Sony is continuously strengthening its corporate governance system, recognizing that sound corporate governance is extremely important in operating the company effectively, efficiently, and in a way that increases corporate value over the mid- to long-term. To achieve this, Sony approaches its corporate governance through two basic precepts:
(i) The Board of Directors, on which a significant majority of the members are independent outside Directors, focuses on effective oversight of management's operation of the business, including through the activities of the Nominating, Audit and Compensation committees, and maintains a sound and transparent governance framework.
(ii) The Board of Directors determines the fundamental management policies of Sony Group and other material matters and also delegates to each of the Corporate Executive Officers decision-making authority to conduct business operations of Sony Group broadly in line with their respective responsibilities as defined by the Board of Directors, thereby promoting efficient decision-making of Sony Group in a timely manner.
In furtherance of these efforts, in 2003 Sony adopted the "Company with Three Committees" corporate governance system under the Companies Act of Japan. Since then, in addition to complying with the requirements of applicable corporate governance laws and regulations, Sony has introduced its own requirements to help improve and maintain the soundness and transparency of its governance by strengthening the separation of the Directors' function from that of management; maintaining the proper size of the Board, which enables the members of the Board to actively contribute to discussion; and advancing the proper functioning of the statutory committees.
The Mid-Term Corporate Strategy for the Sony Group, which was approved by the Board and announced in February 2015, is available at the following URL: