KUBOTA is implementing an audit system, and the Board of Directors is responsible for making company-wide strategic decisions and supervising the performances of directors and executive officers, while the Board of Corporate Auditors supervises and conducts audits of the performances of the directors.
On April 1, 2009, we introduced an Executive Officer System with the appointment of 26 executive officers, in order to be able to quickly adapt to the change in the management environment and to further improve our management efficiency by strengthening the strategic decision making function of the Board of Directors and the business execution function of the President and the Executive Officers.
We also reduced the number of directors and selected outside directors at the regular general shareholders meeting held in June in order to make the strategic decision making function of the directors more expeditious.
We have further established a "Management Committee" and an "Investment Council" for discussions in regard to specific, important issues, and installed a system that enables more appropriate, prompter decision making by top management, including Representative Director, President & CEO (hereinafter "President").
We also formulated a Research & Development Strategy Committee and a Quality Assurance & Manufacturing Strategy Committee, both chaired by the president, on April 1, 2009 to strengthen our R&D, quality control and manufacturing capabilities-the basis of manufacturing.
In addition, various committees composed of specialists from each department propose work plans in their field of specialty and develop education and awareness-raising activities for the entire KUBOTA Group, as well as supporting each division and presenting reports and proposals to the Board of Directors.
Corporate governance structure
* Click to enlarge
* System of management control
The Board of Directors is composed of 8 directors (including 2 outside directors), and in addition to the regular Board of Directors' meeting that is held once a month, it is convened at any time necessary in order to discuss and make decisions on important management-related issues such as business plans, financial plans, investment, and business restructuring.
A directors' term of office is limited to one year in order to clarify their business responsibilities in each and every fiscal year, and they may be reelected at the annual General Shareholders' Meeting.
The Board of Corporate Auditors is composed of 5 auditors (including 3 outside auditors) and the members attend at important meetings, listen to reports made by the directors, read important approval request documents, and conduct audits by making researches on the subsidiaries, and they also accept reports regarding the audits from the accountant auditors.
The Executive Officers' Meeting is composed of the president and 29 executive officers, and meetings are convened monthly and from time to time when necessity arises to discuss important matters related to business execution.
