As Tokki pursues transparency in corporate management and fair business practices through sound power delegation with a thorough awareness of compliance issues, we see the trust of our stakeholders as the most crucial element of business development. The healthy coordination activities between the board of directors and corporate officers, and the strengthening of Tokki's management monitoring system with the board of auditors, both work to provide Tokki will excellent corporate governance.

For the sake of quick and accurate decision-making and clearly delineated responsibilities, Tokki has set a term of one year for directors. In addition to clarifying responsibility for results during each director's term, this system is also designed to make it possible for Tokki to respond flexibly to changes in the business environment.

The selection of a director candidate and compensation after the new director assumes office are both decisions that are determined through deliberation by the board of directors. In the same way, the selection of an auditor candidate and the auditor's compensation are determined through deliberation by the board of auditors.

Tokki has introduced a system of corporate officers to enable the implementation of the board of director's decisions without delay.

Tokki has also entered into an advisory contract with a law firm in order to receive legal advice.