EXEO EXEO Group,Inc Sustainability Website

Internal control

Internal Control Committee

Based on our Basic Guidelines for Establishing Internal Control Systems, we established an Internal Control Committee (Committee chair: President and CEO) tasked with establishing organizational systems to ensure observance of laws and regulations, operational effectiveness and efficiency, and the reliability of our financial reports, in addition to comprehending and evaluating the overall operational status of the applicable internal control systems.
Related committees have been established under the Internal Control Committee. These are the Compliance Committee, Business Risk Management Committee, and Information Security Committee.

Meetings in fiscal 2023

Internal Control Committee 3 meetings
Compliance Committee 4 meetings
Business Risk Management Committee 10 meetings
Information Security Committee 4 meetings

Basic guidelines for establishing internal control systems

1. System to ensure that execution of duties by directors and employees conform to laws, regulations, and the articles of incorporation

2. System regarding storage and management of information on directors’ execution of duties

3. Rules concerning management of the risk of loss and other systems

4. System to ensure the efficient performance of duties by directors

5. System to ensure the appropriateness of operations in the Group consisting of the Company and its subsidiaries

6. Matters concerning employees when Audit and Supervisory Board Members request employees to assist with their duties

Upon request by Audit & Supervisory Board Members for the appointment of employees to assist them in their duties, the Company establishes dedicated organizations for them which are independent from business execution.

7. Matters concerning the independence of the employees specified in Paragraph 6 from directors, and matters intended to ensure the effectiveness of instructions given to such employees

The Company shall obtain the approval of the Audit & Supervisory Board for any personnel change, personnel evaluation, or disciplinary action involving employees who assist Audit & Supervisory Board Members. Such employees shall not hold concurrent positions in other business units and shall be subject to the sole command of Audit & Supervisory Board Members.

8. Systems of reporting to Audit & Supervisory Board Members by directors and employees and other systems regarding reporting to Audit & Supervisory Board Members

Directors and employees report to the Audit & Supervisory Board in a timely and appropriate manner in accordance with the Audit & Supervisory Board Reporting Rules.

9. System for reporting to the Company's Audit & Supervisory Board Members by directors, Audit & Supervisory Board Members, and employees of subsidiaries, and for people who have received reports from them

10. System for ensuring that personnel who report as specified in Paragraph 9 do not receive unfavorable treatment due to such report

The Company prohibits the disadvantageous treatment of the Group's directors, Audit & Supervisory Board Members, or employees who provide reports to the Company's Audit & Supervisory Board Members on the basis of having provided the report.

11. Policies concerning the procedure for advance payment or reimbursement of expenses that arise from the execution of duties by Audit & Supervisory Board Members and processing of other expenses or handling of other obligations arising from the execution of duties

When Audit & Supervisory Board Members ask the Company to process expenses or handle obligations deemed necessary for the performance of their duties, the Company promptly pays such expenses or handles such obligations.

12. Other systems for ensuring effective auditing by corporate auditors

The Company ensures Audit & Supervisory Board Members the opportunity to conduct interviews with directors and employees, and Audit & Supervisory Members also conduct regular meetings with the President and auditing firms to exchange opinions.