Corporate Governance

Basic Approach

The Lion Group’s top priorities for corporate governance are to increase management transparency, strengthen Supervisory functions, accelerate decision making and ensure compliance. By strengthening and enhancing its corporate governance system, Lion aims to increase its corporate value.

Policy

For information about Lion’s approach to corporate governance, governance initiatives and other related topics, please refer to the Basic Corporate Governance Policy.

Initiatives to Enhance Management Auditing and Supervision

Initiatives to Enhance Management Auditing and Supervision

Corporate Governance System

At Lion, oversight of management is carried out under an audit and supervisory board system. In March 2004, Lion adopted an executive officer system and divided the functions previously handled by the Board of Directors. Under the new system, the Board of Directors is responsible for management decision making and oversight, and the Executive Committee is charged with business execution.
Moreover, Lion reduced the size of its Board of Directors from the 19 directors it had before adopting the executive officer system to the current nine in order to facilitate more substantive discussion and faster decision making. Also, a Nomination Advisory Committee and Compensation Advisory Committee were established to increase management transparency and further enhance corporate governance. Membership of each of these committees comprises mainly five external officers (three external directors and two external Audit & Supervisory Board members), all of whom are qualified as independent directors. The representative directors and all the external officers exchange information regularly (once a month, in principle) in an effort to enhance management oversight and monitoring functions.
In addition, to reflect the opinions and advice of third parties with regard to legal compliance and management policies, we have maintained an Advisory Committee (previously the Management Evaluation Committee) consisting of external experts since October 2003.

Corporate Governance System

Corporate Governance System

Initiatives