The company places corporate governance as one of the important management issues in order to ensure transparency, soundness, and efficiency of our management. For corporate governance to function effectively, we believe we need to foster a sound corporate culture based on our corporate philosophy and develop a mechanism in which corporate management (and managers) are governed by such a culture. Equally important is to ensure that auditing is conducted properly by improving the auditing environment and expanding the role of the audit and supervisory board members.
To realize sustainable growth and a mid- to long-term enhancement of corporate value, we have established the Corporate Governance Guidelines, which set forth the Tadano Group's basic approach to corporate governance.

Comprised of nine directors, including five outside directors, Tadano's Board of Directors develops and executes management plans and strategies with the goal of maximizing the company's corporate value and making improvements such as in earning capabilities and asset efficiency. The board also establishes an internal control system and a risk management system to support appropriate risks taken by directors as a part of management decisions, thereby properly fulfilling its role and responsibilities.

Composed of five audit and supervisory board members including three outside audit and supervisory board members, the Audit and Supervisory Board maintains a system which allows audit and supervisory board members to audit business execution of directors by exercising their authority and appropriate judgment from an objective perspective based on the high level of expertise and information held by each audit and supervisory board member.

The Monthly Management Briefing (members: directors, executive officers, and audit and supervisory board members) is held to report on business activities and to share information, while the Management Meeting (members: president, and managing executive officers and above, etc.) is convened to discuss management strategies. These advisory committee meetings are held in general once a month to assist the president's decision-making.

This Committee is comprised of eight members: two internal directors, five outside directors, and one outside audit and supervisory board member. Serving as an advisory body for the Board of Directors, the Committee discusses the nomination of directors and audit and supervisory board members and the appointment of executive officers, as well as decisions concerning remuneration for directors and succession plans, and reports the details of the discussion to the Board of Directors with the goal of ensuring fairness and transparency. In addition, as an advisory body for the president and CEO, the Committee discusses and reports to the president and CEO decisions concerning remuneration for executive officers with the goal of ensuring fairness and transparency.

The Risk Committee promotes and supervises the management of Tadano Group's business risks. The goal of the Risk Committee is to enhance the company's risk management capabilities. Comprised of the chair designated by the president and members representing each division at the general manager level or above, the Committee meets biannually to identify and evaluate internal risks, implement solutions by assigning each risk to a department, and to conduct reviews on the results.

The Executive Officers' Meeting (members: president and executive officers) is held as a rule twice a month to facilitate business execution by executive officers and to enhance collaboration among executive officers.

Article 34 of the Corporate Governance Guidelines stipulates matters concerning evaluation of effectiveness of the Board of Directors.
In FY 2023, questionnaires on the evaluation of the Board of Directors were collected from all 14 directors and audit and supervisory board members. Based on the analysis and discussion of the results from these questionnaires, the Board of Directors concluded that the mechanism of Board of Directors Meetings is appropriate in composition, role, and operation, and that outside directors are contributing to the effectiveness in the series of discussions, including Board of Directors Meetings. As such, the company confirms that the effectiveness of the Board of Directors is adequately ensured.
In response to the issues identified in last year's evaluation of effectiveness, we have made progress in some areas, such as discussions on Board diversity, our Mid-Term Management Plan and succession planning, and initiatives for sustainability and risk management, through off-site meetings, and will continue to make improvements. From this fiscal year, we will make an annual plan to further improve and realize an even more effective Board of Directors.

In keeping with the Tadano Group CSR Charter and the Tadano Group Compliance Regulations, all employees of the Tadano Group engage in transparent, sound, and honest business activities in compliance with relevant laws and regulations and social norms, as well as high ethical standards.
To promote compliance, the Chief Compliance Officer designated by the president takes charge of the overall compliance system of the Tadano Group and supervises compliance policies. The Compliance Officer appointed by each group company takes charge of matters concerning each company's compliance system. We also have the Compliance Committee, consisting of members representing each division of Tadano at the general manager level or above.

The Compliance Committee meets twice a year, shares and discusses compliance issues, and makes reports on the activities of group companies. The Committee also raises awareness of compliance through education and trainings on regulatory compliance using educational tools and other materials, and strengthens the compliance system by providing assistance such as for implementation of regulatory compliance measures.

The Tadano Group Compliance Regulations were established in January 2019 to ensure that all officers and employees of the Tadano Group continuously engage in proper compliance practices (meaning compliance not only with laws and regulations, but also rules of international community, internal rules, and corporate ethics). The regulations set forth the codes of conduct for 18 items, including anti-bribery and corruption, labor rights, and proper accounting and tax return filing, as well as compliance education and auditing.

Promoting compliance

Internal reporting system