Audit System | Corporate Governance | Sustainability

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Sustainability
Corporate Governance
Management and Execution System

FANCL has adopted an Audit & Supervisory Board System. Of the five Audit & Supervisory Board members, three are Outside Audit & Supervisory Board members. In addition to attending meetings of the Board of Directors and other important meetings and stating their opinions as appropriate, the Audit & Supervisory Board Members have opportunities to exchange opinions with top management to improve the effectiveness of audits of management decision-making and maintain a fair management monitoring system.
By appointing 5 Outside Directors and 3 Outside Audit & Supervisory Board members, we are incorporating opinions and proposals from multiple perspectives into our corporate management. We are further enhancing our auditing system through cooperation between the Audit & Supervisory Board and the Internal Audit Office.
Audit & Supervisory Board members communicate with the Internal Audit Office and Accounting Auditors regarding their audit results quarterly, at the end of the fiscal year, or other times when necessary. They strive to maintain organizational coordination by confirming facts to enhance the effectiveness of our corporate governance.
The Accounting Auditors explain and report on audit plans and matters to be audited. The Audit & Supervisory Board monitors and judges the independence of the Accounting Auditors and the appropriateness of their audits through these exchanges of opinions.

The Internal Audit Office reports directly to the President and audits the way business is conducted by each department, based on the relevant laws, regulations, and planning requirements.

Corporate governance structure

Sustainability