Update : Jul. 11, 2006
1. Resolution with respect to the Basic Policy on Establishment of Internal Control System
The new Corporation Law (Law) came into force on May 1, 2006, and, pursuant to the provisions of Law, Tokyo Stock Exchange, Inc. (TSE) has made a resolution on the "Basic Policy on Establishment of Internal Control System" at the board meeting held on May 16, 2006, the first of its kind since the enforcement of Law.
According to Law, TSE categorizes the policy into the following nine items:
- Structure and procedures to ensure that performance of duties of the board members and employees comply with the law and Articles of Incorporation,
- Structure and procedures with respect to preservation and administration of information regarding the board members' performance of their duties,
- Rules and other structure and procedures with respect to controlling risk of loss,
- Structure and procedures to ensure that the board members will perform their duties efficiently,
- Structure and procedures to ensure appropriateness of business operations by the corporate group comprising TSE and its parent and subsidiaries,
- Matters regarding employee(s) in the case where the auditor requests to hire employee(s) who will support the auditor's duties,
- Matters regarding independence from the board members of employee(s) who support(s) auditor(s),
- Structure and procedures for board members and employees to report to auditors and other structure and procedures regarding reports to auditors, and
- Other structure and procedures to ensure that audit by auditor(s) will be conducted effectively.
TSE has already implemented these matters except items 6, 7, 8, and 9.
Based on the basic policy, TSE continuously strives to improve and strengthen its internal control system and environment.
2. The 5th Annual General Meeting of Shareholders
At the board meeting held on May 16, 2006 TSE made a resolution that the 5th annual general meeting of shareholders will be held at 10:00, on Thursday, June 22nd of this year.
The major agenda includes a proposal of appropriation of net profit and appointments of board members.