Transition to a Company with an Audit and Supervisory Committee

Chubu Electric Power resolved in its Board of Directors meetings held today a policy to transition from its current “company with a board of company auditors” system to a “company with an audit and supervisory committee.” The transition will be made under the condition that it be approved in the 100th General Meeting of Shareholders, the hosting of which is scheduled in June 2024.

1. Objective of the transition

Chubu Electric Power is committed to delivering safe, affordable, and stable energy with consideration for the global environment, and contributing to the sustainable development of local communities and society by creating new value that enriches the lives of customers.
Aiming to become a corporate group that continues to grow with customers and society, Chubu Electric Power has also endeavored to enhance its corporate governance.
Amid a drastic change in the environment surrounding Chubu Electric Power, balancing agile decision-making and a higher level of governance is taking on greater importance. Achieving this would require a further separation between the business execution and supervision fronts.
Transitioning to a company with an audit and supervisory committee will allow for a significant and flexible delegation of business execution authority from the Board of Directors to the directors, and this is expected to enhance the agility and speed of decision-making related to business execution. At the same time, the transition will allow for strengthening the Board of Directors’ focused reviews on management policies and strategy establishments, as well as the function of supervising business execution.
Moreover, audit and supervisory committee members gaining a voting right on the Board of Directors would further strengthen the effectiveness of auditing and supervisory functions.

2. Timing of the transition

The transition is planned to be made after obtaining an approval on a required amendment of articles of association in the 100th General Meeting of Shareholders, scheduled to be hosted in June 2024.

3. Others

The details of the amendment to the articles of association and personnel of executive officers, related to the transition to a company with an audit and supervisory committee, will be announced as soon as they are decided.