Corporate Governance

Basic Philosophy

Valuence Holdings Inc. aims to create a world where each person can “live true to yourself,” by offering value that will change the lives of all our stakeholders. In doing so, the company aims to achieve prosperity together with society at large, and at the same time achieve sustainable growth and maximize the corporate value of the company. The company has established a Basic Policy on Corporate Governance based on the belief that ensuring fair, transparent, and vitalized management are the keys to corporate governance. Through the enhancement of corporate governance, the company aims to enhance its corporate value on a sustainable and medium- to long-term basis.


Corporate Governance Report

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Corporate Governance Structure

The company has adopted the structure of a company with an Audit and Supervisory Committee. By establishing a General Meeting of Shareholders, a Board of Directors, an Audit and Supervisory Committee, a financial statement auditor, and an Executive Management Committee whose function is the daily execution of business operations, the company ensures sound, efficient management via coordination among these institutions. The company has also established a nomination and remuneration committee as a voluntary advisory body to the board of directors to further enhance corporate governance.

Corporate Governance Structure

Corporate Institutions

Board of Directors

The company’s board of directors is composed of ten members: six directors who are not members of the Audit and Supervisory Committee, of which three are outside directors, and four directors who are members of the Audit and Supervisory Committee, of which three are outside directors. Of the total, five directors are independent outside directors, thus making up a majority of the board’s members.
The board meets regularly once per month, as well as in special board meetings convened as necessary. The board supervises business operations and makes important management decisions, including company policies and business strategy. Directors who are Audit and Supervisory Committee members attend all board of director meetings to audit the state of business execution by the directors.

Directors Profile

Audit and Supervisory Committee

The company’s Audit and Supervisory Committee consists of four members, of which three are outside directors. In principle, this committee meets once each month. In addition, the committee exchanges information and opinions with the financial statement auditors and Internal Audit Office as necessary, working to substantially improve audits.

Directors Profile

Executive Management Meeting

In order to speed up and improve the efficiency of business execution, the company holds, in principle, two meetings of the Executive Management Meeting each month. This meeting is comprised of directors (excluding non-executive directors) and executive officers to formulate business strategies, check progress, and share issues between departments. The executive management meeting functions effectively as an entity for directing and communicating important business matters, as well as in promoting a unified awareness organization-wide. The director who is a full-time member of the Audit and Supervisory Committee attends all meetings of the Executive Management Meeting, striving to grasp the situations within the company as well as risks.

Nomination and Compensation Committee

The company has established the Nomination and Compensation Committee as an optional advisory body to the board of directors. The Nomination and Compensation Committee consists of the representative director, and three outside directors to improve fairness, transparency, and objectiveness of the procedures relating to the nomination and compensation, etc. of directors and strive to enhance corporate governance.


Status of Internal Control Systems

The company has established an Internal Controls System Basic Policy. This policy defines a system of internal controls established by the board of directors. The Company has also found other internal rules to ensure transparent and fair business practices. The company rigorously enforces these policies and rules. As a structure for verifying that the internal controls system functions properly and generates the intended results, in addition to reviews by the boards of directors, the internal controls system is reviewed periodically to ensure that systems are developed and enhanced to ensure internal cohesiveness and control groupwide and to respond adequately to external risks.


Status of Risk Management Structure

To manage risk, the company has established a permanent Risk Management Committee chaired by the director responsible for administration at company headquarters. This committee is intended to safeguard against risks posing significant potential to impact company business and to act promptly and judiciously to minimize damage in the event of an actual crisis or emergency, thereby contributing to the effective management of business operations. The Risk Management Committee is also intended to implement comprehensive risk identification and assessment of all risks, potential or actual.
The Risk Management Committee is composed of officers and employees designated by its chairperson. It gathers and analyzes risk information for the group as well as serves as a forum for comprehensive risk management. Each department head is responsible for day-to-day risk management in the department’s operations. In the event of an emergency, this individual is responsible for taking initial action to limit damage and for reporting immediately to the Legal Division (home to the Risk Management Committee) with detailed information on the nature of the emergency and actions taken. As a corporate entity, the company understands the imperative nature of legal and regulatory compliance. The company has established rules governing compliance and has taken steps to ensure familiarity with these rules by all officers and employees. The rules require officers and employees to comply with laws, public order, social norms, industry self-regulation, ethics, and morals. The company also requires the company, officers, and employees to act in accordance with those rules as demanded by customers, business partners, shareholders, nations, general citizens, and other interested parties with whom the company has relationships.
The company is a business operator handling personal information as defined under the Act on the Protection of Personal Information and a certified Privacy Mark Entity. The company understands that the leakage or other disclosure of personal information collected and retained by the company has a direct impact on the confidence society places in its organization. Accordingly, the company has designated a personal information protection manager and a Specific Personal Information manager within the company. The company has also established a personal information management system in compliance with JIS Q 15001:2006. This system is managed and operated by the PMS Office.

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