Mitsubishi 2006 Annual Report Download - page 43

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MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
Corporate Governance
쎱Efficient 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 director
level. Maintenance and improvement of management
efficiency through regular confirmation by MMC direc-
tors of status of operations under their watch. Achieve-
ment of business goals.
•Integration of command hierarchies to expedite deci-
sion-making processes. Efficient execution of directo-
rial duties through improved internal communications
and the development of systems to facilitate efficient
organizational function and operational execution.
쎱Information management and storage
•Appropriate management of important information
related to key decisions and execution of duties (in-
cluding minutes of the General Meeting of Sharehold-
ers and meetings of the Board of Directors, business
plans, investment plans, and product plans).
•Maintenance and proper operation of information
security controls.
쎱Ensuring the proper execution of group-wide
business operations
•Clarification of responsibilities and authority for sub-
sidiaries and affiliates through the establishment of
clear rules governing the management of such com-
panies 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, to-
gether with regular monitoring and evaluation.
쎱Statutory auditors
•Attendance at all important meetings (including Board
of Directors and managing directors meetings).
Regular exchanges of views with the president of MMC.
Links with internal auditing groups and independent
auditors. Proper decision-making oversight and effi-
cient 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 statu-
tory auditors prior to implementing any personnel
changes at the office and having the statutory audi-
tors conduct personnel evaluations of staff members.
2. Cooperation Between Statutory Auditors,
Internal Audit Departments and
Independent Auditors
To strengthen cooperation, the statutory auditors regu-
larly exchange information with independent auditors
and MMC’s internal audit departments, the Internal Audit
Department and the Quality Audit Department.
In fiscal year 2005, the statutory auditors held a total
of 8 meetings with independent auditors to hear presen-
tations on auditing systems, related plans and the status
of financial audits. These meetings also provided an op-
portunity 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 Internal Audit
Department at these meetings, which were also attended
by independent auditors to facilitate the effective ex-
change of information. In addition, quarterly 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, 2006)
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