Corporate Governance

Basic Policies and Systems

SHIMA SEIKI places great importance on enhancing corporate governance to improve management efficiency, soundness, and transparency while at the same time conducting management that emphasizes the interests of stakeholders such as shareholders, customers, business partners, and employees. By fully utilizing the functions of the Board of Directors and the Audit & Supervisory Board Members, we will strive to build a system that enables proper and effective corporate governance.

Governance Structure

Directors/Board of Directors

The board of directors consists of 9 people, including 4 outside directors. As a general rule, the Board of Directors meets at least once each month, flexibly as needed, to deliberate on matters stipulated by law and important management matters, determine management policies, and supervise the execution of business. In 2022 the Board of Directors met 13 times.

Audit and Supervisory Committee Members/Audit and Supervisory Committee

Audit and Supervisory Committee consists of three directors who are Audit and Supervisory Committee Members, including two outside directors who have specialized knowledge in legal affairs, finance and accounting.

Internal Auditing Division

The Internal Auditing Division comprises three members, who conduct internal audits throughout the Company's business operations as well as internal control audits that cover the status of compliance and risk management and financial reporting.

Accounting Audits

The Company has appointed Ohtemae Audit Corporation as its accounting auditor. Regular accounting audits and internal control audits of the Company by the auditing firm enhance the effectiveness of the audit system.

Corporate Governance Organization

Internal Control System

Shima Seiki has constructed an internal control system, as stipulated by Japan's Companies Act. In addition to assuring thorough legal compliance, we recognize this system as essential to realize our corporate philosophy and targets by reviewing our operations and reinforcing our corporate structure.
We established a Committee for the Promotion of the Internal Control System and formulated and strive on an ongoing basis to enhance Basic Policies Related to Improvement of the Internal Control System.
In order to ensure the effective functioning of internal control, we have established a Compliance Committee, a Risk Management Committee and an Information Security Committee. Through the activities of these bodies, we endeavor to reinforce our internal control.
With regard to internal control over financial reporting, we have constructed a system to rationally ensure the reliability of financial reporting from the standpoint of protecting investors, and promote fair and impartial disclosure. The Company is also subject to internal control audits by the accounting auditor.


The Shima Seiki Group formulated the Shima Seiki Group Code of Conduct in October 2006. The General Rules pledge the Company's resolution to comply with laws and regulations and corporate ethical standards, and we strive to comply with related statutes and respect social norms.
We have formulated a Compliance Program centered on the Compliance Committee, conducted regular checks on compliance status, and entrenched compliance systematically through induction courses, distribution of case studies and other initiatives. The Company also constructed a framework for audits to be conducted by the Internal Auditing Division.
In addition to these measures, Shima Seiki has introduced internal and external Corporate Ethics Helplines to communicate information about employees found to have violated laws or to have been involved in other serious misconduct, or to report cases of human rights violations, sexual harassment and other improprieties.

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