Group Governance

The Hirata Group consists of Hirata Corporation and 12 Group companies. Based on three businesses—automotive- and semiconductor-related equipment and other automatic labor-saving equipment—the Group is developing its businesses at bases in North America, Europe, Southeast Asia, China and Taiwan.

Having established a Basic Policy for Establishing an Internal Control System, the Board of Directors is working to strengthen Group controls.

In addition to monitoring the execution of duties by management at Group companies, directors and Audit and Supervisory Board members dispatched or appointed by the Company are working to strengthen Group controls. They ensure that the Company is involved in important decision-making and that, on the basis of affiliated company management regulations, serious matters such as compliance violations are reported to the Company.

Forming part of our efforts to strengthen risk management and promote compliance, the most recent (from fiscal 2020 onwards) major initiatives in Group control have included: the setting up a whistleblower hotline for overseas Group companies; the issuing of a No Harassment Declaration, the establishment of a Risk Management Committee; and the conducting of reviews of our credit management systems and rules.

To enhance the synergies within the entire Group, we hold Group company debriefings on a regular basis (every quarter for domestic affiliates, every six months for overseas affiliates), share business strategies and issues, while monitoring performance as appropriate.

In terms of audits, audits of Group companies are conducted by Audit and Supervisory Board members, and we also regularly hold Group Company Auditor Liaison Meetings. We are increasing the effectiveness of audits of the corporate group by sharing the audit status and risk-related matters of each Group company. The Internal Audit Department also conducts audits of Group companies on a regular basis and reports to the Board of Directors and the Audit and Supervisory Board in a timely manner.


Approach to Cross-shareholdings

In working to maintain medium- to long-term relationships and expand transactions with its business partners, the Company’s basic policy is to hold only those stocks that contribute to the enhancement of its corporate value.

Verification of Cross-shareholding Suitability

In line with the basic policy, verification of aspects such as the benefits and risks associated with the holdings and whether to continue with them is undertaken at Board of Directors’ meetings. The Company shall consider selling shareholdings that are judged to have low rationality.

Criteria for Exercising Voting Rights Relating to Cross-shareholdings

With regard to the voting rights relating to the shareholdings, these will be exercised in an appropriate manner with the sustainable growth of the issuing company as an evaluation criterion and on the premise that they will contribute to the improvement of the Company’s corporate value.