Sharp has always been a manufacturing- and technology-oriented company. In an effort to further strengthen manufacturing competency, Sharp is committed to improving the speed and quality of managerial decisions. Our business activities are limited to the development, production and sale of products and devices, which have a strong interrelation and require high expertise. This enables our directors, who are highly adept at our business, to make swift and accurate management decisions through the mutual exchange of ideas. It also serves to clarify reciprocal managerial responsibilities and promote mutual supervisory functions.

We are also striving to preserve transparency, objectivity and soundness in management together with realizing appropriate management. From the viewpoint of increasing our consideration of shareholders and corporate social responsibility, we have appointed outside directors with an international and multi-faceted perspective, including regarding compliance, on wide-ranging issues such as the social and economic environment, and the future direction of Sharp. In doing so, we have strengthened the decision-making functions within the Board of Directors and the functions for supervising directors’ execution of duties.

We have also introduced the Executive Officer System, thereby creating a structure that steadily facilitates nimble, efficient business execution.

Sharp has taken these measures to further strengthen the current Director/Corporate Auditor System, which allows management and manufacturing divisions to work together very closely, enabling the business to expand. Sharp works to enhance its corporate governance through this system.

Sharp strives to achieve timely and accurate disclosure of information to all stakeholders, such as shareholders and investors, and is increasing the transparency of management by widely publicizing information.

The Board of Directors Meetings of Sharp Corporation are held on a monthly basis in principle to make decisions on matters stipulated by law and management-related matters of importance, and to supervise the state of business execution. To improve management agility and flexibility, and to clarify the responsibilities of the company management during each accounting period, the term of office for members of the Board of Directors is set at one year. As advisory bodies to the Board of Directors, the Company has established an Internal Control Committee, a Nominating Committee and a Compensation Committee.

To strengthen the decision-making functions within the Board of Directors and the functions for supervising directors’ execution of duties, the Company appointed outside directors. The outside directors serve as members of the Nominating Committee and the Compensation Committee, as well as the Special Committee that forms part of the takeover defense plan. The Company also introduced the Executive Officer System to carry out swift and efficient business execution, and to maximize the functions of the Board of Directors by optimizing the number of members.

In addition to the Board of Directors, the Company has an Executive Management Committee, where matters of importance related to corporate management and business operation are discussed and reported twice a month in principle. This committee facilitates prompt executive decision-making.

The Board of Corporate Auditors is composed of four corporate auditors, three of whom are outside corporate auditors with a high degree of independence. Each corporate auditor meets regularly with the representative directors, the directors, the executive officers, the accounting auditors, the head of the Internal Audit Division and others to exchange opinions and work to ensure that business is executed legally, appropriately and efficiently.