Corporate Gavernance

Basic philosophy of corporate governance

In order to achieve long-term stable improvement of our corporate value, which is the most important management issue, Hokuetsu Corporation will build an appropriate corporate governance system in accordance with the following basic concepts.

• We respect the rights of our shareholders and will strive to establish an environment in which shareholders can exercise their rights appropriately and to secure equality between shareholders.

• We recognize the importance of corporate social responsibility and will strive to collaborate appropriately with shareholders and other stakeholders in order to develop a corporate culture in which business is conducted with self-discipline in a sound manner.

• We will ensure transparency and fairness in our decision-making by establishing an executory system for timely disclosure and by conducting the timely and appropriate disclosure of non-financial information beyond requirements mandated by laws and regulations.

• We will strive to secure the effectiveness of the board of directors based on our fiduciary responsibilities and accountability to our shareholders. We will also enhance the strategic, decision-making, and supervisory functions of the board of directors through its analysis and assessment.

• We will actively and constructively engage in dialogue with our shareholders based on our Basic Policy for Active and Constructive Dialogue with Shareholders to support the enhancement of our stable, long-term corporate value. The Board of Directors shall establish and disclose the Group Code of Conduct to be shared by all employees and executive officers of our corporate group.