Minutes of Committee Meetings

4th Meeting: Compliance Advisory Committee

1. Date and time

September 27, 2005 (Tue) 13:00 - 16:00

2. Location

Main Office Conference Room, Mitsubishi Estate

3. Attendees (titles omitted)

Committee Chairman Iwao Taka [Professor, School of Economics and Business Administration, Reitaku University]
Committee Members (in Japanese alphabetical order)

One Akiyama [President, IntegreX Inc.]

Toshiko Katayama [Lawyer, Katayama, Kuroki and Hiraizumi Law Office]

Kakutaro Kitashiro [Former president and chief executive officer, IBM Japan, Ltd. Former chairman, Japan Association of Corporate Executives]

Kenji Koroyasu [Lawyer, Tokyo Eiwa Attorneys at Law. Former superintending prosecutor, Osaka High Public Prosecutors' Office]

Attendees from the company

Keiji Kimura [President & CEO]

Nobuyuki Iizuka [Executive vice-president/corporate officer in charge of Compliance]

Seiichiro Suzuki [Senior executive officer/officer in charge of CSR Promotion]

Executive Committee CSR Department

4. Deliberations (summary)

The Executive Committee explained the following issues to committee members and an exchange of ideas was held.

(1) The OAP Incident

  • It was explained that the company was conducting an internal investigation into the OAP Incident and that a report would be provided once it was ready.

(2) The formulation of guidelines for the sale of residential buildings

  • An explanation was given about the Investigative Committee for the Explanation of Important Matters which was started by the head office of the Residential Business. The approach of widely communicating even information that clients might consider negative was also explained.
  • Committee members expressed a certain level of approval for this initiative.
  • Committee members then pointed out the following and made the following recommendations.
    • Actively disclosing information that clients may consider negative is important for the sustainable development of the company.
    • Explanations should be given to clients in a way they can understand, which means a system to facilitate the provision of such explanations is essential. Consideration should be given to concrete plans that take the viewpoint of clients into account such as checks by parties outside the company.
    • Along with the preparation of a manual, the company's sense of values based on viewing matters in the client's position should be reflected in the structure instead of being left solely to the individual's mindset. This is necessary in order for those in charge of development and individuals responsible for marketing to share that sense of values.
    • It is important to share information between parent companies and subsidiaries, as well as to reform the mindsets of subsidiaries and parent companies which may inhibit that process.

(3) Revising the Code of Conduct

  • The course of action for the revision of the Basic Mission and the principles for action were explained.
  • The reform proposal was positively evaluated for its easy-to-disseminate ideas.
  • It was explained that more detailed Guidelines for Conduct would be considered in the future.