring of subsidiaries by the Company as the parent company |
| Amount of Impact on Business Performance | For the amounts identified as of the initial investigation, the Company reversed cost of sales and selling, general and administrative expenses and recorded the amounts as other assets. The specific amount is Not disclosed. The approximately ¥4.6 million in total illicitly diverted funds has already been returned to TANT. |
| Accounting period in which recognized | First quarter of the fiscal year ending December 2026 |
| Type of litigation or proceeding | Internal investigation |
| Investigation structure | An internal investigation committee was established pursuant to a resolution of the Board of Directors dated 24 April 2026. The chair is the head of the Internal Audit Office, who also serves as an Audit & Supervisory Board Member of TANT. The committee members are the manager of the Internal Audit Office, the senior staff member of the Legal and General Affairs Department, and a staff member of the Legal and General Affairs Department. The committee received advice from external attorneys, certified public accountants, tax accountants and others. |
| Measures to prevent recurrence | ①Conducting company-wide compliance training across the Group, ②reviewing TANT’s internal structure and strengthening its governance, and ③strengthening subsidiary management by the parent company |
| Directors' and officers' liability | The monthly compensation of the Company’s representative director and president and its director and chief of the Administration Headquarters will be reduced by 30% for 3 months. TANT’s former representative director has already been dismissed as TANT’s representative director, and disciplinary action has been taken pursuant to the employment regulations. The outsourcing agreement with the former director has been terminated. Disciplinary action has been taken against 2 employees involved. |
| Outlook | The Company will promptly implement the measures to prevent recurrence and work across the Group to ensure their thorough implementation and strengthen governance. |
Items this document does not state (12)
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 lack of compliance awareness among TANT’s former representative director and others, the failure of mechanisms at TANT to deter misconduct, and insufficient monitoring of subsidiaries by the parent company.