As its basic policy on corporate governance, AGC Group clearly separates the functions of "oversight" and "execution" of management, aiming to reinforce the management oversight function while ensuring quick decision-making in management execution. The management oversight function is mainly shouldered by the Board of Directors, which is a "body that approves basic policies and oversees the management of the Group." We have enhanced the objectivity and transparency of management and strengthened our corporate governance system by appointing three Outside Directors, out of seven Directors in total. Aiming to further strengthen the management oversight function, the Company established the Nominating Committee and the Compensation Committee, as voluntary advisory committees of the Board of Directors. The majority of members of both committees are Outside Directors. The Company also adopts the Corporate Auditor system, and the Board of Corporate Auditors consists of four Corporate Auditors, including three Outside Corporate Auditors.
The management execution function is assumed by the President & CEO and the other Executive Officers. The Company also established the Management Committee as an advisory committee for the President & CEO, and it deliberates on decision making for the Group's management and oversees the business management. With regard to the execution of business operations, the AGC Group introduced the In-House Company system; adopted a globally integrated management system; and transferred significant responsibility and authority for the execution of business operations to each In-House Company and SBUs.