Corporate Governance |
IDEC Corporate Governance Policy
The basis of the IDEC Group’s corporate governance is to ensure management transparency and effectiveness for the sake of shareholders and other stakeholders. For this reason, we assign outside directors and separate the management supervisory function from the executive function so as to always maintain a high priority on transparency and effectiveness.
Guided by these principles, we formulated and issued the IDEC Corporate Governance Policy to improve our corporate value in line with “The IDEC Way.” We are taking action under this policy to further strengthen our governance practices so that we can govern our company more effectively.
Tax Policy
The IDEC Group has established the “IDEC Group Code of Conduct” as a specific guideline for action based on “The IDEC Way,” our philosophy for striving to become a true global corporation, and is working to raise compliance awareness throughout the entire Group. This “Tax Policy” is established as a basic policy to properly understand the tax laws and regulations of the countries and regions where we conduct our business activities, and to fulfill the appropriate tax obligations. By complying with the laws and regulations applied in each country and region and carrying out highly transparent tax processing, we will contribute to the growth of various countries and regions and support the enhancement of our corporate value.
Tax compliance
We will comply with the tax-related laws and regulations of the countries and regions where we conduct our business activities, carry out highly transparent tax processing, and appropriately fulfill our tax obligations.
Tax governance
The Accounting Executive Officer will be responsible for the governance system related to taxes, and the Accounting Division will work to implement efficient tax governance while promoting information sharing with the Accounting Divisions of each Group company.
Tax planning
We will not use tax havens for the purpose of intentional tax avoidance. In cases where tax haven countermeasures are applied with consideration for the tax systems of individual countries or regions, we will properly declare and pay taxes.
Tax risk management
We will strive to minimize tax risks by consulting with outside experts and using systems for making prior inquiries to tax authorities.
Transfer pricing tax systems
We will conduct transactions with foreign affiliated parties using arm's length prices with consideration for the transfer pricing tax systems of each country, and will prepare appropriate transfer pricing documents based on the transfer pricing tax systems of each country.
Relationships with tax authorities
We will respond sincerely to requests from tax authorities and will strive to build and maintain sound relationships.
Policy for cross-shareholding
In the interest of maintaining its financial health, the IDEC Group does not, in principle, hold shares in other companies except when there is a rationale for doing so.
A rationale for cross-shareholding exists when the Board of Directors has decided that a particular case of cross-shareholding promises to increase the IDEC Group’s corporate value by realizing synergies and improving both sides’ competitive advantages in the market. Such decisions must be based on a validation of the profitability of the cross-shareholding relationship that duly examines the risks, costs, and returns involved from a medium to long-term perspective, and must comprehensively consider the intended aims, such as maintaining and strengthening a business relationship or establishing a capital or business alliance.
Furthermore, the company regularly validates the significance of existing cross-shareholdings in light of various criteria, including the purpose of holding those shares. If a particular case of cross-shareholding is determined to be inappropriate, the shares are sold off after taking into account diverse considerations such as the impact on the company and the market, and the issuer’s financial strategy.
We do not engage in inappropriate practices with cross-shareholders such as continuing or reducing transactions, or impeding the sale of stocks based on the fact that we maintain those cross-shareholdings.
Moreover in the exercise of voting rights in relation to cross-shareholdings, the company makes comprehensive decisions to vote in favor or opposition, taking into account various factors including whether the company in question has established an appropriate governance structure and is making decisions leading to the medium to long-term enhancement of corporate value, and whether a matter will contribute to the improved corporate value of the IDEC Group.