Basic Approach to Corporate Governance

At Imasen Electric Industrial Co., Ltd., we recognize the importance of corporate ethics based on compliance and positions the enhancement of shareholder value as one of our most important management issues. Accordingly, we attempt to improve decision-making speed in response to changes in society and the economic environment while heightening management soundness. To this end, Imasen will further strengthen, improve and develop its current legal functions, which include the General Meeting of Shareholders, the Board of Directors, the Board of Corporate Auditors and accounting auditors, while enhancing corporate governance. Additionally, we will strive to disclose information promptly and accurately to shareholders and investors, and by disclosing a wider range of information, we will heighten management soundness and transparency. The Board of Directors establishes Corporate Governance Guidelines that set out the basic principles and mechanisms of corporate governance.

Imasen Group Compliance and Ethics (Established in July 2002.)

1.Conscious and act as a member of society
  We will have a conscious as a member of society, and act by following high level ethics and moral.

2.Respect for fundamental human right
  We will respect for fundamental human right, individual dignity and try to make a good work environment.

3.Compliance with all laws
  In any business activity situation, we will strictly follow regulation and company policy, proceed a smooth business activity.

4.Maintain relationship with honesty and fairness
  We will keep having a business with honesty and fairness with everybody related to business, proceed a healthy business activity.

5.Conflict of interest elimination
  Any conflict which will disturb company to get proper profit , company trust, or other rebellious action is prohibited.

Business act regulation

1.Relationship with community

(1)Political activities and donations
  Any political activities, donations or other similar activities needs to be investigated if it is necessary and properly. Those activities needs proper treatment based on the regulation.
(2)Antisocial act
  We have to refuse Antisocial act or group which will threaten order or safe in society with strict attitude, and block any relationship with them.
(3)Environmental conservation
  We need to recognize global environment is the most important issue for human, protect nature and source in any business area, and act with the consideration of environment.
(4)Contribution to community
  Cooperate and act in harmony with local community, maintain a good relationship and contribute to the society through intercommunion.

2.Mutual relationship

(1)Respect for fundamental human right and antidiscrimination
  We should not allow discrimination concerning race, belief, gender, religion, national origin, roots, physical feature at work environment.
(2)Respect for character
  In order to let each associate recognize affluence and accomplishment, respect individual and character, develop human resource with skill and creativity and implement “Company is what human resource is”.
(3)Respect for privacy
  We need to respect each associate privacy, and manage personal information carefully with greatest care.
(4)Keeping safe work environment
  Set the highest priority on safety and healthy, work on environment protection and get rid of workers comp to make safety and encouraging work environment.

3.Relation ship with customer, supplier and other companies

(1)Fair business
  Based on free competition, all the business practice needs to be implemented fairly and honestly by following regulations.
 Activity which disturb fair and open competition is prohibited. Ex) Bid collusion, cartel
(4)Providing gifts and entertainment
  Any gift or entertainment which defy common sense or the conduct can be seen as profit sharing to politician or government agencies are prohibited.

4.Relationship with shareholder and investor

(1)Disclose information timely
  By following the regulations, disclose financial result and business detail. Generally, critical information needs to be handled as confidencial, it needs to be disclose in proper time with proper way.
(2)Insider trading
  Buying or selling stock by using undisclosed information obtained through business is prohibited. Also, do not try to get profit or advantage from third party by using this information.

5.Control company assets and information

(1)Control of company assets
  Company assets (tangible and intangible assets) needs to be properly controlled by following business policy. Using company assets for the purpose not related to business ( private purpose) is prohibited.
(2)Handling of information
 Do not take out the company information (include documents and data) without permission. Also, do not disclose or use this information improperly or illegally.

6.Protection of intellectual property

(1)Maintain the right
  Company intellectual property (Patent right, Copy right) needs to be maintained and secured
(2)Ban on misapply
  We have to respect others intellectual property. Also, do not violate or misapply on purpose.

Corporate Governance System Overview (Schematic Diagram)

*1.The Institutional Review Board grasps the status of compliance with matters related to the Group’s corporate ethics and formulates problems and countermeasures.
                                             (Held once a month )
*2.The Risk Management Committee implements and supports the Group’s risk management and mitigation systems and measures.
                                             (Held once every three months )
*3.The ISP2030 Committee is responsible for promoting, overseeing, and setting goals for the Company’s sustainability activities.
                                             (Held once every three months ) *4.The Compliance Committee deliberates on the Group’s Code of Ethics, norms, internal regulations, and the status of compliance with laws and regulations.
                                             (Held once every two months )