Our Group considers corporate governance a "framework for balancing interests among various actors (stakeholders) in an enterprise to facilitate efficient corporate activities." Therefore, our management organizations, including the Board of Directors, are consistently working hard, taking into consideration the intention of the laws and the relationships with shareholders, employees, and other stakeholders, in order to make the best decisions and effectively execute operations to achieve the best management performance.

In our company, the Board of Directors and Board of Auditors monitor and audit operations, respectively. In principle, the Board of Directors convenes monthly to make important decisions and monitor the performance of directors' duties. The Board of Auditors, consisting of four auditors, including two external auditors, also convenes monthly, in principle. We employ the three-tiered audit system, through which an accounting auditor, the auditing officers, and the Internal Audit Office, under the direct control of the CEO, cooperate with each other. Moreover, we ensure effective risk management across the Group through a three-committee system consisting of the Compliance Committee, Safety and Environment Committee, and the Quality and System Committee, each of which includes the presidents of the Group companies.

The Executive Committee, composed of the board of directors and fulltime auditing officers, convenes weekly to monitor the execution of duties, consider important matters with regard to the execution of duties of the CEO, and to exchange views and information on management.

A Group Compliance System Utilizing ISO

All four of the main companies of our group, Iino Lines, Iino Marine Service Co., Ltd., Iino Building Technology Co., Ltd., and Iino Gas Transport Co., Ltd., have obtained ISO 9001 and ISO 14001 certification.

Led by these four companies in our group, we regard the ISO-standard PDCA (Plan-Do-Check-Action) cycle not only from a safety and environmental viewpoint, but as the basic framework of the management system as a whole.

In our group's business management system, the management system based on ISO functions as a framework that supports the corporate governance of the entire group. And as an infrastructure that supports this system, we have created a three-layer structure consisting of the document management and information system and information security.

As the laws and rules that go through these three layers, in addition to the existing laws and ordinances, a Company Law was put into effect on May 1, 2006, and the J-Sox law was put into effect on September 30, 2007. We have created a legal compliance system centered on these three axes.

Our group's compliance structure is a three-layer, three-axis structure, and through this framework, we are trying to effectively operate the business management and compliance system of the group as a whole and, furthermore working with hopes that it will lead to maintaining and improving our corporate value.