Corporate GovernanceCorporate Governance of the Company
Basic principles
The Company is committed to strengthening and enhancing the corporate governance based on our corporate principles and management vision, in order to achieve asound and sustainable growth and a medium- to long-term improvement of the corporate value, while considering profits of all stakeholders related to the Company
including the shareholders, customers, regional society, and employees.
1.	The Company strives to establish an appropriate corporate governance framework while the Board of Directors, the Audit and Supervisory Committee, and Directorsrecognize the fiduciary responsibility to the shareholders.
2.	The Company strives to ensure the appropriateness of the business executions and the effectiveness of audits and supervision by measures such as determining
management policies and execution of important duties through adequate discussion in the Board of Directors and accurate execution of duties by Directors involved in
the execution of business, alongside audits by the Board of Directors, audits by the Audit and Supervisory Committee, and appropriate maintenance and operation of
the internal control system based on laws and regulations such as the Companies Act.
3.	The Company is committed to establishing the environment where the rights of shareholders are respected and properly executed, constructive dialogue is made withshareholders, and active disclosure is made for corporate information including non-financial statements, etc., as well as ensuring the real equality of shareholders.

Corporate governance framework
The Company has adopted the form of a company with an Audit and Supervisory Committee as its organizational design pursuant to the Companies Act.
Since voting rights at the Board of Directors are granted to Directors serving as Audit and Supervisory Committee Members at a company with an Audit andSupervisory Committee, highly effective audit and supervisory system over the Board of Directors and Directors has been secured.
In addition, since companies with an audit and supervisory committee can delegate a part of the authority of the Board of Directors to directors pursuant to provisionsof the Companies Act, the matters submitted to the Board of Directors are narrowed down to highly important proposals, deliberations on major proposals such as
strategy at the Board of Directors are enhanced, and leading to prompt management decision-making of the Company is ensured.
Also, to ensure mobility in management decision-making, the Company has established “Group Management Meeting,” which comprises Four Executive Directors,
including the President, and discusses matters delegated by the Board of Directors.
With regard to items such as risk management, which are important for conducting proper corporate activities, the Company has established various kinds ofcommittee structures as advisory bodies of the Group Management Meeting to discuss such items flexibly.

Corporate governance framework

Instruction/ManagementGrou p co mpa n ies
Shareholders’ General Meeting
Election/Dismissal

Board ofDirectors

Audit/Supervision

Disclosure/Explanation

Audit and Supervisory Committee

Advisory/
Response

The Chugoku BankThe Chugin Credit Guarantee/
The Chugin Operation Center/CBS

The Chugin Lease

Nominating andCompensation Committee

Chugin Securities

Group Management
Meeting

Advisory

Committees:Group Compliance Committee

Consultation/Report

Audit & Supervisory
Committee Office

Audit

Instruction/
ReportGroup ALM Committee
Group Risk Management Committee and others

Corporate Administration
Department

Sustainability Promotion
Department

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CHUGIN FINANCIAL GROUP, INC.

Human Resources
Strategy Department

D&I NEXT10 Promotion
Department

Chugin Asset Management

SETONOWA
Audit

Audit & InspectionDepartment

Corporate Planning
Department

The Chugin Card

Group Business
Strategy Department

Chugin Capital Partners
Chugin Energy
Audit

Chugin Human Innovations

Secretariat
C Cube Consulting