Risk of Delays in Establishing Control Frameworks for Consolidated Subsidiaries and Legal Violations
First written in FY2024-Q1. 2 of 5 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2024: 4 of 16 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「At a meeting of the Board of Directors held on 27 March 2025, the Company resolved to absorb 株式会社リアライブ, its consolidated subsidiary, and carried out the absorption-type merger on 1 October 2025.」
In response to the risk of delays in developing 株式会社リアライブ's subsidiary management systems, the Company carried out an absorption-type merger and integrated the management systems. As a result, there will be no consolidated subsidiaries, and the Company plans to transition to non-consolidated accounting from the third quarter of the fiscal year ending March 2026. - FY2025Management Integration Policy Through an Absorption-Type MergerAnnual report
「As a result, the Company will strengthen the management structure of the struggling recruitment event business and pursue fundamental reforms, including the development of and entry into new recruitment event businesses.」
In response to the risk of delays in developing 株式会社リアライブ's management systems, the Company decided on an absorption-type merger and management integration with an effective date of 1 October 2025, presenting the integration of management systems as a response measure. - FY2024-Q3RestatedAnnual report
「The Group has 1 subsidiary, 株式会社リアライブ. Because this subsidiary has been a consolidated subsidiary of the Group for only a short period and is also small in scale, its management systems may fail to keep pace with rapid business growth in the future.」
The Company continues to describe the risk of delays in developing 株式会社リアライブ's subsidiary management systems, legal violations and deficiencies in licensing and approval procedures, as well as the response by the administrative divisions. - FY2024-Q2RestatedAnnual report
「The subsidiary has been a consolidated subsidiary of the Group for only a short period and is also small in scale, so its management systems may fail to keep pace with rapid business growth in the future. Although the Company’s administrative division is working to strengthen its management systems, including internal controls, inadequate management systems could affect the Group’s business and results through violations of laws and regulations or deficiencies in procedures related to licenses and approvals.」
The Company continues to describe the risk of delays in developing 株式会社リアライブ's subsidiary management systems, legal violations and deficiencies in licensing and approval procedures, as well as the response by the administrative divisions. - FY2024-Q1First statedAnnual report
「The subsidiary has been a consolidated subsidiary of the Group for only a short period and is also small in scale, so its management systems may fail to keep pace with rapid business growth in the future. Although the Company’s administrative division is working to strengthen its management systems, including internal controls, inadequate management systems could affect the Group’s business and results through violations of laws and regulations or deficiencies in procedures related to licenses and approvals.」
Following the consolidation of 株式会社リアライブ as a subsidiary, the Company newly described the risk that the development of the subsidiary's management systems may fail to keep pace with its rapid growth, resulting in legal violations or deficiencies in licensing and approval procedures.