Regarding Corporate Governance

Regarding Corporate Governance

Cube System endeavors to have a fair and efficient management, and is aware of the key issues of fulfilling corporate governance duties. With that in mind, in order to expedite swift decision making, board meetings are being held every month as well as management meetings every week with company officers including board of directors and auditors also participating. Also at these meetings the various risks surrounding the business are also discussed, which also fulfills the function of risk management.

Moreover, in order to strengthen the auditing system, a system is maintained where external auditors strictly oversee the business affairs of the board of directors. From here on, through the appointment of external auditors, we will strive to enhance our corporate governance.

Cube System's Corporate Governance Structure

Corporate Organizational Contents

  • Appointment of an auditing system
  • Formation of the audit committee from 3 auditors
  • The auditors are all external auditors compliant with Article 2 Section 16, and Article 335 Section 3 of the Corporations Law.

Internal Control System, Risk Management framework preparedness

  • In order to improve the quality of project management, projects with a high degree of difficulty are designated as 'high difficulty projects,' and on the spot auditing and project review takes place. The results of which are regularly reported to management meetings.
  • Regarding legal risk management, all types of contracts are managed in an integrated fashion.
  • Regarding basic contracts and important contracts, as a rule, it is reviewed by a legal advisor and the risks of each item contained within are confirmed.

Internal auditing and auditor's inspection, financial audit conditions

Internal Audit

One person is installed as the 'Internal Auditing Department' under direct control of the President. In order to fulfill our social responsibilities as a corporation, all operations under the control of each department will accord with all laws, statues, and internal regulations. While evaluating and considering from an objective stance whether they are operating appropriately and effectively or not, for each department, verification of actual and forecast outcomes of business plans will take place, and these results will be reported to the President.

Auditors' inspection

While participating in all directors meetings and management meetings, the auditors also actively participate in other important company meetings, and inspect the management of corporate affairs from the various perspective of accounting, legal, and sales. Also as the auditors meeting which is held once a month, the auditor's report on the various audit results, as well as making proposals to the directors when necessary.

Financial Audit

Deloitte Touche Tohmatsu LLC is appointed for financial auditing. The auditing schedule is thoroughly explained to the auditors beforehand and also for the reporting of the audit results. The auditors, internal auditors, and the directors participate and through the exchange of opinions, the results are universally acknowledged.