Global
Shareholders and investors have made the practical and effective functioning of internal control into a key issue amidst an epidemic of corporate misconduct in Japan and overseas. In this section, Capcom will explain the corporate governance structure and systems that it has initiated so far based on the key concepts of "effectiveness and visibility" in terms of the results of third party assessment.
(Assessment areas are highlighted in yellow.)
Corporate Governance Report (PDF: 1.07MB/69pages)
Capcom's basic policy for Japan's Corporate Governance Code (PDF: 728KB/49 pages)
How the Company has Addressed All 78 Principles of the Corporate Governance Code
- Structure and
Initiatives - External Directors
- Third-Party
Assessment - Information on Shareholdings
- Internal Control
Compliance - Information Security
Information on shareholdings
(1) Policy and standard for investment securities classes
Regarding investment securities held for purposes other than pure investment, Capcom maintains holdings as deemed appropriate, having comprehensively considered their merits and demerits from a medium- to long-term perspective, in order to strengthen and deepen ongoing business relationships and determine if they will contribute to improving future relationships or building sustainable corporate value, while also eliminating such practices as conventional cross holdings or personal favoritism.
(2) Investment securities held for purposes other than pure investment
A. Method for verifying the policy and rationale for holdings as well as the results of verification carried out at board of directors meetings, etc., regarding the suitability of individual securities
Based upon the nature and monetary amount of business transactions, the board of directors considers the business merits and strategic significance of maintaining or developing a business relationship with the company in question while regularly assessing and verifying the long-term outlook and counterbalance of risk versus return to the cost of capital from a medium- to long-term perspective.
As a result of this, should it be judged that there is poor economic rationale for continuing to hold a given security due to the book value falling more than 50%, or the value of the company in question being dramatically damaged, we will carry out discussions with said company and either reduce or completely sell off our holdings in the stock at an appropriate time after having given due consideration to economic conditions and the profit and loss accompanying a trade.
B. Number of securities and amount on balance sheet
| Number of securities (stock listings) |
Balance sheet amount total (million yen) |
|
|---|---|---|
| Privately owned company | - | - |
| Other companies | 3 | 375 |
| Number of securities (stock listings) |
Total acquisition cost related to increase in securities holdings (million yen) | Reason for increase in securities holdings | |
|---|---|---|---|
| Privately owned company | - | - | - |
| Other companies | 1 | 14 | In order to participate in the issuer's shareholders' meeting |
| Number of securities (stock listings) |
Total amount realized related to decrease in securities holdings (million yen) | |
|---|---|---|
| Privately owned company | - | - |
| Other companies | - | - |
C. Information on the number of shares and amounts recorded on the balance sheet for each specified investment security and deemed holdings securities
| Stock name | FY2019 | FY2018 | Purpose of holding | Capcom shareholders |
|---|---|---|---|---|
| Number of shares (shares) | Number of shares (shares) | |||
| Balance sheet amount (million yen) | Balance sheet amount (million yen) | |||
| Mitsubishi UFJ Financial Group, Inc. | 466,630.00 | 466,630.00 | Maintaining favorable business relationship with issuer | Yes |
| 188 | 256 | |||
| AEON MALL Co., Ltd. | 100,625.18 | 91,962.65 | Maintaining favorable business relationship with issuer | No |
| 137 | 167 | |||
| Mizuho Financial Group, Inc. | 408,700.00 | 408,700.00 | Maintaining favorable business relationship with issuer | Yes |
| 50 | 70 |
Note
It is difficult to list the quantitative effects of holdings. Capcom has verified the rationale for its holdings through examining factors such as the purpose of holdings, the economic rationale and the status of business transactions.
| Stock name | FY2019 | FY2018 | Purpose of holding | Capcom shareholders |
|---|---|---|---|---|
| Number of shares (shares) | Number of shares (shares) | |||
| Balance sheet amount (million yen) | Balance sheet amount (million yen) | |||
| - | - | - | - | - |
| - | - |
(3) Investment securities for pure investment
| Class | FY2019 | FY2018 | ||
|---|---|---|---|---|
| Number of shares (stock listings) |
Balance sheet amount total (million yen) |
Number of shares (stock listings) |
Balance sheet amount total (million yen) |
|
| Privately owned company | 4 | 0 | 5 | 8 |
| Other companies | - | - | - | - |
| Class | FY2019 | ||
|---|---|---|---|
| Total dividends received (million yen) |
Total gain or loss on sales of investment securities (million yen) |
Total unrealized gain or loss on investment securities (million yen) |
|
| Privately owned company | 0 | (4) | - |
| Other companies | - | - | - |
*Note: Acknowledging that unlisted securities have no market price, thus making it extremely difficult to ascertain their current value, we have not included a total unrealized gain or loss on investment securities.
(4) Investment securities whose purpose for holding has changed from pure investment to a different purpose during the current fiscal year
| Stock name | Number of shares (shares) | Balance sheet amount (million yen) |
|---|---|---|
| - | - | - |
(5) Investment securities whose purpose for holding has changed to pure investment during the current fiscal year
| Stock name | Number of shares (shares) | Balance sheet amount (million yen) |
|---|---|---|
| - | - | - |
