Corporate Governance

HOGY Medical has established being customer-oriented and shareholder-oriented as the basic policies of the Company and is aware that meeting management targets and continuously increasing corporate value are an important means for providing a return to shareholders. To achieve these requires quick decision-making and effective execution of operations while strengthening corporate governance through stronger management monitoring functions to improve management transparency.

HOGY Medical has a six-member board of directors, three being outside directors, so as to make quick business decisions via management involving a small number of people. In addition, the Company introduced an executive officer system to clearly separate management decision-making and operation auditing from the operation execution function of the executive officers, etc., so as to create an organization that can respond rapidly to changes in the business environment.

HOGY Medical has a three-member board of auditors (two being outside auditors) that audit the execution of the duties of the directors. The board of corporate auditors attends all important meetings, receives reports from directors and other persons, examines documentation regarding important decisions, and examines subsidiaries and other units.
The board of auditors, consisting of all Company auditors, sets auditing policy, receives reports on the status of audits from auditors, receives reports on audits conducted as needed by accounting auditors, and increases mutual cooperation such as through the exchange of information as required.

The executive board consists of six directors, seven executive officers, and appointed department managers, and gives reports on the execution of the operations of each department based on the basic policies set by the board of directors and then decides what specific measures to take after discussion of the issues at hand.

HOGY Medical has an internal control system to ensure the appropriate execution of business by clarifying the authority and responsibility of each duty, while also incorporating a mutual check-and-balance system into the business process for the appropriate division of duties. The Company also recognizes the necessity to review the system as appropriately and endeavor to improve and reinforce it.

The board of directors established the Committee Over Internal Controls,etc., and the Risk Management Group (i.e., an organizations responsible for establishing a system for internal control, compliance, and risk management, and for examining, improving, etc., this system; the same applies hereinafter). The Committee Over Internal Controls, Etc., is chaired by the president of HOGY Medical, and the J-SOX Committee and the 5S Committee have been set up under the Committee Over Internal Controls, Etc. A meeting is held regularly, and all activities are reported to the board of directors.

HOGY Medical shall have no association of any kind with anti-social forces, which threaten the order and safety of society, and shall have no dealings with any companies, organizations, or individuals that have associations with such forces. All Company officers from the president downward shall be keenly aware of the this policy and shall always strive to collect pertinent information from the related government agencies. If such associations are discovered, the Company shall work closely with the related government agencies, attorneys, and other outside organizations specializing in such area so as to build a companywide system to quickly counter the problem.