| In order to secure the efficiency, soundness, and transparency of management, and to continuously improve our corporate value while fulfilling the social responsibilities of a corporation, we have targeted the strengthening of corporate governance as one of our most important challenges.
Nichicon introduced the "operating officer system" in June 2003, and through close cooperation with our board of directors, we have made efforts to improve management system and organization so that it can effectively address ongoing changes in the business climate. Members of the board of auditors regularly attend board of directors and other important meetings to give their input. They carry out compliance audits, including investigations on our directors' business execution, our group's business, and the current status of company assets. We have also set up the Audit Office, which reports directly to the president, and executes scheduled audits on the progress of operations for each business office.
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