KAITEKI Value for Tomorrow

Corporate Governance

Basic Approach to Corporate Governance

Under its holding company, LSII, the Life Science Institute, Inc. (LSII) Group engages in healthcare solution-related business activities centered on its subsidiary, the API Corporation. LSII also establishes Group-wide strategies, optimizes the allocation of corporate resources and oversees business operations.

The LSII Group views decision making, ensuring efficient and swift execution of business, clarification of management accountability, compliance and enhanced risk management as top-priority corporate governance issues, aiming to further increase corporate value.

The basic corporate governance structure of the LSII Group is shown in the figure below. Our Executive Officer system helps us proceed with separate management and execution roles, codify the authority of respective positions and decision-making bodies in company regulations (including the Board of Directors) and efficiently and appropriately engage in company management decision making and execution tasks.

Corporate Governance Structure

Corporate Governance Structure Image

Roles and Responsibilities of Each Organization

Board of Directors

In principle, the Board of Directors meets once a month, making decisions on important management topics and basic group management topics based on the Board of Directors Regulations and other relevant regulations, as well as overseeing execution of Director duties. Also, Directors serve for a period of one year to build a management framework capable of swiftly handling any changes in management environment, and to further clarify management accountability and the role of each Director. Directors are selected for their ability and capacity to implement the management philosophy of the LSII Group and fulfill social responsibilities. The Board of Directors selects appropriate candidates, then appoints Directors after a resolution is passed at the general shareholders meeting.

Management Committee

The Management Committee is a group that assists the President in decision making, discussing important matters such as LSII and the LSII Group investment and lending. Aside from matters for discussion, important management items are executed after a resolution is passed among the Board of Directors. The Management Committee consists of the President, the head of the Business Division, the Director in charge of the Common Functional Division and the representatives of operating companies.

Auditor

An Auditor is appointed as the auditing authority at LSII. The Auditor participates in the Board of Directors and other important conferences, verifies the content of reports from Directors, etc., conducts audits of the company's business and assets and reviews the execution of Director functions. The Auditor also exchanges ideas on the status and results of respective audits with the Accounting Auditor, maintaining close collaboration in audit activities.

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