Mitsubishi 2007 Annual Report Download - page 36

MITSUBISHI MOTORS CORPORATION Annual Report 2007
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Efficient organizational function and
operational execution
• Promotion of task execution based on specific
goals established by each division in line with
company-wide business plans.
• Clarification of leadership through appointment of
senior managers at operational divisions to direc-
tor level. Maintenance and improvement of man-
agement efficiency through regular confirmation
by MMC directors of status of operations under
their watch. Achievement of business goals.
• Integration of command hierarchies to expedite
decision-making processes. Efficient execution of
directorial duties through improved internal com-
munications and the development of systems to
facilitate efficient organizational function and op-
erational execution.
Information management and storage
• Appropriate management of important information
related to key decisions and execution of duties
(including minutes of the General Meeting of
Shareholders and meetings of the Board of Direc-
tors, business plans, investment plans, and prod-
uct plans).
• Maintenance and proper operation of information
security controls.
Ensuring the proper execution of group-
wide business operations
• Clarification of responsibilities and authority for
subsidiaries and affiliates through the establishment
of clear rules governing the management of such
companies by the corresponding parent company
division with primary supervisory responsibility.
• Ensure the proper execution of group-wide business
operations through formulation of rules governing
the supervision of subsidiaries’ management cycles,
together with regular monitoring and evaluation.
Statutory auditors
• Attendance at all important meetings (including
Board of Directors and managing directors meet-
ings). Regular exchanges of views with the presi-
dent of MMC. Links with internal auditing groups
and independent auditors. Proper decision-mak-
ing oversight and efficient audit operations.
• Establishment of the Office of Statutory Auditors
and assignment of dedicated staff.
• Precautions taken to ensure the independence of
statutory auditors’ staff, including consulting the
statutory auditors prior to implementing any per-
sonnel changes at the office and having the statu-
tory auditors conduct personnel evaluations of staff
members.
2. Cooperation Between Statutory Auditors,
Internal Audit Departments and
Independent Auditors
To strengthen cooperation, the statutory auditors
regularly exchange information with independent
auditors and MMC’s internal audit departments, the
Internal Audit Department and the Quality Audit
Department.
In fiscal year 2006, the statutory auditors held a
total of 15 meetings with independent auditors to hear
presentations on auditing systems, related plans and
the status of financial audits. These meetings also
provided an opportunity for the statutory auditors to
explain the status of their audits and related plans.
Meetings were held with the Internal Audit Depart-
ment during the year to discuss the results of monthly
internal audits of MMC and its subsidiaries around
the world. The statutory auditors provided feedback
on the status of their auditing activities to the Inter-
nal Audit Department at these meetings, which were
also attended by independent auditors to facilitate the
effective exchange of information. In addition, quar-
terly meetings held with the Quality Audit Department
focused on the results of quality assurance audits.
3. Relationships With Outside Directors and
Statutory Auditors (as of June 30, 2007)
No conflicts of interest exist between MMC and any
of the outside directors or statutory auditors.
Outside Mikio Chairman, Mitsubishi
directors Sasaki Corporation
(main MMC shareholder)
Hidetoshi Chairman, Shimadzu
Yajima Corporation
(MMC business partner)
Outside Shigemitsu Chairman, The Bank of
statutory Miki Tokyo-Mitsubishi UFJ, Ltd.
auditors (major MMC shareholder)
Hiroshi Managing Director,
Kan Mitsubishi Heavy Industries, Ltd.
(main MMC shareholder)
Yukio Representative Director,
Okamoto Okamoto Associates (no trading
relationship at present)