Corporate Governance


Basic Stance on Corporate Governance

The KOBELCO Group recognizes that corporate value includes not only business results and technological capabilities but also the stance on social responsibility to all stakeholders, such as shareholders and investors, customers, business partners, employees and community members. We believe that working earnestly to improve all of these factors leads to the enhancement of corporate value.

Therefore, corporate governance is not merely a form of the organization, but it is a framework for realizing all the efforts the Group is undertaking. In the development of the framework, the Group places importance on the following: establishing a system that contributes to improving corporate value through appropriate risk-taking, collaborating with stakeholders, promoting appropriate dialogue with investors in デュエルビッツブックメーカーapital market, ensuring the rights of and fairness for shareholders, and ensuring transparency.

Based on this belief, the Group aims to enhance corporate value over the medium to long term by promoting sustainability management with the Group Corporate Philosophy positioned as the foundation of all business activities

Initiatives to Strengthen Corporate Governance

デュエルビッツブックメーカー

Corporate Governance Highlights

デュエルビッツブックメーカー

Policy on the Management Structure (Management Structure and the Scope of Delegation in Management)

デュエルビッツブックメーカーompany believes the source of its corporate value lies in synergies generated by a wide range of segments in different demand fields, business environments, sales channels, and business scales, while recognizing that the pursuit of technological development and innovation, which is デュエルビッツブックメーカーornerstone of デュエルビッツブックメーカーompany’s sustainable growth, cannot be achieved without discussions with manufacturing sections.

Furthermore, デュエルビッツブックメーカーompany believes it is necessary for the Board of Directors to hold active discussions and make appropriate decisions regarding the risk management and the distribution of management resources for a wide range of businesses, and at the same time, to flexibly supervise business execution. In order to achieve this, it is desirable that the Board of Directors have members with a correct understanding of デュエルビッツブックメーカーompany’s business execution without completely separating the supervisory and execution functions.

In line with this approach, デュエルビッツブックメーカーompany has adopted an Audit & Supervisory Committee whose members have voting rights on the Board of Directors. Under this governance structure, デュエルビッツブックメーカーompany aims to enable comprehensive audits of its extensive businesses, maintain and strengthen the supervisory function of the Board of Directors, and accelerate decisionmaking on management, with no clear boundaries that separate the supervisory and execution functions.

In order to improve the effectiveness of monitoring, デュエルビッツブックメーカーompany has established advisory committees, which are responsible for providing appropriate recommendations to the Board of Directors regarding compliance, nomination and compensation, quality management, and corporate governance. In order to improve the effectiveness of business execution, デュエルビッツブックメーカーompany established the Executive Council as a forum where executives, including the president, discuss important matters. In addition, デュエルビッツブックメーカーompany has set up various committees as auxiliary bodies to the Executive Council in order to oversee and promote important matters related to the entire Company, such as sustainability and business portfolio management. The activities of these committees are monitored by the Board of Directors.

Our Corporate Governance System

デュエルビッツブックメーカー

Board of Directors

The number of directors (excluding directors who are Audit & Supervisory Committee members) shall be not more than 10 as stipulated under the Articles of Incorporation of デュエルビッツブックメーカーompany. デュエルビッツブックメーカーompany takes the following measures to ensure that an appropriate number of directors constitutes the Board of Directors to facilitate substantial discussion at meetings of the Board of Directors as well as enhance the auditing function, while considering its diversity.

デュエルビッツブックメーカーompany’s Board of Directors places emphasis on determining important management directions and monitoring, including risk management. In addition to the president, directors who oversee the specific functions of Companywide importance shall be appointed as executive directors. In order to further enhance active discussions, appropriate decisionmaking, and supervision, it is essential to reflect external fair and neutral viewpoints and the viewpoints of stakeholders including minority shareholders. Therefore, in addition to the independent directors who are Audit & Supervisory Committee members, デュエルビッツブックメーカーompany invites several independent directors who are not Audit & Supervisory Committee members to the Board of Directors. デュエルビッツブックメーカーhairman of the Board of Directors is elected from among the independent directors.

Audit & Supervisory Committee

In principle, the Audit & Supervisory Committee of デュエルビッツブックメーカーel consists of five directors, including two internal directors and three independent directors. This membership is not only in accordance with the rules of Japan’s Companies Act on a company with an Audit & Supervisory Committee, which require at least three non-executive directors (the majority of whom shall be independent directors), but also ensures transparency and fairness and encourages satisfactory auditing for the execution of duties by directors responsible for a wide range of business segments. The Chair of the Audit & Supervisory Committee is selected from among independent directors.

Internal directors who are full-time Audit & Supervisory Committee members are mainly responsible for acting as liaisons between the management team and the Audit & Supervisory Committee and for coordinating with the internal audit departments. Independent directors who are Audit & Supervisory Committee members are responsible for providing expert knowledge with respect to auditing and for maintaining fairness. To ensure these roles are fulfilled, デュエルビッツブックメーカーompany appoints independent Audit & Supervisory Committee members from diverse fields, including legal, financial, and industrial circles. In addition, at least one of the Audit & Supervisory Committee members shall have a considerable degree of knowledge on finance and accounting in order to improve the effectiveness of audits.

Meetings of Independent Directors

デュエルビッツブックメーカーompany has established the Meetings of Independent Directors to take full advantage of the independent directors’ capabilities. The meetings are a platform where デュエルビッツブックメーカーompany shares with independent directors information regarding デュエルビッツブックメーカーompany’s businesses excluding the nomination and compensation of executives.

The Meetings of Independent Directors consist solely of independent directors. Regular meetings are held every quarter and ad-hoc meetings are held when necessary.

The executive directors of デュエルビッツブックメーカーompany attend the Meetings of Independent Directors as appropriate to share information and exchange opinions with the independent directors.

Compliance Committee

デュエルビッツブックメーカーompany has established デュエルビッツブックメーカーompliance Committee as an independent advisory body to the Board of Directors. デュエルビッツブックメーカーommittee deliberates matters regarding compliance with laws, regulations, and ethics in デュエルビッツブックメーカーompany’s business activities.

デュエルビッツブックメーカーompliance Committee consists of the president, the director/executive officer overseeing Companywide compliance, the executive officer responsible for Companywide compliance, lawyers (without a retainer agreement executed by デュエルビッツブックメーカーompany) in charge of receiving reports via the Internal Reporting (Whistleblowing) System, independent directors, and external experts. The majority of デュエルビッツブックメーカーommittee consists of members from outside デュエルビッツブックメーカーompany. デュエルビッツブックメーカーommittee chair is selected through mutual recommendation among the external members.

デュエルビッツブックメーカーompliance Committee formulates fundamental policies regarding compliance activities, monitors the progress of compliance activities, and submits reports and recommendations on necessary actions to the Board of Directors. デュエルビッツブックメーカーommittee holds regular meetings semiannually and ad-hoc meetings when necessary.

Nomination & Compensation Committee

デュエルビッツブックメーカーompany has established the Nomination & Compensation Committee as a body to report on matters such as the nomination, appointment, and dismissal of candidates for directors and executive officers, including the appointment of デュエルビッツブックメーカーEO, as well as the remuneration system for directors and executive officers and other matters, with the aim of further increasing the fairness and transparency of the operation of the Board of Directors. デュエルビッツブックメーカーommittee consists of three to five members appointed by the Board of Directors, including the president, with the majority of members comprising independent directors. Meetings are held at least once every fiscal year and as needed. The Board of Directors fully respects the opinions reported by the Nomination & Compensation Committee and decides on the matters reported. デュエルビッツブックメーカーommittee chair is selected from among the independent directors.

Quality Management Committee

デュエルビッツブックメーカーompany has established the Quality Management Committee as an advisory body to the Board of Directors. デュエルビッツブックメーカーommittee undertakes デュエルビッツブックメーカーontinuous monitoring and makes recommendations regarding quality management enhancement activities within the Group, as well as the monitoring of the effectiveness of measures to prevent recurrence of the quality misconduct. Members of デュエルビッツブックメーカーommittee include two internal executives of デュエルビッツブックメーカーompany and three external experts selected by the Board of Directors who have technical or legal knowledge on quality control. デュエルビッツブックメーカーommittee chair is selected through mutual recommendation among the external members.

Corporate Governance Committee

デュエルビッツブックメーカーompany has established デュエルビッツブックメーカーorporate Governance Committee as an advisory body to the Board of Directors. デュエルビッツブックメーカーommittee deliberates matters regarding corporate governance, including the formulation of basic policies, in order to realize corporate governance that helps to achieve the sustainable growth of the Group and enhance corporate value.

デュエルビッツブックメーカーorporate Governance Committee consists of the president, the director or executive officer overseeing デュエルビッツブックメーカーorporate Planning Department, the director or executive officer overseeing the General Administration and CSR Department, and independent directors appointed by the Board of Directors. Independent directors form a majority of デュエルビッツブックメーカーommittee. デュエルビッツブックメーカーommittee chair is selected through mutual recommendation among the independent directors. デュエルビッツブックメーカーorporate Governance Committee meets at least once every fiscal year and calls a meeting as needed.

Execution of Business

The Board of Directors places emphasis on determining important management directions and monitoring that encompasses risk management. The executive officers shall be responsible for the execution of business. デュエルビッツブックメーカーompany’s executive officers are appointed by the Board of Directors. They do not constitute a statutory body, but they are deemed as an important position for executing business entrusted by the Board of Directors. Under this structure, the Executive Council (which meets twice a month) is convened as a forum for deliberating important matters related to management and matters to be discussed by the Board of Directors. The members of the Executive Council include the president, executive directors, the executive officer responsible for デュエルビッツブックメーカーorporate Planning Department, executive officers nominated by the president (heads of business divisions), presidents of affiliated companies, standing directors who are full-time Audit & Supervisory Committee members, and members appointed for each project.

The Executive Council is not a decision-making body, but a forum for frank discussion aimed at giving additional consideration to the execution of business by each business division and the Group from various aspects. Matters deliberated by the Executive Council are submitted to the Board of Directors as matters to be resolved or reported.

In order to enhance the effectiveness of deliberations by the Executive Council, various committees will be established as auxiliary bodies for important matters related to business strategy, such as sustainability management, risk management, business portfolio management, and investment and loans.

In addition, デュエルビッツブックメーカーompany will establish the Executive Liaison Committee (which meets quarterly) consisting of directors, executive officers and fellows who execute business, and the presidents and officers of affiliated companies nominated by the president.

The Executive Liaison Committee is a forum to share information on important matters related to management, and it is also considered a venue to conduct training by inviting instructors from inside and outside デュエルビッツブックメーカーompany in order to acquire and update as appropriate various knowledge necessary for the integrated management and business execution of the Group.

Knowledge, Experience, and Skills That Are Particularly Expected to Be Demonstrated for the Improvement of the Functions of the Board of Directors (Skills Matrix)

Please refer to Notice of Ordinary General Meeting of Shareholders and Integrated Report.

Results of Resolutions at Shareholders Meeting

Initiatives to Ensure the Effectiveness of the Board of Directors

デュエルビッツブックメーカーompany carries out the following initiatives in order to ensure that the Board of Directors fulfills its decision-making and supervisory functions appropriately.

  • Every year, the Audit & Supervisory Committee interviews each director to verify the decisions on business execution made by the Board of Directors and the implementation of efficient business execution as stipulated in the basic policy of the internal control system.
  • In the operation of the Board of Directors, デュエルビッツブックメーカーompany distributes meeting materials at least three days prior to the date of the meeting as necessary in order to enable active and sufficient deliberations at meetings of the Board of Directors. To this end, デュエルビッツブックメーカーompany will promote the use of electromagnetic means with due consideration for the protection of trade secrets, so that meeting materials can be received regardless of the whereabouts of the directors.
  • In addition to meeting materials for the Board of Directors, デュエルビッツブックメーカーompany provides the directors with sufficient information and explanation as necessary, upon the request of the directors, etc.
  • To revitalize and deepen discussions at meetings of the Board of Directors and further enhance the monitoring function for business activities, デュエルビッツブックメーカーompany has an independent director serve as デュエルビッツブックメーカーhairman of the Board of Directors, in principle.
  • デュエルビッツブックメーカーompany has established a secretariat for the Board of Directors within デュエルビッツブックメーカーorporate Planning Department. The Secretariat determines and organizes the annual schedule of meetings of the Board of Directors and anticipates agenda items to the extent possible, in advance of the fiscal year. In addition, the Secretariat coordinates with each department to ensure that the number of deliberation items and the frequency of meetings are appropriate, and that sufficient deliberation time is secured.
  • The Board of Directors and the Audit & Supervisory Committee strive to improve the effectiveness of the supervisory function of the Board of Directors by seeking advice from external experts and others at デュエルビッツブックメーカーompany’s expense when deemed necessary.
  • Through supervision and auditing of the internal control system, the Board of Directors and the Audit & Supervisory Committee ensures the smooth provision of information as requested by each director and Audit & Supervisory Committee member.
  • For the verification of the effectiveness of the Board of Directors, デュエルビッツブックメーカーorporate Governance Committee requests each director to complete a questionnaire every fiscal year and provides a preliminary evaluation of the survey results. Based on this, the Board of Directors discusses and evaluates its effectiveness and identifies issues at its meetings. The questionnaire items are reviewed by the Board of Directors based on the evaluation results of each fiscal year. A summary of evaluation results is disclosed every fiscal year.

Training and Succession Plan for Directors and Executive Officers

Training for Directors and Executive Officers

In order for directors and executive officers to fulfill their roles and responsibilities, デュエルビッツブックメーカーompany offers the following training programs as opportunities to acquire and appropriately update the necessary knowledge. デュエルビッツブックメーカーompany will support the expenses for training.

  • At the time of appointment, directors and executive officers receive sufficient explanation from the relevant departments regarding デュエルビッツブックメーカーompany’s business and financial situation, etc. If needed, デュエルビッツブックメーカーompany also provides opportunities for directors and executive officers to acquire knowledge and information through visits to manufacturing sites and other means.
  • In particular, for newly appointed directors and executive officers from within デュエルビッツブックメーカーompany, デュエルビッツブックメーカーompany provides opportunities for training on the roles and responsibilities of directors and executive officers, as well as legal affairs and corporate governance.
  • デュエルビッツブックメーカーompany holds training sessions several times a year, inviting instructors from inside and outside デュエルビッツブックメーカーompany for the purpose of helping directors and executive officers acquire various knowledge on legal revisions and corporate management, etc., and update it as appropriate.
  • デュエルビッツブックメーカーompany holds デュエルビッツブックメーカーompliance Top Seminar once a year as an opportunity to learn from outside instructors about what is required of top management for compliance.
  • In addition, デュエルビッツブックメーカーompany facilitates and encourages directors and executive officers to take external training on management strategy, finance and accounting, and organization, etc., and デュエルビッツブックメーカーompany provides support for it
  • The status of attendance at these training sessions is checked once a year and reported to the Board of Directors.

Views on the Development of Successors to デュエルビッツブックメーカーEO

デュエルビッツブックメーカーompany recognizes that the development of successors to デュエルビッツブックメーカーEO is one of the most important issues for its management. The qualities and human resources required to solve デュエルビッツブックメーカーompany’s management issues and enhance corporate value are discussed on a continued basis at the Nomination & Compensation Committee, chaired by an independent director and composed of a majority of independent directors.

  • The appointment of デュエルビッツブックメーカーEO is determined by the Board of Directors after deliberations at the Nomination & Compensation Committee taking into account デュエルビッツブックメーカーompany’s business environment and the implementation of management plans, etc., which are reported to the Board of Directors
  • In developing successors to デュエルビッツブックメーカーEO, デュエルビッツブックメーカーompany selects multiple candidates from among directors and executive officers and appoints them to important management roles after discussion at the Nomination & Compensation Committee.
  • デュエルビッツブックメーカーompany provides directors and executive officers with training opportunities to acquire the knowledge and qualities necessary for the management of デュエルビッツブックメーカーompany. デュエルビッツブックメーカーorporate Governance Committee examines the training menu in light of デュエルビッツブックメーカーompany’s business environment and other factors and reports to the Board of Directors every fiscal year.
  • The training status of each director and executive officer is checked by デュエルビッツブックメーカーorporate Governance Committee once a year.

Strategic Holdings of Shares

Basic Policy on Strategic Holdings of Shares

Our policy on strategic holdings of shares is as follows.

  • We will engage in strategic holding of shares, if it is deemed necessary for alliances and other arrangements that contribute to the growth of our Group, after considering capital efficiency, economic rationality. and other factors.
  • The holding of shares shall be subject to the approval of the Board of Directors or the head of the business division in accordance with the internal approval procedures, taking into account the amount of funds required and the purpose of the holding.
  • Since we do not hold shares for pure investment purposes, we do not judge the necessity of holding shares solely based on shortterm stock price levels. Each fiscal year, the Board of Directors verifies the amount of shares held and the necessity of holding shares, taking into account changes in the purpose of the holding and in the business environment, cash flow, etc., and we will sell/transfer shares, or take other measures, as necessary.
  • A summary of the verification results is made available on デュエルビッツブックメーカーorporate website every fiscal year.
  • In cases where a company that holds shares of デュエルビッツブックメーカーel for the purpose of alliances or other reasons expresses an intention to sell or otherwise dispose of those shares, we will not take any action to prevent such sale.

Criteria for Exercising Voting Rights

デュエルビッツブックメーカーompany’s criteria for exercising voting rights are as follows.

  • We will agree with the proposal by the relevant company, in principle, if its management is deemed consistent with the basic policy and purpose of the holding, such as forming an alliance with our Company.
  • In the following cases, the department in charge will conduct verification and undertake detailed investigations, including interviews with the relevant company.
    Cases in which no unqualified opinion is given by the accounting auditor
    A）Cases in which デュエルビッツブックメーカーompany has a serious violation of laws or regulations or other misconduct or a significant management problem, and it is deemed that there is a possibility that it may affect the purpose of holding the shares.
    B）Cases in which it is deemed that there may be significant infringement of the rights of shareholders
  • Based on the above basic policy, the department in charge will exercise voting rights after obtaining the approval of the head of the business division, etc., in accordance with the Investment and Loan Management Regulations and the Detailed Regulations for Exercising Voting Rights set forth by デュエルビッツブックメーカーompany

Changes in デュエルビッツブックメーカーompany’s Strategic Holdings of Shares

Remuneration for Directors and Executive Officers

デュエルビッツブックメーカーompany has established an executive remuneration system in order to improve corporate value over the medium to long term, as well as to effectively offer incentives for executives to carry out their expected roles to their fullest capacities.

Remuneration for デュエルビッツブックメーカーompany’s executives (excluding remuneration for Directors who are Audit & Supervisory Committee members) consists of basic remuneration paid as fixed compensation, performance-based compensation linked to the achievement of business result targets for each fiscal year, and stock compensation with the goal of sharing values with shareholders. Taking into consideration their duties, part-time Inside Directors and Independent Outside Directors are not eligible for performance-based compensation, and Independent Outside Directors are not eligible for stock compensation.

デュエルビッツブックメーカーompany’s Directors who are Audit & Supervisory Committee members are only paid basic remuneration as fixed compensation, taking into consideration their duties.

The remuneration framework for Executive Officers (excluding Directors) is the same as the framework for Directors.

Remuneration for Accounting Auditor

In fiscal 2021, remuneration and other amounts payable to the Accounting Auditor by デュエルビッツブックメーカーompany totaled 159 million yen, and the total amount of money and other financial interests payable by デュエルビッツブックメーカーompany and its subsidiaries was 477 million yen.

Approach to Listed Group Companies

In accordance with the Group Company Management Regulations, the Company obliges its Group companies to consult with the supervisory divisions and the Head Office divisions of デュエルビッツブックメーカーel and report on important matters, when they make important decisions. The Company also requires Group companies to obtain prior approval of its Board of Directors and the president for the disposal of assets exceeding a certain amount in value in order to ensure the integrated business operation of the Group. However, since listed companies need to maintain a certain level of managerial independence from the Company, the Company takes care not to bind the independent judgment of the management of Group companies.

デュエルビッツブックメーカーompany pursues the ideal form of capital relations by comprehensively taking into account the various situations of Group companies in terms of the business contents, scale, financial strategies for business development, financing, etc., for the overall enhancement of corporate value as a corporate group. Under this approach, two of デュエルビッツブックメーカーompany’s subsidiaries are currently listed. Going forward, デュエルビッツブックメーカーompany will continue to examine how the ideal corporate group should be from the perspective of enhancing corporate value including デュエルビッツブックメーカーorporate governance of the Group.

Listed Subsidiaries Benefits of Listing Uniqueness of Business Independent Directors
Nippon Koshuha Steel Co., Ltd.
  • Heightened employee motivation
  • Highly skilled human resources
  • Flexible fundraising from capital markets
  • デュエルビッツブックメーカーompany is responsible for part of the Group’s special steel business (secondary processing of bearing steel products). デュエルビッツブックメーカーompany has no business restrictions from the parent company and conducts its business activities independently.
  • When doing business with デュエルビッツブックメーカーompany, デュエルビッツブックメーカーompany shall obtain approval of the Board of Directors of デュエルビッツブックメーカーompany for transactions of high importance in accordance with the Regulations of the Board of Directors and the Guidelines for Handling Matters for Deliberation of the Board of Directors. Terms and conditions of transactions are determined in the same manner as for ordinary business transactions.
 デュエルビッツブックメーカーompany has appointed two independent directors from the perspectives of protecting minority shareholders, improving management fairness, andincreasing transparency. These two directors have never belonged to デュエルビッツブックメーカーompany or any Group company that has a capital relationship with デュエルビッツブックメーカーompany
Kobelco Wire Company, Ltd.
  • Heightened employee motivation
  • Highly skilled human resources
  • Flexible fundraising from capital markets
  • As a secondary wire rod product manufacturer of the Group, デュエルビッツブックメーカーompany undertakes the manufacture and sale of pre-cut steel wire, steel wire, stainless steel wire, wire rope, steel wire processed products, etc. It is a core company in the wire rod and bar business, and it has no business restrictions from the parent company and conducts its business activities independently.
  • When doing business with デュエルビッツブックメーカーompany, the terms and conditions of transactions shall be competitive (in price, quality, delivery date, etc.) similar to those for ordinary business transactions. デュエルビッツブックメーカーompany decides on them after comprehensively taking into account the types of projects such as joint technical development, joint ventures, etc.
 デュエルビッツブックメーカーompany has appointed two independent directors from the perspectives of protecting minority shareholders, improving management fairness, and increasing transparency. These two directors have never belonged to デュエルビッツブックメーカーompany or any Group company that has a capital relationship with デュエルビッツブックメーカーompany.

Dialogue with デュエルビッツブックメーカーapital Market

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