Notice on Establishing the Audit and Supervisory Committee


The 23rd Ordinary General Shareholders’ Meeting, held today, has resolved to establish the Audit and Supervisory Committee transitioning ES NETWORKS CO., LTD. from a Company with a Board of Corporate Auditors. The reasons are detailed as below.

1. The first reason is to increase the transparency of the management of ES NETWORKS. The newly founded Audit and Supervisory Committee will consist of Outside Directors as the majority and will audit and supervise legality and lawfulness of the activities of the Company. The establishment of the Committee is intended to build in the governance of the Company to enhance the openness of its management.

The other aim of creating the Audit and Supervisory Committee is to allow our board members to make decisions faster. In this new arrangement, some of the authority, vested in the Board of Directors over the execution of operations of the Company, will be delegated to an individual Board Director. The Board Director, under the supervision of the Board, can better focus on his/her assigned responsibilities and make a swift decision and execute it.

2. Please note that with establishing the Audit and Supervisory Committee, the Board Directors are also appointed and notified separately.